Company / division: Disney
I’ve been watching the news from the recent TV upfronts and waiting for the definitive article that summarizes what’s been said and done, and while I’m not convinced this is it, it does a good job of characterizing the basic trends at issue. The two big underlying trends are the continuing decline of live linear viewing of traditional TV and the massive growth of online advertising, which could be presumed to have put an enormous dent in TV ad spending but actually haven’t. However, the TV companies still see online advertising platforms as a big threat, and spent an unusual amount of time during the upfronts trashing Facebook and Google (though mostly not by name) while talking up their own massive reach. At the same time, though, these companies are increasingly mimicking the very same things that make Facebook and Google’s ad platforms attractive: detailed targeting of ads and tracking of what happens after viewers see them. At the same time, the TV networks seem somewhat lost on the content side, rebooting old shows and formats, latching onto new gimmicks like live musicals, and generally showing a lack of imagination in protecting and rejuvenating their brands. Meanwhile, the strongest audiences on traditional TV are live sports fans and older generations watching procedural franchises like CSI and NCIS. And of course the big online platforms are investing in lots of both traditional sports content and some new formats of their own. Therefore, though each side would like to paint itself as providing unique value, the two are increasing converging on a similar set of content and ad capabilities, while the audience continues to shift from traditional linear TV to a host of online and streaming alternatives, which will inevitably pull ad dollars that way too.
via LA Times
ESPN Lays Off 100 On-Air Personalities (Apr 26, 2017)
ESPN takes you inside a college football rivalry with VR (Dec 30, 2016)
Though high-quality gaming content exists, other top-notch content for VR is still pretty experimental, so seeing a brand like ESPN investing in VR content is a good sign. For this kind of thing, VR is obviously still a far better fit than AR, and immersive video content in general will be critical for taking VR beyond gaming.
Disney-ABC to Produce Snapchat Original Series | Variety (Dec 21, 2016)
One of the biggest challenges facing Snap as it approaches an IPO is providing advertisers with the products and tools they need to make markedly bigger investments on the platform. Getting more professionally produced video content onboard is one way to go about that, and I’m betting this won’t be the last of these deals.