Category: Strategy

Super Aggregation Key to MVPDs’ Success in Next Decade

Rapid TV News | Sep 22, 2023

MVPDs must become super aggregators to secure their role in the streaming market. A Caretta Research report encourages cloud-native, open architectures and AI for success by 2030, such as intelligent bundling and deep linking for improved consumer experience.MVPDs must become super aggregators to secure their role in the streaming market. A Caretta Research report encourages cloud-native, open architectures and AI for success by 2030, such as intelligent bundling and deep linking for improved consumer experience.

Insiders Are Skeptical About Disney CEO Bob Iger’s Chances to Sell ABC

TV News Check | Sep 22, 2023

Insiders emphasize that no banker has been hired and no sales book is circulating. As for Nexstar, the TV conglomerate isn’t in a good position to pay what Disney would likely be asking for ABC, according to sources close to the situation.Insiders emphasize that no banker has been hired and no sales book is circulating. As for Nexstar, the TV conglomerate isn’t in a good position to pay what Disney would likely be asking for ABC, according to sources close to the situation.

Disney Asset Sales Won’t Break the Bank, But They Will Move Legacy Media Forward

TV News Check | Sep 20, 2023

“Disney almost has a good bank and a bad bank at this point,” Wells Fargo analyst Steven Cahall said in a CNBC interview. “Streaming is its future. It’s its strongest asset, next to the parks. The linear business is something Disney has clearly signaled is going to be in decline. They’re not looking to necessarily protect it. If they can move some of that lower, negative-growth business off of the books and to a better, more logical operator, we think that’s good for the stock.””Disney almost has a good bank and a bad bank at this point,” Wells Fargo analyst Steven Cahall said in a CNBC interview. “Streaming is its future. It’s its strongest asset, next to the parks. The linear business is something Disney has clearly signaled is going to be in decline. They’re not looking to necessarily protect it. If they can move some of that lower, negative-growth business off of the books and to a better, more logical operator, we think that’s good for the stock.”

Hollywood is Paying a Steep Price for Never Really Figuring Out the Streaming Model

TV News Check | Sep 20, 2023

Writers and actors rallied for better wages and protections as media companies fought to compete with Netflix, cutting costs and jobs. Netflix alone has made a profit from its subscription-based streaming model due to high licensing fees and low revenues per subscriber, making legacy media companies focus on advertising and raising prices.Writers and actors rallied for better wages and protections as media companies fought to compete with Netflix, cutting costs and jobs. Netflix alone has made a profit from its subscription-based streaming model due to high licensing fees and low revenues per subscriber, making legacy media companies focus on advertising and raising prices.

In TV’s Wild West, Which Channels Will Be Dropped Next?

TV News Check | Sep 20, 2023

Other Wall Street experts echoed the notion that the distributor’s decision not to carry eight smaller TV networks anymore, among them Freeform, Disney Junior, FXM, FXX and Nat Geo Wild, will likely be replicated in other carriage pacts because this seems to suit the age of streaming and cord-cutting.Other Wall Street experts echoed the notion that the distributor’s decision not to carry eight smaller TV networks anymore, among them Freeform, Disney Junior, FXM, FXX and Nat Geo Wild, will likely be replicated in other carriage pacts because this seems to suit the age of streaming and cord-cutting.

Hollywood is Paying a Steep Price for Never Really Figuring Out the Streaming Model

CNBC | Sep 18, 2023

“Netflix understood finally, because of the Street, that subscriber numbers don’t mean jack, if the economics don’t pencil out,” said Peter Csathy, founder and chair of advisory firm Creative Media. Even the pay TV bundle, despite rampant cord cutting by consumers, remains a reliable source of revenue.”Netflix understood finally, because of the Street, that subscriber numbers don’t mean jack, if the economics don’t pencil out,” said Peter Csathy, founder and chair of advisory firm Creative Media. Even the pay TV bundle, despite rampant cord cutting by consumers, remains a reliable source of revenue.

