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INSIGHTS

  • Kirby Grines

The Streaming Wars: Traditional media companies are taking the wrong approach to DTC

Updated: Aug 20, 2019


Why go through all the effort of building and iterating your own proprietary apps if the vast majority of subscribers will not even use the apps you build?


Traditional media companies that are reclaiming their content from licensees or planning their own direct-to-consumer (DTC) streaming services may be biting off more than they can chew.


That’s the view of BTIG analyst Richard Greenfield, who wrote Monday of the challenges posed by DTC services that lie outside of the expertise of legacy media.


OTT ROUNDUP


While everyone chases Netflix (including Crunch) and audiences demand more and more from subscription services, is the golden age of television only just getting started?

Around 64 million U.S. homes now use a connected TV and OTT usage continues to surpass that of DVRs -- in March, U.S. consumers watched about 5.5 billion hours of OTT video vs. around 4.6 billion hours of DVR TV.

Increased streaming competition and shifting consumer demands have made traditional pay TV a tricky business to be in right now. Operators brace for an app-based future.

Roku is dominating the US streaming market and it isn't even close.

Eddie Cue discusses Apple's video streaming and original content strategy. Including a $2 billion content budget and dismissing previous reports of Apple micromanaging shows for TV+.

Meanwhile, Netflix continues on track to spend $8 billion per year on original content and $13 billion overall. Amazon, Hulu, and perhaps others spend anywhere from $2 billion to $4 billion each. With nearly 500 scripted shows, who has the time to watch?

But is all this exclusive content going to drive users back to piracy? Amazon and Netflix are already seeking millions in damages from pirate service SET TV.

Amazon is rolling out a dedicated Live tab showcasing what’s playing across a host of apps, whether a free offering like Pluto TV, a cable substitute like PlayStation Vue or an over-the-air broadcast.

Speaking of Playstation Vue, Sony's the latest vMVPD to up their pricing, Sling TV bundles all its extras for $20, and subscribers of fuboTV are streaming 80 each per month.

WarnerMedia narrows down a name for its upcoming streaming service and is eyeing TGIF reboots including Perfect Strangers, Family Matters, and Step by Step.

Why Dazn is making more content available for free.

The WatchESPN App is officially dead.

Hearst enters SVOD space with new fitness app.

Calm investment will help control meditation app space.

INSIGHTS


How linear TV benefits from an excess of streaming options.

Nielsen report finds average viewer takes 7 minutes to pick what to watch; just one-third bother to check menu.

Four ways home entertainment has changed in the last year.

5% of broadband users likely to ditch pay TV in the next 12 months.


FOOD CORNER (NYC)


HaSalon 735 10th Ave. Locavore spot from Israeli celebrity chef with a reservations-only experience & a theatrical vibe.

Le Jardinier 610 Lexington Ave. A vegetable-focused menu & sustainable proteins are served in a modern greenhouse-inspired space.

Rezdôra 27 E 20th St. Italian eatery highlighting handmade pasta, traditional meat & fish dishes plus local vegetables.



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