The Bulletin Edition 2
From The Desk of
Looking back on last week's news and industry developments, there is still a continued hive of activity in the streaming space, even if the summer is typically a slow period for television viewing and music listening. With lockdowns in place around the globe, viewers and listeners have been tuning in or switching on more than ever and for longer periods.
The new work from home routine has also resulted in a rise of background audio listening, especially in genres such as classical music and easy listening. Television and film have also seen an increase, with viewers exploring new platforms, channels and services. The type of content in demand has also changed with viewers looking for “uplifting” programming or content that has an element of familiarity or nostalgia. This increase in viewer and listenership comes with opportunities and challenges. From seeing a surge in spring sign-ups and streaming time to predicting and managing churn once those free trials ended. As we head into the tail end of 2020 and then into 2021, we all have to keep moving ahead, developing new ideas, products and partnerships.
I have also been reflecting on The Bulletin's first week and the many comments, suggestions and interactions with new subscribers responding to the publication of the first edition last Sunday.
Many of you I know personally but some new subscribers have unfamiliar names or email addresses. This piqued my interest and curiosity as to who they are and where they are located. Some subscribers came in from Germany, Australia and even a look in from Switzerland.
Overall the response has been very positive and I thank those of you who sent a note to my inbox with thoughts and kind words. I have enjoyed a number of late-night (and early morning) video calls with new contacts around the globe, discussing ideas and exploring new opportunities. As ever, thank you all for your support and words of encouragement and I wish you all the success for your coming week (C)
The Weekly Dispatch
Netflix
With bullish pre-results predictions of subscriber additions ranging from 2.5 million users to JPMorgan’s 5.1 million new additions, Netflix announced this week that they had added 2.2 million new subscribers in Q3 vs. 6.8 million in Q3 2019. The company's share price fell 5% after the announcement.
After experiencing tremendous growth during the first two quarters of the year, the markets were looking forward to good news and the share price was buoyantly pending the results. In a letter to shareholders, Netflix cited COVID for both the unpredictable increase in spring subscribers and the unpredictable churn of existing customers due to competition or personal economic constraints. The company expects growth to return to pre-COVID levels by the end of 2020.
APAC was the largest contributor to subscriber growth (46% of global net adds) which is consistent with previous quarter results. For Q4 2020, Netflix forecasts 6 million new users vs 8.8 million in Q4 2019.
Quibi
It seems as though more articles and opinion pieces have been written about Quibi in the last 12 months that the service gained in subscribers. Here at The Bulletin, we held off chiming in until the time came of “when it’s over, it’s over.” This week Quibi’s founder Jeffrey Katzenberg and CEO, Meg Whitman announced that just after five months since the launch of the service, they were exploring a possible sale, other strategic options or ultimately just calling it quits and shutting down the service.
We have kept an eye on all the Quibi coverage since the service's inception and demise and this week Quartz writer, Adam Epstein, put pen to paper and rounded up a “send-off” analysis that should be the final and last obituary of this short-lived service.
Our short take in 2:
Quibi tried to replicate the shortform content explosion of services like TikTok, without understanding why user generated content cannot be transferred into scripted content. Fans of TikTok like the app because “it’s funny and stupid” and “you never know what the next scroll will bring.” That cannot be transfered to a Quibi type service and appeal to a similar demographic.
Quibi tried to create a new consumer window by inventing this new “timeslot when the viewer has up to 30 minutes to kill.” This slot already is bustling with other apps all fighting for the same eyeballs, from news sites to Twitter, to emails, to texts. So if Quibi is not competing with Netflix, it’s competing with everything else.
Focus
Media giants continue to restructure to focus on streaming
Hot on the heels of Disney’s internal reorganization move that was covered in last week's edition of The Bulletin, similar reorganization announcements followed this week from NBCUniversal, WarnerMedia and Viacom CBS.
Across the pond, the UK broadcaster ITV announced this week that they will undergo a reorganization of its traditional TV broadcasting division to put more focus on streaming (and to compete with Netflix and Disney) and less reliance on third-party distribution.
Alex Sherman, writing for CNBC, writes a very concise and insightful piece on why media executives are taking a long, hard look at their existing business models and operations, with all eyes firmly set on the future of streaming. A must-read for this week.
AVOD compliments SVOD
According to Ampere Analysis, AVOD usage continues to rise however, the viewership demographic is not the same as SVOD with households and age range both differing for each. Ampere states that AVOD and SVOD are not competing for exactly the same audiences.
25% of AVOD users are aged 45-54 versus 22% of SVOD viewers, and 19% of AVOD users are aged 55-64 versus 14% of SVOD subscribers, the company’s research shows. “Nearly half of U.S. AVOD users have an annual household income of less than $30,000 per year, compared to one-third of SVOD users.
