In the news | January 27th, 2021

In the news | January 27th, 2021

Quibi wind-up continues

Quibi, which raised $1.75 billion in venture investment, is expected to return about $350 million to investors. Quibi sold many of its original shows to Roku, which developed digital media players with Netflix, for what is believed to be less than $100 million.

The series acquired by Roku will not be aided by the innovative Turnstyle technology which switches from portrait to landscape viewing, depending upon how the smartphone is held. The Turnstyle technology is reportedly subject to legal dispute.

Fragmentation to standalone streaming properties continues.

African-American TV network Revolt joined the streaming push by TV conglomerates, Discovery, NBCUniversal and WarnerMedia. Revolt plans to launch a free, ad-supported direct-to-consumer streaming app on connected TV platforms, including those of Apple and Roku. The shift beyond traditional TV is aimed at reducing its reliance on pay-TV providers, the businesses of which face uncertainty as the pay-TV subscriber base shrinks, digiday reported.

Revolt’s linear TV channel launched in October 2013 as a music-oriented network, but since the killing of George Floyd, has pivoted to social justice in its editorial strategy.

Motley Fool backs Netflix investment

Netflix (NASDAQ: NFLX) spent around $15 billion on content in 2019, with the bulk of it on original programs. Netflix has been spending more than the online video streaming pioneer earned over the past few years. While the company needs to spend up front during the content creation process, in the long run, creating its own content is less expensive, as the company works directly with the creators and saves on overhead.

Netflix mainly owns the rights to the content produced. However, Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) now pose a serious challenge. Motley Fool, reporting on the NASDAQ, asserts Netflix’s big and growing subscriber base should continue to help it in improving revenues as well as margins.

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In the news 25 Nov, 2020

YouTube
YouTube TV, Google’s live streaming TV service, finished the third quarter with over 3 million subscribers. The new total suggests that YouTube TV added 500,000 subscribers during the quarter, Fierce Video reports.

Quibi
Quibi is an expensive outlier, not the norm, according to research by Parks Associates. Over-the-top video services in the U.S. now number nearly 300, with those platforms shuttering actually declining.

The narrative for why Quibi failed from founder Jeffrey Katzenberg was that the shortform platform was designed for an on-the-go mobile market, which plummeted during pandemic characterized by shelter-in-place at home. Indeed, Quibi launched on the back of a robust national advertising campaign, including a multi-million-dollar Super Bowl commercial, and record-high audience levels for streaming video, Next TV reports.

Streaming Wars
Major subscription VOD services now number seven, counting the rebranding of ViacomCBS’s CBS All Access into Paramount+ early next year. Netflix, Amazon Prime Video and Hulu represent the established streamers with healthy track records and steady growth. Disney+, which launched in November 2019, leads four newcomers, Apple TV+, HBO Max, NBCUniversal’s Peacock and soon Paramount+, all contending for a share of the attention and revenue from the streaming wars. Source: Media Play News.

Word-of-mouth still rules
Word-of-mouth and advertising dominate the mechanisms used to attract and retain the attention of streaming viewers to shows, Media Play News reports. When asked how they first found out about their favorite online show, the largest percentage of respondents, 33 per cent, said they heard through word-of-mouth. For favorites watched through pay-TV, advertising was the top discovery source at 30 per cent.

Physical formats continue sharp decline
Streaming is becoming so dominant a viewing mechanism that it has undermined the disc business. Disc sales declined 34.3% in the quarter to $434 million, while DVD and Blu-ray rentals fell 34.4% to $225 million, Next TV reports.