Welcome to the blog of Dr. Lisa Burns' Media Studies senior capstone class (2 pm section) at Quinnipiac University. If you're looking for the latest on media industry trends and insightful media analysis, you've come to the right place!
Sunday, January 24, 2021
Media Economics Blog 1, Question 2 (due Tues., Feb. 2nd)
Who will be the big winners – and losers –
of the so-called “streaming wars”? Which companies will dominate and which do
you think will struggle to find audiences over the next two years? Limit: 11 responses
Ashley Shankar After reading a few articles, I believe that in the streaming wars, big streaming services such as Netflix or Disney+ will dominate. This is because, with the coronavirus impacts, I think people are excited for things to go back to normal but they won’t be able to jump back into it. It could take a year to adjust to living like normal. Therefore I think streaming services will still be a hit among people because they grew popular during the pandemic. Also, I believe that if people started to watch something on streaming services, and they release new seasons or episodes of what people were watching in quarantine, people are going to want to continue to watch it. Additionally, using streaming services might be more convenient and cheaper options or alternatives such as bringing a family to the movie theater or attending a live concert and paying for tickets.
In the article "Hollywood's 2021 Investor Forecast Outlined in Analyst Report, it states, “The MoffettNathanson analyst also discussed the state of the streaming wars, arguing that ‘there is a clear hierarchy with Netflix and Disney at the top of the food chain in terms of how quickly they can move and how much they spend on projects.' Their scale and reach give them a unique advantage, as talent is motivated to create content that is still widely seen and talked about''. This is important because it shows how streaming services such as Netflix and Disney+ have lots of content they could produce for audiences. Since they have the content it is easier to keep them engaged now and possibly for the next two years.
The article, “Netflix Tops 200 Million Subscribers Amid Pandemic” states, “Lockdowns around the world helped to significantly boost streaming sign-ups across the board, and Netflix benefitted from the industry’s overall boom, adding more than 36 million subscribers during the year...Disney, NBCUniversal, WarnerMedia, and Discovery all have introduced streaming services where they’re offering high-profile originals and classic hits that once made up the bread-and-butter of Netflix streaming viewership”. This article shows that with the pandemic, Netflix has been thriving through its subscriptions and viewership. Although Netflix is winning the streaming wars now, other companies are also building their streaming services which could negatively impact their audiences within the next two years. I believe Netflix will still have a large audience in two years but, they might have viewership competition with other developing streaming services.
Lastly, the article, “The Streaming Wars Could Finally End in 2021” states, “But in 2021 the industry could see a massive cooling. Everyone will have tried everything and pretty much decided which ones they’re sticking to. Hence the efforts to lay claim to every screen a streaming service can get—and keep them”. This article from December 2020 had predicted in 2021 streaming services will exhaust their audiences. They believe it might be difficult to appeal to new Netflix (or other companies) subscribers because if they hadn’t already signed up during pandemic lockdown then they most likely won't. I believe that audiences over the next two years will then stay the same or decrease depending on the conditions of the pandemic.
Works Cited Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan. 2021, www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic.
Szalai, Georg. “Analyst on Logical NBCU-WarnerMedia Merger.” The Hollywood Reporter, 5 Jan. 2021, www.hollywoodreporter.com/news/hollywoods-2021-investor-forecast-outlined-in-analyst-report.
Watercutter, Angela. “The Streaming Wars Could Finally End in 2021.” Wired, Conde Nast, 14 Dec. 2020, www.wired.com/story/disney-plus-hbo-max-streaming-wars/.
The world is rapidly changing and adapting and Covid-19 was definitely a major factor that changed the way we live our daily lives. Streaming at home became a common habit for me and plenty of other people around the world. Streaming services like Disney+, HBO Max and Netflix were on top of the charts and were in my rotation as well throughout the past year. They have also been preparing for the new year and have some strong competition with each other. Disney is one company that has turned into a streaming company in recent years with the launch of their service Disney+. The service offers old Disney shows and movies while also producing new content. Its theme parks around the world suffered as the virus restricted park goers and it showed in their revenue loss, according to Variety. Disney+ on the other hand has had tremendous success and is planning on releasing a lot of new shows and new movies as the year moves on. This includes the extension of the popular Disney plus original “The Mandolorian”, which I am a huge fan of. The new content includes, at least 6 new Star Wars series and 6 Marvel TV series, (tech radar). This has gained lots of traction and have fans like me very excited for what’s to come from this new content and can hopefully bring in more subscribers. Overall this next phase for Disney+ looks promising and I think they can become a number 1 streaming service. HBO max is another streaming service that was recently created and has gained lots of attention. This new service took over in May and eliminated the confusing trilogy of platforms HBO had with, HBO GO, HBO and HBO NOW. This new streaming service also showed a new style for releasing movies with its dual release of “Wonder Woman 1984” which released on the platform and in theaters. I thought this was a fantastic idea as the pandemic has been keeping almost everyone inside and not able to go to the theaters. The movie was streamed 2.2 million times over its release weekend, which is great, but was surpassed by the animated Disney+ movie “Soul” which had 2.4 million, According to Vulture. Netflix however has taken some interesting steps coming into the new year. Netflix recently had a price increase for users and also had many popular shows including “The Office” taken down off the platform which caused a slight uproar online. Netflix also lost its Marvel movies slowly over the past year as they all went to Disney+. However, Netflix is creating more original films in order to bounce back from this loss in content with big name actors such as, Leonardo DiCaprio, Jennifer Lawrence and more. These streaming services have lots to look forward to this year and personally I cannot wait for it. On top I think Disney+ will be the number 1 streaming service and be a winner in the so called streaming “War”. HBO max is very popular service now and has interesting content and plan for dual releasing movies, I think they will also be up there with Disney+ as winners. For the losers I think Netflix will take a hit in 2021 and will not be a winner of this war, but in fact need help from its original content to carry the platform.
Works Cited Lambrechts, Stephen. “Disney Plus: Best Upcoming TV Shows and Movies.” TechRadar, TechRadar, 18 Jan. 2021, www.techradar.com/news/disney-plus-best-upcoming-tv-shows-and-movies. Lang, Brent. “Disney Quarterly Losses Mount, Even as Company Beats Expectations.” Variety, Variety, 13 Nov. 2020, variety.com/2020/film/news/walt-disney-earnings-coronavirus-disney-plus-1234830544/. Lee, Chris. “Did Wonder Woman 1984 Lasso New Subscribers for HBO Max?” Vulture, Vulture, 6 Jan. 2021, www.vulture.com/2021/01/did-wonder-woman-1984-lasso-new-subscribers-for-hbo-max.html#:~:text=(On the downside, according to,Woman 1984 was streamed in. Szalai, Georg, and Natalie Jarvey. “HBO Max Subscriber Update: AT&T.” The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/hbo-max-subscriber-update.
Katie Dansereau PART 1 The coronavirus pandemic brought massive changes to an already shifting media landscape. Media consumers turned to streaming to view content, which challenged the rapidly growing number of services to compete in growing their number of active subscribers. Despite the difficulties of 2020, streaming services such as Netflix, Disney+, and HBO Max are leading the pack in their number of subscribers and their plans to keep consumers satisfied in the future. Newer services with smaller libraries of content, such as Apple TV+, may struggle to grow their number of paid subscribers once users’ free trial expires.
The article “TV Long View: The Numbers Behind Media Giants’ All-In Streaming Plays” outlined the decision of legacy media companies such as WarnerMedia and Disney to move their 2021 theatrical calendar to their respective streaming services: HBO Max and Disney+. This choice puts the two services in a promising position for acquiring new subscribers, as they will have an influx of new content originally meant for the big screen. Along with it being a practical decision, it shows “that the two media behemoths are all in on the streaming future”, and they’re willing to make significant changes in order to be competitive with other services (Porter). Disney+ has surpassed their original estimates for 2020, with a subscription number that was “more than twice the benchmark for the platform’s first year” as well as a massive projection of 230-260 million subscribers by 2024 (Porter). With this in mind, it is apparent that Disney+ has a bright future in streaming that will only amplify over the next two years.
Netflix has also risen to the occasion according to “Netflix Tops 200 Million Subscribers Amid Pandemic”, with 8.5 million new subscribers in the fourth quarter of 2020 (Jarvey). Much of Netflix’s success can be attributed to new content such as The Queen’s Gambit or Bridgerton, which captivated audiences to the point that they became “some of the most-watched titles in its history” (Jarvey). Along with Netflix’s massive budget, their packed film slate for 2021 puts Netflix in a position to dominate streaming for the near future (Jarvey). However, Netflix will need to continue creating bold content to stay relevant amongst the growing amount of new streaming services that feature “the high-profile originals and classic hits” that Netflix itself used to feature (Jarvey).
