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Tag: Hulu

  • Four Labor Unions Ask FTC to Block Amazon’s MGM Purchase

    Four Labor Unions Ask FTC to Block Amazon’s MGM Purchase

    The Strategic Organizing Center (SOC) has written the Federal Trade Commission, asking the agency to block Amazon’s MGM purchase.

    The SOC represents four unions: the Service Employees International Union, the International Brotherhood of Teamsters, the Communications Workers of America and the United Farmworkers. Together, the four unions include some 4 million workers.

    The SOC has written an open letter to Ms. Holly Vedova, the FTC’s Acting Director, Bureau of Competition, expressing concerns over Amazon’s proposed purchase of MGM Studios, valued at $8.45 billion.

    The letter highlights the current state of the streaming video-on-demand (SVOD) market, a market Amazon is uniquely poised to gain an unfair advantage in.

    The SVOD market is in the midst of both massive expansion and increasing vertical integration. The market is currently dominated by an oligopoly of five firms. In 2020, Netflix (20%), Amazon Prime Video (16%), Hulu (13%), HBO Max (12%), and Disney+ (11%) collectively comprised 72 percent of the entire US SVOD market.1 Each of these firms operate their own studios as well as a streaming platform which acts as distribution channel for content they choose to acquire, or, increasingly, that they produce themselves.

    The letter goes on to highlight that Amazon’s dominance in other markets, specifically e-commerce, allows the company to offer its SVOD services for free, putting it in a position to abuse its market power.

    Amazon’s Prime membership – which bundles free, expedited delivery with streaming video at no additional cost to consumers – is radically different from the per-month-fee model implemented by SVOD competitors. This model, which has already drawn the attention of competition authorities in Europe, involves an aggressive pricing strategy that unfairly leverages Amazon’s dominance in e- commerce into the SVOD market by offering streaming content at no cost to consumers.

    The letter quotes former studio exec Barry Diller’s assessment of the deal to sum up the SOC’s objections.

    “[When I ran studios] the key point of movies was to please consumers,” but for a service like Amazon Prime “incentives have changed … The system is not necessarily to please anybody. It is to buy more Amazon stuff.”

    The SOC’s opposition to Amazon’s MGM deal is just the latest challenge the company is facing amid increasing antitrust scrutiny.

  • Streaming TV Only 26% of Market But Growing Fast

    Streaming TV Only 26% of Market But Growing Fast

    Streaming TV may be constantly in the news, with a new service seemingly cropping up every week, but it still comprises a minority of the market.

    Netflix, HBO Max, YouTube, Hulu and others are growing in popularity, but they still don’t match more traditional TV options. According to CNN, the latest Nielsen data shows the streaming market accounts for a mere 26% of the American TV market.

    In contrast, traditional broadcast TV accounts for 25% of the market, while cable TV still accounts for 39%. An additional 9% is covered by “other,” including VOD and DVD players.

    Another significant difference between traditional and streaming TV is the engagement of the viewers. According to Nielsen’s data, streaming subscribers tend to be active viewers, intentionally seeking out and watching specific programs. In contrast, broadcast viewers are often more passive, leaving the TV on in the background or casually channel surfing.

    No one knows how long it will take for streaming TV to overtake traditional options, but the degree of subscriber engagement is a promising sign for the future of the market.

  • A Single Customer Was Responsible for Fastly’s Outage

    A Single Customer Was Responsible for Fastly’s Outage

    Fastly has said a single customer caused yesterday’s outage, an outage that had widespread repercussions.

    Fastly made headlines yesterday when an issue with the company’s network led to a major outage. As a content delivery network, some of the biggest companies in the world rely on Fastly, including Amazon, the BBC, CNN, Financial Times, The New York Times, Reddit, Spotify, GitHub, Twitch, Stack Overflow, Hulu, HBO Max, Quora, PayPal, Shopify, Stripe and Vimeo.

    According to TheStreet, the company rolled out a software update in May that introduced a bug that could be triggered under very specific circumstances. The bug only needed a single customer to have a very specific configuration for the bug to active, which ultimately happened.

    “Even though there were specific conditions that triggered this outage, we should have anticipated it,” the company said. “We apologize to our customers and those who rely on them for the outage and sincerely thank the community for its support.”

  • CDN Glitch Leads to Massive Internet Outages

    CDN Glitch Leads to Massive Internet Outages

    A glitch at Fastly, a popular CDN, led to outages for some of the internet’s biggest sites Tuesday morning.

    CDNs, or content delivery networks, are distributed networks of servers designed to help websites and web apps manage their user load and remain responsive. Fastly is a popular CDN option that helps power some of the biggest websites on the net.

