Brian McGarvey

📢 Streaming Giants Join Forces Warner Bros. Discovery and Disney Collaboration: • A new streaming bundle has been announced. •This bundle includes Disney+, Hulu, and WBD’s Max (itself, a merger of HBO Max and Discovery+). Continued Consolidation: • Another highlight of ongoing consolidation in the streaming entertainment sector. • The aim is to offer more value and options to consumers and to ultimately increase loyalty and retention. Consumer Spending Trends: • Consumers appear to have set a spending limit of around $40 to $50 per month on streaming services. • There is a trend of switching between services to manage costs-which is becoming easier and easier for consumers. Broader implications for #fitness and #wellness: • Likely to see similar spending patterns emerge in other subscription-based services and wellness memberships-and possibly partnerships and consolidation (some early indications already https://lnkd.in/gHfYy6fR). • As services become more accessible and on-demand, the balance of power shifts towards consumers, signifying a shift towards more consumer-centric offers. www.garrettmarshall.com https://lnkd.in/g74mxcU6  Brooklyn Dougherty Christine Hsu Evans Cody Fair David Ko Geoff Cook Jodi Hunt Bryant Julia Matthews Lindsay Cook Meeta Roy RIM IDI, M.Ed. Rishi Mandal Russell Cook Russell Glass Scott Nelson, PMP, M.Ed. Shannon Barnett Sima Sistani Wizdom Powell,PhD, MPH

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We've shared a ton of info on our clients Chipotle Mexican Grill ongoing campaign with the fighting game community. With year 2 in full swing and Evolution Championship Series quickly approaching, we're dropping some great results from year 1. From YouGov: -- Chipotle Purchase Intent doubled among US Esports Fans, Age 18-44. After the campaign, 1-in-5 (20%) reported they intended to eat at Chipotle within the next month (1.3x higher than Nat Rep 18-44; 1.8x higher than All US 18+)  -- Consideration of Chipotle among US Esports Fans, age18-44, rose from 28% to 38% (1.2x higher than national average among US 18-44-year-olds;1.6x higher than All US 18+) -- Chipotle’s Overall Brand Impression (sentiment) score among US Esports Fans, age 18-44, rose from 29% to 41% (1.5x higher than national average among US 18-44-year-olds) The results are in, the achievement is unlocked.... Sound strategy, industry expertise, great insights, a client who thrives to find whitespace while focused on adding true value will deliver results. Shout out to all our partners RTS, PlayStation, Capcom, Bandai Namco Entertainment America Inc. and of course our team rEvolution. EVO is right around the corner and we're ready for round 2...see you in Vegas. #gaming #esports #sportsbiz #partnerships

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📈 Streamflation Alert: Subscription prices are rising again! In 2024, platforms are boosting prices for the second time in two years. Streaming services like Peacock, Max, and Spotify are increasing costs, often coinciding with major events or new content launches. 💡 Why the price hikes? Streaming platforms are adding more content and employing strategic moves to drive users towards ad-supported tiers, which generate higher revenue. For example, Peacock raised prices right before the Paris Olympics, and Max did so ahead of the new season of House of the Dragon. Bundling services are also on the rise, with companies like Disney and Verizon offering attractive package deals to reduce subscriber churn and enhance value. 📊 What's next? Analysts believe these price hikes are just the beginning, expecting more increases by the end of the year. The goal is to boost margins and gently push consumers towards ads and bundles, supporting the company's larger financial objectives. #TV #svod #streaming #bundle https://lnkd.in/e8-uYitV

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Great article from Rob Wile at NBC News on why FAST services like Pluto TV or Tubi are already incredibly successful and why we are still scratching the surface of something way bigger🚀 💵 .Ross Compton, CFA provides a spot-on analysis that resonates with our vision a decade ago when we spearheaded the FAST market with Pluto TV. "It’s a repackaged version of the old method of distribution, noting that the original broadcast networks were all supported by advertising and the only investment a viewer had to make was in a TV set and an antenna. Now, it’s the same thing, just over the internet. The demand for FAST channels is sustainable — for one simple reason. You really can’t beat free." (Ross Compton, CFA) Free and easy access combined with high-quality content shaped the golden age of TV. The same ingredients are needed for FAST, even if we needed to rethink channel programming and curation in the new era of internet, social networks and the overabundance of video content. Same is true for advertising, it has funded so much of the best TV content over the decades. FAST advertising is like TV advertising but with more data, targeting and measurement! So YES, there is such a brillant future in front of the FAST business! 📺 #FAST #PlutoTV #Tubi #NBCnews #fastchannel #Avod #streaming

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"Currently, sports viewing is extremely important and strong, with big brand advertisers spending ever higher media dollars on this live content." I believe that audio will be great to pairing the video strategy. Let's discuss how I can help your brand in this high-demanding format.