Apple’s Expanding Ad Ambitions: a Closer Look At Its Journey Toward a Comprehensive Ad Tech Stack

Digiday | Sep 18, 2023

Apple is looking to grow its ad tech business by developing a DSP, SSP and ad exchange, hiring 40 senior roles for this purpose. Privacy policies will be a priority, with Apple partnering only with companies that meet its criteria. The project is still in the works but could create more revenue for the company.Apple is looking to grow its ad tech business by developing a DSP, SSP and ad exchange, hiring 40 senior roles for this purpose. Privacy policies will be a priority, with Apple partnering only with companies that meet its criteria. The project is still in the works but could create more revenue for the company.

Amazon Demands 30% Share of Ad Revenue From TV Networks’ Apps

Broadband TV News | Sep 17, 2023

Broadcasters are criticizing Amazon for demanding 30% ad revenue from Fire TV apps, and asking the government to require pre-downloading and featuring of their apps on FireTV, Google Chromecast etc. They fear this could set a precedent for larger market players.Broadcasters are criticizing Amazon for demanding 30% ad revenue from Fire TV apps, and asking the government to require pre-downloading and featuring of their apps on FireTV, Google Chromecast etc. They fear this could set a precedent for larger market players.

Amazon Demands 30% Share of Ad Revenue From TV Networks’ Apps

Broadband TV News | Sep 17, 2023

Charter-Disney Winners and Losers

Stratechery by Ben Thompson | Sep 12, 2023

Charter got the leverage they wanted by gaining an increase in ESPN affiliate fees, access to Disney’s streaming services, and flexibility to offer bundles without ESPN. Disney won a rate increase and minimum penetration guarantee for ESPN, plus retail rates for their streaming services. Both sides will profit from this agreement, allowing Charter to bundle streaming services while Disney gains revenue and expands their digital footprint.Charter got the leverage they wanted by gaining an increase in ESPN affiliate fees, access to Disney’s streaming services, and flexibility to offer bundles without ESPN. Disney won a rate increase and minimum penetration guarantee for ESPN, plus retail rates for their streaming services. Both sides will profit from this agreement, allowing Charter to bundle streaming services while Disney gains revenue and expands their digital footprint.

Disney and Charter Avoided Breaking the Pay TV Bundle. is That Good?

The Hollywood Reporter | Sep 12, 2023

The Disney-Charter deal created a new template for pay TV, forcing Disney to give up “double-dipping”. Companies will focus on streaming while cutting back linear programs, and invest in streaming content with ad tiers included in cable packages.The Disney-Charter deal created a new template for pay TV, forcing Disney to give up “double-dipping”. Companies will focus on streaming while cutting back linear programs, and invest in streaming content with ad tiers included in cable packages.

Disney-Charter Deal May Worsen the Core Problem with Cable TV

nScreenMedia | Sep 12, 2023

Charter has agreed a new deal with Disney, including Spectrum TV Select package, lower minimums and eight of Disney’s less popular channels dropped. Charter is seeking more sustainable value delivery models, highlighting ESPN’s cost in the bundle. However, higher license fees may still be passed on to subscribers.Charter has agreed a new deal with Disney, including Spectrum TV Select package, lower minimums and eight of Disney’s less popular channels dropped. Charter is seeking more sustainable value delivery models, highlighting ESPN’s cost in the bundle. However, higher license fees may still be passed on to subscribers.

Disney’s Projected Numbers for Disney+ Subscribers and DTC Profitability Are in Jeopardy

Dan Rayburn | Sep 9, 2023

Disney must rethink subscriber growth and profitability targets in order to meet the 2024 projection. New plans and tactics may not suffice. Strategies such as raising prices and cracking down on password-sharing could further hinder growth. It is recommended that revised subscriber numbers and timelines for profitability be established.Disney must rethink subscriber growth and profitability targets in order to meet the 2024 projection. New plans and tactics may not suffice. Strategies such as raising prices and cracking down on password-sharing could further hinder growth. It is recommended that revised subscriber numbers and timelines for profitability be established.