In “Apple TV Plus’ Freeloader Problem: 62% of Subscribers Are on Free Offers”, Apple TV Plus’ struggles in terms of its content library, as well as their number of paid subscribers using the service is highlighted. According to the MoffetNathan Q4 2020 SVOD Tracker report, 62% of subscribers said they used Apple TV Plus for free, as a part of the promotion Apple offers to users of their products (Spangler). From those users, only 30% said they would pay for a subscription once their free trial ended (Spangler). Apple TV Plus also has an extremely limited amount of content which hinders their ability to appeal to a wide range of audiences. They offer 55 originals, whereas other services offer thousands of titles to choose from (Spangler). “In sheer tonnage, Apple TV Plus is far below the rest of the SVOD field”, so until they can build up their selection, they will continue to struggle (Spangler). Apple TV Plus will need bolster their content in order to get paying subscribers, and other streaming services will have to create new and compelling content in order to compete with the likes of Netflix, Disney+, and HBO Max.
Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan. 2021, www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic. Porter, Rick. “The Numbers Behind Media Giants' All-In Streaming Plays.” The Hollywood Reporter, 12 Dec. 2020, www.hollywoodreporter.com/live-feed/tv-long-view-the-numbers-behind-media-giants-all-in-streaming- plays. Spangler, Todd. “Apple TV Plus' Freeloader Problem: 62% of Subscribers Are on Free Offers.” Variety, Variety, 22 Jan. 2021, variety.com/2021/digital/news/apple-tv-plus-freeloader-problem-percent-free-1234890385/.
Fiona Doull Professor Burns MSS-495 31 January 2021
Blog 1, Question 2 Due to the vast popularity of streaming services in combination with the COVID-19 pandemic, the perfect storm has been created for users all across the world to subscribe to streaming services and turn to them for a main source of entertainment. One of the greatest hits taken by the pandemic is to the entertainment industry and the fallout on Hollywood. Pressure has since been put on content creators to be continuously exporting content for their subscribers. Although there are many streaming services battling in what is considered to be “streaming wars”, there are some that appear to be dominating the field and will continue to do so, whereas others will likely fall behind and struggle to engage their audiences. According to “Hollywood’s 2021 Investor Forecast Outlined in Analyst Report”, by Georg Szalai, both Netflix and Disney Plus are at the top of the hierarchy of streaming services (Szalai). This mainly comes down to their ability to move and make content quickly as well as being able to afford products, this allows them to reach a large scale and have a unique advantage when it comes to content creation and streaming (Szalai). Based on this information, we can infer that both Disney Plus and Netflix will dominate the streaming wars. If I were to pick one, it would likely be Disney Plus; Disney Plus is almost at 87 million subscribers, with a project of 230-280 million subscribers worldwide by 2024 (Porter). Disney Plus is likely to be Netflix’s biggest competitor, however, it may be difficult to dethrone Netflix from it’s ranks (Porter). Netflix has now surpassed 200 million subscribers amid the pandemic, beating Wall Street’s expectations and doing so while being faced with more competition than ever (Jarvey). In an article titled “The Definitive Ranking of Streaming Services as we Head into 2021” written by Nicole LaPorte, LaPorte names Netflix as the first ranked streaming service calling it the “industry leader by a mile” (LaPorte). LaPorte also discusses series that are exclusive to Netflix such as The Queen's Gambit or Brigerton that have ultimately been very successful amidst their release; this is another aspect of Netflix that adds to its supremacy. The amount of subscribers Netflix gained since the pandemic began was unprecedented but displays how low the chance is for Netflix to waver from being the current champion of the streaming wars (Jarvey).
Although it appears that both Netflix and Disney Plus are likely to dominate streaming wars in the future, my perspective changes when it comes to which will struggle when it comes to finding audiences in the next two years. As we are currently faced with the COVID-19 pandemic, we are all spending more time at home and therefore more time on screens. Once the pandemic ends and our lives return to a somewhat normal, there will be a large demand for live experiences such as concerts, shows and more. Once these opportunities arrive, there will be a “roaring 20s style demand” for normal experiences in which users will possibly ditch the streaming services and immerse themselves in other activities (Jarvey). I think that most, if not all streaming services will struggle once this occurs but the losers will likely be services such as Peacock or Apple TV Plus, that do not hold the same title that a service such as Netflix does. According to the definitive ranking from Nicole LaPorte, she finishes out her list with HBO Max currently in last place (LaPorte). This ranking is mostly due to it’s rough start when it came to their marketing and their relatively high price point of $14.99 (LaPorte). The pandemic has acted in a “powerful force” to the streaming world, not as a rival, and it is possible that users will still use streaming services as much as they do now, however, in my opinion I think all streaming services will have less subscribers post pandemic (Jarvey).
Works Cited Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan. 2021, www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic.
LaPorte, Nicole. “The Definitive Ranking of Streaming Services as We Head into 2021.” Fast Company, Fast Company, 23 Dec. 2020, www.fastcompany.com/90589589/the-definitive-ranking-of-streaming-services-as-we-head-into-2021.
Porter, Rick. “The Numbers Behind Media Giants' All-In Streaming Plays.” The Hollywood Reporter, 12 Dec. 2020, www.hollywoodreporter.com/live-feed/tv-long-view-the-numbers-behind-media-giants-all-in-streaming-plays.
Szalai, Georg. “Analyst on Logical NBCU-WarnerMedia Merger.” The Hollywood Reporter, 5 Jan. 2021, www.hollywoodreporter.com/news/hollywoods-2021-investor-forecast-outlined-in-analyst-report
As early as I can remember, Disney has been alive and thriving in the world I have grown up in. Anyone from my generation would be able to tell you what the opening theme sounds like when a movie/show was about to begin. There are thousands upon thousands of montages on YouTube of children getting surprised by their parents with tickets to Disney World. The characters in the shows have also been role models for children in great and poor communities. However, I don’t think I have seen a takeover like their new addition Disney plus in my entire existence. It began as a little rumor. As time went by, that rumor bloomed and flew into the universe with open wings. As discussed in The Hollywood Reporter TV Long View: The Numbers Behind Media Giants’ All In-Streaming Plays Disney plus has flown and more. “And, having shot past its initial estimates for the number of subscribers to Disney+ — currently at almost 87 million, more than twice the benchmark for the platform's first year — the company is now projecting between 230 million and 260 million subscribers worldwide (including for its newly unveiled Star service outside the U.S.) by 2024.” To put this into perspective, there are around 330 million people living in the US today. This means if their projections are correct, worldwide; they will have more than half of the United States population subscribed in numbers. This all sounds amazing, but looking at the actual numbers helps put it into a true perspective. The article also stated that “Between March and August 2020, U.S. adults spent 12.2 trillion minutes with digital, 11.1 trillion minutes with linear TV and 2.8 trillion minutes streaming.”
Keep in mind this is only between March and August. If this pattern continues, traditional TV might be gone sooner than we think. Another similar streaming service that has been taking full advantage during this lockdown is HBO. According to the article HBO Max reaches 37.7M, Including 17.2M “Activated,” Subscribers things have changed for the good, and fast! HBO’s strategy helped it begin to shoot up late in 2020. According to the article, the movie Wonder Woman 1984 helped bring in more than 41 million subscribers. The business model I see here is simply buying the most classic and entertaining movies and shoving them up into their streaming service. With this in place, the movies do the work themselves. People want to feel the nostalgia and memories from when they first watched/heard about the film. To put the nostalgia assumption to the test, according to HBO and HBO Max, they had 38.0 million subscribers at the end of September. However, at the release of Wonder Woman 1984, they ended up ending the year with 41.5 million subscribers at the end of 2020. With these two powerhouses up and running, I can see a new world/age of entertainment. With streaming dominating, it is easy to see who our loser of this new bloom will be. According to the article Pay-TV Is Dying Faster Than Anyone Expected-Nearly 3M People Cut the Cord in 2018 TV is already on it’s way out. 2018 was one of the worst years for TV since it began. In fact, 2018 was a big turning point for a lot of people when it came to entertainment streaming/watching This is even prevalent for almost the past decade, “TV has seen an exodus of around 10 million paying customers since 2012.” Traditional TV will slowly begin to fade away as streaming platforms continue to gain momentum. As they take away listeners and viewers they are building a throne of wealth and power. The streaming era is as strong as ever, and in my opinion, we are all in good hands.
WORKS CITED
Katz, Brandon. “Pay-TV Is Dying Faster Than Anyone Expected-Nearly 3M People Cut the Cord in 2018.” Observer, Observer, 7 Mar. 2019, observer.com/2019/03/streaming-vs-tv-subscriber-loss-details/#:~:text=Pay%2DTV%20Is%20Dying%20Faster,Cut%20the%20Cord%20in%202018&text=The%20rate%20of%20cord%2Dcutting,Research%20Group%20(per%20Deadline).
