Hugh Scallon’s Post

CNN+ which has been launched in 2022 as a new digital business model for news is a perfect example of transformation failure. No doubt that CNN+ was a bold and innovative new business model. But the biggest uncertainty it faced was this: did anyone want to pay 5.99$ a month to stream news? By one estimate, CNN+ joined more than 300 other unique streaming servives operating in US, yet the average household paid for only four of them. At a minimum, it would have been useful to know what percentage of CNN’s current viewers were interested in paying for a streaming version of the brand. But rather than conduct a test to find out, the company plowed ahead with its plan. As it turned out, uptake by CNN’s existing customers was small. At the time, CNN’s TV channel was attarcting an average of 773,000 viewers per day. In its first weeks, CNN+ was watched by fewer than 10,000 people per day – about 1% of the TV audience. Less than a month after launching, it was announced that CNN+ would shut down. Its corporate parent, Warner Bros. Discovery, concluded that customers simply didn’t want to pay for another streaming service, let alone one focused on news but lacking their favorite prime-time CNN shows. Say goodbye to 300 million $.

✅🖥️ Wired (2/16): “While this may seem like a yearning for the days of more appointment television and setting our VCR to tape My So-Called Life, and it is, there’s something else at play. There is a malaise associated with streaming these days, when scrolling through the endless libraries of “Eh, OK, Sure” TV on Netflix or Hulu doesn’t feel all that different from the mindless channel-surfing people did in the ’90s while they were waiting for Friends to start. With streamers raising prices and adding commercials, maybe the urgency of watching something as it’s happening has the juice to bring people back to broadcast. All of which to say, even if live TV is making a comeback, it’s a comeback buoyed by streaming. One of the reasons, beyond Taylor Swift and Usher, that lots of people tuned in to the Super Bowl was that, in addition to CBS, the game also aired on Nickelodeon, where it was hosted by SpongeBob SquarePants and Patrick Star. (I’m told it was fun to watch on edibles.) The game also streamed on Paramount+, and although some viewers reported glitchiness early in the game, the easy access across multiple platforms boosted the game’s viewership numbers. HBO’s current Sunday Night Sad show True Detective: Night Country has surpassed the first season in total viewers. A lot of them watch the show when it airs on Sunday, and a big chunk watch on Max. Nearly a million people—930,000—watched Stewart’s return to The Daily Show; some 6 million more have watched his return monologue on YouTube.” ⬇️ #streamingtv #connectedtv #cordcutting https://lnkd.in/eddT_jFr

Linear TV is not dead. See how CBS is using linear and non-linear avenues to engage and entice viewers. ~~~ So advertisers still want to reach those younger viewers, but to reach those younger viewers through network shows, they need to look beyond the linear TV audience and take into account who’s watching those shows on Paramount+ or Peacock or Hulu? -Josef Adalian https://lnkd.in/dnEfsryi #television #media #mediaentertainment #streaming

✅🖥️ CNN (4/10): “The changes, set to be implemented April 22, will feature new programming. A slate of fresh shows includes “CBS News Confirmed,” a program solely devoted to combatting misinformation, as well as “CBS News 24/7,” a “live, whip-around newscast” that will “capture what’s happening across the globe in real time.” John Dickerson’s show will also expand to 90 minutes later in the spring. In addition, the network is expanding its presence across the country, staffing “news hubs” with journalists in cities from Cleveland to Las Vegas. The move by CBS News, of course, comes as legacy television news outlets grapple with the rapidly declining linear business. CNN and NBC News have invested in streaming networks of their own. CNN sent some questions over to CBS News (about) ambitions in the streaming space. Below you’ll find the Q&A, which has been edited for length. CNN: Can you elaborate on the decision-making process that led to the expansion and rebranding of CBS News’ streaming platform? CBS News: “Our ambition is to be #1 in free streaming, and we are leveraging the playbook we used to take our 14 owned-and-operated stations’ local news streams from fourth to first against their in-market competition in two short years. The three pillars for CBS News 24/7 are: lean into our iconic shows and talent, win breaking news, and optimize the programming.” ⬇️ #streamingtv #ctvadvertising #journalism #news

Network television ratings have significantly declined in recent years as viewers have turned to streaming platforms like Netflix and Hulu. However, there's an exception to this trend; People over 60 have become the core audience for broadcast networks. In the past, top-rated network shows had median viewer ages in their mid-40s to early 50s, but in the most recent television season, the median viewer age was over 60 for most entertainment shows. The older generation, particularly baby boomers, who grew up with TV as the center of their living rooms, continues to watch television in the traditional prime-time manner. Entertainment executives recognize the importance of creating new scripted original programs to retain their aging audience. CBS, for example, values older viewers due to their high TV consumption and significant spending power, which makes them attractive to advertisers. John Koblin discusses this trend and what it means for network television.