Ampere also highlights that AVOD platforms also need larger catalogues and more dynamic and shorter content that provides a higher level of the continued engagement of the viewer, thus increasing advertising revenue. SVOD platforms rely on fixed monthly subscriptions fees, regardless of whether the subscriber is actually watching, therefore can exist with smaller catalogues.
Here at The Bulletin, we strongly believe that AVOD and FAST distribution platforms can complement, and upsell, the same brand SVOD service that offers more premium gated content. For instance, a documentary SVOD service would have a branded AVOD and FAST offering, with less premium content with both advertising and baked in and thus upselling to the SVOD service.
Personalized entertainment aggregation is the future
This week's announcement of Loop Media acquiring Spkr sparked some interest on The Bulletin’s editorial floor, as it seems we missed the original funding announcement last year. Upon exploring this announcement further, and reviewing the Spkr platform, we believe that there is a bigger opportunity to personalize music and other forms of entertainment around the consumers daily schedule.
Spkr allows users to create their own customized feed of short-form podcasts including news and politics, comedy, pop culture and more. Users then use the “My Spkr” personalized audio feed to have a continual always on living podcast playlist. It is certainly an interesting concept but I believe the opportunity could be pushed further.
The Editors take:
I wake up and listen to a short 5 minute summary of the morning's news on the BBC app on my phone, then tune in to a podcast lasting around 30 minutes. Once my work day starts, I typically listen to background music such as classical, to which the station is only available through the web (as it’s not on my Amazon Echo due to licensing restrictions) At lunchtime I listen to another podcast and then a Spotify playlist during the afternoon followed by an evening news show and more Spotify before the final news to close off the day. All of these channels and stations are not available via one app and my routine is pretty much fixed each weekday (with a similar but less intense schedule during the weekend).
A service that would let me aggregate all my “listening blocks” into a daily continued playlist, that tunes in automatically to that specific radio show or new podcast episode I don’t want to miss, or the Spotify playlist at 2pm would certainly be something I would be willing to pay for.
The Pitch
(editors note: after some emails of “where is this service?” for last weeks pitch idea, it should be noted that any concept in The Pitch is purely fictitious and an imaginary company or service. However, we would welcome any blank checks for funding)
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Troop
As much as Linkedin has become the platform for business network, career hunting, personal branding and company promotion (sometimes a little too much) the usefulness seems to stop there. More recently the platform has morphed towards that of a social network when a seemingly innocent connection request can result in a flood of cold pitches via messaging and endless copy-paste “please check out our products” pleading. Articles on business and strategy now get lost amongst political opinions, memes and “you have to see this…” videos.
The problem with Linkedin is that it started out as a personal network management tool. You would connect with those you knew or those you wanted to get to know purely on professional terms. It was like your own personal network to manage and maintain. Unfortunately, that’s where it stops. Once you connect with someone on Linkedin, you are either stuck on their own messaging platform which has limited functionality or you have to trade external email addresses, then resulting in scattered and segmented communication threads. This week’s pitch is Troop.
Troop is the second level of contact and relationship management for sales, marketeers, networkers, job hunters, content creators and even podcasters. Imagine you have 5000 Linkedin connections, but only 250 of those are classed as “key connections.” Troop acts like your own personal CRM, isolating those 250 and putting them into key categories such as:
Business Prospect
Thought Leader
Collaborator
Candidate
Prospective Employer
Interviewee
Podcast Subject
Users can then create a file for each person, adding contact details, notes, to do’s, reminders to call, file uploads and notes follow-ups and potential deals. New Linkedin connections or even contacts met via other sources would be added to Troop, keeping key connections in one place. Revenue model would be a manageable monthly subscription fee ranging from $25-50 USD.
Worthy of exploring more or definitely an idea to sleep on? Let us know what you think.
Diversion
For the past 8 months, arts organizations around the world have struggled with lockdown and government restrictions imposed on their sector, none so much as live performances. From opera to ballet, classical to the theatre, improvisation to rock festivals. Some have taken to free live streaming with performers placed two metres apart in empty concert halls and theatres, others are re-broadcasting archival shows on their websites.
Ellen Reid, who won the Pulitzer Prize for Opera music in 2019, has launched Soundwalk, a personal and intimate outdoor music journey that allows individuals to download a free app and then takes walks listening to her music on their phones. The interesting piece of Soundwalk is that every location, i.e Central Park in New York, is divided up into zones and the music (from the New York Philharmonic) changes as you walk through the different zones relying on your phone's GPS. Currently, there are more than 6 zones in different cities across the USA.
Productivity
This edition's productivity tips come from the editor himself and serve up some fresh daily habits that could result in making a big difference before the end of your year. As noted in last week's edition, don’t wait until January 1st to make your move.
Take time to review
Pen some ideas on paper or take a day (or even a weekend) to reflect on this year and plan the next. Every year for the past 10 years I have taken a weekend off in December to complete an end of year review and to think about the next. This year I am already jotting down thoughts, reflections and plans for the next 12 months, usually while taking a brisk, long walk.
