Welcome to the blog of Dr. Lisa Burns' Media Studies senior capstone class (Section B) at Quinnipiac University. If you're looking for the latest on media industry trends and insightful media analysis, you've come to the right place.
Sunday, January 22, 2017
Media Convergence & Multiple Screens Blog 1, Question 1 (Jan. 31st)
How have traditional media corporations adapted to the changes in how
audiences consume media? Limit: 8
responses
Angie King The major media conglomerates that once conquered radio, television and film need to change their business models before they become outdated. The way that audiences consume content has changed drastically. The main way that these traditional corporations are surviving in this new era of technology is through mergers and acquisitions. Buying other companies in different industries allows these media moguls to grow their access to audiences and the kinds of technologies they can offer their content on. The merger and acquisition era has caused a domino effect in the media industry, once one company merged, the rest are rushing to do the same. AT&T Inc. bid on Time Warner, expanding on their content, for $85.4 billion (Selyukh). Instead of traditional media companies resisting and competing with Silicon Valley and telecommunications companies, they are joining forces. Time Warner is known for their brands such as CNN, HBO, Warner Brothers and much more (Selyukh). AT&T Inc. is known for their services such as AT&T and DirecTV. The two conglomerates will provide more access to content and audiences than by themselves. Many others companies are following their lead. The other major deals of 2016 besides the AT&T Inc. and Time Warner merger include Nexstar Broadcasting and Media General ($4.6 billion), Lionsgate and Starz ($4.4 billion), NBCUniversal and DreamWorks Animation ($3.8 billion), and Wanda and Legendary Entertainment ($3.5 billion) (Chmielewski). Lionsgate pursued Starz with a $4.4 billion acquisition offer. The CEO of Lionsgate, Jon Feltheimer, knew the merger was necessary. Feltheimer wanted “…To compete in the new digital media world dominated by Silicon Valley Titans and with ever-larger Hollywood studio conglomerates, Lionsgate, with its $6 billion market capitalization, had to get bigger. And Starz, with its 25 million paid subscribers and a 1 million-sub streaming service, was a perfect fit” (Chmielewski). Mergers and acquisitions between distributors and content producers allow consumers to not only have access to content, but higher quality content. There’s a surge to become bigger, even though there are talks about the new presidency impacting the deals. Donald Trump wanted to break up media conglomerates, but also promised tax cuts and deregulation. Media corporations seem optimistic with their mergers regardless. Even the largest and most successful conglomerates are not comfortable right now. Large conglomerates are not safe because a slew of mergers and acquisitions could come within the next few years, making other corporate umbrellas as large, if not larger than the existing ones today. Successful media companies like Disney (market cap of $173 billion) or Comcast (market cap of 169.8 billion) barely compare to Apple ($635 billion), Google ($562 billion) or Facebook ($360 billion) (Chmielewski). The reason for the big difference in value is the mass access they have to both audiences and content. Silicon Valley is increasingly considered the media capital of the world. “Facebook, Twitter, Netflix, Google’s Accelerated Mobile Pages, Facebook Messenger and Instagram in aggregate account for nearly two billion people actively reading, watching and sharing their favorite content” (Hyrkin). The evolution of non-network TV like Netflix original series, are redefining the way traditional media works. Therefore, until traditional conglomerates catch up, they won’t have the same value as tech and telecom companies.
Works Cited Chmielewski, Dawn. “Hollywood’s Merger Mania: Inside the Studios’ “Size Anxiety.” Scramble to Match Silicon Valley.” The Hollywood Reporter. 11 January 2017. Web. 26 January 2017.
Hyrkin, Joe. “Silicon Valley Is Now the Media Capital of the World.” Recode. 17 November 2016. Web. 26 January 2016.
Selyukh, Alina. “Big Media Companies And Their Many Brands – In One Chart.” NPR. 28 October 2016. Web. 26 January 2017.
