Weekly Wrap: New Netflix UI? How soon will others follow?
Kirby Grines
Founder, 43Twenty & The Streaming Wars | Brand Builder, Entrepreneur, Creator | Chief Rap Officer & Producer | Family Man
Every week, I diligently curate, and also rap about, the most pivotal news, insights, and analysis in the FAST-paced streaming industry (pun intended). You can get content 4 days earlier plus additional insights, job postings, and other random fun things by subscribing to the free weekly email here.
In today’s edition:
FROM THE FRONTLINES
WarnerBros. Discovery is negotiating to retain some NBA rights for TNT, including regular-season and playoff games, amid reports of a $76 billion deal with Amazon, NBC, and ESPN. Retaining NBA rights is vital for TNT, known for its popular "Inside the NBA" show. No final deal has been reached, but WBD may still match competitors' offers. Link
Netflix is testing a redesigned homepage for its TV app, featuring dynamic tiles that expand to display detailed information and short previews when selected. This new design makes it easier for users to decide on content by providing prominent information directly within the tiles. Additionally, Netflix is streamlining its menu, moving it to the top of the screen with simplified options and adding a "My Netflix" tab for personalized recommendations. If successful, this update will roll out to more users in the coming months. Link
DIRECTV Stream will introduce individual user profiles by the end of 2024, enhancing user experience by allowing personalized content recommendations and separate viewing histories. Some users have already accessed this feature, indicating it's in the testing phase. While this addition improves personalization and DVR use, it remains to be seen if it will lead to a price increase. Profiles will allow viewers to keep their preferences distinct without affecting other household members' settings. Link
Amazon has agreed to acquire Indian video streaming service MX Player from Times Internet for less than $100 million (the company was once valued at $500m). This deal, finalized after nearly two years of discussions, aims to boost Amazon's presence in smaller Indian cities and towns. Amazon will acquire some assets of MX Player, which has Tencent as a backer. This acquisition will help Amazon gain popularity and trust among smaller city audiences where MX Player is particularly popular. Link
Diamond Sports Group will rebrand its Bally Sports RSNs as their deal with Bally Sports ends after the 2024 MLB season, with FanDuel in talks to take over the naming rights. This potential deal is part of Diamond's efforts to emerge from bankruptcy, leveraging a new naming deal to alleviate some of its $8 billion debt. Despite renewing agreements with DIRECTV and Spectrum, Bally Sports has yet to secure a deal with Comcast, leading to service loss for Xfinity customers amid disputes over package pricing. Link
Warner Bros Discovery has increased the price of its Max streaming service by $1 per month, now costing between $17 and $21 monthly. This follows recent reports of potential price hikes and layoffs within WBD. The price change affects all subscribers, with annual fees rising to $170 for ad-free Max and $210 for the premium tier. This move comes as WBD seeks to cut costs and boost revenue amidst a 7% year-over-year decline in overall revenue, although streaming revenue saw a slight increase. Link
The Information reports that Apple was in talks last year to launch Apple TV+ in China through a deal with China Mobile, the largest telecommunications provider in the country. This deal, if successful, would make Apple TV+ the only U.S. streaming service available in China, accessing over 200 million China Mobile broadband customers. The current status of the talks is unknown, but the potential agreement would significantly expand Apple TV+'s market reach. Link
Netflix is adding 14 new game titles, including the exclusive "Tales of the Shire: The Lord of the Rings Game" for mobile. The company is testing a cloud gaming platform in the UK and Canada. New games include titles from Klei Entertainment and those based on Netflix originals like "Perfect Match" and "Selling Sunset." These additions, free for subscribers, align with Netflix's strategy to diversify content and engage its 270 million global subscribers. Link
Canada is increasing the tax on streaming services like Netflix and Disney+ to 5% of their annual Canadian revenue, starting in the 2024-2025 broadcast year. Under the Canadian Radio-television and Telecommunications Commission (CRTC) guidelines, this move is expected to generate around $200 million for Canadian and Indigenous content. Despite not disclosing Canadian subscriber numbers, Netflix and Disney+ ended the fiscal period with 54 million and 82.6 million paid subscribers globally. Link
Lionsgate’s MovieSphere will be the first major FAST channel measured by Nielsen, using traditional TV metrics. Available on nearly 20 platforms, MovieSphere will receive detailed demographic data. This collaboration aims to bring clarity to the growing FAST market, which saw a 13% increase in offerings year-over-year. MovieSphere's viewership rose 87% in Q1 2024, with an average of 123 minutes watched per viewer. Link
Chicago sports teams—the Bulls, Blackhawks, and White Sox—are leaving NBC Sports Chicago for a new media venture called the Chicago Sports Network, supported by Standard Media Group. Launching in October, this network will air over 300 live games across cable, satellite, and streaming services, with some games also available on over-the-air broadcast TV. Link
Paramount and Skydance have agreed to merger terms, with a deal potentially announced soon. The merger, backed by RedBird Capital and KKR, awaits approval from Shari Redstone. This $8 billion deal includes Redstone receiving $2 billion, a $1.5 billion cash infusion to reduce Paramount's debt, and Skydance and RedBird owning two-thirds of the company. The merger terms will be presented at Paramount's annual shareholder meeting following recent executive leadership changes. Link
Disney and Comcast are in a stalemate over Hulu's valuation, potentially leading to a court battle. Both companies seek an advisor to resolve the pricing issue, with Disney favoring a $27.5 billion valuation and Comcast pushing for over $40 billion. If their hired investment banking firms’ valuations differ by more than 10%, a third firm will be selected to provide a final figure. Link
