Weekly Digest from the West
Jean-Baptiste Piron
Cultural Attaché I Attaché culturel I Québec Office Los Angeles
-SpaceX’s Home Internet Service is Launching 60 More Satellites Today: In early 2019, SpaceX received approval to launch 12,000 satellites into space to build a low earth orbit network of satellites, enabling the company to sell home Internet. Over the last year, SpaceX put 180 satellites into space to test its Internet service. Today, SpaceX will make its 5th launch with 60 more satellites ifor their new home Internet service, meaning SpaceX will soon have 300 home Internet service satellites in space. SpaceX had hoped to launch these satellites last week but it was delayed because of the weather. This puts SpaceX one step closer to having an Internet service live in time for summer 2020 when it hopes to have the network live in North America. How much will SpaceX Internet service cost? We still don’t know for sure, but earlier this year at SXSW SpaceX Chief Executive Elon Musk said it would be “low cost.” Exactly how low is unknown, but reports are that SpaceX hopes to make its Internet service extremely competitive. SpaceX also plans to offer high speed Internet in North America sometime in early 2020. SpaceX is not the only company working on a new home Internet service. Amazon and others are also working to launch satellites to offer high speed Internet. Soon you may have several new options for home Internet.
https://www.cordcuttersnews.com/spacexs-home-internet-service-is-launching-60-more-satellites-today/
-European Admissions Hit 15-Year High on Disney, Local Titles: With 1.34 million admissions and an estimated $9.2 billion in revenue, 2019 was a banner year for Europe’s theatrical business, helped by Disney blockbusters 'Lion King,' 'Avengers: Endgame' and 'Frozen 2.' The rumors of the death of cinema have been greatly exaggerated. In Europe at least, the theatrical business has rarely looked better. Official figures published Monday by the International Union of Cinemas (UNIC) show box office attendance figures hitting a record high last year, helped by both studio juggernauts and home-grown hits. The UNIC recorded 1.34 billion admissions across Europe in 2019, the highest attendance figures in the European Union for 15 years. Across all the European territories the UNIC covers, including Russia, attendance soared to a level not seen since the early 1990s. Box office last year topped $9.21 billion, another record, albeit one not adjusted for inflation. Disney's gargantuan year at the box office played an outsized role at boosting European figures, with The Lion King, Avengers: Endgame, Frozen 2 and Toy Story 4 among 2019's top performers across the continent. Warner Bros.' Oscar winner Joker was also a major hit in virtually every territory in Europe.
-How Adidas is using WhatsApp as a direct marketing channel: Facebook may have shelved the idea of ads on WhatsApp, but Adidas is still steaming ahead with its plan to turn the app into a key marketing channel. Adidas has been using the mobile messaging app to chat directly with customers since 2015. At the time, the app was seen by the company’s marketers as a way to build hyper-local communities in cities across the world. Now, it’s being used as the main platform for global campaigns. WhatsApp, and by extension direct messaging, is seen as a way to grow influence among key fans rather than buy influence. “It’s allowed us to build direct relationships with a smaller community of influential people in an ongoing way that doesn’t feel transactional and allows for a conversation, rather than just a broadcast,” said Laura Coveney, managing editor for Adidas’ newsroom in London where the campaign was managed. The most recent example of the strategy was the “100% Unfair Predator” campaign. Earlier this month, Adidas opened up a hotline on WhatsApp for people in need of a footballer to cover for unreliable teammates on their team. Adidas-sponsored players were made available for games last week once fans had shared some basic information with the hotline such as the game they need the player for. The company’s marketers would notify fans on the morning of their game if their request was successful. The rented players turned up dressed in Adidas’ new Predator20 Mutator footwear.“We know our audience use it to share fixture info, team selection — and team-mates messaging to find last-minute replacements,” said Coveney. “WhatsApp was perfect for the more functional elements of the ‘Rent-a-Pred’ hotline as it allowed consumers to share private information one-to-one with us for review, before being allocated a Predator player near them.”
