The Financial Times reported that Apple has committed to spend $6 billion on original TV shows and movies for its upcoming Apple TV+ service, which will launch in November. That’s up from the $1 billion it was reportedly budgeting just 2 years ago. The increase no doubt reflects the hard reality that has set in at Apple about what it’s going to cost to compete, rather than just dip its toe in the SVOD water.
Included in the budget is a $300 million commitment for 20 episodes of “The Morning Show” with Jennifer Aniston, Reese Witherspoon and Steve Carrell (working out to $15 million per episode). Bloomberg separately reported the monthly price will be $9.99, above the introductory $6.99 per month Disney+ price but below Netflix’s $12.99 per month price. Though Apple teased a number of its upcoming shows at its big March media event, it didn’t reveal anything on pricing.
I’m pleased to present the 479th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.
Q2 was a very tough quarter for pay-TV operators, with cord-cutting soaring to a record level. This week we dive into the numbers and discuss why things have changed so dramatically since Q2 ’18. Then we transition to the Viacom-CBS deal, which was formally announced this week. Colin sees substantial upside, leveraging Pluto TV, which Viacom acquired earlier this year.
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Cord-cutting surged to a record in Q2 ’19, with pay-TV providers that account for 93% of the industry losing just over 1.5 million subscribers, according to Leichtman Research Group. The loss is up from 420K in Q2 ’18. As usual, satellite providers were responsible for the majority of the losses, with DirecTV losing 778K subscribers in the quarter and Dish losing 79K. The combined drop was nearly double the 480K lost in Q2 ’18.
The biggest seven cable TV operators lost a combined 455K subscribers in Q2 ’19 compared to a loss of 275K a year ago.
Topics: Leichtman Research Group
I’m pleased to present the 478th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.
We lead off this week discussing Roku’s strong Q2 ’19 results, including a 36% increase in player unit sales, which the company said was the highest in the growth in the past nine quarters. The results bucked industry research from Parks that Colin and I were just expressing surprise at on last week's podcast, which said streaming media player sales were leveling off. On top of brisk player sales, Roku continues to dramatically expand its platform revenues, which include ad sales and OS licensing.
Data from Conviva and Pixability this week provides additional evidence of connected TV’s rising viewing share. Finally this week, we explore the dynamics behind a recent Comcast Spotlight report showing TV usage increasing.
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Click here to listen to the podcast (21 minutes, 44 seconds)
Video ad spending remains strong on the biggest social platforms, while connected TVs are gaining, according to a new Pixability survey of ad agency executives. 90% of agencies are running video ad campaigns on Facebook, followed by 88% on YouTube and Instagram. Hulu was fourth with 80%. Roku was at 58%, ahead of Twitter (42%) and Snapchat (36%). Amazon Fire TV lagged at 27%. Linear TV is used by 76% of ad executives surveyed.
All platforms look poised for continued success with 63% of agency executives saying they’ll increase video ad spending in 2020 by 1-10%, and another 20% saying they'll increase spending by over 10%.
Streaming video hours were up 130% in Q2 ’19 vs. Q2 ’18 according to Conviva’s new State of the Streaming TV Industry report. Connected TVs led with 143% growth, followed by mobile (up 109%) and PC (up 75%). CTVs also led with 28.8 minutes of watch time per play, followed by PC with 15.1 minutes and mobile with 12 minutes.
Overall, CTVs accounted for 54% of all viewing hours in Q2 ’19, followed by mobile (23%), PC (14%) and others (8%). Roku continues to dominate the CTV category, with 43% of time viewing. Fire TV was a distant second at 18%, followed by Apple TV at 10% and Xbox at 9%. Roku also had the highest year-over-year growth rate in viewing hours, at 173%, with Fire TV next at 145%, and then Apple TV at 129%.
I’m pleased to present the 477th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.
Colin and I were both following new industry data out this week. First, Parks Associates shared insights on the streaming media player market, which surprised both of us as having essentially flatlined since last year, with Roku and Amazon now having 70% combined market share. By contrast, Colin notes that recent comScore data showed smart TV sales continuing to grow strongly.
Then we shift to reviewing data from a new global survey released by Limelight Networks, showing the U.S. leading 8 other countries with 42% daily streaming and downloading activity. The survey also revealed that nearly 82% of 26-35 year old respondents are streaming or downloading on a weekly basis.
We also provide a little commentary upfront on AT&T’s plan to drop the DirecTV Now name, since we just speculated on AT&T’s video plans on last week’s podcast.
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With services such as Netflix being viewed over 70 percent of the time on connected televisions (CTVs), when a media buyer thinks of over-the-top (OTT) their first thought is not usually mobile or laptop-first. But the truth is, OTT can come in many shapes and sizes and merely represents how a piece of video is delivered. With viewing trends shifting so drastically, should the size of the screen really matter? Many viewers are shifting their consumption habits of live, linear and VOD television content to devices they can access whenever, and wherever. A study by Deloitte Insights, showed mobile-first viewers consume a comparatively large portion of long-form video on their smartphones, almost three times the average streamer. With TV being made available everywhere, mobile OTT has become a new norm.
Categories: Mobile Video