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Is Streaming Truly the Future of Profit? An Insight into Hollywood’s Modern Dilemma
The Hollywood sign, for so long a symbol of the land where dreams come true, now seems to cast a long, doubtful shadow over Tinseltown’s most recent venture: streaming. With protest signs, cries for fair compensation, and an industry in tumult, one can’t help but wonder: Is the
promise of streaming sustainable? A Historical Deep Dive In 2007, Netflix leaped from its DVD-rental model to introduce the world to streaming, radically reshaping our consumption habits. This was a seismic shift comparable to the transition from radio to television. A
subscription-based model offering an almost infinite library? The proposition was delectable. But it took a mere six years for Netflix to pivot once more, this time producing original content. A strategy that sent shockwaves throughout traditional media houses. Discovery, NBCUniversal, and Paramount, alarmed by Netflix's progressive moves, were pressured to build their
direct-to-consumer platforms. However, the catch was in the economics of it all. Traditional TV had a straightforward model: commercials fund content. With streaming, monthly subscriptions became the primary revenue stream. Growing Pains in the Industry The initial
growth numbers for streamers were staggering. Each quarter brought with it an astronomical rise in subscribers. But herein lay a deceptive underbelly: growing subscribers doesn't necessarily equate to growing profits. The cost of producing original content and licensing others skyrocketed. And while these platforms had amassed subscribers, the average revenue per user was significantly lower than traditional TV models. Then came the shocker in 2022: Netflix reported its first subscriber loss. An occurrence that many believed was the inevitable canary in the coal mine for streaming. Disney soon echoed this sentiment, further causing ripples of uncertainty in the streaming world. According to a report by IndieWire, starting in 2023 only Netflix and Hulu seemed to be in the
green. Other major players, including Disney+ and HBO Max (Now Just Max), were hemorrhaging money. They all faced the same conundrum: while revenue flowed in, profitability remained a distant dream. To bridge the chasm between expenditure and earnings, streamers adopted multiple strategies: Ad-Incorporation: Taking a page out of traditional TV's playbook, platforms like Disney+ introduced ad-supported tiers. Once Netflix jumped on this bandwagon, it found that these subscribers generated more monthly revenue than their ad-free counterparts. Tax Write-downs: Some streamers found profitability, ironically, in their losses.
For instance, WBD's cancellation of Batgirl was suspected to be a move to avail tax write-down benefits. Migrating to AVOD and FAST: AVOD (Advertising Video on Demand) and FAST (Free Ad-supported Streaming Television) emerged as solutions to the profitability conundrum. Brands like Roku and Tubi started offering ad-supported viewing, enticing users with free content.
Mainstream streamers saw an opportunity to offload lesser-watched content onto these platforms, earning through ads while also trimming their libraries. The Way Forward Today's streaming landscape is reminiscent of the early days of cable TV, where a plethora of channels
eventually led to bundled packages. As more streamers vie for the same audience, will we see a similar bundling of streaming services? Furthermore, as streamers scramble to appease investors, the industry's true stakeholders - the writers, actors, and creators - are often left in the lurch, bearing the brunt of the financial tumult. It’s evident that streaming, in its current form, is not the promised land many hoped it would be. While it offers unprecedented accessibility and a platform for diverse content, its long-term profitability remains shrouded in doubt. As technological disruptions continue to redefine Hollywood, it's a wait-and-watch game. For now, both streamers
and traditional media must adapt, innovate, and perhaps even collaborate to navigate the tumultuous waters of the modern entertainment industry.
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All the news you need today, in a format that isn't TL:DR summarized for the busy executive.
Dallas throws its cowboy hat into the 2026 FIFA World Cup final ring, boasting Texas-sized ambitions 🤠🏟️. Dan Hunt sees AT&T Stadium, Globe Life Field, and Choctaw Stadium combining forces to host a whopping 200,000 soccer enthusiasts! ⚽️💪 While Los Angeles juggles venue issues, Dallas and New Jersey's MetLife Stadium are
neck-and-neck in the hosting showdown 🏆. The decision is looming, and Dallas is promising a spectacle bigger than any rodeo. Yeehaw or bust? 🎉🤠🏆👢
AI scraping drama! 🎭 Publications wage war against ChatGPT for allegedly nibbling on their content without paying. 🤖💸 More than 535 news outlets have pulled up their digital drawbridges, blocking the AI snack fest. 🚫📰
The Washington Post suggests Shutterstock's artist-compensation model might be a peace treaty blueprint. 📸💰 As print sales wane, this AI-related revenue stream could be a lifeline for publishers. Or, cue the courtroom dramas. ⚖️🗞️ Google's defense? For AI to chat like a human, it needs a human-level data diet. 🌐🗣️ Feeding AI with public data isn't theft, they say. Debate ensues! 🍿🥊
TikTok's getting an upgrade, inching closer to YouTube's throne! 📈🎥 From 10 to 15 minutes, creators can now churn out lengthier content. 🕰️🤳 But will users stay engaged or doze off? 😴 Meanwhile, LinkedIn's dishing out more blue checkmarks. ✅🔍 With a verified badge, expect a profile popularity boost: more views, comments, reactions, and DMs sliding in. 💼🚀 Everyone loves a shiny badge, right?
