The Streaming Wars--Part IV

The Financial Giants

As the streaming wars heat up, the obvious question is what will some of the greatest companies in history do? Perhaps not as obvious, but still important, is why are they are getting involved?

Let us take a look at several of the emerging players in streaming who are not pure entertainment companies:

1) Amazon—The success of the massive on-line retailer made founder Jeff Bezos the wealthiest man in the world recently. Why would a retailer get in to streaming video? Not easy to say from my perspective. Sometimes Amazon Prime Video is positioned as a free service that you receive with your Amazon Prime subscription. That certainly would have some real appeal especially with younger audiences who depend on Amazon for some much of their shopping needs. Also, if you have been following it at all closely, the service is improving quite rapidly. Some videophiles that I know gave it low marks a couple of years ago but now say it has improved. The made for Amazon films and original programming are also getting stronger and more interesting. By positioning Amazon Prime Video as a “perk” for Amazon Prime members, the retail giant has reinforced their reputation for one stop shopping. And, they can afford to get some of the best content out there if they want it. The service is “free” with Amazon Prime membership but a few prefer to get it freestanding for $8.99 per month to see award winning content such as “The Marvelous Mrs. Maisel” or “Fleabag.”

2) Apple—As alluded to in early posts, I was more than a bit surprised when Disney honcho Bob Iger resigned from the Apple board and then Apple announced Apple TV Plus at $4.99 per month. The tech/hardware giant is reportedly spending more money than Disney right now on new programming although admittedly they are starting from zero. They signed big stars, Jennifer Aniston, Reese Witherspoon, and Steve Carrell for “The Morning Show” which received lukewarm critical reviews and Oprah is returning with her book club now and then. Steven Spielberg will be a creative consultant. They have the cash to play the long game if they choose. Right now, the content available is thin. That can change fast if they get out their checkbook.

3) HBO MAX—now owned by debt laden AT&T, HBO is not going away but getting deeper and maybe stronger. They are keeping HBO but adding new series. A sequel to “Gossip Girl” will be featured and “Sesame Street” and “Friends” will be on board as well. HBO got it right for decades. They produced several good, some outstanding series per year. The programming developed a big following (people still talk about The Sopranos and Sex in The City). It will be interesting to see what happens as they branch out. Set for a May launch, HBO MAX will be $14.99 but their will be a free year for some AT&T users. Do not play them short.

4) Alphabet (Google)—the kings and queens of search have owned YouTube for nearly a dozen years. They have not done much with it except for a few tepid tests. You Tube gives them a powerful platform to launch a streaming service (Google Tube + ?). Also, as we write, they have surpassed Apple in net free cash at over $105 billion (Apple has been buying back shares with both hands in recent years). With You Tube in place, they have a global and much loved platform plus record cash to enter the streaming game in a big way.

5) Peacock—set for a Spring, 2020 launch, this NBC Universal service (a division of Comcast) will be advertiser supported. It will have new versions of “Battlestar Galactica”, “Saved by the Bell” and “Punky Brewster”. Remember “Punky Brewster”? I used to watch it with my kids in the 1980’s. What I remember the most is that it was opposite “60 Minutes” at Sunday nights at 7 pm EST. “The Office” is shifting back from Netflix. Pricing has not been announced yet.

Okay, people say to me that Sports will save legacy properties for a number of years. Really? Does the NFL care who pays their rights fees as long as they are huge? As a viewer, would you watch the Super Bowl with commercials on You Tube? I think that I know the answer. Someone listed above with deep pockets can easily jump in to sports. Disney, of course, has experience with ABC and ESPN.

All of these players have the financial wherewithal to play the streaming games for either several years or forever.

More to come. Stay tuned in early 2020!

If you would like to contact Don Cole directly, you may reach him at doncolemedia@gmail.com