Spotify will pay music labels more than $2 billion in minimum payments over the next two years. The company’s revenue has grown more than 50 percent, to $3.3 billion last year, so the big deals are a means to keep growing. Sources say the company has inked two deals recently, with Universal Music Group, the world’s biggest music label, accounting for one-third of the market, and Merlin, which represents a group of independent labels. The Wall Street Journal previously reported that Spotify plans to go public this year. Continue reading Spotify Signs New Universal and Merlin Deals, Preps for IPO

According to Leichtman Research, Netflix has surpassed cable TV in number of total subscribers. Netflix recently reached 50.85 million subscribers, whereas U.S. cable companies presently have 48.61 million. “The numbers don’t count minor cable networks, which could in themselves amount to 5 percent of total cable customers,” explains Forbes. While Netflix has added 27 million subs in the last five years, cable subs are only down by 4 million, “not a massive drop off. It’s also worth bearing in mind that cable TV makes up only 50 percent of total TV viewership in pay TV.” Satellite TV presently has around 38 million subscribers. “In total there are 93,319,187 subscribers to cable, satellite and Internet streaming services in the U.S. Continue reading Netflix Doubles Subscription Base in 5 Years, Surpasses Cable

Facebook has inked deals with millennial-focused news and entertainment publishers ATTN, BuzzFeed, Group Nine Media, Vox Media and others to produce original programming for its upcoming video service. The social network will pay up to $250,000 per episode for long-form scripted shows, which it will then own, and up to $35,000 for shorter videos, for which creators will receive 55 percent of ad revenue (both formats will carry advertising). The video initiative is expected to position the platform in competition with YouTube Red, Snapchat’s Discover, and even traditional TV networks. Continue reading Facebook Inks Deals with BuzzFeed, Vox for Video Content

New subscriber numbers for Netflix, both in the U.S. and globally, were lower than expected, at 98.75 million total subscribers, up from 81.5 million a year ago. Analysts polled by Thomson Reuters before Netflix released the number expected 98.9 million subscribers. Netflix has stated it expects to pass the 100-million subscriber mark this week. Netflix also indicated a willingness to debut its feature films first in large theater chains, saying that it should be up to the consumers who pay for these films to be made. Continue reading Netflix Misses Subscriber Estimates, Rethinks Movie Releases

Cable programmers such as AMC Networks, Discovery Communications and Viacom find themselves in competition with streaming Internet TV services. Consumers are cutting off expensive pay TV bundles in favor of skinny ones, and streaming services such as YouTube TV and Hulu are among those that pare down the offerings, leaving cable programmers in the lurch. In response, four to six pay TV providers are now in negotiations to create a new online service devoid of sports programming that would cost less than $20 per month.

Continue reading AMC, Discovery, Viacom Mull a Sports-Free Streaming Bundle

According to new research from Kagan, pay-TV providers in the U.S. lost about 1.9 million subscribers in 2016. Additionally, OTT providers such as Sling TV, DirecTV Now and Sony PlayStation Vue “gained about 900,000 subscribers last year, rising from approximately 600,000 at year-end 2015 to 1.5 million at the end of 2016,” reports Variety. “While the gains on the OTT front would appear to be good news for cable programmers, the problem is that many broadband-targeted TV packages are stripped-down ‘skinny bundles’ that omit many of the channels included in traditional basic cable lineup.” Kagan estimates 94.7 million residential pay-TV subscribers for the close of 2016, down 2 percent from 2015. Continue reading Research Indicates Another Drop in Number of Pay-TV Subs

The results of the government’s wireless airwaves auction are in, and T-Mobile ended up as the biggest spender at $8 billion, followed by Dish at $6.2 billion and Comcast at $1.7 billion. The FCC auction, which began last year, generated $19.8 billion in bids. While the companies have yet to announce their plans for the spectrum, Comcast recently indicated that it would offer cell service to its Internet subscribers. Conclusion of the auction also means that companies will be able to resume deal discussions by April 27, now that bidding collusion is no longer a concern. Continue reading T-Mobile Is Biggest Spender in Government Spectrum Auction