    Early Tuesday, a glitch at Fastly led to outages at the BBC, CNN, Financial Times, The New York Times, Reddit, Spotify, GitHub, Twitch, Stack Overflow, Hulu, HBO Max, Quora, PayPal, Shopify, Stripe and Vimeo.

    Fastly confirmed the issue, and was able to quickly resolve it, although the outage illustrates the challenges associated with so many websites relying on a single point of potential failure.

    “Today’s outage of major websites once again highlights the importance of access to online news and government services, underlining the importance of the internet for day to day living,” Matthew McDermott, Senior Officer, Access Partnership, a global tech policy consultancy, told WebPronews. “Fastly responded quickly to restored the issue but this serves as a reminder that resilience is an important part of digital infrastructure to modern life. Organisations and government bodies need to look at implementing the steps that look to assess, stabilize, improve and monitor to ensure this issue do not pose further problems in the future. Assessment is needed to determine the server’s bottleneck then stabilizing the issue with implementation of quick fixes will mitigate impact to broader stakeholders and users. After this, stakeholders will need to improve by augmenting and optimize server capabilities to ensure it meets the necessary needs. Lastly, regular monitoring will need to be set up using automated tools to help prevent future issues.”

  • AT&T Will Start Counting HBO Max Against Data Plans

    AT&T Will Start Counting HBO Max Against Data Plans

    AT&T has announced it will start counting HBO Max against wireless data plans, ending a previous exemption.

    Streaming HBO Max did not previously count against an individual’s data plan. No matter how much a person streamed the service on their phone or tablet, it had no bearing on their wireless plan’s data limits. In contrast, competing services such as Netflix, YouTube, Hulu, fuboTV and others counted.

    AT&T is now ending that exemption, beginning March 25, citing California’s net neutrality law.

    “A state-by-state approach to ‘net neutrality’ is unworkable,” AT&T said in a statement, according to CNBC. “A patchwork of state regulations, many of them overly restrictive, creates roadblocks to creative and pro-consumer solutions.”

    Net neutrality laws are designed to make sure all services are treated fairly, with no service being given an unfair advantage. Although the FCC reversed the Obama-era net neutrality rules, a court ruled that individual states could enact their own.

  • Roku Looks to Expand Into Original Content

    Roku Looks to Expand Into Original Content

    Roku is expanding into original content, moving beyond merely streaming content, according to a recent job listing.

    Roku has been manufacturing digital media players for over a decade. The company’s software also serves as the basis for a number of smart TVs, and Roku has its own channel where it plays licensed content.

    Many streaming services, however, have been expanding aggressively into original content. Netflix, Hulu and Apple TV+ have all seen significant success producing their own shows and movies, and Roku apparently wants in on the action.

    In a job posting on LinkedIn, the company is looking for “a Lead Production Attorney to work on its expanding slate of original content. The position reports directly to Vice President of Business and Legal Affairs, Programming & Distribution.”

    There is little additional information on Roku’s plans, but the company did purchase Quibi’s content library when that service shuttered. Hiring a Lead Production Attorney is the next logical step, putting the pieces in place to capitalize on its purchase.

  • Sling TV Raises Prices, Adds DVR Storage

    Sling TV Raises Prices, Adds DVR Storage

    One of the best deals in streaming is getting a bit more expensive, as Sling TV is announcing a price hike combined with larger DVR options.

    Streaming TV services have been raising prices across the board. YouTube TV announced increases in July, Hulu in November and fuboTV announced a pricing bump when it struck a deal to carry Disney’s catalog. In fact, price increases among streaming providers have become so common that T-Mobile specifically advertised “no exploding plans” when it unveiled its TVision streaming service.

    Long considered one of the cheapest streaming options available, Sling TV is joining the ranks of its competitors in raising prices. The company has announced that new customers will be charged $35 for either the Sling Orange or Sling Blue plans, up $5/mo over previous pricing. When bundled together, the two packages will cost $50 per month, also an increase of $5.

    Many of the company’s various extra packages are also increasing $1 or $2 per month. Existing customers will not seen any price increases through July 2021, as part of the company’s 1-Year Price Guarantee.

    “Unfortunately, we are forced to raise prices because the television networks keep charging us more, but we fight hard to get the best deal for our customers. The proof of our commitment is apparent, as SLING TV is still the best deal in the market, keeping our prices much lower than cable and other live streaming services. SLING TV customers can rest assured that we’ll continue to offer the best combination of live news, sports and entertainment cable channels at the best value,” said Michael Schwimmer, group president, SLING TV.