Porter, Rick. “The Numbers Behind Media Giants' All-In Streaming Plays.” The Hollywood Reporter, 12 Dec. 2020, www.hollywoodreporter.com/live-feed/tv-long-view-the-numbers-behind-media-giants-all-in-streaming-plays.
Szalai, Georg, and Natalie Jarvey. “HBO Max Subscriber Update: AT&T.” The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/hbo-max-subscriber-update.
In my opinion, the streaming wars are unlikely to produce clear winners or losers for multiple reasons. First of all, the major market players have comparable access to vast funding and enjoy an increasing number of subscribers. For instance, Disney+ expects to boost its number of customers from 87 to 230 million by 2024 (Porter). Another ambitious company, Netflix, attracted 36 million subscribers in 2020 despite more conservative initial expectations (Shaw). Since both streaming platforms are large and valuable companies, they do not struggle to attract investors. Netflix even had an opportunity to borrow funds. Hence, no market player seems to have an apparent competitive advantage or grow at competitors’ expense.
However, such success almost always requires substantial sacrifices. The immense costs of the streaming war raise questions about the long-term sustainability of the business models designed to win it. Ironically, while the big market players win some benefits, they also face losses. For instance, Netflix achieved phenomenal success but had to operate without profits for a long time. It incurred a net loss of $3.3 billion in 2019 and continued to lose money in 2020 (Shaw). Although the situation should improve in 2021, financial and expansion-related problems will not disappear instantly. Netflix had to borrow a lot of money to fund the production of original TV shows and, thus, maintain its competitive advantage and continuing expansion. Interestingly, Netflix experienced such challenges, despite having more than 200 million subscribers (Shaw). In other words, Netflix sacrifices profitability to boost the market share.
Other streaming companies seem to deal with a similar problem. For example, the rising number of subscribers and substantially higher revenues did not prevent Disney+ from facing $580 million operational losses. Unlike Netflix, Disney+ is still a young platform that will only reach profitability in the future (Lang). This example demonstrates it might be difficult or even impossible to attract tens of millions of new customers and generate profits simultaneously. Hence, the streaming war might end without clear winners but with losers that accumulated large debts and failed to generate stable profits. Currently, Netflix, which showed much stronger financial performance in 2020 than Disney+, is more likely to win the war. However, if investors of Disney+ or other streaming platforms decided to invest in production shows, Netflix might have to boost spending again and lose its financial advantage.
In the nearest future, large and well-established streaming platforms, such as Hulu, Disney+, HBO Max, or Netflix, will dominate the market. Porter mentions these companies as some of the thriving market players. They have sufficient funds and investors’ commitment to withstand economic shocks after the COVID-19 pandemic and keep making large investments. Smaller streaming platforms and new market entrants will probably struggle to find audiences. Without original content, it will be difficult to compete with Netflix or HBO that already can stream an abundant selection of movies and TV shows in addition to their exclusive shows. Competing with such companies would require a large investment in the production of new TV shows, which might be too expensive for smaller platforms, or permanently lower prices. Among the current leaders, Netflix is the most likely to see a declining number of new subscribers. It has already accumulated large audiences and expects the “pull-forward” effect after the rapid expansions throughout 2020 (Shaw). Rapidly growing Disney+ is unlikely to face such issues.
Works Cited Lang, Brent. “Disney Quarterly Losses Mount, Even as Company Beats Expectations.” Variety, 12 Nov. 2020, https://variety.com/2020/film/news/walt-disney-earnings-coronavirus-disney-plus-1234830544/. Accessed 1 Feb. 2021. Porter, Rick. “TV Long View: The Numbers Behind Media Giants' All-In Streaming Plays.” The Hollywood Reporter, 12 Dec. 2020, https://www.hollywoodreporter.com/live-feed/tv-long-view-the-numbers-behind-media-giants-all-in-streaming-plays. Accessed 1 Feb. 2021. Shaw, Lucas. “Netflix Hits Record After Subscribers Leap Past 200 Million.” Bloomberg, 19 Jan. 2021, https://www.bloomberg.com/news/articles/2021-01-19/netflix-rallies-after-new-shows-attract-more-users-than-expected. Accessed 1 Feb. 2021.
Streaming is the new king of entertainment. I would say within the next five years, nearly every network will have their own streaming platform. We have already seen stations such as NBC and even the Discovery channel has provided a streaming platform offering their shows and entertainment. The platforms that will succeed are the giants of the industry that will begin to flourish more with the rise of streaming which includes Netflix and Disney+. Although Disney+ is a relatively new streaming platform, they were one of the first networks to make their content exclusive and only available on their platform. Given the high demand of Disney productions, their streaming platform has done quite well so far. Netflix who is truly the first pioneer of the streaming wars saw an excellent jump in users during the pandemic. According to the Hollywood Reporter writer Natalie Jarvey Netflix has reached nearly 204 million subscribers worldwide. This number is one that other streaming platforms will look to match down the road and is a truly remarkable accomplishment for Netflix. Some other shocking statistics from this article is that during the fourth quarter alone they gained 4.46 million paying members to their platform and in various regions such as Europe, the Middle East, and Africa (Jarvey). Putting up even more impressive numbers was Disney+ who gained 87 million subscribers during the fourth quarter (Jarvey). With the pandemic continuing on and on, these platforms will continue to see their numbers rise. By far, Disney+ and Netflix will be the streaming wars winners and will be exciting to see them compete for a while.
Where the losers come into play in the streaming wars is the ones that are a bit late to the party. Companies such as CBS attempted to get their platform up and running but ran into some struggles early on. Their plan was to make a CBS All Access plan that will begin in 2021 that will compete with Netflix and Warner Media. According to the article on DigDay, the author states, “This apparent bet-hedging did not seem to go over well with investors, who were asked by Bakish (ViacomCBS CEO) to overlook the company’s dismal fourth-quarter earnings that included a net loss of $273 million. Within hours, the company’s stock price dropped by 16%” (Peterson). Companies and networks like CBS will run into similar problems when/if they try to create a streaming platform.
All of these giants will have such an advantage against the networks beginning because of their already impressive streaming numbers. With other platforms charging even more money for their content, people will begin to let go their want for their shows and continue with paying the prices for the platforms they already have. In an article from the Wired, they argue that the streaming wars may already be coming to an end. Maria Rua Aguete, an analyst who works at a tech research firm Omidia states, “In 2021, all these services are expected to see significant declines in net additions. For Netflix and Amazon, 2021 will be their smallest year of growth in absolute terms since 2015.” (Watercutter). These companies so much rise in their audience this past year that it may be hard to continue to have this success. I do not believe the streaming wars are over, and will continue to be an interesting topic of conversation in the next few years. It will be intriguing to see which networks begin to take their content to a streaming platform and what strategy they use to take down the giants.
Jarvey, N. (2021, January 20). Netflix Tops 200 Million Subscribers Amid Pandemic. The Hollywood Reporter. https://www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic Peterson, T. (2021, January 26). How ViacomCBS is managing the transition from linear TV to streaming. Digiday. https://digiday.com/future-of-tv/change-the-channel-how-viacomcbs-is-managing-the-transition-from-linear-tv-to-streaming/ Watercutter, A. (2020, December 14). The Streaming Wars Could Finally End in 2021. Wired. https://www.wired.com/story/disney-plus-hbo-max-streaming-wars/
It is no secret that the world of streaming is taking over how we consume our everyday media. The Hollywood Reporter article written by Rick Porter sets the stage for this thought pretty well when Porter stated, “Consumers are already spending more time on streaming and other digital content than they are watching traditional TV.” It is amazing to think how fast the world around us changes in respects to media and technology. Looking back at when streaming services were first coming to be, people were so against them and they were scared to transitioning into potentially “cutting the cord.” As these streaming platforms acquired more rights to content, people slowly began to make the shift. When the announcement of Disney+ happened, many competitors did not know what to think of it. From a consumer’s point of view, I thought that other streaming platforms would be nervous due to the fact that they are adding a whole new competition to the already competitive nature of the platforms. Netflix was quick to come back at the rumors of them “being scared.” Variety put out an article about this back in 2018 addressing the concerns. Netflix CEO, Reed Hastings, said “We don’t see it (Disney+) as a threat to us any more than Hulu has been.” Hastings even admitted that he knew that he was going to be a subscriber to the platform. With this being said, the success of Disney+ was predicted/expected as their content is full of nostalgia for people, even myself. The subscriber count to Disney+ is “currently at almost 87 million” which is “more than twice the benchmark for the platform’s first year”(Porter). This is very impressive, but I really do not think that this will last very long. Like I said earlier, Disney+ is full of nostalgia for people my age and older. From the Mickey Cartoons to the old Disney shows like Wizards of Waverly Place or Hannah Montana, Disney+ can bring you back to those feel-good childhood memories. You can only stream those shows a certain number of times before you get sick of it, especially when quarantine will hopefully be a thing of the past. For parents raising younger children, it is great to have access to cartoons at any given time. I think Disney has to make a transition to appealing their content for older people or they will lose this battle to other upcoming platforms like HBO Max.
