Company / division: 21st Century Fox
Five major movie studios have banded together to join a successor to Disney’s Movies Anywhere service, which serves as a digital locker consolidating digital movie purchases across major retailers like iTunes, Google Play, Amazon Video, and Vudu. This is a pretty big deal, because the service was Disney only in the past and competed with UltraViolet, a competing platform. This partnership now brings together five of the biggest names in movies, and it’s fairly compelling – I just signed up and was able to consolidate my past purchases from iTunes, Google Play, and Amazon Video into one big collection, which I can now view on various devices and even download for offline viewing on a phone. That’s important to me because even though I’ve tended to favor one particular storefront over the last few years, I have at various times acquired movies on other platforms for pricing, availability, or testing purposes, and they’ve been kind of lost on there. This therefore feels like the first time something like this might actually take off in a meaningful way.
This LA Times piece has some good numbers on how this season’s broadcast fall TV premieres fared, and the answer is that they saw another drop year on year in live viewing. The ongoing drop in life NFL viewing was a big contributor to the overall drop, but there were broader drops for dramas and comedies as well, despite a fairly strong performance on the comedy side overall. None of this is new, nor should it be surprising at this point – the trend away from live viewing and towards DVR and streaming viewing of the same shows as well as digital-native streaming through services like Netflix is well established and unstoppable at this point, with significant implications for legacy TV companies. As measurement of non-live viewing – both DVR and streaming – both improves and increasingly gets counted in official figures used to calculate ad payouts, some of the effects on ad revenues will be mitigated, but certainly not all.
via LA Times
FX, a division of 21st Century Fox, today announced a broadening of its FX+ add-on service for pay TV operators to Cox Communications’ pay TV subscribers, in addition to its existing partnership with Comcast. But in some ways more interesting were comments its head made about the network’s future approach to licensing content. In essence, FX has had to pay a lot of money to undo past deals which gave various other entities rights to its content so that it could put that content back on its own streaming service, and he says he doesn’t plan to make that mistake again. Netflix was singled out in particular as a streaming service FX had licensed content to in the past but wouldn’t again, and Netflix’s shares were down around 5% today seemingly as a result. All of this of course validates Netflix’s decision a number of years ago to invest much more heavily in its own original content, which has three major drivers of which hedging against such decisions was one of the big ones. Netflix needed to control its own destiny when it came to content, and there was always the risk that it would lose its licensing deals as it increased in popularity and power. I think the 5% drop based on comments from one content owner is likely overblown – there certainly wasn’t such a strong reaction to Disney’s recent pullback, at least not right away – and in general Netflix is in pretty good shape content-wise and retains some of FX’s most popular shows for now. FX, meanwhile is pursuing a very limited strategy with its add-on network, limiting it to pay TV subscribers rather than going after cord cutters, either independently or through Amazon’s powerful Channels product, which has driven lots of subscribers for similar packages. That feels like a mistake, and something FX should rectify sooner rather than later if it wants to reach a considerably larger potential base of customers.
Fox and Twitter Partner Around New and Returning Shows (Sep 20, 2017)
Fox Television and Twitter have announced a partnership around new and returning shows, which will see some episodes as well as new content broadcast through Twitter’s live video platform. Empire, one of the most popular shows on broadcast TV, will have a live pre-show featuring interviews and other material broadcast live on Twitter, while another returning show, The Mick, will have a mini-marathon broadcast on Twitter, and new show Ghosted will have its premiere episode broadcast live on Twitter four nights running this week. It’s an interesting attempt to create buzz and additional audiences on Twitter around shows which are currently watched almost entirely through traditional channels and more established streaming services, and will serve as a good experiment for both companies. In a world where much of viewing is moving on-demand, forcing live streaming feels a little contrived, and I’m curious to see how viewers respond to that. The Mick marathon will be shown fairly late in the evening, while Ghosted will debut in an early evening slot on Twitter, presumably to avoid conflicting with Fox’s own primetime lineup, though the Ghosted premiere it precedes the network premiere by a week and a half. We’re going to see lots more of this kind of experimentation over the next little while, and I’m guessing much of it will fall flat, but no doubt some useful concepts will come out of it, and the fan-type shows like the one Fox and Twitter are building around Empire seem the likeliest to take off, both because they’re exclusive to the platform and because other networks have already run these successfully – notably AMC’s Talking Dead.
Last night’s Emmy awards once again provided an interesting set of insights into the winners and losers among both traditional and online streaming TV properties. HBO won the most overall awards with 29, while Netflix beat out the other streaming services with 20. Hulu did much better than in the past, almost entirely because of one show – The Handmaid’s Tale – which has been extremely well reviewed but may also have garnered additional favor by being deemed particularly relevant in today’s rather dystopian real-world political scene. That’s a huge coup for Hulu as Netflix has never won best drama, but it would be dangerous to read too much into it, given Hulu’s lack of past or broader success. Netflix won twice as many awards overall, including wins for multiple shows in different categories. Amazon, meanwhile, took away just two wins. In addition to HBO, NBC did well among the traditional TV companies, coming in third behind Netflix, while ABC, Fox, and CBS all took home single digit trophies. It still feels like HBO and Netflix are the real powerhouses when it comes to high-budget, high-quality TV, but the Hulu wins show that others in the streaming world aren’t being shut out entirely, which should be heartening to Apple and others coming into the game late but with big budgets and ambitions.
TV Networks Score Growth in Upfront Ad Commitments (Jul 13, 2017)
Netflix Squeezes Fox Out of Top 4 Must-Keep Viewing Options (Jul 12, 2017)
Facebook Secures TV Rights for Less Interesting Champions League Soccer Games Through Fox (Jun 27, 2017)
Facebook has been dabbling in sports rights here and there, and already has a deal for a twenty Major League Baseball games during the 2017 season. Now, it also has a deal to show some European Champions League games in the US through Fox, which owns the TV rights. The games Facebook shows will be the the lower profile ones which aren’t shown on live TV but which have been available through Fox’s streaming apps. Given that the focus is on these lower-tier games, it also has no rights to the last two rounds of the tournament, which features the top club soccer teams from throughout Europe. The article here from Bloomberg talks up the amount of social activity around soccer on Facebook, but of course the US is famously resistant to soccer, so only a fraction of the overall numbers relate to the US specifically. I certainly count myself among those who watch the Champions League here in the US, but almost exclusively the top-tier team I support, which almost certainly won’t be featured in any of the games Facebook shows. And that’s the challenge here – this deal sounds good in principle, and for any fans of relatively obscure European teams who happen to be living in the US (or who watch soccer indiscriminately regardless of the teams playing) this might be a nice value-add on Facebook. But this doesn’t seem likely to attract much bigger audiences than the MLB games on Friday nights.