Market Misfires - CNN+: The Broadcast Titan's Swift Descent in the Streaming Battle In March 2022, CNN tossed its hat into the ring of streaming services with the launch of CNN+. Amidst a crowded field of titans like Netflix and Disney+, the entry of this broadcast behemoth was expected to make waves. Armed with a robust arsenal of content from major providers like Warner Brothers and Discovery, CNN+ seemed poised for success. However, the reality was starkly different. Despite its formidable backing and extensive content library, CNN+ found itself in choppy waters and capsized a mere few weeks post-launch. This rapid descent is a stark testament to the formidable challenges of venturing into a market cornered by entrenched leaders. CNN+'s stumble is not just a story of a product that couldn't stand tall. It's a cautionary tale highlighting the importance of understanding the landscape of your market before stepping into it. Success isn't merely a matter of having impressive resources; it's about effective strategizing, astute positioning, and understanding consumer expectations in an already saturated market. The fall of CNN+ serves as a powerful case study in strategic missteps and provides invaluable insights for future contenders. It underscores the critical lesson that navigating the sea of established giants requires more than a famous name and a rich content catalog—it calls for a deep understanding of the market dynamics and consumer needs. #streaming

From The Economist: A golden age of TV is losing its shine Yet today, the #tv business is in flux once more—and so is the nature of its output. Insurgent streamers have settled in as cosy incumbents. Big #tech firms are using streaming to promote their other products. The upshot, argues Peter Biskind in “Pandora’s Box”, a binge-worthy book about tv, is that the risky, rule-breaking shows that defined television in the early 21st century are giving way to less original fare. #Streaming took what cable started and pushed it further. Making whole seasons available on demand has allowed viewers to binge, reviving the importance of plot, which had been subordinated to character in shows like “The Sopranos”. With past episodes fresh in the viewer’s mind, less plodding exposition is needed. Streamers’ offering of thousands of shows at once has also enabled niches to thrive. Streaming has found a home for ideas that were too daring, weird or obscure even for cable, from Korean horror to Swedish romance. As Reed Hastings, Netflix’s co-founder, put it, “We are to cable networks as cable networks were to broadcast networks.” Today #Hollywood ’s output is changing. Six months of strikes by writers and actors have halted production this year. (Writers have gone back to work, but actors have not.) Even before that, studios were preparing to cut back, as investors began to demand evidence of profits rather than just subscriber growth. In America more than 2,000 original series were released last year As the quantity of new shows falls, some believe the quality is diminishing, too. Across the industry, a shift is under way. Mr Biskind quotes writers and actors who complain that streamers are returning to the safe centre ground that broadcast networks used to occupy. “I want to do in-your-face shit,” says Kenya Barris, the creator of inventive shows such as “Black-ish”. But “Netflix wants down-the-middle…Netflix became CBS.” #Advertising has made a comeback, as streamers try to squeeze more dollars out of subscribers. And bingeing is being reined in. With hundreds of millions of subscribers, the likes of Netflix and Amazon Prime Video have bigger audiences than any broadcaster. As they grow, streamers seem to be edging away from niches and towards the mainstream. One example is sport Perhaps the biggest driver of the move to the mainstream is the tech titans’ push into streaming. Both Amazon and Apple TV + will survive the financially ruinous streaming wars. (They will “hold everybody’s head under water until they drown,” Steven Soderbergh, a film director, tells Mr Biskind.) But Amazon and Apple see streaming as a way to bolster audiences’ interest in their other businesses. As Jeff Bezos, Amazon’s founder, once said to groans in Hollywood: “When we win a Golden Globe, it helps us sell more shoes.” The result is resolutely brand-safe output. https://lnkd.in/eD_gCKRX

At a time when streaming services are beset by massive churn rates, it may be time to bring back the classic sitcom. Advantages include: - the bring in larger, mass audiences - they become cultural touchpoints - they can earn millions from syndication - advertisers love running against this sort of high-quality, feel-good programming - they can last for as long as 10 years https://lnkd.in/e2xhruG6

In today's television era, streaming platforms are pouring billions into fresh content, offering viewers a plethora of choices every time they switch on their devices. Interestingly, amidst this influx of new content, certain TV series, ones that have aired for several years across numerous seasons, continue to capture and expand their dedicated viewer base. Such long-running shows are not just cultural icons; they invite deeper reflection on viewer tastes, broadcasting strategies, and shifts in TV consumption patterns. The pertinent question then arises: Why do these series remain in demand in a constantly flooded market? Is the appeal solely based on nostalgia, or are there deeper reasons that pull viewers back season after season? A notable trend in American TV is the enduring appeal of procedural dramas. Shows like CBS’s "Blue Bloods", "NCIS", "NCIS: Los Angeles", and NBC’s "Law and Order: SVU" have seen growing demand with every new season. In fact, the latest seasons of these shows often record peak demand compared to their previous ones. While the final season of "Criminal Minds" experienced a slight dip compared to its predecessor, its demand has surged since its 13th season in 2017. All showcased shows have recorded exceptional demand in their recent seasons, often surpassing the average show's demand by over tenfold. In some instances, like the last season of "Law and Order: SVU" and "Criminal Minds"' penultimate season, demand skyrocketed to levels achieved by a mere 0.2% of shows. The longevity of procedurals can be attributed to several reasons. They, alongside sitcoms and select unscripted content, serve as ideal casual viewing – aptly dubbed "laundry folding shows.” Viewers can effortlessly tune in without needing continuity since most episodes wrap up their narratives conclusively. This episodic nature, combined with the repeatable format of these shows, fosters longer-term audience engagement. The more viewers watch, the more they connect with recurring characters, enhancing their overall viewing experience.

There is room for both—they are consumed differently. These are nuances we discuss when addressing KPIs with our clients. Let’s strategize how best to reach your potential customer/patient/client.