HBO Max is definitely appealing to older audiences. I think they may take the lead in this battle due to the fact that in order for streaming services to really take off, they need to appeal to a wide age range. People around my parent’s age are struggling with cutting the cord and switching over to streaming services. The reasons why my parents are not cutting the cord completely are that my mom enjoys her soap operas a little too much. Over this past winter break, my dad kept mentioning to me to set up the HBO Max account. This is the first time a streaming platform really caught his eye before it even caught mine. Due to the pandemic and the stay-at-home orders, a lot of people are testing the waters of the different streaming platforms and are now outperforming the company’s predictions. “On an earnings call with investors, AT&T said that HBO Max’s subscriber growth had outpaced the company’s original estimates”(Szalai and Jarvey) CEO, John Stankey, is not scared of coronavirus-related production delays and will “help the service gain more momentum.” I agree with his statements. As production delays occur, it will only make subscribers eager for the content and they may even start a new show in the meantime. Due to their wide variety of content that appeals to multiple agre groups, I think that HBO Max has the potential to come out on top for this “streaming war.”
Works Cited Porter, Rick. The Numbers Behind Media Giants' All-In Streaming Plays. 12 Dec. 2020, www.hollywoodreporter.com/live-feed/tv-long-view-the-numbers-behind-media-giants-all-in-streaming-plays.
Roettgers, Janko. “Netflix Execs Say They're Not Afraid of Disney's Streaming Service.” Variety, Variety, 23 Jan. 2018, variety.com/2018/digital/news/netflix-disney-streaming-service-reaction-1202672649/.
Szalai, Georg, and Natalie Jarvey. “HBO Max Subscriber Update: AT&T.” The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/hbo-max-subscriber-update.
This week’s readings gave insight to how various streaming services are competing to increase viewership and gain an upper hand in the “streaming-wars”. These streaming platforms have taken over media consumption over recent years, bringing in substantial numbers of viewers across all the popular services. An article by The Hollywood Reporter shows exactly how extreme these numbers are, “Between March and August 2020, U.S. adults spent 12.2 trillion minutes with digital, 11.1 trillion minutes with linear TV and 2.8 trillion minutes streaming – and these numbers continue to exponentially grow” (Porter). Disney+ and Netflix have been leaders in the “streaming- wars” with some of the highest numbers of subscribers amongst streaming services [Disney+ with “almost 87 million” (Porter)]. This is not to say that these power houses should be comfortable with where they are at, as further reading into the given articles suggests that there may be other services on the rise in the upcoming years. One streaming service that has seen successful growth is HBO Max. The service recently released ‘Wonder Woman 1984’ contributed to significant growth of the platform. Another article from The Hollywood Reporter includes a statement from AT&T CEO John Stankey, “The release of ‘Wonder Woman 1984’ helped drive our domestic HBO Max and HBO subscribers to more than 41 million, a full two years faster than our initial forecast” (Szalai and Jarvey). Clearly this shows how HBO Max has exceeded their own expectations in growth and that they are in position to continue growth in upcoming years. The theme of HBO Max seems to suggest that the service is able to overcome and grow. The Hollywood Reporter article goes on to explain how HBO Max had to overcome significant challenges early on in its development regarding branding. Clearly the service has conquered that challenge from its recent success, showing the ability to adapt. I believe this will give them a good chance to gain more control in the “streaming-wars” as new challenges will face all services in the future. Stankey was quoted again stating, “Our expectations are that we will start to hit our stride as we get into the second quarter” (Szalai and Jarvey) and if they are able to exceed expectations again, that stride will be significant. One streaming service that I predict will struggle in the future is Apple TV+. Apple has many successful platforms, but this particular service is not making the impact that its competitors are. One of the main advertised aspects of Apple TV is its 64GB storage, which is a significant amount, but also unnecessary. An article from Macworld discussed the concept of this storage in detail, “The high-end 4K models start at $179, with a $199 version boasting 64GB of storage. What do you need 64GB of storage for? Apple says if you play lots of games or download lots of apps but speaking as someone who has downloaded many of both over the past several years, I've never even come close to filling the 16GB” (Moren). This service is already way behind the leaders in the “streaming-wars” and with its current state, I don’t expect it to make major leap into contention.
Moren, Dan. “Does the Apple TV have a future?” Macworld 7 Sep. 2020 Porter, Rick. "The Numbers Behind Media Giants' All-In Streaming Plays," The Hollywood Reporter 12 Dec. 2020 Szalai, Georg. "Hollywood's 2021 Investor Forecast Outlined in Analyst Report." The Hollywood Reporter 5 Jan. 2021 Szalai, Georg and Natalie Jarvey. "HBO Max Reaches 37.7M, Including 17.2M ‘Activated,’ Subscribers." The Hollywood Reporter 27 Jan. 2021
Roberto Casillas Part 1 2020 will always be remembered as the year were Covid-19 took over the world. It affected the life of millions around the world and changed the perception of normality. Big media corporations were navigating through uncharted waters, facing the most devastating pandemic in modern time. The effects of the pandemic have been clear for all of us to see, the loss of lives of millions has been the dominating story in the world’s news cycle. But the economic consequences were just as severe, and major companies took heavy losses that left many giants on their knees. However, some corporations manages to steady the ship and minimize the damage as best as possible. As a matter of fact, there were some that not only were able to survive this complicated period, but they were able to thrive, and set themselves up for success. The company that I believe exemplifies this latter scenario is Netflix. That’s right, the big red N is still going strong – stronger than ever, actually. Quarantine was a rough period, it seemed that the whole world had stopped, and it almost seemed as though fear and uncertainty took over the minds of people. What was the perfect – and perhaps the only medicine for that at the time? Streaming. Netflix and chill. Everyone was staying at home and with nothing much to so, it’s not surprising that people began binge watching shows. I’m not surprised that Netflix “is showing little sign of flagging, ending the year with an unprecedented nearly 204 million global subscribers” (Jarvey). Netflix flourished during lockdown, and even though there are other newer and perhaps better streaming services becoming available, the red N is still the biggest fish in that pond, “adding 36 million subscribers during the year” (Jarvey). When you look at the bigger picture, it’s actually crazy how big Netflix has become. In a little over 20 years, the streaming platform is now worth almost the same as “Comcast,” a company that owns both content from the likes of NBC, Universal Studios and Sky, as well as the distribution networks (Kafka & Molla).
Roberto Casillas Part 2 But as Netflix continues to succeed, Comcast appears to be trending on the other direction. I think Comcast group is in a very difficult position and will face some very big challenges in the near future. “Comcast lost 477,000 cable-TV subscribers in Q2 2020 amid a company-wide drop in revenue caused by the pandemic” (Brodkin). There was a 12% drop in revenue during the first half of 2020 and things going forward aren’t looking any better. It was recently announced the NBC Sports Network will be shutting down, signifying another big loss for the group. With more and more people beginning to move away from cable and Peacock (NBC’s streaming service) not being as big as other platforms, it certainly looks as though the future isn’t necessarily bright. Netflix on the other hand will look to remain at the top of the streaming services food chain. Disney+ appears to be positioned as one of its biggest threats, but it certainly does feel to me more of a niche streaming platform at the moment (St Leger). Netflix, on the other hand, has titles and content for every audience, and with a healthy flow of both original and acquired content still on the horizon, I wouldn’t bet against Netflix slowing down in the foreseeable future.
Brodkin, Jon. “Comcast Lost 477,000 Cable-TV Customers in Q2 amid 12% Drop in Revenue.” Ars Technica, 30 July 2020, arstechnica.com/information-technology/2020/07/comcast-l ost-477000-cable-tv-customers-in-q2-amid-12-drop-in-revenue/. Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan. 2021, www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic. Kafka, Peter, and Rani Molla. “Here's Who Owns Everything in Big Media Today.” Vox, Vox, 23 Jan. 2018, www.vox.com/2018/1/23/16905844/media-landscape-verizon-amazon-comcast-disney-fox-relationships-chart. St Leger, Henry. “Disney Plus vs Netflix: Who Will Win?” TechRadar, TechRadar, 25 Mar. 2020, www.techradar.com/news/disney-plus-vs-netflix-who-will-win.
