Tom said Netflix's attempts to "dismantle the culture of free that currently surrounds the brand" can "only target the low-hanging fruit, so as not to risk inflaming subscriber relations."
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Netflix dramatically missed its quarterly guidance of +2.5 million subscribers in Q1, losing 200k net subs globally (although that includes 700k lost due to pulling out of Russia). Q2 is forecast to see a further net loss of 2 million (of a worldwide total of 222 million), the causes of which will also hit Netflix’s competitors.
Netflix prices continue to rise, with the Standard tier now eclipsing £10 per month. However, despite the current strain on household finances the streamer can still be confident that it can charge more without material consequence—video remains cheap compared with the past, and more time spent at home will lift Netflix's value to subscribers.
The upcoming clampdown on password sharing will aim to dismantle the 'culture of free' that currently surrounds the brand. However, we foresee that the company can only target the low-hanging fruit, so as not to risk inflaming subscriber relations by tackling all behaviour outside the accepted Terms of Use.
Tom Standen-Jewell was quoted in CITY A.M on "Millions of Brits cancel streaming services as cost of living crunch sets in"
19 April 2022Tom Standen-Jewell told City A.M. that whilst streaming services had previously benefited from the public perception of being a value for money alternative to pay TV, like Sky and Virgin Media, he said there was “a perfect storm” brewing of price rises for the major services as well as the cost of living crisis.
Standen-Jewell added that this made the amount of money leaving people’s accounts more “noticeable” than it may have been before.
“The cost of streaming therefore looks increasingly like a luxury that can be cancelled when times are tough.”
Tom Stenden-Jewell was quoted in Press Gazette on Data suggests UK is on 'cusp of a golden age for podcasts'
14 April 2022Tom said "Now you have a situation where there is enough progress being made in the technology that podcasts are picking up real momentum. Advertisers now have access to detailed targeting and attribution techniques, are prepared to pay more for podcast ads, and see the medium’s potential to reach large numbers of sought-after audiences."
He added "Audio platforms are racing to expand into podcasts. Whereas you used to see most podcast demand from smaller advertisers, now larger advertisers all want to buy podcast ads. It’s not just mattress start-ups or subscription meal kits anymore."
TV set viewing trends: Broadcaster decline resumes
14 April 2022Broadcast TV viewing resumed its downwards trajectory in 2021, following a pandemic-inflated boost in 2020. The effect has been compounded by streaming services retaining much of their lockdown gains, consolidating their place at the heart of people's viewing habits
Within the shrinking pie of broadcast TV viewing—still c.70% of total TV set use—the PSBs have held relatively steady, whilst Channel 5 has increased both its share and absolute volume of viewing
However, further decline seems inevitable, with the largest components of the programming landscape, namely longstanding formats and the soaps suffering badly since the beginning of the pandemic. We await the effect of various new scheduling strategies
Le Monde: Towards the million club
13 April 2022Groupe Le Monde has been on the road to fiscal recovery since it was rescued from bankruptcy in 2010 by private investors for €110 million
Through the pandemic Le Monde has grown its paying audience to almost peak print levels (in 1979), and is targeting growth to 1 million subscribers by 2025
Multiple brands provide Groupe Le Monde with a strong foundation for diversification, a necessary ingredient for further growth, exemplified by a growing range of news media
TalkTalk: For sale at a price
12 April 2022TalkTalk is reportedly for sale, with Vodafone and Sky the obvious potential buyers, and a fairly aggressive price requested.
TalkTalk would bring synergies and enhanced market position to either Vodafone or Sky, but also integration and other issues.
Consolidation may bring a degree of market calming, although the more major battles would remain between the infrastructure-based players BT/Openreach, VMO2, and the altnets.
Claire said “No one in their right mind would attempt this… It’s a gigantic force in France.” If privatized, Enders suggests billionaire businessman and media titan Vincent Bolloré would be the beneficiary.
The government has always “welched on their commitment to France Télévisions… France Télévisions has always been absolutely 100% achieving and exceeding its regulatory envelope and the government has systematically for 15 years been doing the opposite.”
Niamh Burns was quoted in CITY A.M on "Silicon Valley forced to become copycats as TikTok set to triple ad revenue to £8.4bn"
12 April 2022Niamh said “The larger platforms like Meta are scrambling to catch up with the TikTok offering. Products like Facebook Reels are a real copycat product."
Calling TikTok “the platform of the moment”, she explained the real challenge for social media players is being able to monetise on this redirected ad spend on this notoriously difficult short-form video form.