Gillmor Gang: TV Clubhouse - Tech Podcast
The Evolving Landscape of Streaming and Congressional Interest
Currently, much discussion centers on the competitive dynamics within the streaming industry, prompting attention from the U.S. Congress. The success of platforms like Netflix in reshaping traditional Hollywood production and advertising models has provided consumers with an unprecedented range of viewing options.
Senator Warren's Proposal and the Amazon-MGM Acquisition
Senator Elizabeth Warren is advocating for a tax on high-net-worth individuals to help finance aspects of the infrastructure bill, utilizing the Democrat-only reconciliation process. She is leveraging Amazon’s acquisition of MGM as a focal point, suggesting the deal could potentially limit competition and reduce consumer choice.
The Shift from Audience Building to Subscriber Retention
Streaming services are now transitioning their focus from simply attracting viewers to securing long-term paying subscribers. Netflix currently leads the market with a substantial audience and significant investment in original content.
Changes in Free Trial Periods
Apple TV+ has adjusted its free trial offering, shortening it from one year with a new device purchase to just three months. This change reflects a need to convert trial users into paying customers. Similarly, promotional deals between Disney+ and Verizon Wireless are expiring as Disney navigates the financial impacts of the pandemic and the costs associated with transitioning acquired properties to streaming.
Consolidation Among Media Companies
Other established media companies are striving to achieve comparable scale. Comcast acquired NBC and Universal Studios, while CBS and Viacom merged to integrate broadcast, cable networks, and Paramount studios, now operating as Paramount+. Furthermore, Discovery absorbed WarnerMedia’s assets after AT&T decided to prioritize investment in 5G technology.
The Rise of Ad-Supported Streaming
Ad-supported streaming models may prove to be particularly impactful. Despite some subscriber fatigue and budget constraints, viewers are often receptive to advertisements when offered at a reduced subscription price.
HBO Max's Hybrid Approach
Comcast is implementing this strategy with HBO Max, bundling the streaming service with basic cable packages that include the premium HBO channel. The simultaneous release of feature films in theaters and on HBO Max throughout 2021 proved successful in attracting new subscribers, though this approach may be adjusted as theaters fully reopen.
The Changing Role of Theatrical Releases
While blockbuster films continue to perform well in cinemas, smaller, independent films are gaining recognition through streaming platforms. The pandemic-era rule allowing films to qualify for awards without a theatrical run has been extended, influencing the industry’s approach to distribution.
WarnerMedia's Strategic Shift
WarnerMedia’s decision to release films simultaneously in theaters and on HBO Max sparked controversy, but CEO Jason Kilar’s strategy may have foreshadowed future trends. The subsequent merger with Discovery resulted in a change in leadership, with David Zaslav taking the helm.
The Creator Economy and New Engagement Models
The creator economy is flourishing, with new services emerging across social networks. Apple’s iOS 15 notification features and newsletter platforms are empowering users to curate personalized media experiences.
Personalized Notifications and Social Interaction
These tools facilitate the sharing of show alerts and encourage conversations, mirroring the “watercooler” effect. Social audio platforms like Clubhouse are connecting creators and fans, fostering a more interactive environment.
The Potential for Advertising within the Creator Ecosystem
Advertisers are increasingly sponsoring these streams, expanding the reach of hybrid subscription and ad-supported services.
Source Information
from the Gillmor Gang Newsletter
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The Gillmor Gang — Frank Radice, Michael Markman, Keith Teare, Denis Pombriant, Brent Leary and Steve Gillmor. Recorded live Friday, June 18, 2021.
Produced and directed by Tina Chase Gillmor @tinagillmor
@fradice, @mickeleh, @denispombriant, @kteare, @brentleary, @stevegillmor, @gillmorgang
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