    Fortunately, the company is also addressing one of its biggest pain points, namely the size of its included DVR service. Previously Sling only offered 10 GB for free, with 50 GB available for $5 extra. With other services starting at 100 GB and going up to 1,000 GB, or even unlimited, Sling’s DVR options were anemic, to put it mildly. With the new plans, all customers will now have 50 GB of DVR storage for free, with $5 bringing that up to 200 GB.

    “A robust DVR feature is a must-have for a premium entertainment experience — customers have told us they want more, and we delivered,” said Schwimmer. “By more than quadrupling DVR for all customers at no charge, SLING TV continues to provide the best value for pay-TV in the industry.”

  • Walmart and Comcast May Partner On Smart TVs

    Walmart and Comcast May Partner On Smart TVs

    Walmart and Comcast are in talks to partner on smart TVs running Comcast’s software.

    Cable companies are under pressure to diversify their income strategies as consumers are cutting the cord in favor of streaming services in record numbers. Sling, fuboTV, YouTube TV, Hulu with Live TV and, most recently, T-Mobile’s TVision have increasingly been competing directly with traditional cable and satellite services.

    As a result, according to TheStreet, Comcast is looking to position itself as a digital hub for the various streaming services and apps. It’s unclear how well a TV from Comcast would be received, as the market is already relatively crowded.

    In addition, like many internet and cable companies, Comcast often charges hidden equipment rental fees that routinely go up in price. While a smart TV would no doubt be an outright purchase, Comcast may find itself struggling to overcome perception problems and negative consumer goodwill.

  • AT&T Looking to Get Rid of DirecTV

    AT&T Looking to Get Rid of DirecTV

    AT&T is said to be pursuing a sale of DirecTV as the satellite TV service has lost ground against streaming services.

    DirecTV is one of the major satellite TV services, competing with Dish Network. AT&T acquired the service in 2015, but has lost millions of subscribers since the acquisition. Even the pandemic, and an unprecedented demand for home entertainment, has not been enough to stem the tide. Instead, users have shown a decided preference for streaming services, such as Netflix, Hulu, CBS All Access, Peacock and others.

    As a result, it appears AT&T has had enough, and is looking to sell the beleaguered service. According to The Wall Street Journal, AT&T and its advisors at Goldman Sachs, are in talks with private-equity groups.

    It remains to be seen whether a deal will be reached. Whether AT&T keeps or sells DirecTV, however, perhaps it’s time to take a page from the streaming services. AT&T and DirecTV have long been accused of overcharging, baiting and switching, and otherwise taking advantage of customers. One of the reasons streaming services have been so successful is because they deliver what users want at a reasonable price. What’s more, streaming services don’t charge for bundled equipment, equipment rentals, mystery fees or any of the other things that often define service with a TV provider.

    Who knows how successful DirecTV might be if it were more like streaming services.

  • Verizon Bundles Disney+, Hulu and ESPN+, Talks Nationwide 5G

    Verizon Bundles Disney+, Hulu and ESPN+, Talks Nationwide 5G

    Verizon has significantly upgraded its Disney+ bundle, including both Hulu and ESPN+ for select plans.

    Verizon made headlines when it bundled a year of Disney’s new Disney+ streaming service for upper tier plans. The company is now expanding that to include the ad-supported Hulu plan, as well as ESPN+.

    “Our new Mix & Match plans make the choice clearer than ever: customers get the best network and the best value with Verizon,” said Frank Boulben, SVP Marketing and Products of Verizon Consumer Group. “We led the industry by giving customers Disney+ on us. Now we’re adding The Disney Bundle, which includes Disney+, Hulu and ESPN+, for more entertainment choices that appeal to a variety of interests. We can’t wait to see what customers choose to suit their needs.”

    “The addition of The Disney Bundle to our agreement with Verizon reinforces our commitment to providing their subscribers with access to high-quality entertainment from Disney+, Hulu and ESPN+,” said Sean Breen, EVP, Platform Distribution, The Walt Disney Company. “We are always looking for the most advantageous ways for consumers to experience our content and we are pleased to work with Verizon so that they can provide their customers with these appealing new offers.”

    Verizon also took the opportunity to speak, albeit briefly, about their upcoming nationwide 5G network. According to the company, all of its new Mix & Match plans will support nationwide 5G, which it says is coming this year—although there were no dates given.

    Verizon is currently the only one of the three major carriers to not have a nationwide 5G network. T-Mobile is currently in the lead, in terms of coverage, with AT&T in second place. In contrast, Verizon opted early on to focus almost exclusively on the high-band mmWave variety of 5G. This flavor is exceptionally fast, but offers limited range and poor building penetration. As a result, it is only suitable for cities and densely populated areas where base stations can be installed every couple of hundred meters.