https://digiday.com/marketing/adidas-using-whatsapp-direct-marketing-channel/
-Roughly Half of All US Households Will Be Cable Free by 2024, Roku Predicts: Along with sharing news that the company exceeded $1.1 billion in revenue during 2019, Roku used their quarter 4 earnings report to give their opinion on the current state of streaming and the future of cord cutting. In a section labeled “The Streaming Decade Ahead,” Roku says that streaming has been embraced by many of the big names in media and advertising, as well as consumers. Moreover, new services and the growing investment in original programming that is exclusive to streaming are enriching the OTT experience. This is driving more viewers to spend more time streaming and less time in traditional pay TV, and many consumers are leaving the legacy pay TV ecosystem entirely. We predict that by 2024 roughly half of all U.S. TV households will have cut the cord or never had traditional pay TV. In the last decade, streaming has become mainstream, the company says, and the decade ahead will be one of continued growth as streaming becomes the primary source of TV viewing. Roku intends to be at the forefront of that growth. The company shared plans to invest in four strategic areas in 2020: advertising, The Roku Channel, Roku TV, and international.
-Google turns off App Store payments for YouTube TV: Google will no longer accept YouTube TV payments made through Apple’s App Store. YouTube TV is Google’s cord-cutting competitor to Hulu Plus Live TV in the US, and offers a range of live channels starting at US$50 per month. In an email sent to users, Google confirmed that it would shut off the ability to subscribe through the App Store and that it would also cancel any existing ones paid for through the platform. The email said: “You’re currently subscribed to YouTube TV through Apple in-app purchases, so we’re writing to let you know that, starting March 13, 2020, YouTube TV will no longer accept payment through Apple in-app purchases. YouTube TV members will still be able to watch YouTube TV content on Apple devices. You’ll be billed for one final month of service and then your in-app purchase subscription will be canceled automatically on your billing date after March, 13, 2020.” n 2015, Spotify actively tried to tell consumers that it was cheaper to subscribe to the music streamer through the web. It emailed its iPhone customers telling them that “the normal Premium price is only US$9.99, but Apple charges 30% on all payments made through iTunes.”
https://www.digitaltveurope.com/2020/02/17/google-turns-off-app-store-payments-for-youtube-tv/
-DISH Thinks That DISH & DIRECTV Should Merge: Today during DISH’s 4th quarter 2019 earnings call DISH was asked about a possible DISH and DIRECTV merger. According to DISH executives, it eventually makes sense for these two services to merge as the market changes. DISH’s CEO Charlie Ergen said that the merger of DISH and DIRECTV feels “inevitable.” Back on September 30th 2019 Craig Moffett from MoffettNathanson Analysts said that if DirecTV and Dish came to an agreement about a merger, it’s likely that regulators would sign off on the deal. “Satellite TV was growing by leaps and bounds at the time. Now it is in free fall. That alone may be enough to settle the debate; sure, two would be better than one, but both are credible bankruptcy risks on their own. Heck, they’d be a credible bankruptcy risk even together. Simply preserving an option for rural America at all would be the argument. And it would be a reasonably persuasive one,” wrote Moffet. Currently, DISH and DIRECTV are moving toward the same fate as XM and Sirius satellite radio. At some point, the subscriber numbers between the two companies can’t support two companies but if they merge a single company could survive and offer TV to customers who can’t get a streaming service due to poor internet.
