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Issue link: https://digital.macdirectory.com/i/1488864
word. They’re focusing a lot of attention on franchise shows as well as prequels/sequels of projects in the most widely viewed genres – superhero, comedy drama, sci-fi drama, sitcom, and crime drama. Even shows/series from 2011, 2013 and 2018 are being re-released due to the added interest and their quality. In addition, they’re clawing back shows they previously contracted to competitive services such as Yellowstone (and spinoffs) and Star Trek returning to Paramount + from Peacock as well as Disney’s Marvel and calling IP (intellectual property) like Iron Fist, Daredevil and The Defenders back home. While these moves are good, they aren’t enough to maintain their steady growth now that consumers have an overabundance of good to great paid viewing options. The rapid acceptance of ad-supported streaming is clearly showing SVOD management that many individuals and families will tolerate advertising to pay for some of their content. Most of the SVOD services have, or will shortly, introduce their own lower-cost, ad supported viewing options because it has become obvious that families have reached their pain point when it comes to the size of their monthly streaming bill. The size of the pay TV bill encouraged folks to cut their cable service bundle for one or two inexpensive streaming services. And now that the cost of their internet service and six to eight streaming services have reached a similar level, they have begun canceling services. Netflix, which has already found the SVOD service ceiling - $16 for the standard plan - will slowly introduce ad-supported pricing in hope of winning back some if not all of their recent lost subscribers. The ad-supported tier may also convince friends and neighbors who are using someone else’s credentials to watch the service’s shows to sign up for their own Netflix service. McLennan suggested that the new pricing plan could generate nearly 8M subscribers next year and as much as $1B+ in incremental income during the same period. Disney has announced that its Disney+ ad-tier pricing will cost the same as the company’s current service and that they will be increasing the cost of their ad-free tier. Hulu has long had both SVOD and AVOD service options. Their picture is murky though because with Disney owning 70 percent of the service (Comcast/NBCUniversal owns the remainder) Disney has also included it in a bundle offering with Disney+ and ESPN+. In addition, while both firms want 100 percent of the service, there’s a very good chance Comcast’s CEO Brian Roberts will sell the company’s share at a handsome profit and use the money to acquire one of the services presently burdened with excessive $43B merger price tag. Word is Roberts is looking hard at one of the content creation/delivery services that is struggling to right itself. And it would certainly be a welcome addition to NBCUniversal’s Peacock streaming service which has had trouble attracting a significant subscription base in the fast-moving streaming entertainment arena. The floundering organization is slashing staff and projects and has done little to spell out a clear path to recovery other than to talk about a 10-year plan that mirrors Disney’s MCU (Marvel Cinematic Universe) success in the theater and streaming. “When there’s blood in the water, sharks gather rather quickly,” McLennan observed. Amazon Prime already has the ad-free SVOD service bundled with its Prime service which includes free product deliveries (handy for the holidays) as well as its FreeVee ad-supported service. They could also be planning a FAST bundled service that includes content from other broadcast and studio organizations. Paramount Global CEO Bob Bakish has said they will raise the price of Paramount + SVOD service and introduce an ad-supported tier. Of course, he also gave families a reason to stick with their SVOD service, noting that they plan to release Top Gun: Maverick on Paramount + following its theatrical run sometime in the fourth quarter. Apple TV+ may be the lone holdout to adding an ad-supported service but then it comes free when folks purchase products like phones and computers. In addition, their Apple One bundle is designed to be an all-inclusive entertainment and personal package that includes Apple Music, Apple Arcade, iCloud+, Apple News+ and Apple Fitness+. Even Disney’s recently returned CEO Bob Iger, recently observed, “But they’re not going to stand pat. They’re going to continue to grow; and they’ll grow well. They have deep pockets. They have great access to consumers. They have strong technology platforms. They’ve proven they know how to do it. So, they stay.” In other words, competition in the video streaming market is stiff with major services already well established in the consumer’s mind and budget. And with hundreds of channels out there it is only going to get worse. The challenge for the consumer is finding just the content he/she wants when they want to watch it and minimize the amount of time it takes to find the content. “While it won’t be a simple task,” McLennan said, “the obvious solution for everyone involved – content producer, service provider and consumer – is to develop a modified service bundling program.” He emphasized that Disney has already moved in that direction with Disney+, Hulu and ESPN+ which also includes content from Disney-owned organizations including Marvel, Fox, Pixar, Lucasfilm, Marker Studios, Lifetime, History, ABC, A&E, and more. Comcast’s NBC Universal has previously had talks to add Warner Bros properties and HBO Max to their bundled offering. The move could become even more clear by 2024 when a lot of the legal hurdles are allowed