With this new changing media landscape, it is forcing traditional media corporations to adapt, and even the opposite is true. Some companies are figuring it out better than others, and some have figured out that it is in each company’s best interest to join together. These adaptations must happen for the traditional companies to survive, because the way the audience consumes media is ever changing. Things like how audiences do not like ads or having to pay for services they don’t want or need have forced traditional media companies to change their platforms.
One aspect is how traditional television companies are dealing with the shifting audience towards “cord cutting.” In an article by Kim Masters in The Hollywood Reporter it talked about how cable channels and studios are reacting to the popularity of Netflix, “Studios and cable channels fret that the company, with its 83 million global subscribers, is sucking up so many eyeballs and bidding up prices for programming so high that they won't be able to compete.” Comcast Xfinity has seen how Netflix’s audience has grown and has adapted to keep up with it.
In November, Comcast Xfinity launched Netflix in their On Demand center. Reed Hastings, Netflix Co-Founder and CEO, said in an article on Comcast about the new deal, “"Now they can seamlessly move between the Netflix app and their cable service, enjoying all the TV shows and movies they love without hassle." The new deal allows Netflix originals to be in the On Demand screen so Netflix users do not need a second device or smart TV to watch their shows. All they have to do is sign into their Netflix account through their Xfinity On Demand screen. This is an example of how a traditional media company, like Comcast is adapting and decided to join with the newly growing audience Netflix has.
This adaptation for their audiences has advantages for both Comcast and Netflix. According to Nielsen, a combined 282 Million people still watch live or time shifted television. Since Comcast is a cable provider still having the most eyes, and Netflix with an incredible fast growing audience, it only makes sense for them to work together. The end goal would be easier use for the audience while Comcast prevents Netflix from taking away some of it’s audience. The Nielsen report also shows the shift towards consumers using mobile devices. This is mostly in the 18-34 demographic, but it does make it interesting. Some cable providers, like Verizon Fios, and some channels let you watch live television on the go on your mobile device. Cable providers, which are traditional media, adapt to millennials beginning to shift away from watching regular television. It will be interesting to see how the shift continues and how these companies will have to adapt to survive.
Works Cited "Comcast To Launch Netflix On X1 To Millions Of Customers Nationwide." Comcast.com. Comcast, 4 Nov. 2016. Web. 30 Jan. 2017.
"Forces of Nature: The Media Universe Moves at the Pace of Technological Change." Forces of Nature: The Media Universe Moves at the Pace of Technological Change. N.p., 5 Jan. 2016. Web. 30 Jan. 2017.
Masters, Kim. "The Netflix Backlash: Why Hollywood Fears a Content Monopoly." The Hollywood Reporter. The Hollywood Reporter, 14 Sept. 2016. Web. 30 Jan. 2017.
With the consumption of media expanding past traditional forms of consumption, media corporations are feeling the pressure to find something that keeps them on top. As mentioned in, “Hollywood's Merger Mania - Inside the Studios' ‘Size Anxiety,’ Scramble to Match Silicon Valley”, “The shifting pattern of consuming media forces business models to change in reaction to that and to try to get some scale at the same time” (Chlmielewski). Television is no longer the main form in which people are accessing movies and television shows. The need for streaming has become something that has influenced the ways in which media corporations will access their audiences. This transition in audience viewership from traditional television to other forms of media has caused media corporations to propose some new changes.
Getting on the international spectrum is one way Netflix is trying to adapt to the changes in how audiences consume media. Reaching a global audience is something that can help expand the company as it shows how much they care to reach international audiences around the world. Netflix supports 21 languages, giving its subscribers the feeling that they’re being included (Roxxborough & Szalai). As stated in, “Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon”, “In fact, recent deals like Netflix's cooperation with Liberty Global, which will see the latter integrate Netflix into set-top-boxes, shows how the company is taking a more cooperative than disruptive path on the international stage” (Roxxborough & Szalai). In reaching a greater audience, Netflix is adapting to diverse audiences on a global scale.