https://www.cordcuttersnews.com/dish-thinks-that-dish-directv-should-merge/
-Hulu is now the biggest live-TV streaming service after Sling subscribers shrink: Hulu is now officially the top live TV streaming service, overtaking Sling TV for the first time last quarter. Dish Network reported this morning that its Sling TV service finished Q4 2019 with 2.59 million subscribers, having lost 94,000 subscribers from the prior quarter. Hulu + Live TV, meanwhile, continues to grow, finishing last quarter with a record 3.4 million subscribers. The next closest streaming bundle competitor is YouTube TV with two million subscribers. Both Hulu + Live TV and Sling TV raised prices in Q4, but not until late December, so the full effects of those price hikes probably won’t be felt until next quarter. Sling TV was the first live TV streaming service out of the gate in early 2015, but it’s hovered around 2.5 million subscribers throughout 2019 even as other services have grown. That may have to do with its atypical channel packages. Whereas most live TV streaming services replicate the cable bundle with local stations, regional sports, cable news, and a large number of entertainment channels, Sling has avoided carrying local channels to keep prices down while encouraging customers use antennas. It also splits its channels across two base packages, and has not carried regional Fox Sports networks since a falling out with Sinclair, the new owner of those networks, over the summer. While those decisions do allow Sling to be cheaper and more flexible than other streaming TV bundles, it also makes the service more confusing for cord cutters to navigate. The continued growth of Hulu + Live TV and YouTube TV is a sign that most people are willing to pay a bit more to have everything in one place.
-Forget Going Pro, Los Angeles eSports Pivots Toward Amateur Leagues: Two companies betting on the Los Angeles eSports market aren’t throwing in on glitzy, state of the art stadiums or sinking big bucks into the pros: They're banking on the average Joe. The video game industry has been red hot, surpassing $120 billion last year. Many in the marketplace think the next area for growth is in the amateurs; a vast pool of recreational players who can, if provided the infrastructure, make hay for investors as competitive players. Southland stalwarts like Blizzard Entertainment and Riot Games both have investments in the unpaid ranks, building programs around blockbuster offerings like Overwatch and League of Legends. But companies without game development programs have found a way in. Santa Monica-based Super League wants to anchor its tournaments and one-off events with geography, drawing crowds to local sites set up for tournaments at the local Buffalo Wild Wings, or maybe even a Dave & Busters. The company already has, launching the program four years ago. In the age of wireless internet, any place with a strong connection is a potential tournament site. Matt Edelman, Super League’s chief commercial officer, wants to convert the millions who watch competitive gameplay on Twitch or YouTube gaming channel into Super League community members. Think recreational league sports at the local YMCA or community center. "Super League is not in the pro eSports business. We have really focused on the fact that every viewer, every player is a participant. And that's not the way it is in traditional sports," Edelman said. "Every single person who goes to a League of Legends event also plays the game. How do I get to play in person? That’s where Super League comes in." The cost structure includes games for as little as $5 or leagues that cost about $80.
https://dot.la/los-angeles-esports-amateur-leagues-2645195267.html
-YouTube TV to Distribute HBO Max in Expanded WarnerMedia Carriage Deal: YouTube TV will carry HBO Max as part of an expanded distribution deal with WarnerMedia. This is the first deal that WarnerMedia has announced for the third-party distribution of HBO Max, but more are expected before the service’s May launch. The live-streaming TV business, which already offers WarnerMedia’s portfolio of entertainment, sports and news networks to its subscribers, will also now make HBO and Cinemax available to subscribers for the first time. "As consumers' media consumption habits continually evolve and the landscape becomes more and more dynamic, our goal remains constant, and that is to make the portfolio of WarnerMedia networks available as widely as possible," Rich Warren, president of WarnerMedia distribution, said in a statement. ? YouTube has been a valued partner for a number of years, and we're pleased to not only extend our existing agreement, but also make HBO and Cinemax — and soon HBO Max — available to YouTube TV customers for the first time." Both live linear and on-demand programming from HBO and Cinemax will become available on YouTube TV this spring. The networks join TBS, TNT, truTV, CNN, HLN, Turner Classic Movies, Adult Swim and Cartoon Network, which have been available since 2018 on the live TV service. "Our commitment at YouTube TV is to deliver TV to our members how and when they want it," Lori Conkling, global head of partnerships at YouTube TV, said in a statement. ? We are thrilled to continue our partnership with WarnerMedia to deliver their family of networks that are popular among our members, as well as introduce HBO, Cinemax and HBO Max to our growing lineup of premium content." YouTube TV currently offers more than 70 live-streaming channels for $50 per month. HBO, Cinemax and HBO Max are likely to be add-ons to the main bundle.