    At the root of the problem is Verizon’s lack of available low and mid-band spectrum. T-Mobile used its 600 MHz spectrum for its nationwide network, while AT&T used its 850 MHz spectrum. Verizon’s 700 MHz spectrum is tied up with its 4G LTE network. As a result, the company has been looking at Dynamic Spectrum Sharing (DSS) to share it’s low-band spectrum between LTE and 5G networks, using DSS to switch back and forth depending on what type of device is currently accessing the tower. Unfortunately, while a good idea on paper, DSS has faced its fair share of criticism and issues.

    With Verizon so far behind in the 5G race, one can’t help but wonder if its increased bundling is an effort to add value for its customers, and keep them from defecting, while it plays catchup.

  • Google Raises YouTube TV Price

    Google Raises YouTube TV Price

    Google has announced a price hike for its YouTube TV streaming service, following its distribution agreement with ViacomCBS.

    YouTube TV has garnered mostly positive reviews as one of the premier TV streaming services available. One glaring omission was the lack of some ViacomCBS channels. In May, Google announced it had struck a deal to bring 14 additional ViacomCBS channels to the service.

    While many users expected there might be a slight increase in price, thanks to the new channels, it’s probably a safe bet that few were expecting a $15 price increase. Whereas YouTube TV did cost $49.99, effective June 30, the price increases to $64.99.

    “We don’t take these decisions lightly, and realize how hard this is for our members,” says the official blog post. “That said, this new price reflects the rising cost of content and we also believe it reflects the complete value of YouTube TV, from our breadth of content to the features that are changing how we watch live TV. YouTube TV is the only streaming service that includes a DVR with unlimited storage space, plus 6 accounts per household each with its own unique recommendations, and 3 concurrent streams. It’s all included in the base cost of YouTube TV, with no contract and no hidden fees.”

    One of YouTube TV’s best selling points was the features and channels it provided at an exceptionally good price. With this recent price hike, however, Google may have a hard time distinguishing its service from fuboTV and Hulu.

  • FaceBank Group and fuboTV Merging

    FaceBank Group and fuboTV Merging

    FaceBank Group has announced a definitive agreement to merge with streaming TV provider fubtoTV.

    fuboTV started out as a primarily sports-oriented streaming service that later expanded its offerings to compete with more mainstream rivals, such as Hulu, YouTube TV and Sling. FaceBank Group, on the other hand, develops “hyper-realistic digital humans. The company is focused on the development, protection and activation of the personal digital likeness assets of celebrities and consumers, for use in artificial intelligence, entertainment, personal productivity and social networking.”

    According to the terms of the deal, “fuboTV will become a wholly-owned subsidiary of FaceBank, and FaceBank will be renamed fuboTV Inc. The combined company is expected to be headquartered in New York and led by fuboTV CEO David Gandler as CEO.”

    In an SEC filing, FaceBank disclosed it has managed to secure a revolving credit line from HLEE Finance S.a.r.l., for some $100 million. The first $10 million will be given to fuboTV at either the close of the merger or April 1, whichever comes later.

    As the coronavirus pandemic continues to sweep the globe, and increasing numbers of people are quarantined or shelter-in-place, services like fuboTV will likely experience significant growth rates. The merged company, not to mention its line of credit, should help fuboTV continue to compete with other streaming services, and keep up with the increase in customers.

  • HBO and Cinemax Coming to YouTube TV

    HBO and Cinemax Coming to YouTube TV

    YouTube TV has scored a win against its streaming TV rivals with a deal to bring HBO and Cinemax to its service.

    The TV streaming wars are heating up as companies fight to gain and keep subscribers, not just from traditional TV and cable companies, but also from each other. Hulu, Sling TV, fuboTV, CBS All Access, Disney+ and Apple TV+ are all vying for content, networks, channels and programming.

    YouTube TV just inked a deal with WarnerMedia to bring HBO, Cinemax and the upcoming HBO Max to YouTube customers. HBO’s content has been available to Hulu, Amazon Prime and AT&T Now subscribers for some time. The deal rounds out YouTube TV’s lineup and helps the service better compete with its rivals. The deal also ensures YouTube TV continued access to WarnerMedia’s other channels, such as TBS, TNT, truTV, CNN, HLN, Turner Classic Movies, Adult Swim and Cartoon Network.

    “As consumers’ media consumption habits continually evolve and the landscape becomes more and more dynamic, our goal remains constant, and that is to make the portfolio of WarnerMedia networks available as widely as possible,” said Rich Warren, president of WarnerMedia Distribution. “YouTube has been a valued partner for a number of years, and we’re pleased to not only extend our existing agreement, but also make HBO and Cinemax – and soon HBO Max – available to YouTube TV customers for the first time.”