A comScore study conducted in December 2016 revealed that streaming services have exploded, with a total of 11 reaching one million or more homes in any given month. Put another way, of the 49 million U.S. households connected to Wi-Fi, at least 53 percent use at least one OTT service. Netflix still dominates, found in 75 percent of these Wi-Fi homes, but the real news is that it’s got stronger competition than ever before. YouTube now reaches 53 percent of homes, Amazon is in 33 percent and Hulu is at 17 percent. Continue reading Netflix Remains No. 1, But Faces Increasing OTT Competition

YouTube TV has premiered in several cities with 40+ channels of entertainment, news and sports at $35/month. The aim is to entice so-called cord-nevers — millennials who have never paid for cable — to subscribe, to watch on-demand on any device. YouTube has already reached one billion viewers, so if even a tiny fraction signs up, it could be a win for advertisers and YouTube owner Google. Among its competition in the Internet TV market are Dish’s Sling TV, AT&T’s DirecTV Now and Sony PlayStation Vue. Continue reading YouTube TV Aims to Convert Cord-Nevers to New Subscribers

Comcast is planning a third quarter launch for its expanded streaming video service called Xfinity Instant TV. The $15-$40 per month service, targeting broadband subscribers looking to opt out of traditional cable bundles, “will include major broadcast networks as well as add-on options for sports channels like ESPN and Spanish language channels such as Telemundo and Univision,” reports Reuters. The company hopes customers will later upgrade to the X1 platform. Xfinity Instant TV is a new version of its Stream service that was tested earlier in Boston and Chicago. Dish and AT&T are already targeting cord cutters, but “Comcast’s service is different in that it is limited to its territories and to its own broadband subscribers.” Continue reading Comcast’s Upcoming Streaming Option to Target Cord-Cutters

According to inside sources, AMC Networks plans to target millennials with its own ad-free, online streaming service. However, distinguishing itself from today’s collection of standalone options, AMC’s offering will reportedly be made available exclusively for cable subscribers, a move meant to support the pay TV industry as it faces a growing number of cord cutters. “AMC is discussing featuring digital-only spinoff shows of its existing programs like ‘The Walking Dead’ and is considering pricing between $4.99 to $6.99 a month,” reports Reuters. “Packaging the service as an add-on to existing cable bills allows AMC to curry favor with cable and satellite companies.” Continue reading AMC Planning a New Streaming Service for Cable Subscribers

Dish’s Sling TV is rolling out its new Cloud DVR to customers with Amazon devices through an early access program. The feature has been in private beta for Roku users since November. While one potential advantage of the cloud is never running out of storage space, “Sling TV isn’t offering infinite storage or even different storage capacities,” reports TechCrunch. “Instead, ‘First Look’ customers pay an extra $5 per month for up to 50 hours of storage, with no expiration on those programs. When capacity runs out, the oldest ‘watched’ recordings are removed first, to make room for others.” Sling TV’s Cloud DVR also allows users to record multiple programs simultaneously (although limited based on rights deals with broadcasters). Continue reading Sling TV Expands Cloud DVR Access in Early Access Program

Amazon, which recently won its first Oscars for “Manchester by the Sea” and “The Salesman,” is taking on pay-TV providers and game developers as it expands beyond e-commerce into various media initiatives. Now, the company suggests it would be open to discussing deals that would enable it to stream content through the set-top boxes of cable operators, similar to Netflix’s approach. “Amazon is definitely open to those partnerships,” explained Amazon Video managing director Alex Green at Cable Congress 2017 in Brussels. Continue reading Amazon Is Open to Streaming Content Through Cable STBs

Netflix needed a way to improve video streaming quality for consumers in emerging economies watching movies and TV shows on the go. The company came up with a new method for video encoding called Dynamic Optimizer that reduces the amount of data in the video file without losing image quality. The Netflix team trained an AI to compress the video specifically based on the complexity of a given scene. The Dynamic Optimizer system expected to roll out in the coming months. Continue reading Netflix Develops AI to Help Optimize Video for Mobile Devices

Apple is joining the ranks of Amazon and Netflix in creating original series specifically intended for online platforms. However, unlike its competitors, Apple does not have a devoted video platform, so it plans to create original content for its Apple Music streaming service that can be viewed on Apple TVs, iPads, iPhones and other devices. So far, Apple is developing a reality series called “Planet of the Apps” and a standalone series based on James Corden’s popular “Carpool Karaoke.” Continue reading Apple to Roll Out Original Video Programming via Apple Music