Netflix Has More Subscribers, But HBO Remains More Profitable

Netflix, which recently reached 50 million streaming customers, now generates more revenue from subscriptions ($1.146 billion) than HBO. According to Netflix CEO Reed Hastings, edging past HBO’s $1.141 billion is a “minor milestone.” SNL Kagan estimates that HBO has 28.7 million U.S. subscribers. However, HBO remains much more profitable than Netflix. In related news, Time Warner Chairman Jeff Bewkes told analysts this week he is open to OTT services. Continue reading Netflix Has More Subscribers, But HBO Remains More Profitable

Companies Look to Meet Demand for Faster, Cheaper Delivery

According to a recent Harris poll, 14 percent of respondents and 25 percent of millennials would accept an added fee for same-day delivery of online purchases. The mean price these consumers are willing to pay is $13.90. Customers want faster, but affordable delivery, so startups are taking on the traditional infrastructure approach of Amazon (involving warehouses, vehicle fleets and full-time employees) by rethinking operations and, in many cases, turning to crowdsourced workers. Continue reading Companies Look to Meet Demand for Faster, Cheaper Delivery

CinemaCon: Distribution Plans Challenge Traditional Models

A recent deal between the four largest U.S. theater chains — Regal, AMC, Cinemark, and Carmike — with producer Robert Simonds’ newly announced movie company could place pressure on the traditional Hollywood distribution model. The new company, backed by investors Hony Capital and TPG Growth, plans to release at least ten films per year, and through a new deal release films directly into theaters, bypassing Hollywood’s major studios. Continue reading CinemaCon: Distribution Plans Challenge Traditional Models

CES 2014: What Millennials Will Be Talking About and Buying

Smart TVs and appliances, 4K displays, cars with built-in mobile technology and wearable devices are all the rage at this year’s CES, and technology-loving consumers are lining up, wallets in hand, to make big purchases. But what’s most likely to capture the attention of millennials isn’t a 105-inch TV or a refrigerator that can send text messages, but wearable devices that are affordable, stylish and truly convenient alternatives or aides to the smartphones and other devices we already own. Continue reading CES 2014: What Millennials Will Be Talking About and Buying

Facebook Expected to Unveil Video Ads for Web and Mobile

Facebook video ads are likely to debut this fall, instead of this summer. The debut has fueled much speculation regarding the amount of revenue that this will generate for the company. The video ads are expected to offer a new way to target advertising to non-broadcast TV watchers. It will be determined what form the much debated videos will take, and if the $2 million price tag will attract businesses and audiences on the Web and mobile devices. Continue reading Facebook Expected to Unveil Video Ads for Web and Mobile

Are Millennials More Drawn to Netflix than Other Services?

Millennials are an age group that keep cable executives up at night. Many do not own actual TVs, do not pay for cable, and rarely pay for Internet content. Generally, this generation grew up on free media content. But Netflix offers its original programming in ways that satisfy this generation’s need to have immediate access to content, regardless of when and how. This contrasts with traditional broadcasters airing shows first on TV, then later online. Continue reading Are Millennials More Drawn to Netflix than Other Services?

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