Sports are another way media corporations are adapting to the changes in how audiences consume media. With sports being something that has lost “live” viewership, there is an opportunity for these media corporations to cater to this change. As mentioned, “In recent months, Amazon has reportedly begun talks with the likes of the National Basketball Association, the National Football League and national sports leagues in numerous countries, exploring the idea of buying up rights to offer to fans worldwide” (Roxxborough & Szalai). Streaming sports to viewers is something that may have a great impact on subscribers due to sports being in such high demand.
Finding ways to cater to the technological advancements throughout the years has been a way for media corporations to expand as well. With corporations merging, it creates opportunity for them to expand. As mentioned, “Bigger studios will snap up smaller ones as they look to amass a must-have collection of movies and TV shows that distributors can't ignore when assembling new packages of programming — no matter how skinny the bundle” (Chlmielewski). Corporations are now taking over other corporations in order to create a greater range in the way consumers can access their media. With these mergers, the way in which we view content may alter. Taking into consideration the possible AT&T and Time Warner merger, it is a great example of traditional media corporations adapting to change. As stated by AT&T Newsroom, “Combined company positioned to create new customer choices — from content creation and distribution to a mobile-first experience that’s personal and social”. In combining these big corporations, there will be content that is made accessible depending on the growing and changing times.
Having these traditional media corporations adapt to the changing times will keep content available to us in new ways.
“AT&T To Acquire Time Warner.” AT&T.com. AT&T Newsroom, 22 Oct. 2016. Web. 20 Jan. 2017.
Chmielewski, Dawn. “Hollywood’s Merger Mania- Inside the Studios ‘Size Anxiety,’ Scramble to Match Silicon Valley.” The Hollywood Reporter. 11 Jan. 2017. Web. 30 Jan. 2017.
Roxxborough S. & Szalai G. “Why 2017 Will be Crunch Year for the Global Ambitions of Netflix and Amazon.” The Hollywood Reporter. 28 Dec. 2016. Web. 30 Jan. 2017.
Katherine Hansford Arce Over the years, traditional media corporations had to adapt to the changes in how audiences consume media. Media corporations have gone from using cable companies; radio services; and printing press to going almost completely wireless. While traditional media companies are no longer delivering media, in traditional ways, like they used to, traditional media companies have been transitioning and converging to the increase in technological advances. We now live in the 21st century. The majority of the media-consuming population has transitioned from using “cord-like methods” to using “wireless options.” Media consumers have not been using cable as much as people used it when cable first came out. Cable is not as popular as it used to be due to SVOD services such as Netflix, Amazon Prime, and other services. Cable offers a select amount of shows that will show-up around different times of the day on cable networks. “Netflix is far cheaper than cable, and subscribers can access a cornucopia of content” (Masters, 3). With Netflix and Amazon Prime, the audience can go online and search any show-- as long as Netflix, Amazon Prime, and other streaming services have the viewers’ desired shows-- and watch however many shows, episodes, and seasons they want for however long they want; and for a cheaper cost. Since cable companies have not been doing as well; and since Netflix wants to increase its members internationally (which is where Liberty Global comes into play-- it’s a Latin America and Europe-focused cable giant), “Netflix clearly sees it as better business to work with the Liberty Globals of this world than compete against them” (Roxborough & Szalai, 3). This way, cable will still be in the picture even though other cable companies continue to die-down. As Netflix and Amazon expand worldwide, they will increase their also wants to upgrade to sports, like Amazon has, to increase its subscription rate. According to Richard Cooper, a London-based director for IHS Market, sports is a “huge, huge driver of subscriber uptake” (Roxborough & Szalai, 3) and that “it makes logical sense for both Amazon and Netflix” (Roxborough & Szalai, 3) to offer more sports options as they continue to move and expand worldwide. “BTIG's Rich Greenfield sees cord-cutting as the future and long has been a Netflix proponent” (Masters, 4). The more Netflix, Amazon, and other SVOD services continue rising with subscriptions and subscribers and increases the amount of content on each station worldwide (while decreasing its subscription and membership prices), the less people will need to tune-into less of a variety and high-priced cable. Shifting media platforms, what media consumers will be tuning into, however, is not so much the radio, but online music subscriptions. Traditional music companies have had to transition from using the radio and putting out records and CDs to putting their content and tracks online. When it comes to making a profit in the music industry, it’s all about supply and demand. Even though one 99 cent song online is equivalent to one song on a CD album, consumers gravitate to the online purchase (over the entire album) because of the price-- 99 cents definitely looks cheaper and more appealing than an album price of roughly $16. However, some consumers believe 99 cents is too much for one song. According to Chris Anderson, “the labels fear that if they price online music lower, their CD retailers (still the vast majority of the business) will revolt or, more likely, go out of business even more quickly than they already are” (7).
