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Media titans, including John Malone, Brian Roberts, Barry Diller, Ted Sarandos, and Mike Hopkins, share their predictions on the future of streaming. Here are some of the key insights offered by them: ➤ The number of subscribers needed to be successful is at least 200 million, with only Netflix, Disney, and Amazon having reached that milestone. ➤ Spending on content will remain significant, with some shows costing well over $100 million per season, to combat churn that is as high as 7% for some of the smaller streaming services. ➤ More of the content spend will be devoted to live sports, resulting in bidding wars unlike anything experienced before in the media industry. ➤ Companies are likely to continue raising prices aggressively on ad-free tiers in an effort to drive consumers to ad-supported versions. ➤ Bundling may help reduce churn but will lead to a decline in average revenue per user. ➤ Only three or four streaming services will survive in the long-term. Read more about the future of streaming in The New York Times:

"No surprise that Hollywood CEOs have been looking to tout their #streaming progress and successes. An analysis must keep in mind that the divisions that contain Hollywood companies’ streaming businesses are not directly comparable. After all, some of them don’t include all streaming services of a company or include additional operations. Warner Bros. Discovery’s “Direct-to-Consumer,” or #DTC, unit, for example, consists of its streaming and premium pay-TV services, meaning HBO is part of it. Meanwhile, the Walt Disney Co.’s “Direct-to-Consumer” division does not include ESPN+. And Comcast’s NBUniversal breaks out revenue and profit for its streamer Peacock, which is part of its broader Media unit." #ott https://lnkd.in/dEsyaXuk

Disney’s earnings today suggest something investors have largely ignored or dismissed: What if legacy media’s transition to streaming works? What if streaming ends up being a better business than traditional TV? It’s still early. But Disney’s earnings give hope to a legacy media industry in turmoil.

The streaming business model is under scrutiny as media executives acknowledge its sustainability challenges. While legacy companies like Paramount, Warner Bros. Discovery, and Disney grapple with financial losses, Netflix and Amazon stand out as success stories in the industry. The focus remains on traditional TV strategies such as bundling, licensing, live sports, and ad-supported tiers to retain subscribers and drive profitability. What are your thoughts on the future of streaming? (https://lnkd.in/g-qjEnVQ)

Netflix's growth continues, with 29.5 million additional subscribers and a 25% increase in profits by 2023. Meanwhile, NBCUniversal's Peacock, Warner Bros. Discovery and Disney are making progress towards streaming profitability, but with mixed results. The sector faces a difficult path to sustainable profitability. The Hollywood Reporter #NetflixGrowth #StreamingProfitability #DigitalEntertainment #OTTPlatforms #EntertainmentIndustry

I Will Survive « Who Will Survive? How many streaming services will consumers support? That was one of the great mysteries of the nascent streaming world, and the answer is coming into focus: not very many. “Can your current business be a successful player and have long-term wealth generation, or are you going to be roadkill?” Mr. Malone mused. “I think all the small players will have to shrink down or go away.” A recent Deloitte study found that American households paid an average of $61 a month for four streaming services, but that many didn’t think the expense was worth it. That suggests the once-unthinkable possibility, many of the executives said, that there will be only three or four streaming survivors: Netflix and Amazon, almost certainly. Probably some combination of Disney and Hulu. Apple remains a niche participant, but appears to be feeling its way into a long-term, albeit money-losing, presence, which it can afford to do. That leaves big question marks over Peacock, Warner Bros. Discovery’s Max, and Paramount+. »

What if steaming works? “Still, Disney's forecast suggests those headwinds don't necessarily mean streaming will be unsuccessful as a long-term replacement product for cable. Future bundles or consolidation may help mitigate churn. As companies shift their best content to streaming, canceling services becomes less appealing. Disney's results follow Warner Bros. Discovery's strong streaming results on Nov. 7. The company's direct-to-consumer division delivered profit of $289 million, driven by an increase in global subscribers, higher advertising revenue and global average revenue per user. Warner Bros. Discovery's flagship streaming service Max added 7.2 million global customers during the third quarter, bringing its total subscriber base to 110.5 million. The end result may be a media industry that emerges from a rough few years stronger than investors feared.”

A hundred million streaming subscribers isn’t cool. You know what’s cool? 200 million subscribers. Then again, 200 million subs may not even be enough these days. That, or “possibly more,” could be the new benchmark for a streaming service to succeed, a New York Times poll of top entertainment executives found. Executives interviewed include Netflix co-CEO Ted Sarandos, Liberty Media’s John Malone, former Disney CEO Bob Chapek, Prime Video head Mike Hopkins, IAC chairman Barry Diller, Comcast chief Brian Roberts, and “numerous other owners and senior executives of major media companies.” #StreamingIndustry #EntertainmentExecutives #SubscriptionBenchmark

This article provides a insightful analysis of the streaming market in 2023, focusing on the relentless pursuit of profitability. Despite subscriber and revenue growth, most Hollywood giants are still struggling to turn a profit, in contrast to Netflix, which continues to dominate the market. The article highlights the challenges and uncertainties that persist in this constantly evolving landscape, and how companies are adapting to achieve the coveted profitability.

✅🖥️ The Hollywood Reporter (6/26): “By now everyone in Hollywood seems to accept that streaming is a cutthroat business. It may not be zero sum (most studies suggest that consumers will pay for about four streaming services at a time), but it is mighty close to it. And with Netflix holding a secure lock on one of those subscriptions for most consumers, there is increasingly little room for error. But the streaming wars between giant services like Netflix, Prime Video, Disney, Max, Peacock, Paramount+ and others also obscure an entire ecosystem of streaming offerings that are trying to carve out their own niches in an increasingly difficult environment. For all the press that the big streaming platforms get, there is a surprisingly vibrant world of boutique and specialty streamers chasing loyal and engaged fans at a much smaller scale. And new players continue to enter the space. In the world of comedy, there is Dropout, born out of the comedy website College Humor. And BuzzFeed veterans-turned YouTubers The Try Guys and Watcher have launched dedicated subscription streaming offerings of their own in recent weeks in an effort to more effectively monetize the sometimes fleeting audience that YouTube or social platforms deliver. Sony offers CrunchyRoll, an anime-focused service, which boasts 13MM subscribers; AMC Networks operates services like the horror-centric Shudder and the British-focused Acorn TV; and Cineverse operates the horror service Screambox and independent film service Fandor.” ⬇️ #streamingtv #ctvadvertising #avod #svod #fast #ott https://lnkd.in/eyBBAdWE