Ashley Shankar
ReplyDeleteAfter reading a few articles, I believe that in the streaming wars, big streaming services such as Netflix or Disney+ will dominate. This is because, with the coronavirus impacts, I think people are excited for things to go back to normal but they won’t be able to jump back into it. It could take a year to adjust to living like normal. Therefore I think streaming services will still be a hit among people because they grew popular during the pandemic. Also, I believe that if people started to watch something on streaming services, and they release new seasons or episodes of what people were watching in quarantine, people are going to want to continue to watch it. Additionally, using streaming services might be more convenient and cheaper options or alternatives such as bringing a family to the movie theater or attending a live concert and paying for tickets.
In the article "Hollywood's 2021 Investor Forecast Outlined in Analyst Report, it states, “The MoffettNathanson analyst also discussed the state of the streaming wars, arguing that ‘there is a clear hierarchy with Netflix and Disney at the top of the food chain in terms of how quickly they can move and how much they spend on projects.' Their scale and reach give them a unique advantage, as talent is motivated to create content that is still widely seen and talked about''. This is important because it shows how streaming services such as Netflix and Disney+ have lots of content they could produce for audiences. Since they have the content it is easier to keep them engaged now and possibly for the next two years.
The article, “Netflix Tops 200 Million Subscribers Amid Pandemic” states, “Lockdowns around the world helped to significantly boost streaming sign-ups across the board, and Netflix benefitted from the industry’s overall boom, adding more than 36 million subscribers during the year...Disney, NBCUniversal, WarnerMedia, and Discovery all have introduced streaming services where they’re offering high-profile originals and classic hits that once made up the bread-and-butter of Netflix streaming viewership”. This article shows that with the pandemic, Netflix has been thriving through its subscriptions and viewership. Although Netflix is winning the streaming wars now, other companies are also building their streaming services which could negatively impact their audiences within the next two years. I believe Netflix will still have a large audience in two years but, they might have viewership competition with other developing streaming services.
Lastly, the article, “The Streaming Wars Could Finally End in 2021” states, “But in 2021 the industry could see a massive cooling. Everyone will have tried everything and pretty much decided which ones they’re sticking to. Hence the efforts to lay claim to every screen a streaming service can get—and keep them”. This article from December 2020 had predicted in 2021 streaming services will exhaust their audiences. They believe it might be difficult to appeal to new Netflix (or other companies) subscribers because if they hadn’t already signed up during pandemic lockdown then they most likely won't. I believe that audiences over the next two years will then stay the same or decrease depending on the conditions of the pandemic.
Works Cited
Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan. 2021, www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic.
Szalai, Georg. “Analyst on Logical NBCU-WarnerMedia Merger.” The Hollywood Reporter, 5 Jan. 2021, www.hollywoodreporter.com/news/hollywoods-2021-investor-forecast-outlined-in-analyst-report.
Watercutter, Angela. “The Streaming Wars Could Finally End in 2021.” Wired, Conde Nast, 14 Dec. 2020, www.wired.com/story/disney-plus-hbo-max-streaming-wars/.
Christopher Giorgio
ReplyDeleteThe world is rapidly changing and adapting and Covid-19 was definitely a major factor that changed the way we live our daily lives. Streaming at home became a common habit for me and plenty of other people around the world. Streaming services like Disney+, HBO Max and Netflix were on top of the charts and were in my rotation as well throughout the past year. They have also been preparing for the new year and have some strong competition with each other.
Disney is one company that has turned into a streaming company in recent years with the launch of their service Disney+. The service offers old Disney shows and movies while also producing new content. Its theme parks around the world suffered as the virus restricted park goers and it showed in their revenue loss, according to Variety. Disney+ on the other hand has had tremendous success and is planning on releasing a lot of new shows and new movies as the year moves on. This includes the extension of the popular Disney plus original “The Mandolorian”, which I am a huge fan of. The new content includes, at least 6 new Star Wars series and 6 Marvel TV series, (tech radar). This has gained lots of traction and have fans like me very excited for what’s to come from this new content and can hopefully bring in more subscribers. Overall this next phase for Disney+ looks promising and I think they can become a number 1 streaming service.
HBO max is another streaming service that was recently created and has gained lots of attention. This new service took over in May and eliminated the confusing trilogy of platforms HBO had with, HBO GO, HBO and HBO NOW. This new streaming service also showed a new style for releasing movies with its dual release of “Wonder Woman 1984” which released on the platform and in theaters. I thought this was a fantastic idea as the pandemic has been keeping almost everyone inside and not able to go to the theaters. The movie was streamed 2.2 million times over its release weekend, which is great, but was surpassed by the animated Disney+ movie “Soul” which had 2.4 million, According to Vulture.
Netflix however has taken some interesting steps coming into the new year. Netflix recently had a price increase for users and also had many popular shows including “The Office” taken down off the platform which caused a slight uproar online. Netflix also lost its Marvel movies slowly over the past year as they all went to Disney+. However, Netflix is creating more original films in order to bounce back from this loss in content with big name actors such as, Leonardo DiCaprio, Jennifer Lawrence and more.
These streaming services have lots to look forward to this year and personally I cannot wait for it. On top I think Disney+ will be the number 1 streaming service and be a winner in the so called streaming “War”. HBO max is very popular service now and has interesting content and plan for dual releasing movies, I think they will also be up there with Disney+ as winners. For the losers I think Netflix will take a hit in 2021 and will not be a winner of this war, but in fact need help from its original content to carry the platform.
Works Cited
Lambrechts, Stephen. “Disney Plus: Best Upcoming TV Shows and Movies.” TechRadar, TechRadar, 18 Jan. 2021, www.techradar.com/news/disney-plus-best-upcoming-tv-shows-and-movies.
Lang, Brent. “Disney Quarterly Losses Mount, Even as Company Beats Expectations.” Variety, Variety, 13 Nov. 2020, variety.com/2020/film/news/walt-disney-earnings-coronavirus-disney-plus-1234830544/.
Lee, Chris. “Did Wonder Woman 1984 Lasso New Subscribers for HBO Max?” Vulture, Vulture, 6 Jan. 2021, www.vulture.com/2021/01/did-wonder-woman-1984-lasso-new-subscribers-for-hbo-max.html#:~:text=(On the downside, according to,Woman 1984 was streamed in.
Szalai, Georg, and Natalie Jarvey. “HBO Max Subscriber Update: AT&T.” The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/hbo-max-subscriber-update.
ReplyDeleteKatie Dansereau
PART 1
The coronavirus pandemic brought massive changes to an already shifting media landscape. Media consumers turned to streaming to view content, which challenged the rapidly growing number of services to compete in growing their number of active subscribers. Despite the difficulties of 2020, streaming services such as Netflix, Disney+, and HBO Max are leading the pack in their number of subscribers and their plans to keep consumers satisfied in the future. Newer services with smaller libraries of content, such as Apple TV+, may struggle to grow their number of paid subscribers once users’ free trial expires.
The article “TV Long View: The Numbers Behind Media Giants’ All-In Streaming Plays” outlined the decision of legacy media companies such as WarnerMedia and Disney to move their 2021 theatrical calendar to their respective streaming services: HBO Max and Disney+. This choice puts the two services in a promising position for acquiring new subscribers, as they will have an influx of new content originally meant for the big screen. Along with it being a practical decision, it shows “that the two media behemoths are all in on the streaming future”, and they’re willing to make significant changes in order to be competitive with other services (Porter). Disney+ has surpassed their original estimates for 2020, with a subscription number that was “more than twice the benchmark for the platform’s first year” as well as a massive projection of 230-260 million subscribers by 2024 (Porter). With this in mind, it is apparent that Disney+ has a bright future in streaming that will only amplify over the next two years.
Katie Dansereau
DeletePART 2
Netflix has also risen to the occasion according to “Netflix Tops 200 Million Subscribers Amid Pandemic”, with 8.5 million new subscribers in the fourth quarter of 2020 (Jarvey). Much of Netflix’s success can be attributed to new content such as The Queen’s Gambit or Bridgerton, which captivated audiences to the point that they became “some of the most-watched titles in its history” (Jarvey). Along with Netflix’s massive budget, their packed film slate for 2021 puts Netflix in a position to dominate streaming for the near future (Jarvey). However, Netflix will need to continue creating bold content to stay relevant amongst the growing amount of new streaming services that feature “the high-profile originals and classic hits” that Netflix itself used to feature (Jarvey).
