𝐓𝐡𝐢𝐬 𝐰𝐞𝐞𝐤 𝐢𝐧 𝐭𝐡𝐞 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐨𝐟 𝐓𝐕: 𝐈𝐓𝐕 𝐝𝐫𝐚𝐦𝐚, 𝐍𝐞𝐭𝐟𝐥𝐢𝐱 𝐫𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐚𝐧𝐝 𝐀𝐩𝐩𝐥𝐞 𝐬𝐩𝐨𝐫𝐭𝐬
I was pleased to see ITV's new drama, Red Eye, launching simultaneously on ITV1 and ITVX. This seems sensible: I'm not a fan of streaming exclusives.
Yes, audiences are moving to streaming, but I'm not convinced by a strategy of purposely inconveniencing the others. The neutral position is to launch big new shows on broadcast and streaming at the same time. Those who prefer streaming watch the streamer, those happy in the old paradigm watch the broadcast channel.
Why launch a show exclusively on streaming and withhold it from your most loyal and remunerative viewers? The logic seems to be that you are trying to push them from somewhere they are comfortable to somewhere else. But why? One answer is that you merely have an eye on your next results release and want to announce high and growing streaming numbers. But that is not a good reason to make life difficult for your most loyal customers.
Ironically, we are also digesting the news that Netflix will cease reporting streaming numbers or ARPU. I sympathise. As the Sky business became more complex, it was increasingly tedious to be judged on a single satellite number when profit, the real focus, reflected ad revenue, commercial revenue, broadband, distribution on other platforms, etc.
There is much speculation about Netflix's motivations – do they expect a subscriber slowdown, is ARPU set to fall? I'm more curious where this leaves the other streamers, still hooked on the quarterly drug of trying to please the markets with eye-catching subscriber number regardless of progress towards profitability. I think they will look increasingly foolish. Exhibit A: Peacock this week celebrating 54% subs growth yoy, but still losing $639m in the quarter.
Finally, more this week on whether the streamers will come for sports. Apple has set out its unique stall, saying it is only interested when it can acquire global rights, and is said to be in line for the FIFA Club World Cup in 2025. Apple is apparently paying $1 billion for global rights for this newly formatted, four-week summer tournament, featuring 32 teams from the across the globe.
That’s an extraordinary sum for a tournament few will care about. It’s a one-off, in the summer, when players would prefer to rest, for a title with no serious heritage. And the wrong teams will be there: e.g., Chelsea and Auckland are in, Liverpool and Arsenal are not (and I speak as a Chelsea fan from New Zealand).
Perhaps it will work in the US, the host nation, relevant because the US is due to host the 2026 FIFA World Cup. But this hints at the problem with Apple’s policy. They think they are buying global rights, but it’s a delusion. Just as for the MLS, if 90% of the interest is in the US, you are really just buying US rights, and ignoring all other territories. And you are left “winning” the rights that no one else wants.
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