    When HBO Max debuts, it will not be accessible directly in YouTube TV, but customers will be able to use their YouTube TV credentials to log in.

  • Appeals Court Won’t Revisit Net Neutrality Repeal

    Appeals Court Won’t Revisit Net Neutrality Repeal

    Reuters is reporting that a U.S. appeals court has refused to revisit an October ruling that upheld the Federal Communications Commission’s repeal of net neutrality.

    In 2017, the FCC repealed net neutrality rules that had been implemented under the Obama administration. The net neutrality rules prohibited companies from blocking or throttling traffic, or charging extra for so called “fast lanes.” Without net neutrality, companies like Comcast—which provides internet service and owns cable TV channels and a movie studio—could throttle traffic to competing companies, such as Netflix, Hulu or Amazon Prime. Alternatively, companies could charge more to access those competing services.

    Such a scenario would end up being costly to consumers and could unfairly prevent media startups from having a chance of success. After all, if consumers can’t access their sites, apps or services without paying more, new companies may be doomed from the get-go.

    As a result, consumer groups, industry groups and tech companies all opposed the repeal, warning of the potentially disastrous consequences. Today’s ruling, however, represents a big win for FCC Chairman Ajit Pai, who pushed for the repeal.

    Now, net neutrality’s future is in the hands of individual states, some of whom have already passed their own rules. While the FCC initially said states could not pass net neutrality laws on their own, the October ruling said the FCC overstepped and had no authority to prevent states from taking such measures.

  • NBCUniversal Launching Peacock Streaming Service July 15

    NBCUniversal Launching Peacock Streaming Service July 15

    NBCUniversal has unveiled Peacock, a multi-tiered, free premium streaming service, according to parent company Comcast.

    NBCUniversal has been working on its streaming service for some time, but this is the first time there has been significant details. The service will be available in three tiers: a free tier and two premium ones.

    Peacock Free will offer “next day access to current seasons of freshman broadcast series, complete classic series, popular movies, curated daily news and sports programming,” according to the press release. The free tier will have 7,500 hours of content and be ad-supported.

    Peacock Premium will be a free upgrade to existing Comcast and Cox subscribers, or $4.99 for non-subscribers. The press release says that “this ad-supported option will additionally include full season Peacock originals and tent-pole series, next day access to current seasons of returning broadcast series, early access to late night talk shows, and additional sports – such as the Premier League – totaling more than 15,000 hours of content.”

    For $5 extra, customers can upgrade their Premium subscription to the ad-free version, for a total of $5 for Comcast and Cox subscribers and $9.99 for non-subscribers.

    “Peacock will provide consumers with a destination that goes beyond movies and television, aggregating a variety of content that fans want on one service,” said Matt Strauss, Chairman of Peacock and NBCUniversal Digital Enterprises. “By delivering timely and topical content like breaking news, live sports, and watercooler moments from late night, Peacock is uniquely bringing a pulse to the world of streaming that does not exist in today’s marketplace.”

    The streaming market is become increasingly cluttered, with Hulu, Disney+, Apple TV+, Netflix, CBS Prime and more. If NBCUniversal can deliver on the goal of providing a variety of content on a single service, they may be able to poach a significant number of users from existing services.

  • Sling TV Improves Channel Lineup, DVR and Recording; Raises Prices

    Sling TV Improves Channel Lineup, DVR and Recording; Raises Prices

    Sling TV announced a major update to its streaming TV plans, including the addition of new channels, improved features and higher prices.

    According to a post on the company’s site, the streaming service is adding FOX News, MSNBC and CNN’s HLN to Sling’s Blue package. In addition, some of the service’s add-ons are being upgraded as well, with the Big Ten Network (BTN) added to the sports offerings. FXM and FXX are being added to Blue’s Hollywood Extra, and the Nat Geo Wild channel is coming to Blue’s Heartland Extra package.

    The company is also improving their DVR service, finally including at least some DVR capability for free. The current DVR add-on is being rebranded as “Cloud DVR Plus,” and will still offer 50 hours of recording, along with the ability to save recordings indefinitely so they aren’t deleted when the available space is used up.

    As part of the update, Sling is also raising prices by $5 a month. The Orange and Blue plans are both $30 a month, with the bundle coming in at $45. The company points out this is the first time it has raised prices on the Blue package since its launch, and the first price raise on the Orange package since June of last year.