Since media consumers are constantly interchanging the way they view media it is important for media conglomerates to be up to date and to modernize themselves to be the next “up and coming” platform. If media companies fail to keep up with consumers, they will inevitably fail in a fast moving media environment. For example, Netflix began as a DVD distributing platform, until the company realized they had to make changed in order to keep up with other platforms. Netflix has now become a huge factor and competitor when it comes to viewing media. “Out of the blue Netflix comes into the market and says, ‘We’re going to give you a number [to license a network show]” (Masters). This is obviously becoming a huge problem for studios and cable channels because with so many people subscribing and viewing Netflix’s content, Studio’s have come to realize that they do not even need to sell to cable channels. Masters makes a comparison of Netflix to other big companies, even stating that there “remains an open question whether Netflix will become the Google of Hollywood” (Masters). With Netflix now distributing their own original content, drawing in more subscribers there is no doubt that it will bring an even bigger audience looking for something other than what is on cable television. In carrying the conversation of immediate streaming, Amazon has followed suit as well, a decision which could even threaten Netflix’s growing business. However “Amazon has some catching up to do, Netflix has a substantial lead, but we see fairly consistent growth in terms of subscriber numbers” Says Cooper in Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon by Roxoborough. A slight advantage that Amazon has over Netflix is that it’s pricing for subscription is significantly smaller than that of Netflix’s, something that many future subscribers will pay mind too. Another advantage that Amazon has over Netflix is that it “has begun exploring two other business models that, so far, Netflix has ignored: sports rights and partnerships with third-party content providers.” (Rxoborough) These are platforms that Netflix has yet to explore which could be problematic as Amazon looks for other ways to attract future subscribers and grow themselves. Nielson mentions that “The rise in technology and TV-connected devices has given consumers, marketing agencies and advertisers a vehicle for boundless choice” (Nielson). With millions of people online and looking for the “next new media outlet” it is important for these companies to continue growing and expanding themselves into other platforms, and to think ahead of the rest of the companies if they want to keep afloat.
Masters, Kim. "The Netflix Backlash: Why Hollywood Fears a Content Monopoly." The Hollywood Reporter. The Hollywood Reporter, 14 Sept. 2016. Web. 30 Jan. 2017.
Roxxborough S. & Szalai G. “Why 2017 Will be Crunch Year for the Global Ambitions of Netflix and Amazon.” The Hollywood Reporter. 28 Dec. 2016. Web. 30 Jan. 2017.