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📺 **Battle for the Living Room**   The race to dominate the smart TV operating system (TV OS) market is heating up, with major players like Roku, Google, Amazon, Samsung, and LG vying to enhance user experience and capitalize on new business opportunities through data and advertising. Despite this fierce competition, a key question emerges: do consumers actually care about which OS their TV uses? 📊 **Market Potential**   At the StreamTV Show in Denver, experts discussed the benefits of owning a TV OS, such as controlling user data and enhancing ad revenue. Analyst Alan Wolk noted that around 40% of smart TVs globally lack a dedicated TV OS, presenting a significant market opportunity. Even small gains in market share can translate to substantial financial rewards, making the competition highly lucrative. 💡 **Consumer Preferences**   Panelists at the event debated whether consumers prioritize the TV OS in their purchasing decisions. Google’s Rob Caruso argued that factors like size and price still dominate, with the OS being a secondary consideration. However, Vizio's Katherine Pond and LG's Matt Durgin highlighted that content availability and user experience offered by the TV OS could influence consumer choices, particularly for those seeking quality and value. 🎬 **Content and User Experience**   Ultimately, while the current focus for consumers might not be on the specific TV OS, the content and seamless user experience provided by these systems are crucial. Companies like Vizio and Samsung emphasize the importance of offering desired content and a smooth interface, hoping that improvements in these areas will eventually drive consumer preferences toward specific TV OS platforms. #TV #TVOS #Streaming #SmartTV

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A new high: streaming represented 40% of TV usage in June! Growth from almost all platforms is attributed to younger viewers, which makes sense since school is out. Let's also acknowledge some of the recent great streaming releases, like Supercell and Bridgerton, which are viewed by multiple demographics. #streaming #growth #numbers #television

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Broadcast networks are estimated to have dropped 6.6% to $3.4 billion, while cable networks are estimated to be down 8.2% to $3.8 billion.

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Do not miss my latest article in OTTVerse on the the global growth of sports viewing on FAST/AVOD and how the consumption of sports content has undergone significant transformation!

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IYKYK. Spectrum Reach is helping "harness the chaos" of the media ecosystem on both the linear AND streaming front. That's why we are the #1 multiscreen video partner in our markets. Combine that with 30MM+ addressable households...and you can see how we help our partners spend more time optimizing outcomes and less time aggregating audience.

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Whether to merge or bundle with each other, or to bend the knee to #Google, #Apple and #Amazon, a good article about the decisions that await the media industry and their streaming businesses. I tend to believe old will be new again with bundling and a return to the wholesale model. #bundling #streaming #media

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📺 New research highlights a significant shift in video content consumption, with Instagram surpassing Netflix and TikTok to become the second most popular video service in the US, while YouTube remains the global leader. 📱 Instagram’s video features resonate strongly with younger demographics, contributing to its rapid growth, especially in the US and Spain, where Instagram Reels is now the third most popular service. 📈 The rise of Free Ad-Supported Streaming Television (FAST) channels, like Tubi and Roku, indicates a major shift towards ad-supported content, with FAST revenues projected to reach $12 billion by 2028. #Tv #streaming #FAST #video

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Is "THE FUTURE SO BRIGHT"...that "I GOTTA WEAR SHADES"? FYI - Per PwC’s annual “Global Entertainment & Media Outlook (link attached below), the Global box office and total cinema revenue are predicted to surpass pre-COVID-19 levels in 2026, but admissions won't recover within the next five years. Streaming services will see a 5.6% annual growth rate in subscriptions from 2023 to 2028, with revenue growth trailing at 4%. Advertising revenue will exceed $1 trillion in 2026, becoming the fastest-growing revenue segment in entertainment and media. PwC’s annual report also highlights a shift towards business model reinvention, driven by technological disruption, economic challenges, and the potential of generative AI.   https://lnkd.in/gsvFxinQ   https://lnkd.in/gqrft4UE

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Fascinating insights from the latest industry forecast across the media landscape: Box Office Dynamics: While box office revenues are expected to rise, this increase is likely to stem from higher ticket prices rather than more admissions. Analyst Spiegel suggests that by 2028, admissions will still fall short of pre-pandemic figures by 1.5 billion. Advertising Boom: Advertising revenues are seeing robust growth across various platforms, especially in digital media and gaming. By 2026, total advertising revenue is expected to reach $1 trillion, doubling by 2028 from 2020. This sector is anticipated to drive over half of the growth in the entertainment and media industries in the next five years. Streaming Saturation: The growth in streaming service subscriptions and revenues is beginning to plateau, prompting companies to pivot towards ad-driven revenue models and enhance cost efficiency. Gaming Industry Explosion: The gaming sector remains one of the fastest-growing segments, with total revenue reaching $227.6 billion in 2023, a 4.6% increase. PwC projects that gaming revenue will top $300 billion by 2027, nearly doubling since 2019. AI in Advertising: The use of AI in advertising is evolving, creating new opportunities for content creation and summary generation, particularly in sports media. The potential for AI to transform user experiences and open new revenue streams is vast and promising. As traditional media giants grapple with layoffs and losses, a new era in media emerges, brimming with opportunities for innovation, growth and creativity. 🎥📊                Explore the full report for more in-depth analysis:  https://lnkd.in/gV5qa5bi