    While it’s certainly good to see one of the oldest streaming services continue to evolve, bolster programming and add features, it would be nice to see more than 50 hours of DVR. Hulu currently includes 50 hours free, while offering up to 200 hours for an extra cost; YouTube TV offers unlimited DVR; and fuboTV includes 30 hours, with 500 hours available as an upgrade. With that kind of competition, 50 hours seems positively anemic, especially for an extra fee.

  • Feds Bust Illegal Streaming Sites With More Content Than Most Legal Sites Combined

    Feds Bust Illegal Streaming Sites With More Content Than Most Legal Sites Combined

    The Department of Justice (DOJ) has secured guilty pleas from two programmers who ran massive illegal streaming sites, following an investigation by the FBI’s Washington Field Office.

    Darryl Julius Polo plead guilty “to one count of conspiracy to commit criminal copyright infringement, one count of criminal copyright infringement by distributing a copyrighted work being prepared for commercial distribution, one count of copyright infringement by reproduction or distribution, one count of copyright infringement by public performance and one count of money laundering.” His co-defendant, Luis Angel Villarino plead guilt “to one count of conspiracy to commit copyright infringement.”

    According to the report, at least one “site called iStreamItAll (ISIA), an online, subscription-based service headquartered in Las Vegas that permitted users to stream and download copyrighted television programs and movies without the permission of the relevant copyright owners. Polo admitted that he reproduced tens of thousands of copyrighted television episodes and movies without authorization, and streamed and distributed the infringing programs to thousands of paid subscribers located throughout the U.S. Specifically, Polo admitted that ISIA offered more than 118,479 different television episodes and 10,980 individual movies. In fact, according to the plea agreement, ISIA had more content than Netflix, Hulu, Vudu and Amazon Prime, and Polo sent out emails to potential subscribers highlighting ISIA’s huge catalog of works and urging them to cancel those licensed services and subscribe to ISIA instead.”

    Evidently, Polo ran a sophisticated set of automated scripts that scoured pirate sites, torrents and Usenet groups 24/7 looking for new content. The content was then processed, stored and made available to subscribers of ISIA and Jetflicks, the other site in question. Both ISIA and Jetflicks were designed to work on a variety of operating systems, mobile devices, set-top boxes, consoles and smart televisions.

    The level of sophistication is truly impressive and likely only a taste of what’s to come as technology continues to be democratized.

  • Hulu May Implement New Binge Watching Ad Format

    Hulu May Implement New Binge Watching Ad Format

    Peter Naylor, SVP Advertising Sales at Hulu, says that they are “exploring new ad experiences for binge watchers.” Naylor indicated to AdAge that Hulu may introduce a binge ad product to advertisers at the upcoming NewFronts. The challenge for Hulu is how to capitalize on consumers who are binge-watching shows without raising their annoyance level too high.

    In 2013, Netflix began releasing all the episodes of its original programming in one batch. This practice quickly became known at binge watching. The concept was used by Netflix as a way to quickly hook viewers and reduce subscription churn. It also made the service distinctly different from regular TV networks. It was clear from the start that subscribers loved binge-watching their favorite shows on Netflix.

    Bulk releasing of a seasons worth of shows is now standard practice on many subscription platforms including Amazon Prime and Hulu.

    Per AdAge:

    Hulu is exploring new ad experiences for binge watchers, according to Peter Naylor, head of ad sales, as the streaming TV service looks for ways to insert brands into shows without being too intrusive.

    As Hulu prepares to pitch advertisers during the NewFronts, it is thinking about ways to create a less interruptive experience. While there is no specific product for marketers to buy currently, Hulu is analyzing what the commercial experience might look like when it is clear the viewer is committed for the long haul, Naylor says.

    “We know if someone watched the first, second, third episode in a row, they’re binging,” Naylor says. “That’s an opportunity to create some kind of binge advertising.”

    Read the full AdAge article…

    BeetTV interview with Hulu’s Peter Naylor last year:

    Peter Naylor, Head of Ad Sales for Hulu
  • Hulu Private Marketplace Gives Programmatic Advertisers Choice and Control

    Hulu Private Marketplace Gives Programmatic Advertisers Choice and Control

    “The invite-only auction, which is I would say our new shiny toy that’s getting wrapped in the PMP, provides us the opportunity for a variable floor price,” says Doug Fleming, Head of AdvancedTV at Hulu. “So now the advertiser pays what they deem appropriate for that specific audience. It gives them more choice and control. When we look at our offering that’s what it’s about. It’s the genesis behind us rolling out a programmatic offering. Advertisers want choice and control and we want to allow them to have that.”