Should Disney “Cave” to Charter, Maximizing Revenue in Streaming Transition?

TVREV | Sep 9, 2023

Disney is in a battle with Charter over keeping US sports on cable, leading to a 3.2% stock drop. Analysts believe investors will look past this crisis for long-term success despite other issues. Disney needs to decide whether to focus on redesigning media or give in to Charter’s demands.Disney is in a battle with Charter over keeping US sports on cable, leading to a 3.2% stock drop. Analysts believe investors will look past this crisis for long-term success despite other issues. Disney needs to decide whether to focus on redesigning media or give in to Charter’s demands.

State Governors Call on Disney and Spectrum to Cut a New Carriage Deal

The Hollywood Reporter | Sep 8, 2023

Charter Spectrum and Disney dispute leaves 1.5 million TV customers without service, resulting in refunds from the Department of Public Service and demands for refunds. Despite pressure, Charter is willing to continue without Disney content if necessary. Billions of dollars are at stake, potentially impacting legacy TV business. Governors urge resolution.Charter Spectrum and Disney dispute leaves 1.5 million TV customers without service, resulting in refunds from the Department of Public Service and demands for refunds. Despite pressure, Charter is willing to continue without Disney content if necessary. Billions of dollars are at stake, potentially impacting legacy TV business. Governors urge resolution.

S&P: Disney’s Charter Dispute Could Cost it $2.2B+ in Lost Annual Revenue

Tv Technology | Sep 7, 2023

They also estimate that the price that Charter is paying for the 17 Disney-owned basic cable networks has grown at an average annual rate of 6.7% from 2019 to 2023, making the 2023 fees 29.6% higher than the 2019 fees.“ESPN is the highest-priced network in our database at an estimated cost of $9.42 per subscriber per month,”They also estimate that the price that Charter is paying for the 17 Disney-owned basic cable networks has grown at an average annual rate of 6.7% from 2019 to 2023, making the 2023 fees 29.6% higher than the 2019 fees.“ESPN is the highest-priced network in our database at an estimated cost of $9.42 per subscriber per month,”

Iger, Chapek and the Making of an Epic Succession Mess

TV News Check | Sep 6, 2023

Bob Iger chose Bob Chapek in 2020 as his successor due to business aptitude, but their relationship later deteriorated & Iger returned in 2022 with changed management. His decision mirrored Michael Eisner’s failure and was corroborated by board approval of Iger’s 15-year success record.Bob Iger chose Bob Chapek in 2020 as his successor due to business aptitude, but their relationship later deteriorated & Iger returned in 2022 with changed management. His decision mirrored Michael Eisner’s failure and was corroborated by board approval of Iger’s 15-year success record.

Netflix Eyes Expanded Presence in Gaming, Local Language Content Globally

The Hollywood Reporter | Sep 5, 2023

Netflix co-CEO Greg Peters announced plans to continue increasing content spending, investing in local programming, expanding into gaming and offering a wider range of prices. Netflix has an advantage with its strong content, partners and payments.Netflix co-CEO Greg Peters announced plans to continue increasing content spending, investing in local programming, expanding into gaming and offering a wider range of prices. Netflix has an advantage with its strong content, partners and payments.

Tipping Point? How the Disney-Charter Showdown Could Impact Pay TV Overall

The Hollywood Reporter | Sep 5, 2023

MoffettNathanson also noted that the Disney-Charter war of words sounded much more serious than past standoffs. “While this was initially viewed as another example of a carriage dispute ahead of football season, it is clear at this point that this is not a typical blackout,” they argued. “Charter seems genuinely willing to walk away from Disney, and even the entire linear video model, if necessary.”MoffettNathanson also noted that the Disney-Charter war of words sounded much more serious than past standoffs. “While this was initially viewed as another example of a carriage dispute ahead of football season, it is clear at this point that this is not a typical blackout,” they argued. “Charter seems genuinely willing to walk away from Disney, and even the entire linear video model, if necessary.”