Fable Studio has announced Showrunner, a platform for creating AI-generated content, allowing users to produce episodes with minimal prompts. Showrunner can write, voice, and animate shows, with initial offerings including various AI-generated series. This move highlights AI's potential to revolutionize content creation, raising concerns about its impact on traditional production roles and copyright issues. Users can join a waitlist for a testing version, with the best user-created episodes being added to the platform's catalog and possibly picked up by streamers. Link
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INDUSTRY INSIGHTS
Anime popularity is surging in Europe, with SVOD titles doubling globally from 3,000 to 6,000 since 2019, driven by Netflix and others. Japanese anime is now the second most popular streaming content. European interest has risen from 3% to 9% in five years. Anime titles in these markets grew 42% from 1,945 in 2019 to 2,755 in 2023, thanks to Netflix, Amazon Prime Video, and Crunchyroll, which now offers 1,653 titles to 15.6 million subscribers. Between 294 and 481 new titles were added in 2023. Link
Inscape’s Q1 2024 TV Market Trends report reveals that 58% of U.S. smart TVs exclusively streamed content in the first quarter of 2024, bypassing traditional cable, satellite, or OTA antenna inputs. Link
According to Parks Associates, Amazon Prime Video has the lowest customer cancellation rate in the streaming industry at 8%. In contrast, Discovery+ has a 43% churn rate. Other major platforms like Hulu, Max, Peacock, Disney+, and Paramount+ have churn rates between 15% and 24%, with Apple TV+ at 40%. Netflix's annual churn rate is 9%, close to Prime Video's, thanks to multiple service tiers and popular syndicated content. 47% of streaming households canceled at least one service within a year. Link
Xumo's latest report shows that 33% of viewers now watch FAST channels in the evening, averaging one hour and 40 minutes of viewing time. This viewership is nearly equal to broadcast and cable TV, indicating FAST's growing importance. The study also highlights that FAST viewers are younger, more diverse, and satisfied with their viewing options. Additionally, 47% of pay-TV subscribers also watch FAST, dispelling myths about the service's audience. Link
But wait, there’s more:
ICYMI
Do you or your company have news I should be talking about? Let me know.
Seedtag acquired Beachfront, enhancing its contextual advertising solutions with Beachfront's CTV technology and inventory. This integration will enable precise, privacy-first advertising across multiple channels, leveraging AI and CTV signals. With CTV ad spend projected to exceed $30 billion in 2024, the acquisition strengthens Seedtag's market position and expands publisher partnerships. Beachfront's expertise will help drive monetization and improve viewer experiences for CTV media sellers. Link
Globo ?partnered with cloud-based SaaS provider Amagi to deliver six FAST channels via Amagi's platform. Facilitated by AD Digital, this collaboration enhances Globo's ability to scale and automate workflows, expanding its reach in the Brazilian market. Amagi's technology offers reliability and agility, driving innovation and growth in Latin America's FAST channel ecosystem. This partnership marks a significant development for Globo, setting a model for the LATAM media industry as the FAST ecosystem grows. Link
Zeam, a free hyperlocal streaming service, is launching a new FAST channel, "Fast Lane TV, By Ryan Phinny," this week. This channel, created in partnership with racecar driver Ryan Phinny, will feature original content from Phinny's on- and off-track activities captured by a mobile production unit. This marks Zeam's first partnership with an individual athlete, highlighting the growing trend of curated content on FAST channels. Link
Dolby Labs signed an agreement to acquire GE Licensing, which owns a significant portfolio of over 5,000 patents in consumer digital media and electronics. This acquisition, including key patents in video compression, will enhance Dolby’s licensing business by adding GE Licensing’s video codec technologies like HEVC and VVC. Link
Accedo and Deutsche Telekom launched an XR sports streaming application for live soccer on MagentaSport, using Accedo Xtend and solutions from Ateme and HISPlayer. The service offers interactive features like live statistics, multi-camera feeds, and 3D sponsored experiences, blending physical and virtual worlds for an immersive viewing experience. This application enhances fan engagement and introduces new sponsorship opportunities. Link
Now TV partnered with Netflix to offer a bundled subscription, allowing access to Now TV and Netflix content under one plan. Now TV set-top box subscribers will have access to popular Netflix titles and Now TV's exclusive content, including major sports, documentaries, and various drama and movie genres. This collaboration aims to enhance content variety and subscription flexibility, positioning Now TV as a leading content aggregator in Hong Kong. Details on service packages will be announced soon. Link
Diamond Sports Group's bankruptcy proceedings continue to face delays, with a judge extending the deadline for a clear business plan to July. Diamond, managing 18 Bally Sports channels, struggles after failing to reach a new deal with Comcast, which led to a revenue loss of $46.5 million over three months. Diamond aims to solidify revenue streams through agreements with top distributors and a commercial arrangement with Amazon. Link
Spotify and Nebula partnered to bring Nebula's curated programming to Spotify's 615 million users through the "Spotify for Podcasters" hub. This move integrates popular Nebula creators like CinemaWins and Hello Future Me into Spotify's platform, enhancing engagement and retention with video content. The deal aligns with Nebula's expansion, including its new film studio and news division, while offering Spotify users diverse video content from a creator-driven platform. Link
Amazon ordered a reboot of the classic competition series "American Gladiators" for Prime Video, produced by MGM Alternative and Amazon MGM Studios in association with Flor-Jon Films. This revival comes as the format has seen renewed success in the UK, with BBC's version becoming the biggest entertainment launch in nearly a decade. Link
Paramount Global's deal with Charter Communications bundles Paramount+ and BET+ with Spectrum TV, mirroring Comcast's StreamSaver offer. Telecom companies are becoming streaming aggregators, using broadband services to offer SVODs and share revenues. This strategy helps telecoms maintain relevance amid cord-cutting trends and supports media companies' streaming growth. Link
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