Angie King
ReplyDeleteThe major media conglomerates that once conquered radio, television and film need to change their business models before they become outdated. The way that audiences consume content has changed drastically. The main way that these traditional corporations are surviving in this new era of technology is through mergers and acquisitions. Buying other companies in different industries allows these media moguls to grow their access to audiences and the kinds of technologies they can offer their content on. The merger and acquisition era has caused a domino effect in the media industry, once one company merged, the rest are rushing to do the same. AT&T Inc. bid on Time Warner, expanding on their content, for $85.4 billion (Selyukh). Instead of traditional media companies resisting and competing with Silicon Valley and telecommunications companies, they are joining forces. Time Warner is known for their brands such as CNN, HBO, Warner Brothers and much more (Selyukh). AT&T Inc. is known for their services such as AT&T and DirecTV. The two conglomerates will provide more access to content and audiences than by themselves. Many others companies are following their lead. The other major deals of 2016 besides the AT&T Inc. and Time Warner merger include Nexstar Broadcasting and Media General ($4.6 billion), Lionsgate and Starz ($4.4 billion), NBCUniversal and DreamWorks Animation ($3.8 billion), and Wanda and Legendary Entertainment ($3.5 billion) (Chmielewski).
Lionsgate pursued Starz with a $4.4 billion acquisition offer. The CEO of Lionsgate, Jon Feltheimer, knew the merger was necessary. Feltheimer wanted “…To compete in the new digital media world dominated by Silicon Valley Titans and with ever-larger Hollywood studio conglomerates, Lionsgate, with its $6 billion market capitalization, had to get bigger. And Starz, with its 25 million paid subscribers and a 1 million-sub streaming service, was a perfect fit” (Chmielewski). Mergers and acquisitions between distributors and content producers allow consumers to not only have access to content, but higher quality content. There’s a surge to become bigger, even though there are talks about the new presidency impacting the deals. Donald Trump wanted to break up media conglomerates, but also promised tax cuts and deregulation. Media corporations seem optimistic with their mergers regardless.
Even the largest and most successful conglomerates are not comfortable right now. Large conglomerates are not safe because a slew of mergers and acquisitions could come within the next few years, making other corporate umbrellas as large, if not larger than the existing ones today. Successful media companies like Disney (market cap of $173 billion) or Comcast (market cap of 169.8 billion) barely compare to Apple ($635 billion), Google ($562 billion) or Facebook ($360 billion) (Chmielewski). The reason for the big difference in value is the mass access they have to both audiences and content. Silicon Valley is increasingly considered the media capital of the world. “Facebook, Twitter, Netflix, Google’s Accelerated Mobile Pages, Facebook Messenger and Instagram in aggregate account for nearly two billion people actively reading, watching and sharing their favorite content” (Hyrkin). The evolution of non-network TV like Netflix original series, are redefining the way traditional media works. Therefore, until traditional conglomerates catch up, they won’t have the same value as tech and telecom companies.
Works Cited
Chmielewski, Dawn. “Hollywood’s Merger Mania: Inside the Studios’ “Size
Anxiety.” Scramble to Match Silicon Valley.” The Hollywood Reporter. 11 January 2017. Web. 26 January 2017.
Hyrkin, Joe. “Silicon Valley Is Now the Media Capital of the World.” Recode. 17 November 2016. Web. 26 January 2016.
Selyukh, Alina. “Big Media Companies And Their Many Brands – In One Chart.” NPR. 28 October 2016. Web. 26 January 2017.
With this new changing media landscape, it is forcing traditional media corporations to adapt, and even the opposite is true. Some companies are figuring it out better than others, and some have figured out that it is in each company’s best interest to join together. These adaptations must happen for the traditional companies to survive, because the way the audience consumes media is ever changing. Things like how audiences do not like ads or having to pay for services they don’t want or need have forced traditional media companies to change their platforms.
ReplyDeleteOne aspect is how traditional television companies are dealing with the shifting audience towards “cord cutting.” In an article by Kim Masters in The Hollywood Reporter it talked about how cable channels and studios are reacting to the popularity of Netflix, “Studios and cable channels fret that the company, with its 83 million global subscribers, is sucking up so many eyeballs and bidding up prices for programming so high that they won't be able to compete.” Comcast Xfinity has seen how Netflix’s audience has grown and has adapted to keep up with it.
