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

Pentagon, FCC Draw Up Rival Plans for Military 5G Spectrum

The Pentagon and the Federal Communications Commission are preparing separate plans for Defense Department-controlled 5G wireless spectrum, both dubbed the Beat China for 5G Act of 2020. The Pentagon would create a military cellular network and lease extra capacity to the private sector. The FCC wants to auction some of the spectrum in late 2021. The Pentagon’s more detailed plan may go public before the November 3 presidential election. The spectrum is currently used for military radar and aviation. Continue reading Pentagon, FCC Draw Up Rival Plans for Military 5G Spectrum

CBS All Access Will Be Rebranded Paramount+ Early in 2021

ViacomCBS plans to roll out Paramount+, a new version of its flagship streamer CBS All Access, that will take advantage of a larger program catalog created by last year’s merger of CBS and Viacom. Among the original shows exclusive to Paramount+ are “Lioness” from “Yellowstone” creator Taylor Sheridan and “The Offer,” a scripted series about the making of “The Godfather” saga. CBS All Access costs $5.99 per month with ads and $9.99 per month without them, but ViacomCBS didn’t release pricing for Paramount+. Continue reading CBS All Access Will Be Rebranded Paramount+ Early in 2021

Twitter Reports Increase in Daily Users But a Drop in Revenue

In the quarter ending June 30, Twitter’s number of daily users rose 12 percent from the previous quarter to 186 million, while revenue dropped 19 percent from a year earlier to $683 million. The former number surpassed the expectations of analysts polled by FactSet whereas the latter was below the predicted $702 million estimate. It adds up to a $1.23 billion loss, impacted by a reversal of a $1+ billion tax benefit in 2019. Twitter has not provided forecasts for revenue or operating income in its latest earnings report. Continue reading Twitter Reports Increase in Daily Users But a Drop in Revenue

Streaming Services Raise Fees, Edging Toward Cable Prices

The monthly cost of numerous streaming services is moving closer to those of cable and satellite services. Google is raising the price of its basic YouTube TV package from $50 per month to $65, a 30 percent jump, and sports-centric fuboTV is raising its standard monthly price from $55 per month to $60. Google said the higher price is due to higher programming costs, and fuboTV’s rate is going up when Disney-owned channels, including ESPN, join the lineup in August. Skinny bundles from AT&T TV Now, Dish Network’s Sling TV and Hulu + Live TV have also gone up in price since the beginning of 2019. Continue reading Streaming Services Raise Fees, Edging Toward Cable Prices

TV Ad Budgets Dwindle, Productions Shut Down in Pandemic

With the presidential election and the Tokyo Summer Olympics, television networks expected robust advertising in 2020. But MoffettNathanson noted that, with the Olympics postponed and presidential campaigns muted due to the coronavirus pandemic, advertising revenue is expected to drop 12 percent; the WARC research group predicted that will pencil out to a $25.5 billion loss in spending. Although viewership has exploded during the shutdown, research firm Kantar said that companies have cut advertising budgets more than 40 percent. Continue reading TV Ad Budgets Dwindle, Productions Shut Down in Pandemic

Pay-TV Providers Feel the Impact of Increase in Cord-Cutting

The COVID-19 pandemic is speeding up the ongoing trend of cord-cutting, according to industry experts. The major reason that consumers still hold on to pay-TV subscriptions is to watch live sports. Now, with all professional and college sports events on hold, that reason has disappeared. Additional reasons to cut the cord are high unemployment and an increasing number of free streaming options for entertainment. Cable, virtual cable and satellite TV companies have posted significant losses at the end of the last quarter. Continue reading Pay-TV Providers Feel the Impact of Increase in Cord-Cutting

Advertising Sales Plummet Even as Social Media Usage Soars

Despite growing usage of social media platforms during the coronavirus pandemic, the platforms’ ad businesses are plummeting. Twitter, for example, saw its daily usage skyrocket 23 percent this year, but its revenue may have dropped as much as 20 percent in March. As businesses have slowed down or shuttered, marketers are decreasing or even stopping advertising, which is the core support of media companies. In difficult economic times, advertising spending on the media sector is often the first to be cut. Continue reading Advertising Sales Plummet Even as Social Media Usage Soars