Amazon Stands to Gain $3 Billion a Year from Prime Video Ads

Amazon this week began serving advertising to Prime Video customers who did not elect to pay an additional $2.99 per month in addition to the basic annual Prime membership of $139 per year or $14.99 per month. Adding commercials is estimated to potentially bring in more than $3 billion a year for Amazon, which is expected to have 2023 revenue of around $567 billion. The surplus will come in handy to pay out $1 billion a year over 11 years for the rights to NFL’s “Thursday Night Football.” The ad-supported Prime Video service launches in the U.S., Canada, UK and Germany, with Mexico, France, Italy, Spain and Australia following later in the year. Continue reading Amazon Stands to Gain $3 Billion a Year from Prime Video Ads

Biden Supports FCC Plan for Multichannel Price Disclosures

The Federal Communications Commission proposed a rule that would require cable TV and multichannel satellite services to disclose full pricing for programming plans in consumer promotional materials and invoicing, a plan President Biden quickly endorsed. The intent is to clearly convey “all-in” costs as a prominent single line, avoiding taxes and surcharges excluded from sales pitches and sometimes difficult to decipher on bills. “Too often, these companies hide additional junk fees on customer bills disguised as ‘broadcast TV’ or ‘regional sports’ fees that in reality pay for no additional services,” Biden said. Continue reading Biden Supports FCC Plan for Multichannel Price Disclosures

Report: Cord-Cutting Translates to New Low for Pay TV in Q3

Cord-cutting among U.S. consumers hit record highs in Q3, according to research firm MoffettNathanson, which reports total pay TV subscriptions dropped by 6.3 percent in the July through September period, up from a 5.2 percent decline in Q3 2021, and slightly ahead of the 6.2 percent contraction of Q2 this year. MoffettNathanson defines “pay TV” as paid subscription services, including from cable and satellite operators in addition to vMVPDs packaged through companies like Verizon and AT&T. The Q3 loss totaled roughly 655,000 subscribers, as compared to 617,000 from the same period last year, and 91,000 in Q3 2020. Continue reading Report: Cord-Cutting Translates to New Low for Pay TV in Q3

Roku Aims to Expand Its Audience for Original Programming

Roku, the streaming media platform with more than 63 million U.S. accounts, has taken the plunge into exclusive programming this past year. In addition to purchasing the Quibi library and spending a reported $97.8 million to buy the home improvement franchise This Old House Ventures, Roku Originals has funded the Funny or Die production “Weird: The Al Yankovic Story,” budgeted at $12 million. Roku Originals has also produced a movie adaptation of NBC’s canceled “Zoey’s Extraordinary Playlist” and greenlit fresh seasons of Quibi’s Kevin Hart-starrer “Die Hart” as well as the remodeling series “Murder House Flip.” Continue reading Roku Aims to Expand Its Audience for Original Programming

Big Ten Rights Deal Most Lucrative in College Sports History

Comcast announced that Peacock and NBC will “become the exclusive home of ‘Big Ten Saturday Night’ football” beginning in 2023. CBS and FOX also get a piece of Big Ten action in a rights deal that also includes basketball. The college mega-conference will reportedly reap more than $7 billion over seven years, beginning July 1, 2023. CBS and FOX will share the remainder of the Saturday football schedule, with FOX broadcasting the noon games and CBS (and Paramount+) getting mid-afternoon play. The arrangement concludes ESPN’s 40-year run of Big Ten football programming. Continue reading Big Ten Rights Deal Most Lucrative in College Sports History

Dish Loses Subscribers in Q2, Preps Launch of Boost Infinite

Dish Network posted a Q2 subscriber loss in both the satellite TV sector and among customers of its virtual multichannel video programming distributor Sling TV. Sling shed 257,000 traditional satellite video subs while Dish lost 202,000 net satellite subscribers. Regarding Sling TV, the vMVPD lost subscribers for the third consecutive quarter, down 55,000 in Q2, a marked improvement over Sling’s Q1 net loss of 234,000 subs. Dish ended Q2 with 7.79 million satellite TV subscribers, while Sling closed the April through June period with about 2.19 million customers. Meanwhile, Dish announced its Boost Infinite postpaid wireless service will launch later this year. Continue reading Dish Loses Subscribers in Q2, Preps Launch of Boost Infinite

Big Tech Drives Up Sports Prices as Amazon, Apple Go All In

Big Tech has become a disruptor in the marketplace for sports rights, with Amazon and Apple bidding against traditional media for rights to NFL and MLB games in addition to college conference competition and Formula 1 racing, according to recent reports. Among the prizes, DirecTV’s expiring rights to the NFL Sunday Ticket, a package that is being shopped with a $2.5 billion annual price tag, $1 billion more than the satellite operator’s current deal, which ends in January. In addition, Google is said to be bidding on behalf of YouTube. Beginning September 15, Amazon Prime Video begins its exclusive carriage deal for “Thursday Night Football.”  Continue reading Big Tech Drives Up Sports Prices as Amazon, Apple Go All In