In November, Comcast Xfinity launched Netflix in their On Demand center. Reed Hastings, Netflix Co-Founder and CEO, said in an article on Comcast about the new deal, “"Now they can seamlessly move between the Netflix app and their cable service, enjoying all the TV shows and movies they love without hassle." The new deal allows Netflix originals to be in the On Demand screen so Netflix users do not need a second device or smart TV to watch their shows. All they have to do is sign into their Netflix account through their Xfinity On Demand screen. This is an example of how a traditional media company, like Comcast is adapting and decided to join with the newly growing audience Netflix has.
This adaptation for their audiences has advantages for both Comcast and Netflix. According to Nielsen, a combined 282 Million people still watch live or time shifted television. Since Comcast is a cable provider still having the most eyes, and Netflix with an incredible fast growing audience, it only makes sense for them to work together. The end goal would be easier use for the audience while Comcast prevents Netflix from taking away some of it’s audience. The Nielsen report also shows the shift towards consumers using mobile devices. This is mostly in the 18-34 demographic, but it does make it interesting. Some cable providers, like Verizon Fios, and some channels let you watch live television on the go on your mobile device. Cable providers, which are traditional media, adapt to millennials beginning to shift away from watching regular television. It will be interesting to see how the shift continues and how these companies will have to adapt to survive.
Works Cited
Delete"Comcast To Launch Netflix On X1 To Millions Of Customers Nationwide." Comcast.com. Comcast, 4 Nov. 2016. Web. 30 Jan. 2017.
"Forces of Nature: The Media Universe Moves at the Pace of Technological Change." Forces of Nature: The Media Universe Moves at the Pace of Technological Change. N.p., 5 Jan. 2016. Web. 30 Jan. 2017.
Masters, Kim. "The Netflix Backlash: Why Hollywood Fears a Content Monopoly." The Hollywood Reporter. The Hollywood Reporter, 14 Sept. 2016. Web. 30 Jan. 2017.
The Nielsen Comparable Metrics Report. Rep. Q2 ed. N.p.: n.p., 5 Jan. 2016. Print. Ser. 2016.
With the consumption of media expanding past traditional forms of consumption, media corporations are feeling the pressure to find something that keeps them on top. As mentioned in, “Hollywood's Merger Mania - Inside the Studios' ‘Size Anxiety,’ Scramble to Match Silicon Valley”, “The shifting pattern of consuming media forces business models to change in reaction to that and to try to get some scale at the same time” (Chlmielewski). Television is no longer the main form in which people are accessing movies and television shows. The need for streaming has become something that has influenced the ways in which media corporations will access their audiences. This transition in audience viewership from traditional television to other forms of media has caused media corporations to propose some new changes.
ReplyDeleteGetting on the international spectrum is one way Netflix is trying to adapt to the changes in how audiences consume media. Reaching a global audience is something that can help expand the company as it shows how much they care to reach international audiences around the world. Netflix supports 21 languages, giving its subscribers the feeling that they’re being included (Roxxborough & Szalai). As stated in, “Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon”, “In fact, recent deals like Netflix's cooperation with Liberty Global, which will see the latter integrate Netflix into set-top-boxes, shows how the company is taking a more cooperative than disruptive path on the international stage” (Roxxborough & Szalai). In reaching a greater audience, Netflix is adapting to diverse audiences on a global scale.
Sports are another way media corporations are adapting to the changes in how audiences consume media. With sports being something that has lost “live” viewership, there is an opportunity for these media corporations to cater to this change. As mentioned, “In recent months, Amazon has reportedly begun talks with the likes of the National Basketball Association, the National Football League and national sports leagues in numerous countries, exploring the idea of buying up rights to offer to fans worldwide” (Roxxborough & Szalai). Streaming sports to viewers is something that may have a great impact on subscribers due to sports being in such high demand.