In “Apple TV Plus’ Freeloader Problem: 62% of Subscribers Are on Free Offers”, Apple TV Plus’ struggles in terms of its content library, as well as their number of paid subscribers using the service is highlighted. According to the MoffetNathan Q4 2020 SVOD Tracker report, 62% of subscribers said they used Apple TV Plus for free, as a part of the promotion Apple offers to users of their products (Spangler). From those users, only 30% said they would pay for a subscription once their free trial ended (Spangler). Apple TV Plus also has an extremely limited amount of content which hinders their ability to appeal to a wide range of audiences. They offer 55 originals, whereas other services offer thousands of titles to choose from (Spangler). “In sheer tonnage, Apple TV Plus is far below the rest of the SVOD field”, so until they can build up their selection, they will continue to struggle (Spangler). Apple TV Plus will need bolster their content in order to get paying subscribers, and other streaming services will have to create new and compelling content in order to compete with the likes of Netflix, Disney+, and HBO Max.
Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan. 2021, www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic.
Porter, Rick. “The Numbers Behind Media Giants' All-In Streaming Plays.” The Hollywood Reporter, 12 Dec. 2020, www.hollywoodreporter.com/live-feed/tv-long-view-the-numbers-behind-media-giants-all-in-streaming- plays.
Spangler, Todd. “Apple TV Plus' Freeloader Problem: 62% of Subscribers Are on Free Offers.” Variety, Variety, 22 Jan. 2021, variety.com/2021/digital/news/apple-tv-plus-freeloader-problem-percent-free-1234890385/.
Fiona Doull
ReplyDeleteProfessor Burns
MSS-495
31 January 2021
Blog 1, Question 2
Due to the vast popularity of streaming services in combination with the COVID-19 pandemic, the perfect storm has been created for users all across the world to subscribe to streaming services and turn to them for a main source of entertainment. One of the greatest hits taken by the pandemic is to the entertainment industry and the fallout on Hollywood. Pressure has since been put on content creators to be continuously exporting content for their subscribers. Although there are many streaming services battling in what is considered to be “streaming wars”, there are some that appear to be dominating the field and will continue to do so, whereas others will likely fall behind and struggle to engage their audiences. According to “Hollywood’s 2021 Investor Forecast Outlined in Analyst Report”, by Georg Szalai, both Netflix and Disney Plus are at the top of the hierarchy of streaming services (Szalai). This mainly comes down to their ability to move and make content quickly as well as being able to afford products, this allows them to reach a large scale and have a unique advantage when it comes to content creation and streaming (Szalai). Based on this information, we can infer that both Disney Plus and Netflix will dominate the streaming wars. If I were to pick one, it would likely be Disney Plus; Disney Plus is almost at 87 million subscribers, with a project of 230-280 million subscribers worldwide by 2024 (Porter). Disney Plus is likely to be Netflix’s biggest competitor, however, it may be difficult to dethrone Netflix from it’s ranks (Porter). Netflix has now surpassed 200 million subscribers amid the pandemic, beating Wall Street’s expectations and doing so while being faced with more competition than ever (Jarvey). In an article titled “The Definitive Ranking of Streaming Services as we Head into 2021” written by Nicole LaPorte, LaPorte names Netflix as the first ranked streaming service calling it the “industry leader by a mile” (LaPorte). LaPorte also discusses series that are exclusive to Netflix such as The Queen's Gambit or Brigerton that have ultimately been very successful amidst their release; this is another aspect of Netflix that adds to its supremacy. The amount of subscribers Netflix gained since the pandemic began was unprecedented but displays how low the chance is for Netflix to waver from being the current champion of the streaming wars (Jarvey).
Although it appears that both Netflix and Disney Plus are likely to dominate streaming wars in the future, my perspective changes when it comes to which will struggle when it comes to finding audiences in the next two years. As we are currently faced with the COVID-19 pandemic, we are all spending more time at home and therefore more time on screens. Once the pandemic ends and our lives return to a somewhat normal, there will be a large demand for live experiences such as concerts, shows and more. Once these opportunities arrive, there will be a “roaring 20s style demand” for normal experiences in which users will possibly ditch the streaming services and immerse themselves in other activities (Jarvey). I think that most, if not all streaming services will struggle once this occurs but the losers will likely be services such as Peacock or Apple TV Plus, that do not hold the same title that a service such as Netflix does. According to the definitive ranking from Nicole LaPorte, she finishes out her list with HBO Max currently in last place (LaPorte). This ranking is mostly due to it’s rough start when it came to their marketing and their relatively high price point of $14.99 (LaPorte). The pandemic has acted in a “powerful force” to the streaming world, not as a rival, and it is possible that users will still use streaming services as much as they do now, however, in my opinion I think all streaming services will have less subscribers post pandemic (Jarvey).
DeleteWorks Cited
Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan. 2021, www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic.
LaPorte, Nicole. “The Definitive Ranking of Streaming Services as We Head into 2021.” Fast Company, Fast Company, 23 Dec. 2020, www.fastcompany.com/90589589/the-definitive-ranking-of-streaming-services-as-we-head-into-2021.
Porter, Rick. “The Numbers Behind Media Giants' All-In Streaming Plays.” The Hollywood Reporter, 12 Dec. 2020, www.hollywoodreporter.com/live-feed/tv-long-view-the-numbers-behind-media-giants-all-in-streaming-plays.
Szalai, Georg. “Analyst on Logical NBCU-WarnerMedia Merger.” The Hollywood Reporter, 5 Jan. 2021, www.hollywoodreporter.com/news/hollywoods-2021-investor-forecast-outlined-in-analyst-report
Corey Kremberg PART 1
ReplyDeleteAs early as I can remember, Disney has been alive and thriving in the world I have grown up in. Anyone from my generation would be able to tell you what the opening theme sounds like when a movie/show was about to begin. There are thousands upon thousands of montages on YouTube of children getting surprised by their parents with tickets to Disney World. The characters in the shows have also been role models for children in great and poor communities. However, I don’t think I have seen a takeover like their new addition Disney plus in my entire existence. It began as a little rumor. As time went by, that rumor bloomed and flew into the universe with open wings. As discussed in The Hollywood Reporter TV Long View: The Numbers Behind Media Giants’ All In-Streaming Plays Disney plus has flown and more. “And, having shot past its initial estimates for the number of subscribers to Disney+ — currently at almost 87 million, more than twice the benchmark for the platform's first year — the company is now projecting between 230 million and 260 million subscribers worldwide (including for its newly unveiled Star service outside the U.S.) by 2024.” To put this into perspective, there are around 330 million people living in the US today. This means if their projections are correct, worldwide; they will have more than half of the United States population subscribed in numbers. This all sounds amazing, but looking at the actual numbers helps put it into a true perspective. The article also stated that “Between March and August 2020, U.S. adults spent 12.2 trillion minutes with digital, 11.1 trillion minutes with linear TV and 2.8 trillion minutes streaming.”
Corey Kremberg PART 2
DeleteKeep in mind this is only between March and August. If this pattern continues, traditional TV might be gone sooner than we think. Another similar streaming service that has been taking full advantage during this lockdown is HBO. According to the article HBO Max reaches 37.7M, Including 17.2M “Activated,” Subscribers things have changed for the good, and fast! HBO’s strategy helped it begin to shoot up late in 2020. According to the article, the movie Wonder Woman 1984 helped bring in more than 41 million subscribers. The business model I see here is simply buying the most classic and entertaining movies and shoving them up into their streaming service. With this in place, the movies do the work themselves. People want to feel the nostalgia and memories from when they first watched/heard about the film. To put the nostalgia assumption to the test, according to HBO and HBO Max, they had 38.0 million subscribers at the end of September. However, at the release of Wonder Woman 1984, they ended up ending the year with 41.5 million subscribers at the end of 2020. With these two powerhouses up and running, I can see a new world/age of entertainment. With streaming dominating, it is easy to see who our loser of this new bloom will be. According to the article Pay-TV Is Dying Faster Than Anyone Expected-Nearly 3M People Cut the Cord in 2018 TV is already on it’s way out. 2018 was one of the worst years for TV since it began. In fact, 2018 was a big turning point for a lot of people when it came to entertainment streaming/watching This is even prevalent for almost the past decade, “TV has seen an exodus of around 10 million paying customers since 2012.” Traditional TV will slowly begin to fade away as streaming platforms continue to gain momentum. As they take away listeners and viewers they are building a throne of wealth and power. The streaming era is as strong as ever, and in my opinion, we are all in good hands.
WORKS CITED
Katz, Brandon. “Pay-TV Is Dying Faster Than Anyone Expected-Nearly 3M People Cut the Cord in 2018.” Observer, Observer, 7 Mar. 2019, observer.com/2019/03/streaming-vs-tv-subscriber-loss-details/#:~:text=Pay%2DTV%20Is%20Dying%20Faster,Cut%20the%20Cord%20in%202018&text=The%20rate%20of%20cord%2Dcutting,Research%20Group%20(per%20Deadline).
