Podcast Episode 41: Bob Iger Comes Back As CEO of Disney, Why It Matters; Apple Details MLS Pricing and Video Quality

Podcast Episode 41 is live! This week we discuss Bob Iger coming back to Disney as the CEO and the impact it could have around Disney’s DTC business involving bundling, pricing, sports licensing and improving Disney’s balance sheet. We also highlight the new details Apple released around their MLS streaming service, MLS Season Pass, which will offer 1080p/60 video, launching in February for $15 a month or $100 for the year. Also included in the discussion is a list of all the Black Friday streaming deals and the negative impact that has on ARPU for streaming services. Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Disney, Netflix, WarnerBros. Discovery, Disney+, Apple TV+, MLS, MLB, Hulu, Peacock TV, Paramount+, Discovery+, Roku, DISH, Amagi.

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Netflix’s Open Source Deal with GPAC Gives Them a Competitive Advantage for Video Packaging

Motion Spell, the exclusive commercial licensor of GPAC, announced the conclusion of an 18-month transition phase working with Netflix for the integration of GPAC Open Source Software into Netflix’s worldwide content operations. This gives Netflix a lot of flexibility and being able to adopt new technologies, especially with them having recently started publishing AOM’s AV1 packages. From a competitive landscape standpoint, it also gives Netflix an advantage allowing them to move faster than their competitors.

Whether Netflix wants to do interactivity (e.g. Bandersnatch), live streaming or experiment with new codecs (xHE-AAC), the GPAC based solutions enable it. Speed is key and it seems that Netflix is moving faster than their competitors. But it’s not only Netflix. Facebook also recently mentioned how they leveraged GPAC’s MP4Box to alleviate Instagram’s video compute times by 94%. This choice prevented a shortage within 12 months in the capacity to provide video uploads for everyone.

Internally, GPAC came out as the best packager as a result of Netflix’s internal evaluations and while Netflix doesn’t communicate openly about the cost effectiveness on their business, there is value is the cost efficiency. “Open-source software is free. There are licensing costs, of course, but also distribution costs. Being smart and using an efficient packager should not be underestimated. The real question for any streaming service is, how much does a bad packager cost them? GPAC is free, efficient and flexible. GPAC is efficient because the GPAC source code has been scrutinized by thousands of eyes. For most companies, in an area where almost nobody is profitable, cost is important,” says Romain Bouqueau, CEO, Motion Spell.

Choosing GPAC also allows Netflix to play their part as a leader. For example, Netflix gives weight to some MPEG standardization contributions supported by the GPAC team and Netflix has also paved the way around accessibility in OTT. GPAC is quickly becoming an infrastructure for content packaging. GPAC’s model towards business is to rely on the combination of offering commercial licenses and professional services (Motion Spell’s GPAC Licensing).

GPAC makes all of this possible because the project has its roots in multimedia in the widest sense – not only TV-like experiences. It is a true open-source project with a community made of enthusiasts, researchers, and commercial users.

Podcast Episode 40: Warner Bros. Discovery and Disney CEO’s Discuss Churn, Pricing, Bundling and Focus on Profitability, Not Sub Count

Podcast Episode 40 is live! This week we discuss the recent comments from Warner Bros. Discovery’s CEO around profitability, retention, windowing, bundling and pricing of HBO Max and Discovery+. Profitability, not purely sub count is how they benchmark for success. We also discuss his comments on how collapsing all windows, starving linear and theatrical and spending money with abandon, while making a fraction in return on the service of growing sub numbers, has ultimately proven to be deeply flawed. On the topic of churn, we point out what the industry is getting wrong with their assumptions and highlight the recent comments from Disney’s CEO, who said that price increases don’t meaningfully increase churn or cancellations. We also recap Q3 earnings from Disney, Vizio, Akamai, Edgio, Kaltura. Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Disney, Netflix, WarnerBros. Discovery, HBO Max, Apple TV+, Paramount+, Peacock TV, Vizio, LG, Akamai, Amagi, Edgio, Kaltura, FTX.