Finding ways to cater to the technological advancements throughout the years has been a way for media corporations to expand as well. With corporations merging, it creates opportunity for them to expand. As mentioned, “Bigger studios will snap up smaller ones as they look to amass a must-have collection of movies and TV shows that distributors can't ignore when assembling new packages of programming — no matter how skinny the bundle” (Chlmielewski). Corporations are now taking over other corporations in order to create a greater range in the way consumers can access their media. With these mergers, the way in which we view content may alter. Taking into consideration the possible AT&T and Time Warner merger, it is a great example of traditional media corporations adapting to change. As stated by AT&T Newsroom, “Combined company positioned to create new customer choices — from content creation and distribution to a mobile-first experience that’s personal and social”. In combining these big corporations, there will be content that is made accessible depending on the growing and changing times.
Having these traditional media corporations adapt to the changing times will keep content available to us in new ways.
This comment has been removed by the author.
DeleteWorks Cited
Delete“AT&T To Acquire Time Warner.” AT&T.com. AT&T Newsroom, 22 Oct. 2016. Web. 20 Jan. 2017.
Chmielewski, Dawn. “Hollywood’s Merger Mania- Inside the Studios ‘Size Anxiety,’ Scramble to Match Silicon Valley.” The Hollywood Reporter. 11 Jan. 2017. Web. 30 Jan. 2017.
Roxxborough S. & Szalai G. “Why 2017 Will be Crunch Year for the Global Ambitions of Netflix and Amazon.” The Hollywood Reporter. 28 Dec. 2016. Web. 30 Jan. 2017.
Katherine Hansford Arce
ReplyDeleteOver the years, traditional media corporations had to adapt to the changes in how audiences consume media. Media corporations have gone from using cable companies; radio services; and printing press to going almost completely wireless.
While traditional media companies are no longer delivering media, in traditional ways, like they used to, traditional media companies have been transitioning and converging to the increase in technological advances.
We now live in the 21st century. The majority of the media-consuming population has transitioned from using “cord-like methods” to using “wireless options.” Media consumers have not been using cable as much as people used it when cable first came out.
Cable is not as popular as it used to be due to SVOD services such as Netflix, Amazon Prime, and other services. Cable offers a select amount of shows that will show-up around different times of the day on cable networks.
“Netflix is far cheaper than cable, and subscribers can access a cornucopia of content” (Masters, 3). With Netflix and Amazon Prime, the audience can go online and search any show-- as long as Netflix, Amazon Prime, and other streaming services have the viewers’ desired shows-- and watch however many shows, episodes, and seasons they want for however long they want; and for a cheaper cost.
Since cable companies have not been doing as well; and since Netflix wants to increase its members internationally (which is where Liberty Global comes into play-- it’s a Latin America and Europe-focused cable giant), “Netflix clearly sees it as better business to work with the Liberty Globals of this world than compete against them” (Roxborough & Szalai, 3). This way, cable will still be in the picture even though other cable companies continue to die-down.
As Netflix and Amazon expand worldwide, they will increase their also wants to upgrade to sports, like Amazon has, to increase its subscription rate. According to Richard Cooper, a London-based director for IHS Market, sports is a “huge, huge driver of subscriber uptake” (Roxborough & Szalai, 3) and that “it makes logical sense for both Amazon and Netflix” (Roxborough & Szalai, 3) to offer more sports options as they continue to move and expand worldwide.
“BTIG's Rich Greenfield sees cord-cutting as the future and long has been a Netflix proponent” (Masters, 4). The more Netflix, Amazon, and other SVOD services continue rising with subscriptions and subscribers and increases the amount of content on each station worldwide (while decreasing its subscription and membership prices), the less people will need to tune-into less of a variety and high-priced cable.
Shifting media platforms, what media consumers will be tuning into, however, is not so much the radio, but online music subscriptions. Traditional music companies have had to transition from using the radio and putting out records and CDs to putting their content and tracks online.