Porter, Rick. “The Numbers Behind Media Giants' All-In Streaming Plays.” The Hollywood Reporter, 12 Dec. 2020, www.hollywoodreporter.com/live-feed/tv-long-view-the-numbers-behind-media-giants-all-in-streaming-plays.
Szalai, Georg, and Natalie Jarvey. “HBO Max Subscriber Update: AT&T.” The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/hbo-max-subscriber-update.
In my opinion, the streaming wars are unlikely to produce clear winners or losers for multiple reasons. First of all, the major market players have comparable access to vast funding and enjoy an increasing number of subscribers. For instance, Disney+ expects to boost its number of customers from 87 to 230 million by 2024 (Porter). Another ambitious company, Netflix, attracted 36 million subscribers in 2020 despite more conservative initial expectations (Shaw). Since both streaming platforms are large and valuable companies, they do not struggle to attract investors. Netflix even had an opportunity to borrow funds. Hence, no market player seems to have an apparent competitive advantage or grow at competitors’ expense.
ReplyDeleteHowever, such success almost always requires substantial sacrifices. The immense costs of the streaming war raise questions about the long-term sustainability of the business models designed to win it. Ironically, while the big market players win some benefits, they also face losses. For instance, Netflix achieved phenomenal success but had to operate without profits for a long time. It incurred a net loss of $3.3 billion in 2019 and continued to lose money in 2020 (Shaw). Although the situation should improve in 2021, financial and expansion-related problems will not disappear instantly. Netflix had to borrow a lot of money to fund the production of original TV shows and, thus, maintain its competitive advantage and continuing expansion. Interestingly, Netflix experienced such challenges, despite having more than 200 million subscribers (Shaw). In other words, Netflix sacrifices profitability to boost the market share.
Other streaming companies seem to deal with a similar problem. For example, the rising number of subscribers and substantially higher revenues did not prevent Disney+ from facing $580 million operational losses. Unlike Netflix, Disney+ is still a young platform that will only reach profitability in the future (Lang). This example demonstrates it might be difficult or even impossible to attract tens of millions of new customers and generate profits simultaneously. Hence, the streaming war might end without clear winners but with losers that accumulated large debts and failed to generate stable profits. Currently, Netflix, which showed much stronger financial performance in 2020 than Disney+, is more likely to win the war. However, if investors of Disney+ or other streaming platforms decided to invest in production shows, Netflix might have to boost spending again and lose its financial advantage.
ReplyDeleteIn the nearest future, large and well-established streaming platforms, such as Hulu, Disney+, HBO Max, or Netflix, will dominate the market. Porter mentions these companies as some of the thriving market players. They have sufficient funds and investors’ commitment to withstand economic shocks after the COVID-19 pandemic and keep making large investments. Smaller streaming platforms and new market entrants will probably struggle to find audiences. Without original content, it will be difficult to compete with Netflix or HBO that already can stream an abundant selection of movies and TV shows in addition to their exclusive shows. Competing with such companies would require a large investment in the production of new TV shows, which might be too expensive for smaller platforms, or permanently lower prices. Among the current leaders, Netflix is the most likely to see a declining number of new subscribers. It has already accumulated large audiences and expects the “pull-forward” effect after the rapid expansions throughout 2020 (Shaw). Rapidly growing Disney+ is unlikely to face such issues.
Works Cited
Lang, Brent. “Disney Quarterly Losses Mount, Even as Company Beats Expectations.” Variety, 12 Nov. 2020, https://variety.com/2020/film/news/walt-disney-earnings-coronavirus-disney-plus-1234830544/. Accessed 1 Feb. 2021.
Porter, Rick. “TV Long View: The Numbers Behind Media Giants' All-In Streaming Plays.” The Hollywood Reporter, 12 Dec. 2020, https://www.hollywoodreporter.com/live-feed/tv-long-view-the-numbers-behind-media-giants-all-in-streaming-plays. Accessed 1 Feb. 2021.
Shaw, Lucas. “Netflix Hits Record After Subscribers Leap Past 200 Million.” Bloomberg, 19 Jan. 2021, https://www.bloomberg.com/news/articles/2021-01-19/netflix-rallies-after-new-shows-attract-more-users-than-expected. Accessed 1 Feb. 2021.
Matt Gallo
ReplyDeleteStreaming is the new king of entertainment. I would say within the next five years, nearly every network will have their own streaming platform. We have already seen stations such as NBC and even the Discovery channel has provided a streaming platform offering their shows and entertainment. The platforms that will succeed are the giants of the industry that will begin to flourish more with the rise of streaming which includes Netflix and Disney+. Although Disney+ is a relatively new streaming platform, they were one of the first networks to make their content exclusive and only available on their platform. Given the high demand of Disney productions, their streaming platform has done quite well so far. Netflix who is truly the first pioneer of the streaming wars saw an excellent jump in users during the pandemic. According to the Hollywood Reporter writer Natalie Jarvey Netflix has reached nearly 204 million subscribers worldwide. This number is one that other streaming platforms will look to match down the road and is a truly remarkable accomplishment for Netflix. Some other shocking statistics from this article is that during the fourth quarter alone they gained 4.46 million paying members to their platform and in various regions such as Europe, the Middle East, and Africa (Jarvey). Putting up even more impressive numbers was Disney+ who gained 87 million subscribers during the fourth quarter (Jarvey). With the pandemic continuing on and on, these platforms will continue to see their numbers rise. By far, Disney+ and Netflix will be the streaming wars winners and will be exciting to see them compete for a while.
Where the losers come into play in the streaming wars is the ones that are a bit late to the party. Companies such as CBS attempted to get their platform up and running but ran into some struggles early on. Their plan was to make a CBS All Access plan that will begin in 2021 that will compete with Netflix and Warner Media. According to the article on DigDay, the author states, “This apparent bet-hedging did not seem to go over well with investors, who were asked by Bakish (ViacomCBS CEO) to overlook the company’s dismal fourth-quarter earnings that included a net loss of $273 million. Within hours, the company’s stock price dropped by 16%” (Peterson). Companies and networks like CBS will run into similar problems when/if they try to create a streaming platform.
All of these giants will have such an advantage against the networks beginning because of their already impressive streaming numbers. With other platforms charging even more money for their content, people will begin to let go their want for their shows and continue with paying the prices for the platforms they already have. In an article from the Wired, they argue that the streaming wars may already be coming to an end. Maria Rua Aguete, an analyst who works at a tech research firm Omidia states, “In 2021, all these services are expected to see significant declines in net additions. For Netflix and Amazon, 2021 will be their smallest year of growth in absolute terms since 2015.” (Watercutter). These companies so much rise in their audience this past year that it may be hard to continue to have this success. I do not believe the streaming wars are over, and will continue to be an interesting topic of conversation in the next few years. It will be intriguing to see which networks begin to take their content to a streaming platform and what strategy they use to take down the giants.
DeleteJarvey, N. (2021, January 20). Netflix Tops 200 Million Subscribers Amid Pandemic. The Hollywood Reporter. https://www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic
Peterson, T. (2021, January 26). How ViacomCBS is managing the transition from linear TV to streaming. Digiday. https://digiday.com/future-of-tv/change-the-channel-how-viacomcbs-is-managing-the-transition-from-linear-tv-to-streaming/
Watercutter, A. (2020, December 14). The Streaming Wars Could Finally End in 2021. Wired. https://www.wired.com/story/disney-plus-hbo-max-streaming-wars/
Nicole Bruder- Part 1
ReplyDeleteIt is no secret that the world of streaming is taking over how we consume our everyday media. The Hollywood Reporter article written by Rick Porter sets the stage for this thought pretty well when Porter stated, “Consumers are already spending more time on streaming and other digital content than they are watching traditional TV.” It is amazing to think how fast the world around us changes in respects to media and technology. Looking back at when streaming services were first coming to be, people were so against them and they were scared to transitioning into potentially “cutting the cord.” As these streaming platforms acquired more rights to content, people slowly began to make the shift.
When the announcement of Disney+ happened, many competitors did not know what to think of it. From a consumer’s point of view, I thought that other streaming platforms would be nervous due to the fact that they are adding a whole new competition to the already competitive nature of the platforms. Netflix was quick to come back at the rumors of them “being scared.” Variety put out an article about this back in 2018 addressing the concerns. Netflix CEO, Reed Hastings, said “We don’t see it (Disney+) as a threat to us any more than Hulu has been.” Hastings even admitted that he knew that he was going to be a subscriber to the platform. With this being said, the success of Disney+ was predicted/expected as their content is full of nostalgia for people, even myself. The subscriber count to Disney+ is “currently at almost 87 million” which is “more than twice the benchmark for the platform’s first year”(Porter). This is very impressive, but I really do not think that this will last very long. Like I said earlier, Disney+ is full of nostalgia for people my age and older. From the Mickey Cartoons to the old Disney shows like Wizards of Waverly Place or Hannah Montana, Disney+ can bring you back to those feel-good childhood memories. You can only stream those shows a certain number of times before you get sick of it, especially when quarantine will hopefully be a thing of the past. For parents raising younger children, it is great to have access to cartoons at any given time. I think Disney has to make a transition to appealing their content for older people or they will lose this battle to other upcoming platforms like HBO Max.