-FOX is In Talks to Acquire Free Streaming Service Tubi: FOX is reportedly in talks to acquire the free streaming service Tubi for $500 million, according to a report from Wall Street Journal. The reported said the information came from anonymous sources. It’s not surprising to see interest in buying this free service, as Tubi recently reported that the company is growing faster than ever. At the end of 2019, Tubi had 25 million active users with 163 million hours watched—a 160% jump over 2018. “Our growth over the last year is a clear testament to the success of our focused strategy in a now-cluttered marketplace,” said Farhad Massoudi, CEO of Tubi at the time the numbers were announced. “We’re excited people globally have embraced Tubi as a complement to subscription video and aim to deliver an even larger library of premium content in 2020.” Like many other free streaming services, Tubi is ad-supported and generates its content library by curating content from around the web and from partnerships. Tubi’s partners include Warner Bros., Paramount, Lionsgate and NBCUniversal, among others. Tubi and FOX had declined to comment at the time the WSJ report was published.
https://www.cordcuttersnews.com/fox-is-in-talks-to-acquire-free-streaming-service-tubi/
-78 of the Most Anticipated Movies for the Rest of 2020: Long-awaited sequels, fresh adaptations and even some originals round out the list of what to expect in the coming year. Now that the Oscars are over, moviegoers have the rest of 2020 to figure out where they plan to spend their box office dollars. From Top Gun: Maverick to Ghostbusters: Afterlife, the 2020 slate of films is chock-full of long-awaited sequels to popular titles. Not to be left out of the sequel game, the ninth installment of the Fast & Furious saga is due out in May, and Godzilla vs. Kong promises to pit the two iconic movie monsters against one another again in November. The rest of February sees a host of adaptations coming to the big screen. Blumhouse is bringing a fresh take on The Invisible Man to theaters, and Harrison Ford stars in the latest reimagining of The Call of the Wild, released the same weekend as a new take on the Jane Austen novel Emma. Disney's latest live-action iteration from its animated library, Mulan, is set to bow in March, but a couple of original features could prove worthy summer blockbusters. Free Guy, starring Ryan Reynolds, is an original action-comedy that could shake up the typical schedule of sequels and remakes. Below, The Hollywood Reporter breaks down the movies headed to theaters and streamers in 2020.
https://www.hollywoodreporter.com/lists/anticipated-movies-2020-list-watch-trailers-1267730
-Shopify joins Facebook’s cryptocurrency Libra Association: After eBay, Visa, Stripe and other high-profile partners ditched the Facebook -backed cryptocurrency collective, Libra scored a win today with the addition of Shopify. The e-commerce platform will become a member of Libra Association, contributing at least $10 million and operating a node that processes transactions for the Facebook-originated stable coin. If Libra manages to assuage international regulators’ concerns, which are currently blocking its roll out, Shopify could gain a way to process transactions without paying credit card fees. Libra is designed to move between wallets with zero or nearly-zero fees. That could save money for Shopify and the 1 million merchants running online shops on its platform. Shopify stressed that helping merchants reduce fees and bringing commerce opportunities to developing nations as reasons it’s joining the Libra Association . “Much of the world’s financial infrastructure was not built to handle the scale and needs of internet commerce,” Shopify writes. Here are the most critical parts of its announcement: Our mission is to make commerce better for everyone and to do that, we spend a lot of our time thinking about how to make commerce better in parts of the world where money and banking could be far better . . . As a member of the Libra Association, we will work collectively to build a payment network that makes money easier to access and supports merchants and consumers everywhere . . . Our mission has always been to support the entrepreneurial journey of the more than one million merchants on our platform. That means advocating for transparent fees and easy access to capital, and ensuring the security and privacy of our merchants’ customer data. We want to create an infrastructure that empowers more entrepreneurs around the world.