🌟🤩
The TV realm is getting testy! 📺🔥 Local broadcasters are feeling left out of the streaming party, urging the FCC to put streaming platforms in the same regulatory boat as traditional TV. 🚢📡 Sen. Luján and pals penned a letter 💌 saying, "Hey, what about the 2014 review that never finished?" and emphasizing the importance of local news in the digital age. 📰🖥️
Meanwhile, bigwig entertainment companies like Disney, Paramount, and Roku formed a squad 🤝💼, arguing that additional rules might just make streaming pricier for us binge-watchers. 🍿💸 Streamers, on the other hand, are teaming up in defense mode, prepping for a digital showdown. 🛡️📱 Who'll win? Only time will stream...err, tell! 🕰️🎬
In a twist worthy of a Hollywood drama, FaZe Clan, once the esports juggernaut with a whopping $400 million tag🏷️, has found a safe harbor🚢 with GameSquare, the Texan esports giant waving the Dallas Cowboys flag🏈. After a roller-coaster🎢 of controversies, crashing stock prices💹, and CEO musical chairs🎵, GameSquare, playing the knight in shining armor🛡️, hopes to rekindle FaZe's once-fiery brand charisma🔥 and tap into its global fan frenzy🌍👥. As
this power-packed merger combines nostalgia📺 with sharp business moves📈, the esports world is all eyes👀, hoping this duo hits a home run⚾ out of what seemed like a losing inning. 🎮🤞. Havas is riding the high tide🌊, posting a 2.1% net revenue hike, reaching a cool 654 million euros for Q3. With an
organic flourish of 4.5% 🌱, it seems like Vivendi, the parent company, is proud, as Havas (along with Canal+) is seen as the golden goose 🥚. In the big ad world race, Publicis Groupe and Omnicom have crossed the finish line with 5.3% and 3.3% organic growth, respectively. 🏁 Waiting in the wings is Interpublic, ready to spill its numbers soon. While Omnicom predicts a yearly 4% growth and Publicis Groupe is eyeing a juicy 5.5%-6%, Vivendi plays it coy, not hinting at Havas's full-year
potential. 🤐 However, with a 4.3% organic growth in the past nine months, things are looking sunny ☀️. Across the globe, it's green everywhere for Havas 🌍: North America (3%), Europe (1.5%), Asia Pacific (2%), and Latin America with a whopping 51% surge. 🚀 Acquisition-wise, 2023 saw Havas grab six firms, including a major chunk of the UK's Uncommon Creative Studio. They're also diving deep into the ecommerce pool with Mirakl 🛒 and kindling their tech romance with Adobe, unlocking some AI
magic 🧙. With revenues of over 1.9 billion euros for nine months, marking a 4% year-on-year rise, Havas is not just talking the talk, but walking the walk.🚶♂️💼📈. 🍸Diageo is shaking things up with its latest blend of iconic drinks, unveiling "The Cocktail Collection" – a swanky new line of ready-to-sip
premium cocktails. 🍹 This isn't just gin and tonic! We're talking posh Tanqueray negronis, chic Ketel One cosmopolitans and espresso martinis, and a classic Bulleit Bourbon old fashioned and Manhattan. 🥃 Bakery, the Austin-based ad maestros with a history with Diageo, is running the show. They're going all out, dazzling social butterflies 🦋 from Reddit to Snapchat and even CTV and OLV. Spotlight's on the ladies aged 25-35 🍸👩 and all the party hosts out there. Tune in for the
30-second headliner, "You've Got It Made," with bite-sized 6 and 15-second trailers. What's the buzz? Less time mixing, more time mingling – holiday celebrations just got an upgrade. 🎄 As Bakery's chief puts it, it's all about those dreamy, quality-filled moments with pals. And with Diageo's $20 billion revenue and a star-studded drink line-up, this party is just getting started! 🎉 Cheers to that! 🥂
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Email Marketing Law Update: Google Announces New Requirements for Bulk Email Senders to Gmail
On October 3, 2023, Google released an
announcement entitled “New Gmail protections for a safer, less spammy inbox.” By February 2024, Google will require bulk senders to authenticate their emails, allow for easy unsubscription and stay under a reported spam threshold.