Nicole Bruder- Part 2
DeleteHBO Max is definitely appealing to older audiences. I think they may take the lead in this battle due to the fact that in order for streaming services to really take off, they need to appeal to a wide age range. People around my parent’s age are struggling with cutting the cord and switching over to streaming services. The reasons why my parents are not cutting the cord completely are that my mom enjoys her soap operas a little too much. Over this past winter break, my dad kept mentioning to me to set up the HBO Max account. This is the first time a streaming platform really caught his eye before it even caught mine. Due to the pandemic and the stay-at-home orders, a lot of people are testing the waters of the different streaming platforms and are now outperforming the company’s predictions. “On an earnings call with investors, AT&T said that HBO Max’s subscriber growth had outpaced the company’s original estimates”(Szalai and Jarvey) CEO, John Stankey, is not scared of coronavirus-related production delays and will “help the service gain more momentum.” I agree with his statements. As production delays occur, it will only make subscribers eager for the content and they may even start a new show in the meantime. Due to their wide variety of content that appeals to multiple agre groups, I think that HBO Max has the potential to come out on top for this “streaming war.”
Works Cited
Porter, Rick. The Numbers Behind Media Giants' All-In Streaming Plays. 12 Dec. 2020, www.hollywoodreporter.com/live-feed/tv-long-view-the-numbers-behind-media-giants-all-in-streaming-plays.
Roettgers, Janko. “Netflix Execs Say They're Not Afraid of Disney's Streaming Service.” Variety, Variety, 23 Jan. 2018, variety.com/2018/digital/news/netflix-disney-streaming-service-reaction-1202672649/.
Szalai, Georg, and Natalie Jarvey. “HBO Max Subscriber Update: AT&T.” The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/hbo-max-subscriber-update.
Jack Higgins
ReplyDeleteThis week’s readings gave insight to how various streaming services are competing to increase viewership and gain an upper hand in the “streaming-wars”. These streaming platforms have taken over media consumption over recent years, bringing in substantial numbers of viewers across all the popular services. An article by The Hollywood Reporter shows exactly how extreme these numbers are, “Between March and August 2020, U.S. adults spent 12.2 trillion minutes with digital, 11.1 trillion minutes with linear TV and 2.8 trillion minutes streaming – and these numbers continue to exponentially grow” (Porter). Disney+ and Netflix have been leaders in the “streaming- wars” with some of the highest numbers of subscribers amongst streaming services [Disney+ with “almost 87 million” (Porter)]. This is not to say that these power houses should be comfortable with where they are at, as further reading into the given articles suggests that there may be other services on the rise in the upcoming years.
One streaming service that has seen successful growth is HBO Max. The service recently released ‘Wonder Woman 1984’ contributed to significant growth of the platform. Another article from The Hollywood Reporter includes a statement from AT&T CEO John Stankey, “The release of ‘Wonder Woman 1984’ helped drive our domestic HBO Max and HBO subscribers to more than 41 million, a full two years faster than our initial forecast” (Szalai and Jarvey). Clearly this shows how HBO Max has exceeded their own expectations in growth and that they are in position to continue growth in upcoming years. The theme of HBO Max seems to suggest that the service is able to overcome and grow. The Hollywood Reporter article goes on to explain how HBO Max had to overcome significant challenges early on in its development regarding branding. Clearly the service has conquered that challenge from its recent success, showing the ability to adapt. I believe this will give them a good chance to gain more control in the “streaming-wars” as new challenges will face all services in the future. Stankey was quoted again stating, “Our expectations are that we will start to hit our stride as we get into the second quarter” (Szalai and Jarvey) and if they are able to exceed expectations again, that stride will be significant.
One streaming service that I predict will struggle in the future is Apple TV+. Apple has many successful platforms, but this particular service is not making the impact that its competitors are. One of the main advertised aspects of Apple TV is its 64GB storage, which is a significant amount, but also unnecessary. An article from Macworld discussed the concept of this storage in detail, “The high-end 4K models start at $179, with a $199 version boasting 64GB of storage. What do you need 64GB of storage for? Apple says if you play lots of games or download lots of apps but speaking as someone who has downloaded many of both over the past several years, I've never even come close to filling the 16GB” (Moren). This service is already way behind the leaders in the “streaming-wars” and with its current state, I don’t expect it to make major leap into contention.
Moren, Dan. “Does the Apple TV have a future?” Macworld 7 Sep. 2020
Porter, Rick. "The Numbers Behind Media Giants' All-In Streaming Plays," The Hollywood Reporter 12 Dec. 2020
Szalai, Georg. "Hollywood's 2021 Investor Forecast Outlined in Analyst Report." The Hollywood Reporter 5 Jan. 2021
Szalai, Georg and Natalie Jarvey. "HBO Max Reaches 37.7M, Including 17.2M ‘Activated,’ Subscribers." The Hollywood Reporter 27 Jan. 2021
Roberto Casillas
ReplyDeletePart 1
2020 will always be remembered as the year were Covid-19 took over the world. It affected the life of millions around the world and changed the perception of normality. Big media corporations were navigating through uncharted waters, facing the most devastating pandemic in modern time. The effects of the pandemic have been clear for all of us to see, the loss of lives of millions has been the dominating story in the world’s news cycle. But the economic consequences were just as severe, and major companies took heavy losses that left many giants on their knees.
However, some corporations manages to steady the ship and minimize the damage as best as possible. As a matter of fact, there were some that not only were able to survive this complicated period, but they were able to thrive, and set themselves up for success.
The company that I believe exemplifies this latter scenario is Netflix. That’s right, the big red N is still going strong – stronger than ever, actually.
Quarantine was a rough period, it seemed that the whole world had stopped, and it almost seemed as though fear and uncertainty took over the minds of people. What was the perfect – and perhaps the only medicine for that at the time? Streaming. Netflix and chill.
Everyone was staying at home and with nothing much to so, it’s not surprising that people began binge watching shows. I’m not surprised that Netflix “is showing little sign of flagging, ending the year with an unprecedented nearly 204 million global subscribers” (Jarvey). Netflix flourished during lockdown, and even though there are other newer and perhaps better streaming services becoming available, the red N is still the biggest fish in that pond, “adding 36 million subscribers during the year” (Jarvey).
When you look at the bigger picture, it’s actually crazy how big Netflix has become. In a little over 20 years, the streaming platform is now worth almost the same as “Comcast,” a company that owns both content from the likes of NBC, Universal Studios and Sky, as well as the distribution networks (Kafka & Molla).
Roberto Casillas
DeletePart 2
But as Netflix continues to succeed, Comcast appears to be trending on the other direction. I think Comcast group is in a very difficult position and will face some very big challenges in the near future. “Comcast lost 477,000 cable-TV subscribers in Q2 2020 amid a company-wide drop in revenue caused by the pandemic” (Brodkin). There was a 12% drop in revenue during the first half of 2020 and things going forward aren’t looking any better. It was recently announced the NBC Sports Network will be shutting down, signifying another big loss for the group. With more and more people beginning to move away from cable and Peacock (NBC’s streaming service) not being as big as other platforms, it certainly looks as though the future isn’t necessarily bright.
Netflix on the other hand will look to remain at the top of the streaming services food chain. Disney+ appears to be positioned as one of its biggest threats, but it certainly does feel to me more of a niche streaming platform at the moment (St Leger). Netflix, on the other hand, has titles and content for every audience, and with a healthy flow of both original and acquired content still on the horizon, I wouldn’t bet against Netflix slowing down in the foreseeable future.
Brodkin, Jon. “Comcast Lost 477,000 Cable-TV Customers in Q2 amid 12% Drop in Revenue.”
Ars Technica, 30 July 2020, arstechnica.com/information-technology/2020/07/comcast-l ost-477000-cable-tv-customers-in-q2-amid-12-drop-in-revenue/.
Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter,
19 Jan. 2021, www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic.
Kafka, Peter, and Rani Molla. “Here's Who Owns Everything in Big Media Today.” Vox, Vox, 23
Jan. 2018, www.vox.com/2018/1/23/16905844/media-landscape-verizon-amazon-comcast-disney-fox-relationships-chart.
St Leger, Henry. “Disney Plus vs Netflix: Who Will Win?” TechRadar, TechRadar, 25 Mar. 2020,
www.techradar.com/news/disney-plus-vs-netflix-who-will-win.