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State of the Screens

Streaming Video Will Soon Look Like the Bad Old Days of TV

By August 29, 2019No Comments

The big question: Are we going to see video re-bundled where the only thing that has changed is the method of distribution (digital vs. linear)?

Key point from Matthew Ball: One thing that digital distribution has had zero impact on is the cost to create premium video content.  The increased demand from new players (Netflix, Amazon, etc.) has driven the cost up.

Current scenario from Peter Csathy:
1) The average cable bill is $100
The goal is to save $20 to make the switch worthwhile
3) Leaving $80 to spend on video services
4) You still want live channels, so you subscribe to Hulu Live @ $45
Leaving $35 to spend

Remaining choices for your $35:
Netflix – $13
Disney+ – $7
Apple TV+ – ≈ $10
HBO Max – ≈ $16

Netflix U.S. subscribers per year according to eMarketer:
1) 2019 – 159M
 2020P – 166M
 2021P – 171M
 2022P – 175M
 2023P – 178M

Streaming video viewers by provider according to eMarketer:
1) Netflix – 159M
2) Amazon Prime – 97M
3) Hulu – 76M
4) HBO Now – 23M

Video: How the streaming wars between Disney, Netflix, Apple and everybody else will change TV forever

More #1: Comcast, Netflix and WarnerMedia to square off over ‘Seinfeld’ – report

More #2: Hulu and Amazon Prime Video Are Gaining on Netflix in the Streaming Wars

More #3: The $400-million-plus reason your favorite TV shows are exiting Netflix and maybe Hulu

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.

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