I’m pleased to present the 487th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.
Netflix reported its Q3 ’19 results this week, the last quarter before the onslaught of new SVOD competition begins from Disney+, Apple TV+, HBO Max and Peacock, among others.
In this week’s podcast Colin and I discuss the Q3 results, which were strong internationally and decent in the U.S. (better than Q2 ’19, but still well down from Q2 ’18 and below Netflix’s own forecast). But we focus mainly on where things go from here.
We agree that the days of Netflix’s robust U.S. growth are almost certainly over. But we also think Netflix’s content remains highly competitive and international could continue expanding strongly in the short-term, depending on how quickly Disney+ rolls out to other geographies. In short, there is a lot of uncertainty given all the new choices coming to market.
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Click here to listen to the podcast (24 minutes, 39 seconds)
Netflix investors breathed a sigh of relief after yesterday’s Q3 '19 earnings report. The company missed its subscriber forecast of 7 million subscriber addition, but only narrowly by a few hundred thousand. Netflix added 500K subscribers in the U.S. vs. its 800K forecast. That was a far better performance than Q2 when it lost 130K subscribers in the U.S. Internationally Netflix gained 6.3 million subscribers, basically in line with the 6.2 million it forecast.
The U.S. miss was blamed mainly on an elevated churn rate that Netflix said hasn’t normalized since rate increases went into effect earlier this year. The good news is the higher rates translated into 16.5% increase in average revenue per unit in Q3.
With all the billions of dollars that are being invested in high-quality original TV shows, piracy prevention is becoming more important than ever. Content security is an imperative for video providers to keep valuable assets from being consumed illicitly online. Last Friday, Akamai introduced support for watermarking content to help prevent piracy and to help trace leaks to their source.
I’m pleased to present the 486th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.
Colin and I were both excited to see Hulu launch a mobile video downloading feature this week. Hulu had teased the feature over a year ago. As Colin notes though, because it’s only available with the Hulu (No Ads) service and only on iOS devices, just around 15% of Hulu’s overall subscribers will gain access to downloading (at least for now).
We then discuss reports that Disney doesn’t yet have an agreement with Amazon for its forthcoming Disney+ service to be included in Fire TV devices. The deal is held up due to Amazon’s attempt to wrangle more ad inventory in Disney’s other apps. The situation is typical of the complex and sometimes competitive relationships between big media and technology companies today.
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Click here to listen to the podcast (22 minutes, 25 seconds)
Some marketers hold the misconception that ads on streaming TV can deliver the laser-sharp precision of Facebook combined with the scale of linear TV. Streaming does offer unique advantages, but the medium hasn’t matured enough to beat digital on precision, or traditional TV on scale.
What do we mean by streaming TV?
Over-the-top (OTT) TV is streaming video delivered over the internet, independently of a traditional pay-TV service, irrespective of device. There are subscription-based channels like Netflix, transaction-based channels like Google Play, as well as ad-supported channels like Sony’s Crackle. Hulu blends a couple of those models; you can opt to watch ads or pay for ad-free content. eMarketer forecasts that just over 61 percent of the US population will use OTT services this year.
Hulu announced yesterday that video downloading is now available for its Hulu (No Ads) subscribers. For now the feature will only work with iOS devices, though Hulu said it will be coming soon to Android users. The download feature was first teased at Hulu’s NewFront presentation in May, 2018.
Hulu said at the time that downloading would be available for subscribers to its $5.99/month plan that includes ads. Hulu’s head of ad sales Peter Naylor confirmed in his keynote interview at the VideoNuze Ad Summit this past May that about 70% of its subscribers are on the ad-supported plan. So that means only the 30% taking the Hulu (No Ads) service, which is $11.99/month will be able to use the download feature, at least for now. There was no word on whether downloading will come to Hulu with Live TV, the company’s virtual pay-TV service.
Last week, the WSJ ran two articles that underscore how Disney is navigating new terrain as it prepares to launch Disney+ in November. The articles also showcase how convoluted relationships among major media and technology companies are going to become over fights for shifting leverage.
One article described how Disney has continued to ban advertising from Netflix on its entertainment TV networks (ESPN is still ok) even though it will accept ads from other SVOD providers. The other article described Disney’s negotiations with Amazon over how much ad inventory Amazon should be allocated to sell in Disney’s apps that run on Fire TV. The article noted no deal at all has been reached for Disney+ to be carried on Fire TV, as the SVOD service’s launch date nears.
I’m pleased to present the 485th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.
On this week’s podcast we discuss highlights of a recently released sports and news consumer survey conducted by consulting firm Altman Vilandrie & Company. Catching our attention was how well virtual pay-TV operators are doing with regular sports viewers. This reflects how much emphasis vMVPDs have put on adding sports networks to their packages (and also indicates why their prices are rising).
There was a lot of other interesting data related to sports and news consumption by age, type of sports, different services and more in the survey.
If you’d like to learn more about the full survey results, contact Matt Del Percio at Altman Vilandrie & Company.
Listen in to learn more!
Click here to listen to the podcast (22 minutes, 8 seconds)