What's Happening in Media: February 2022

Each month, our team at The Variable dives into all of the latest headlines in media, social and more to give you a breakdown of the most notable developments and trends that will have an impact on business. Below are a few of the most interesting developments from February.

DISNEY+ GOES LIVE

The current state of streaming platforms is focused primarily on generating pre-recorded, episodic or movie content. But the future of streaming platforms will likely be a much more diverse ecosystem. An example of that, in February, Disney+ announced this year’s Oscar nominees via live stream which is a first step into different user-experiences for the subscription service.

While Netflix still maintains a leading share of streaming subscriptions with 167 million subscribers, Disney+ continues to showcase a solid growth trajectory, adding 11.8 million starts in Q1. This increase bumps their numbers to 129.8 million; when combined with Hulu and ESPN+, total subscribers reach 196.4 million across the full Disney network. While Netflix numbers also grew quarter over quarter, they did not meet expectations, adding 8.3 million subscribers.

Despite continued growth, both Netflix and Disney+ are stretching for any available subscriber growth, but also to maintain share of attention and to retain subscribers at stronger rates than their competitors. Which is exactly why Disney is trialing things like live streaming, and why they will continue to push the platform beyond recorded content.

What to Watch

Disney is certainly better positioned than Netflix to migrate their streaming platforms to full entertainment platforms. The company knows how to do movies, live TV, events, and pure-play entertainment. They also have sports to tap into with ESPN which is a big differentiator. All of this also offers more opportunities for advertisers as Disney+ expands content options - subscriber revenue combined with ad revenue is something Netflix simply doesn’t have.

As Disney adds to their arsenal, Netflix is looking more and more like very large, one-trick pony.

LINKEDIN PODCAST NETWORK ANNOUNCED

Although somewhat late to the party, LinkedIn has announced the LinkedIn Podcast Network which features a range of pods hosted by their internal employees, as well as outside industry experts. In general, podcast announcements were abundant last month as brands like Nordstrom launched The Nordy Pod , joining the likes of Free Assembly from WalMart with their Who What Wear podcast.

There are big B2B focused brands like Adobe, Basecamp, Slack and ZipRecruiter already churning out relevant podcast content. Thus, LinkedIn’s entrance into the category isn’t unexpected, but it is important for scale of business-focused podcast buying.

LinkedIn has been slowly updating offerings to help the B2B space better capitalize on bigger consumer marketing trends. Business-oriented brands are eager to take advantage of increased video usage, live event formats and now podcasts to increase brand engagement and grow customer bases.

?Brand-oriented podcasts have been the newest trend in the wave of podcast content hitting the market. And they aren’t just marketing-led messaging platforms; instead, like with both Nordstrom and Walmart, they feature top executive leadership discussing the industry with other powerful industry players. Which means that brands are truly invested in podcasts being a meaningful way to build company esteem and reputation.

But one-off brand podcasts, while strong opportunities to build reputation and loyal listeners, will struggle to generate strong reach; therefore, LinkedIn’s new network should make a big difference immediately. The network’s built-in business audience combined with their advertising scale will likely allow B2B pods to reach valuable and sizeable audiences.?

What to Watch

LinkedIn shows will be ad supported and will also be widely available across Spotify, Apple, and other platforms. Look for shows to follow the trend of high-profile executive hosts and guests, as well as large brand sponsorships (initial, premier sponsors include Verizon and IBM).

Expect many more brands to enter this category either in the form of podcast producers or advertisers. And expect LinkedIn’s Network to grow, as a result of strong interest. LinkedIn just opened the B2B podcast door wide open.

REDDIT RISING

As online community popularity continues to rise, Reddit is looking to further capitalize on that growth, to keep audiences engaged, and to help groups thrive. As a result, the platform introduced a major update in February – an AI-driven Discover Tab to help user more easily find communities.

Reddit is also rolling out new tools for moderating Reddit Talk (their audio conversation option), as well as new visual post options for users like cropping, mark-ups, and filters. There is more planned ahead for Reddit as they roll into 2022, including improved advertising options.

Reddit has comparatively made nominal changes in the last five years, so these updates are significant. The platform is finally looking to really appeal to advertisers and to take advantage of user trends to find, connect and engage in deeper ways. Social users are no longer just passively scrolling in newsfeeds or alternatively searching specifically for deep-dive information. They are now expecting to be served interesting and relevant content and to connect with other users online.

Given these trends, with 52 million daily active users and over 100,000 active communities, Reddit is in prime position to grow user time spent and expand their influence in the social marketplace. Making the platform more searchable and visual are key steps to doing just that. Importantly, Reddit will not be utilizing demographic data to serve-up Discover content and instead will be relying only on algorithmic interest which is an interesting privacy touch and importantly different than other channels.

What to Watch

As Reddit becomes more visual and interactive, their advertising stock increases substantially. Advertisers are more interested than ever in building real relationships with customers and relevant interest groups. In a text-dominant environment, it is difficult to achieve that with authenticity. But add live-discussions, video options and search tools that aid in growing user bases and help advertisers target specific audiences and that becomes more feasible for brands.

Advertisers and media buyers have been waiting patiently for Reddit to mature – that day may just be dawning.?

Want to learn how we can help your brand navigate the ever-changing media landscape? Contact Courtney Lewis at?[email protected]

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