The Rise and Fall of ESPN’s Leverage

Stratechery by Ben Thompson | Sep 5, 2023

ESPN was created when Bill Rasmussen discovered cheaper access to satellite TV, allowing him to broadcast NCAA games with Anheuser-Busch sponsorship. As streaming services became popular, IPTV allowed ESPN to raise prices. Disney and Charter are now in a dispute over affiliate fees, with the former’s negotiation power weakened. Initially, ESPN used exclusive content to increase subscriber fees, but competition from streaming services has changed the game. Long-term success relies on bundling valuable entertainment with cable providers.ESPN was created when Bill Rasmussen discovered cheaper access to satellite TV, allowing him to broadcast NCAA games with Anheuser-Busch sponsorship. As streaming services became popular, IPTV allowed ESPN to raise prices. Disney and Charter are now in a dispute over affiliate fees, with the former’s negotiation power weakened. Initially, ESPN used exclusive content to increase subscriber fees, but competition from streaming services has changed the game. Long-term success relies on bundling valuable entertainment with cable providers.

Twitter, TV and the Future of Social Media as a ‘Second Screen’

Adnews | Sep 5, 2023

Social media platforms such as Instagram, TikTok and Twitter are used as ‘second screens’ to engage with TV viewers. Brands use these channels to generate user content, gain insights and interact in real-time, while creating an engaging and social experience around shows. Real-time sports conversations are especially popular, as users discuss episodes with others after their linear audiences decrease. Despite the move to streaming and on-demand viewing, social media provides knowledge, engagement and a collective experience for fans.Social media platforms such as Instagram, TikTok and Twitter are used as ‘second screens’ to engage with TV viewers. Brands use these channels to generate user content, gain insights and interact in real-time, while creating an engaging and social experience around shows. Real-time sports conversations are especially popular, as users discuss episodes with others after their linear audiences decrease. Despite the move to streaming and on-demand viewing, social media provides knowledge, engagement and a collective experience for fans.

Netflix’s Sports Streaming Strategy is to Stick with Documentaries

Fortune | Sep 4, 2023

Netflix is tapping into the interest of sports fans by creating docu-series instead of buying expensive live broadcast rights. Popular series such as Drive to Survive and Break Point have seen increasing viewership, giving Netflix greater bargaining power and a long-term strategy for profiting from sports interests. Future sports series are expected to expand this genre further.Netflix is tapping into the interest of sports fans by creating docu-series instead of buying expensive live broadcast rights. Popular series such as Drive to Survive and Break Point have seen increasing viewership, giving Netflix greater bargaining power and a long-term strategy for profiting from sports interests. Future sports series are expected to expand this genre further.

Disney’s New Boss Sounds a Lot Like the Old Boss

The Information | Sep 3, 2023

Bob Chapek, former CEO of Disney, wanted to focus on direct-to-consumer business and merge digital and in-person entertainment. His vision didn’t last long as Robert Iger replaced him, saying that TV may not be core to the future.Bob Chapek, former CEO of Disney, wanted to focus on direct-to-consumer business and merge digital and in-person entertainment. His vision didn’t last long as Robert Iger replaced him, saying that TV may not be core to the future.

Is Content King?

Thierry Fautier on LinkedIn | Sep 3, 2023

Content is king when considering ROI, with Disney+, MAX, Paramount+ and Netflix taking the top four spots for highest investment. Netflix remains ahead of Amazon in profitability despite its head start.Content is king when considering ROI, with Disney+, MAX, Paramount+ and Netflix taking the top four spots for highest investment. Netflix remains ahead of Amazon in profitability despite its head start.

Generative AI and Intellectual Property

Essays | Sep 1, 2023

AI is creating intellectual property disputes, with no clear answers. OpenAI uses patterns from collective human intelligence and this can include your work, though it only makes up a fraction of the model that isn’t kept or shared.AI is creating intellectual property disputes, with no clear answers. OpenAI uses patterns from collective human intelligence and this can include your work, though it only makes up a fraction of the model that isn’t kept or shared.