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🎵 Universal Music Group vs. Warner Music Group: Who is the Winner? 🤔 Or maybe that's not the question 🔄 Maybe it is record labels versus music #streaming services: who is the winner? 📉 Back in 2000, the global #music industry was a bit over $20 billion. In 2001, Apple launched #iTunes, and in 2008, Spotify was born. By 2015, the global music industry had reached a low point of only $13 billion. Many believed this was the end for record labels 📈 But suddenly, the streaming services started picking up paid subscribers, and after various years of high growth, in 2023, total trade revenues reached US$28.6 billion, with $17.6 billion just from streaming—67% of total, with Physical being 18% of global recorded music 🌍 The surge of streaming revenue has been nurtured by the growth in paid subscriptions, now totaling 667M 📊 Market Share Subscribers: Spotify 31.7%, Tencent Music 14.4%, Apple Music 12.6%, Amazon Music 11.1%, YouTube Music 9.7%, NetEase 6.7%, Yandex 3.4%, Deezer 1.3% (3rd Q 2023). Spotify is the leader but it is not a "monopoly" like in some other digital businesses 🔍 But let's look at some numbers (Sony Music Entertainment is not a separately quoted company and data in Sony's filing is limited): 💰 2023 Revenue and Net Profit: Universal leading the pack of the labels, but Spotify is the industry leader in revenue still losing money 🔸Spotify: $15B 🔸Universal: $12.3B, $1.4B net profit 🔸Sony: $10.3B (FY 9/2023), loss of $0.6B 🔸Warner: $63B (FY 3/2023), $0.4B net profit 📈 2023 Revenue Growth: Spotify grew 2X compared to Universal 🔸Spotify: 14% (20% 5-Year CAGR) 🔸Warner: 9% (8% 5-Year CAGR) 🔸Universal: 7% (13% 5-Year CAGR) 📊 2023 GROSS MARGIN & EBITDA MARGIN: Warner Leads 🔸Warner: 48% gross, 20% EBITDA 🔸Universal: 44% gross, 14% EBITDA 🔸Spotify: 27% gross, 2% EBITDA 🏆 So back to the initial question: Who is/are the winner(s)? 🌐 The streamers seem to be growing somewhat faster than the record labels, but the streamers' growth is what is fueling the record labels' growth (68% of Universal recording division revenue is payout from streaming services) 🔄 The record labels at this point are highly dependent on the music streaming services to generate revenue, and vice versa (if Universal or Sony pulled their catalog from Spotify, you can imagine what would happen) 💡 If you look at gross margins of publicly quoted streamers like Spotify, even as they have grown in subscribers they have not been able to exert pressure on the record labels (Spotify's gross margin was in the 25%/27% range 5 years ago and it is still there today) 📈 The low gross margins of music streamers (that do not own the content) versus video streamers (like Netflix that own the content and have a 40% gross margin) is one of the main reasons why they have not been able to be profitable. 🏢 On the other hand, the record labels have profited greatly from the streaming business growth, have high gross margins, and EBITDA margins.

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STREAMING VIDEO: Despite being a market where broadcasters are making great strides in moving to a streaming model, and with TV manufacturers such as SAMSUNG reporting that a high percentage of TVs sold in Australia are never connected to an antenna, Australian consumers wanting to migrate fully to IP still face some restrictions. Even whilst Hubbl's current marketing is promoting TV without cumbersome coax cables, those attempting to watch free TV in Australia without a digtal terrestrial antenna or satellite TV service may find their sports viewing options are somewhat limited. Anyone trying to watch AFL games on Channel 7 via IP, be that via a PC browser, via the 7Plus app on smart TVs, streaming devices or a Hubbl that's not connected to DTT are greeted instead with repeats of Border Patrol with this scrolling message: 'Sorry! We don't currently have the rights to stream the AFL on 7plus. To watch the game, tune in on broadcast via your aerial, or find more of your favourite shows on 7plus. Stay tuned - the AFL rights are coming, live and free, from season 2025'. Sometimes I think it is useful to flag and illustrate these occasional exceptions so we can better understand the challenges of legacy sports and other content rights agreements in a rapidly changing TV landscape. 7plus (seen via an IP connected Hubbl) June 2024 #7plus #afl #iptv #sportsrights #streamingvideo #samsung #australia

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The media space is undergoing a paradigm shift. Understanding how the revenue pie has changed and who controls what parts of it can help shed light on what got us here and where the industry could be going.

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