    Doug Fleming, Head of AdvancedTV at Hulu, discussed Hulu’s embrace of programmatic advertising via their new private marketplace in an interview with BeetTV:

    March Towards Automation

    Since the inception of programmatic advertising, the goal always was that it was on equal footing with direct sold. We didn’t separate it. This wasn’t a remnant solution. As we’ve grown to 25 million subscribers we now have enough inventory and enough access that we have decided to create a team under me to go out and affect those agency trading desks and those folks that have decided to bring programmatic buying in-house.

    When we look at the landscape you can see this march towards automation and we’re not going to get in the way of that. We’re going to embrace that and we’re going to do it  in a very private curtailed way. There is no concept of a remnant provider reselling our inventory. Everyone has to be blessed and driven through the Hulu process.

    Hulu Works with Telaria But Owns the Delivery Logic

    On the demand side, it’s a mix of everyone. There is client direct, there are agency trading desks, and then the DSPs are good partners too. In each of those scenarios, we need and identify the brands before they come in so that they are attributed to the appropriate seller on our side. There’s no semblance of a DSP just hanging on and reselling in an always-on situation. We actually curate that environment and make sure that all of our t’s are crossed and i’s are dotted so that we know who the advertiser is coming in and we can manage that.

    What’s unique about our work with Telaria is really that the Hulu ad server owns the delivery logic. So in this case what separated Telaria was that they enabled us to do things the way we wanted to do them. They kind of powered us. We have very smart people in place who oversee these positions and they came in and worked with us to develop the appropriate technology for us to go to market the way we wanted to go to market.

    Hulu Private Marketplace Gives Advertisers Choice and Control

    What it’s given us is the ability to take all advertising in. We can category block appropriately, so people maintain their category exclusivity within pods. We have the ability to take multiple advertisers and a single deal ID and manage all that blocking. It also allows us to open up to the programmatic marketplace a full suite of products. We’ve always run a private marketplace. However, in the past, we had automated guaranteed and unreserved fixed. Those are fixed price deal types. Unreserved gave you the ability to make a data-driven decision and if you chose to take that impression you paid the fixed price that we agreed on.

    The invite-only auction, which is I would say our new shiny toy that’s getting wrapped in the PMP, provides us the opportunity for a variable floor price. So now the advertiser pays what they deem appropriate for that specific audience. It gives them more choice and control. When we look at our offering that’s what it’s about. It’s the genesis behind us rolling out a programmatic offering. Advertisers want choice and control and we want to allow them to have that.


  • Disney Can’t Begin to Catch Netflix, But They Don’t Need To, Says Media Innovator Tom Rogers

    Disney Can’t Begin to Catch Netflix, But They Don’t Need To, Says Media Innovator Tom Rogers

    Media innovator Tom Rogers says that Disney can’t begin to catch Netflix in terms of streaming subscribers, but they don’t need to. “No one can catch Netflix,” says Rogers. “I don’t think Disney can begin to catch Netflix, but they don’t need to catch Netflix here to create an asset value that really helps to deal with the issue of the core business decline.”

    Tom Rogers, media innovator and Executive Chairman of WinView, Inc., discussed ESPN+, Disney, Netflix, and the future of streaming on CNBC:

    ESPN+ is Going From a Model Which is Impossible to Do Better Than

    ESPN+ is going from a model which is impossible to do better than. They’re going from a model where ESPN is watched by 20 percent of the people but they get $7 a home across the entire cable and satellite universe including the 80 percent that barely watch it. To go to ESPN+ we’re the only way you derive value is selling it to somebody who’s going to use it. They’re going to do okay with that I have no doubt, but it can’t be as good as the existing model that they’re coming from which is in decline.

    The real issue is how fast is that decline on the existing business relative to what they can make up here? They had some nice sub-adds, but just to make up for their Ultimate Fighting Championship deal of $300 million of which ESPN and ESPN+ split that, $150 million going there they probably need three million subs just to cover that one rights contract. So you really have got to look at how they have to cover rights cost against something where they can only get revenue from the people who are actually going to watch it.

    Disney Can’t Begin to Catch Netflix, But They Don’t Need To

    It’s complicated because it isn’t a streaming service, it’s three. It’s ESPN+, Disney+, and Hulu. You have question marks on all of them. With Hulu, you’ve got this huge issue that I don’t think anybody’s digging into which is 40 percent of their adult play is owned by their two biggest competitors, Comcast and AT&T. We really don’t know if they have any kind of decision-making or governance control and how that’s going to be unwound. It isn’t going to be, hey, we just walk away from that 40 percent interest. That’s going to be their major non-kids opportunity to chase Netflix with. I really think there are a lot of question marks here on all of them.