“…[T]oday, we’re introducing new requirements for bulk senders — those who send more than 5,000 messages to Gmail addresses in one day — to keep your inbox even safer and more spam-free,”
according to the announcement. READ ARTICLE
HOW GIANTS LIKE NETFLIX ARE CIRCLING BACK TO CABLE’S SHADOW
The age of streaming dawned with a promise, a vision of a horizon where content was king, and viewers were no longer shackled
by the constraints of traditional cable. But as the years have rolled on, those early promises seem to have evaporated, much like morning mist under the blazing sun. Today, we stand at a curious juncture where the once-revolutionary pioneers, like Netflix, echo the missteps of the very institutions they vowed to replace. READ MORE OF THIS STORY
The Ascendancy of Connected TV: A Dive into the Future of Advertising
In the dim light of modern living rooms, a battle is being waged: the evolution of television consumption. From black-and-white family gatherers to colorized rectangles of
entertainment, TVs have long been the center of home recreation. Today, the rise of Connected TV (CTV) marks a significant shift in how we view and interact with content. As Millennials, Gen X, Y, and even Gen Z make their mark, they’re tuning into CTV like never before. READ THE FULL STORY
The Murky Waters of Podcasting Ad Fraud
The digital soundscape of podcasts has experienced exponential growth. Millions worldwide tune in every day, taking solace in the intimate embrace of a podcast's
comforting audio. Like any influential medium, podcasts have piqued the interest of advertisers and with that, an influx of capital. But this golden age for podcasts, with its rapid expansion and significant revenue milestones, is facing the timeless ailment of the advertising world: fraud. READ MORE
ADTECH’S SECRET SAUCE: IT’S NOT ALL ABOUT THE CODE
If you're anything like me, it's all too tempting to get caught up in the glitzy allure of cutting-edge software and groundbreaking products.
Adtech companies, often driven by an unwavering belief in their innovative solutions as the ultimate game-changers, have been swept away by the irresistible current of technology. As the adtech industry continues to grow, it is becoming increasingly important for companies to differentiate themselves from their competitors. According to Joe Zappa, the Founder of Sharp Pen Media, the key to this differentiation lies in the
quality of service and caliber of individuals backing the product. Adtech companies often place a steadfast faith in their software or product, but this can lead to a focus on features and functionality rather than the overall customer experience. By prioritizing customer service and investing in top talent, adtech companies can set themselves apart in a crowded marketplace. READ FULL STORY
IS THE OPEN MARKETPLACE DONE? THE SLOW EXODUS FROM OMP TO DIRECT-SOLD ADVERTISING Ah, the digital
age – a world where you can have 500 friends yet be terribly alone, and where advertisers think they’re omnipresent until they realize 70% of their audience is in the digital witness protection program. But in an age of hyper-targeted advertising, there’s a plot twist worthy of a classic film noir. The Open Marketplace (OMP) – the trusted intermediary between publishers and advertisers – seems to be on the ropes. Are its days numbered?
READ MORE OF THIS ARTICLE
FORTNITE: THE ULTIMATE PLAYGROUND FOR BRANDS AND GAMERS
There’s a war going on, and it’s not just between the players. It’s a war for attention, for loyalty, for hearts and minds. It’s a war that brands are waging on the virtual battleground of Fortnite, the colossus of gaming that has captivated millions of fans across the globe. In this article, I reveal the secrets of Fortnite advertising, the psychology behind its appeal, the tactics employed by savvy marketers, and the fine line between enchantment and annoyance.
READ THIS STORY
THE MEDIAMATH DEBACLE: IS THIS AD TECH’S THEATER OF THE ABSURD?
In the tumultuous world of business, where the unexpected often becomes the norm, the recent acquisition of MediaMath by Infillion has sent
shockwaves rippling through the industry. It’s a move that’s ignited more debates than a late-night political talk show. The burning question on everyone’s mind: Has Infillion just pulled off a brilliant coup or taken an audacious gamble with a hefty side of risk? It’s a high-stakes poker game, and we’re all spectators, wondering whether we’re witnessing a grand adventure or a fool’s errand. READ MORE OF THIS STORY
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