PERSPECTIVES
What's up in the world of streaming?
On Tuesday, NBCUniversal announced the name of its upcoming streaming service: Peacock. The service, which is scheduled to launch in April, will join a competitive field of new players in the space, including Disney+ and Apple TV+, as well as incumbents, such as Netflix and Amazon Prime. As updates continue to pour out about services, shows, and subscription prices, what are the macro trends that we should be on the lookout for?
- “The old business of media, in which content was supported by advertising, is no longer really the business. New media giants have mostly abandoned advertising and are using creative content to sell you something else. … This is the business almost every new media company is in. Even Disney is selling you on something else: merchandise, theme parks, cruises, etc. Those that are still in the advertising game—Google and Facebook—are there because they figured out a way to reinvent and dominate that market.” - Dylan Byers, senior media reporter at NBC News (Byers Market)
- “The subset [of streaming services] I subscribe to is still way cheaper than cable. The UX on these apps is 10x better than cable. Competition has led to better programming across the board. Eventually the lesser of these services will be culled and the content re-bundled.” - Casey Newton, Silicon Valley editor at The Verge (Twitter)
- “In this market, services that are distinctive and different will stand out. … Purpose and values matter today more than ever, as people pick and choose services for ethical reasons as much as economic ones.” - Tony Hall, director-general of the BBC (The Guardian)
- “The key here isn't how much Netflix paid (it was more than Friends or The Office recently went for), it's who sold it: Sony. The only companies willing to work with Netflix are the ones without their own streaming platforms. … Streamers are discovering that cord-cutters care most about the shows they'll watch over and over again—aka sitcoms. Netflix lost U.S. subscribers last quarter because its new shows didn't land. Now it's searching for a ‘loyalty leader’—a show that keeps you hooked to your subscription.” - Robinhood Snacks newsletter (Link)
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