Start that new idea
“How can I start something new when everything has been unpredictable?” Beginning a new venture or starting a side project is always unpredictable. It’s part of the journey of building something new and then discovering how you react and respond to trials and opportunities along the way. Considering how unpredictable 2020 has been, now is the perfect time to write that book, launch that podcast, reveal your new side project or change careers.
Think global and make connections
Even though the world seems to have shrunk over the past 8 months with airports closed, quarantine measures in place and the appeal of travel still waning, think about creating new connections or putting down roots (even just virtual ones) in a new city or country. The awkwardness of video conferencing seems to have disappeared but don’t forget you can still just pick up the phone and chat and be able to rest your feet on the desk without anyone seeing.
Take small breaks from the (home) office
Get outside more. Explore your community and support your local businesses. Buy your lunch once a week from the neighbourhood sandwich shop or that cafe you always rushed past on your commute. Make a nice lunch at home and eat outside at the nearby park (please leave your phone at home)
Every day I wake up and make some coffee while scanning the morning news then after breakfast but before I start work, I take at least a 25-minute walk around the neighbourhood, looping back and then sitting down in my home office. At around 5pm I repeat the process with an alternate route. It really does break up the “home” part of my day from the “work” part and also acts as a mini-commute.
Create a pleasing home environment
Whether you are working from home or still commuting into the office. Home is important and should still remain that place where you can shake off the daily workload (rather than carry it from your home office to the kitchen and back)
Most of us retreated into our makeshift home offices in the early stages of spring and now the winter season (depending on where you live) is looming. As the evenings get longer and chillier, perhaps freshen up your interior by moving some furniture around, clearing out that closet or stocking up for a winter of cooking.
Don’t forget to dress the part. Having a comfortable and airy living space for working at home is important but so is work attire. You don’t need to don a tie or a suit (unless the zoom meeting requires it) however wearing nice, crisp ironed attire will make you feel more focused, productive and settled in your working day. You can save your loungewear or sweatpants for post 5pm and when your Zoom camera is firmly switched off.
Vacation is important
The word vacation sums up boarding a plane to somewhere exotic or driving out into the wilds to escape from it all. For many of us our holiday and travel plans have been firmly put on pause this year and perhaps into the next. Just because your suitcase still continues to gather dust, don’t forget to still schedule well-deserved breaks, even if just away from your emails.
One To Read
My living room shelves are piled high with books that are still on a “to read” list. Every weekend the FT, the WSJ or The Times recommends yet another good book that, with one click on my phone, arrives on my doorstep a few days later. I will read them all, eventually, however, it is interesting to read books that I purchased “pre-pandemic” and now seem either topically out of date or more relevant than ever. “The Future of Travel” probably needs a rewrite. “Why We Choose the Wrong Politicians” should now probably be on the best sellers list.
Erin Meyer’s “The Culture Map” was a repeat read this week, simply because it is such a fascinating book and leans well into a conversation I had with an industry friend about how cultural behaviour and nuances transcend even further when communicating with a business prospect or partner via Zoom instead of meeting in person. Even while we cannot fly or attend conferences, Meyer’s book provides an insightful and extremely useful guide for navigating global and cross-cultural communication.
Visual Insight
According to Midia Research, 42% of Q2 2020 podcast listeners were using the Spotify app, 10 points ahead of Apple who took second place. This is no small feat considering how late Spotify have entered the Podcast playground. However, in the last two years, Spotify has spent more than $600 million to acquire other podcast companies and has invested large undisclosed amounts locking in exclusive podcast shows with leading shows such as Joe Rogan and Michelle Obama.
Our Visual Insight of this week's edition explores in more detail the most popular Spotify podcasts in each territory.
And Finally
When the mute button is a blessing
Along with “according to experts” and “the new normal,” there is another 3-word phrase that should be added to the most used phrases of 2020. The phrase “you’re on mute” is a common utterance during online meetings and targeted to those who then have to laboriously repeat themselves.
However, during Thursday night's Presidential debate, it served another purpose. Not to prevent the audience from hearing background dog or child noises (and now leaf-blowers outside) or the sound of keyboards clacking when attendees are meant to be paying attention to the call. No, it was to keep the current President of the United States and the presidential contender from interrupting each other during the final televised debate.
The Washington Post had a wonderful column (and video) this week highlighting how the mute button presented another surprising side of its introduction, that being the facial expressions of both President Trump and former vice president Joe Biden when the other one was speaking.
I can envisage the mute button looking like an enormous red gameshow buzzer, gleefully pressed with both hands by, for at least the duration of the debate, the most powerful person in the room.
This concludes this weeks edition of The Bulletin. If you would like further details on anything mentioned or have questions or suggestions that you would like to discuss on email or to schedule a call, please drop us a note.
You may also now download a handy (and shareable) printable PDF of this weeks edition here.
Cheers and thank you for your support and we wish you all the success for your coming week.