Dish Signs 10-Year $5 Billion AT&T MVNO Deal to Go Mobile

Dish has inked a 10-year agreement to use AT&T as its primary network provider as part of the company’s transition to becoming a nationwide wireless operator. Effective immediately, the deal replaces T-Mobile as Dish’s principal partner and is a potential forerunner to an eventual DirecTV-Dish merger. Dish will pay AT&T at least $5 billion over the next decade to use the latter’s 4G and 5G networks. Dish founder Charlie Ergen nearly sold his company to AT&T in 2007, but his push for last-minute changes squashed the deal. Continue reading Dish Signs 10-Year $5 Billion AT&T MVNO Deal to Go Mobile

AT&T Creates Media Giant: Merges WarnerMedia, Discovery

AT&T announced today that it plans to combine WarnerMedia with Discovery. The deal, expected to to take effect in mid-2022 subject to regulatory approval, is a significant move for one of Hollywood’s largest studios to compete with top streaming players such as Netflix and Disney since it would combine the HBO Max and discovery+ streaming services. Under the agreement, WarnerMedia will be spun off and merged with Discovery as a new media company separate from AT&T, which could be valued as high as $150 billion. Discovery chief exec David Zaslav will run the combined business, which will be named shortly. Continue reading AT&T Creates Media Giant: Merges WarnerMedia, Discovery

Free Streaming Service Offers Local News, Premium Content

Allen Media Group this week announced Local Now, its ad-supported streaming service that provides local news and entertainment content. Available on most major platforms with plans for expansion, Local Now has been in development for more than three years and emphasizes curated local content. According to Byron Allen, the founder, chair and CEO of Allen Media Group, the service “uses proprietary software and artificial intelligence to produce, aggregate, curate, and stream — in real-time — local news, weather, sports, traffic, movies, TV shows, documentaries, and channels geo-fenced to the user’s zip code.” Continue reading Free Streaming Service Offers Local News, Premium Content

Twitter Experiences Subscriber Growth and Plans Expansion

Since Twitter banned former president Trump, the company said daily users rose to 192 million from Q3’s 187 million, including one million in the U.S. In January, the social platform gained more daily users than the average month in the last four years. Twitter chief exec Jack Dorsey revealed that 80 percent of its user base is outside the U.S., adding that it is “not dependent upon just news and politics.” The company is looking to expand and continue development of a decentralized social network. With regard to banning Trump, chief finance officer Ned Segal said the decision was well received by advertisers. Continue reading Twitter Experiences Subscriber Growth and Plans Expansion

Survey Reveals U.S Viewers Adding More Streaming Services

During the COVID-19 pandemic, an increasing number of streaming media services have thrived and, according to a J.D. Power survey, Americans now subscribe, on average, to four streaming services, up from three when the pandemic began. That translates to 24 percent more in subscription fees, for an average consumer outlay of $47 per month in December, up from $38 in April. Netflix and Disney+ have surged, and newcomers HBO Max and Peacock have also done well. Apple wants to boost its Apple TV+ service but may find itself at a disadvantage. Continue reading Survey Reveals U.S Viewers Adding More Streaming Services

Streaming Platforms Benefited from 2020 COVID Lockdowns

In 2020, many analysts expected a shakeout among the burgeoning number of streaming services. Instead, the COVID-19 pandemic led to record-breaking viewing. U.S. subscription numbers are expected to finish the year 50+ percent higher than a year ago, according to data from Moffett Nathanson and HarrisX, whose chief executive Dritan Nesho said “streaming coexistence and parallel growth” were leitmotifs for the year. Newcomers AT&T’s HBO Max and Disney+ also saw a rise in app downloads when they debuted feature films. Continue reading Streaming Platforms Benefited from 2020 COVID Lockdowns

Rural Broadband Networks Get a Lift with $9.2B FCC Infusion

The Federal Communications Commission has allocated $9.2 billion to build rural broadband networks, which FCC chair Ajit Pai hailed as the biggest commitment to bring Internet services to these poorly served areas. The funding is the result of an auction in which companies such as Windstream Holdings, Charter Communications and SpaceX bid against each other to build the fastest broadband networks at the lowest costs. The 180 companies that won have 10 years to build the networks with incentives to finish sooner. Continue reading Rural Broadband Networks Get a Lift with $9.2B FCC Infusion

Discovery to Introduce Its New Streaming Service in January

Discovery plans to debut a streaming service, discovery+ that will include shows from its major networks TLC, Food Network, Discovery Channel and Animal Planet. It will also license library programming from the BBC, A&E Networks and Group Nine Media. The new service will launch in the United States on January 4 and cost $4.99 per month with ads and $6.99 without. Discovery and Verizon Communications inked a deal to provide the service free to the telecom’s U.S. customers for a year, with the two companies sharing the cost. Continue reading Discovery to Introduce Its New Streaming Service in January