When it comes to making a profit in the music industry, it’s all about supply and demand. Even though one 99 cent song online is equivalent to one song on a CD album, consumers gravitate to the online purchase (over the entire album) because of the price-- 99 cents definitely looks cheaper and more appealing than an album price of roughly $16.
However, some consumers believe 99 cents is too much for one song. According to Chris Anderson, “the labels fear that if they price online music lower, their CD retailers (still the vast majority of the business) will revolt or, more likely, go out of business even more quickly than they already are” (7).
Since media consumers are constantly interchanging the way they view media it is important for media conglomerates to be up to date and to modernize themselves to be the next “up and coming” platform. If media companies fail to keep up with consumers, they will inevitably fail in a fast moving media environment. For example, Netflix began as a DVD distributing platform, until the company realized they had to make changed in order to keep up with other platforms.
ReplyDeleteNetflix has now become a huge factor and competitor when it comes to viewing media. “Out of the blue Netflix comes into the market and says, ‘We’re going to give you a number [to license a network show]” (Masters). This is obviously becoming a huge problem for studios and cable channels because with so many people subscribing and viewing Netflix’s content, Studio’s have come to realize that they do not even need to sell to cable channels. Masters makes a comparison of Netflix to other big companies, even stating that there “remains an open question whether Netflix will become the Google of Hollywood” (Masters). With Netflix now distributing their own original content, drawing in more subscribers there is no doubt that it will bring an even bigger audience looking for something other than what is on cable television.
In carrying the conversation of immediate streaming, Amazon has followed suit as well, a decision which could even threaten Netflix’s growing business. However “Amazon has some catching up to do, Netflix has a substantial lead, but we see fairly consistent growth in terms of subscriber numbers” Says Cooper in Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon by Roxoborough. A slight advantage that Amazon has over Netflix is that it’s pricing for subscription is significantly smaller than that of Netflix’s, something that many future subscribers will pay mind too. Another advantage that Amazon has over Netflix is that it “has begun exploring two other business models that, so far, Netflix has ignored: sports rights and partnerships with third-party content providers.” (Rxoborough) These are platforms that Netflix has yet to explore which could be problematic as Amazon looks for other ways to attract future subscribers and grow themselves.
Nielson mentions that “The rise in technology and TV-connected devices has given consumers, marketing agencies and advertisers a vehicle for boundless choice” (Nielson). With millions of people online and looking for the “next new media outlet” it is important for these companies to continue growing and expanding themselves into other platforms, and to think ahead of the rest of the companies if they want to keep afloat.
Works Cited
DeleteMasters, Kim. "The Netflix Backlash: Why Hollywood Fears a Content Monopoly." The Hollywood Reporter. The Hollywood Reporter, 14 Sept. 2016. Web. 30 Jan. 2017.
Roxxborough S. & Szalai G. “Why 2017 Will be Crunch Year for the Global Ambitions of Netflix and Amazon.” The Hollywood Reporter. 28 Dec. 2016. Web. 30 Jan. 2017.
The Nielsen Comparable Metrics Report. Rep. Q2 ed. N.p.: n.p., 5 Jan. 2016. Print. Ser. 2016.
Works Cited
ReplyDelete“Forces of Nature: The Media Universe Moves at the Pace of Technological Change.” The Nielsen Company. 5 Jan. 2016. Web.
Jarvey, Natalie. “Netflix Reports Its Strongest Subscriber Growth in History.” The Hollywood Reporter. 18 Jan. 2017. Web.
Malito, Alessandra. "The Success of Netflix, Amazon and Hulu Has Cord-cutters Rejoicing - and Recalculating." MarketWatch. 21 Oct. 2016. Web.
Masters, Kim. "The Netflix Backlash: Why Hollywood Fears a Content Monopoly." The Hollywood Reporter. The Hollywood Reporter, 14 Sept. 2016. Web.