    How many people are gonna use both ESPN and ESPN plus? That’s a huge question. My guess is there’s a decent overlap there but you have the equally big issue of all these skinny bundles where ESPN will make its way into some of them as people cut the cord and go to these packages of much smaller numbers of channels. But there’ll be plenty of people taking skinny bundles that have no sports in it at all because those are going to be the lower cost. That’s where they really take the hit because today they’re getting paid across all cable and satellite subs.

    There’s no doubt that Disney is a studio powerhouse. They were before and with the acquisition of the Fox movie and TV studios, they are even more. Their production capability is huge, but the Netflix issue is one that they’ve got to get away from. No one can catch Netflix. I don’t think Disney can begin to catch Netflix, but they don’t need to catch Netflix here to create an asset value that really helps to deal with the issue of the core business decline.

    They Watch Netflix for the Originals, Not Disney

    The question is, how much are they really going to invest there? Nothing about this earnings report really gave us a clue about that. They’re going to have a major issue in terms of foregone opportunity on all the licensing that they’re no longer going to do. But that’s even a sub-point to some extent. What drove Hulu so far? It’s original Handmaid’s Tale. What drives Netflix? Disney’s Avengers Infinity Wars on Netflix.

    People don’t talk about that as the reason they watch Netflix. They watch Netflix for the originals. That is a massive additional spend. We don’t really have a clue yet on what they’re prepared to do there. The issue of what valuation they get is all about how long are those losses going to last? How deep is that cash hit going to be? And ultimately, when do they turn profitable? If that’s 10 years out and you’re discounting that back today you’re going to get a very very different looking asset value than the $150 billion that Netflix let sees today.


  • Netflix, Hulu And Others Headed To Virtual Reality

    Netflix, Hulu And Others Headed To Virtual Reality

    You’ll soon be able to watch Netflix, Hulu, and other video streaming services in virtual reality, it was revealed today at an Oculus developers conference.

    At first, the new experiences will just let you watch content like normal in virtual reality settings. For example, you’ll be able to watch Seinfeld on Hulu while sitting on a virtual version of Jerry’s couch.

    Hulu says its new VR app will be available this fall with immersive 3D environments from which you can watch anything from its library of content. Eventually, it will include original VR content beginning with a short film from the people behind RocketJump: The Show, which is produced by Lionsgate and RocketJump. From Hulu’s announcement:

    The range of experiences will include viewers transporting themselves into a comfortable living room setting to catch the latest episode of the Hulu Original Difficult People. Viewers can also choose to view Hulu’s library of premium content including movies and current season TV in a classic movie theater setting. Seinfeld fans can choose to be transported on to the blue couch in Jerry’s iconic apartment to watch favorite episodes of the series.
     
    “Hulu lives at the intersection of technology and entertainment, and this is a great example,” said Julian Eggebrecht, Hulu VP of Device Platforms. “Providing viewers with dynamic environments of their choice and themed around their favorite shows provides a whole new level of engagement, which together with our cinematic VR experiences makes Hulu an exciting VR destination.”
     
    Hulu will also create and house a variety of cinematic VR films across multiple genres that transport viewers into new worlds and change the way they experience and interact with Hulu. The first of these is the ground-breaking VR short film “The Big One,” on which Hulu partnered with Lionsgate to bring Freddie Wong and his RocketJump brand into the virtual reality space. “The Big One” will become a bonus short for Freddie Wong’s new Hulu series, RocketJump: The Show, which chronicles his filmmaking adventures. Produced by Lionsgate in tandem with RocketJump and VR innovator WEVR, “The Big One” invites users to witness a meteor shower that soon turns into an apocalyptic nightmare. The end is near, and Hulu VR viewers will have a front row seat.

    They’re not giving a release date yet.

    Netflix is offering a virtual living room experience that’s immediately available for Oculus.

    “We’ve been working with Oculus to develop a Netflix app for Samsung Gear VR,” says Anthony Park, VP of Engineering at Netflix. “The app includes a Netflix Living Room, allowing members to get the Netflix experience from the comfort of a virtual couch, wherever they bring their Gear VR headset. It’s available to Oculus users today.”

    The Netflix Tech Blog is featuring a post from Oculus CTO John Carmack, who gets into how they built it.

    Beyond Netflix and Hulu, Vimeo, Twitch, and Tivo are also reportedly on board. Facebook and YouTube of course are already providing 360-degree videos ideal for the virtual reality experience. Facebook announced the launch of its videos in the News Feed earlier this week.

    Also announced at the conference is a new $99 Samsung Gear VR headset that makes use of the Oculus platform, which should serve a a major component in getting this stuff to the masses.

    Image via Netflix