The “Streaming Wars” will dramatically escalate in late 2019 and early 2020, with the launch of Disney+, HBO Max, and Apple TV+ into the competition for consumer eyeballs and wallets.
But there’s a narrative that needs to be challenged. It goes something like this: SVOD is a zero-sum game, where a subscription to one SVOD service represents a subscription lost to another.
In this narrative, a Disney+ that scales up significantly in subscribers and viewing hours means a significant displacement of subscribers and viewing hours from Netflix.
Let’s address this narrative below with the following 4 points.
When consumer value…
In this article, we will:
In an industry where “nobody knows anything” when predicting hits or flops, is it better to make a few giant bets, like focusing on a handful of mega-franchises, or a lot of smaller bets, like producing hundreds of low-to-medium budget originals? With the record-shattering performance of Disney’s Avengers: Endgame, everyone seems to want to emulate the mega-franchise business model of the Mouse House.
In this article, I’ll go over:
The number of U.S households without pay-TV increased from 14 million (13% of U.S) in 2010 to 26 million (21% of U.S) in 2018. Even more worrying, the average hours that consumers spend on pay-TV each day has fallen dramatically from 2013 to 2018, as shown on the chart below. The fall is particularly severe for the younger demographics (decreases of 59% and 56% for ages 12–17 and 18–24 respectively), who represent the future of video consumption. The conclusion here is as sobering as it is inescapable: traditional pay-TV is steadily losing its relevance in people’s lives.
Here are some…
Background: At Netflix, over 90% of the cost of a piece of content is usually amortized within 4 years of its launch date, in order to reflect how viewership is heavily concentrated in the period immediately after release, followed by a steep drop-off as the months go on.
What is amortization? Simply put, it’s how the cost of a piece of content is spread out across its lifespan. I’ll use an example — let’s say Apple, which is set to launch its own streaming service, spends $10 million with a studio to produce an original series that’ll rest exclusively on…
I’m a thought leader at the intersection of content, technology, and shifting audiences. Currently helping build a retail-connected streaming service @Vudu.