Podcast Episode 39: Q3 Earnings Recap from Disney, Netflix, Paramount, Roku, Fubo, WarnerBros. Discovery, FOX, Vimeo, Brightcove and Fastly

Podcast Episode 39 is live! This week we breakdown all the key numbers you need to know from Q3 2022 earnings from OTT companies and streaming vendors including Disney, Netflix, Paramount, Roku, Fubo, WarnerBros. Discovery, FOX, Vimeo, Brightcove, Fastly, Cloudflare, Altice, DISH, Lionsgate and AMC Networks. Learn the latest D2C subscriber numbers, ARPU per user and how much money OTT platforms are still losing (Disney lost $1.47B, Paramount lost $343M). Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Disney, Netflix, Paramount, Roku, Fubo, WarnerBros. Discovery, FOX, Vimeo, Brightcove, Fastly, Cloudflare, Altice, DISH, Lionsgate, AMC Networks, Charter, Xumo, Tubi, NPR+.

Podcast Episode 38: Why Micro-Wagering Within Sports Streaming Services Is a Fantasy; Updated Sports Viewing Numbers

Podcast Episode 38 is live! This week we breakdown Fubo’s decision to close and exit the Sportsbook market along with DAZN’s comments that betting within streaming services isn’t a reality in the next few years. We also highlight some new sports viewership numbers from NBC Sports and NFL; cover some recent pay TV losses by pay TV providers; detail Apple’s new Apple TV boxes and discuss the NBA’s new app that has 12-seconds of latency. Finally, while almost no video vendors are profitable, let alone seeing a positive return on their stock price over the past 12-18 months, we detail the numbers that make Harmonic the exception. Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Netflix, NBC Sports, Apple TV, Harmonic, Vimeo, NBA, NFL+, MLB, Amazon Prime Video, Verizon, DAZN, Fubo, Disney.

Podcast Episode 37: Netflix Announces New AVOD Tier With 720p Video; Are Consumers Willing to Sacrifice Video Quality for Price?

Podcast Episode 37 is live! This week we breakdown Netflix’s soon to be released AVOD offering and the fact that the video quality is limited to 720p with no ability for downloads. Are consumers willing to sacrifice video quality for price? Will the streaming industry need to re-think how they define video “quality” if consumers are willing to accept 720p as “good enough”? We also discuss Netflix’s measurement deals announced with Nielsen, BRB, IAS and DoubleVerify and what this means for advertisers. We also cover what some of the largest live streaming events on the Internet have generated from a viewership standpoint.

Companies, and services mentioned: Netflix, Peacock TV, Nielsen, DoubleVerify, Beamr, Roku, Apple TV, Disney+, BBC, Integral Ad Science, NBC Sports, Amazon Prime Video, Riot Games, Akamai, IPL. Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Netflix, Peacock TV, Nielsen, DoubleVerify, Beamr, Roku, Apple TV, Disney+, BBC, Integral Ad Science, NBC Sports, Amazon Prime Video, Riot Games, Akamai, IPL.

Podcast Episode 36: Nielsen’s Confusing Streaming Ratings; Google’s Cloud Deal With MLB; Vizio FAST Ad Revenue; Vendor Layoffs

Podcast Episode 36 is live! This week we breakdown Nielsen’s confusing streaming rankings, which aren’t accurately comparing shows based on the same metrics. We also highlight Peacock’s latest paid sub numbers (15 million); Google’s expanded cloud deal with MLB; Mux’s recent round of layoffs; Vizio’s FAST ad revenue and Roku’s removal of all SDK1 channels. We also discuss how many companies hiring for new positions are not doing a good job following up, list jobs no longer open and need to do a better job of putting people first. Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Peacock, Comcast, HBO Max, Amazon Prime Video, MLB, Google Cloud, Nielsen, Netflix, Disney+, PlayStation 5, ByteDance, Vizio, Roku, Amazon, eBay, Mux.