Michael Vorhaus

Many in the media continue to define the "success" of streaming services while neglecting to mention their financials. This article leaves out the fact that Disney's DTC streaming business lost over $11 billion from inception to Q1 of this year. There is no mention of financials anywhere in the piece, yet it states that Disney+ has succeeded. https://lnkd.in/eE-E3-ie - #streamingmedia #SVOD #disneyplus

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Spotify's Q2 earnings are the talk of the media world today. With gross profit up 29.2% YoY, 7 million subscribers added, and continued ad-supported revenue growth, it's no wonder the stock is up ≈13% as of writing this (and the highest since early '21). Most importantly, we now see a right-sized company that has figured out a way towards sustained profitability, which didn't look so obvious a few quarters ago. They were able to increase subscription fees, add subscribers, and continue to lean into revenue opportunities that offset music licensing fees, such as podcasts and audiobooks. Podcasts: Now, the bummer is that we didn't learn much about the podcast side of the business, except that ad revenue continues to grow. However, they continue to see podcasting as a great source of profitability (only a bummer because I want to see exactly how well it's doing, but great for the industry). Licensing of Pods: We also learned that licensing of content & wide distribution is paying off, which obviously provided more impressions and ad revenue for Q2. As you may remember, we predicted major platforms would lean into licensing content in early January. The funny thing is that this is the prediction that got the most pushback! A handful of astute investors and industry people told me I was wrong, Spotify was pulling back, yada yada yada. As the great Swedish rock band The Hives sang, "I hate to say I told you so," but as an industry, we need to scream our wins as loud as possible. (Of course, I had to nod to a Swedish band. Also, they are amazing live). https://lnkd.in/eQbw3NDc Video: Spotify now has over 250,000 video podcasts; over 170 million have watched a podcast on the platform. So, uh, let's watch this space. And stop asking if every podcast needs video. The answer is very clear.. Yes, you need a video strategy. Audiobooks: I remain highly bullish on Spotify's opportunity with Audiobooks. They are the clear favorite to be the first Audio Super App, which would allow them to charge a bit more while offering the full digital audio experience to users—capitalizing on the growing movement of broadcast radio listeners and book readers to digital audio. Audible is more vulnerable than I think they realize. All said it was a great quarter for Spotify... and the entire audio industry. I'll be back next week when SiriusXM announces its earnings. https://lnkd.in/efHFZide -- I'm the founder of DWNLOAD Media, a fund that invests in the audio space. If you'd like to learn why now is the time to invest in podcasting, DM me! I'll also recap all of the Q2 earnings via email. Sign up: https://lnkd.in/eysH5x5C Read the Q1 Recap: https://lnkd.in/etkGMXa7 Read the 2024 Outlook: https://lnkd.in/eW9nPCZQ #Spotify #SPOT #audio #podcasting #podcasts #music #audiobooks #investing

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Roku appears to be gaining positive momentum, recently announcing a 14% jump in streaming households in Q2 & this latest report from Pixalate shows it with a dominate position in the global connected TV (CTV) programmatic advertising market. Another big winner was Apple, which increased its share of programmatic CTV ads delivered to the Apple TV from 5% to 13% over the last year, leapfrogging Amazon's FireTV. According to Pixalate measurement, Samsung Electronics share fell 45%, while arch rival LG Electronics grew its share 68%. To compile the data, Pixalate says it analysed programmatic advertising activity across 100k+ CTV apps & nearly 6bn global open programmatic ad transactions in Q2 2024.

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Churn Notice ° In Q1 2024, the SVOD industry added 55.2 millions subs. ° Collectively SVODs LOST 50.4 million subscribers to cancellation. ° Combined, the premium streamers netted just 4.8 million new paying customers. ° Sub retention for Media’s premium streaming platforms has fallen 73% in just two years. ° Seventy-three percent. What can you DO about it? Start here: https://lnkd.in/eZjyquCu #churn #streaming #bundles

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The digital streaming landscape continues to evolve, bringing unparalleled convenience and innovative content to consumers. However, recent high-profile streaming issues—such as those reported by Netflix during the Mike Tyson vs. Jake Paul fight—highlight a persistent challenge: overcoming technical hurdles that the #cable industry had years to refine. One of the most likely culprits behind Netflix's streaming difficulties is a Content Delivery Network (CDN) issue. CDNs are crucial for delivering #content efficiently to a global audience, particularly during high-demand events. Netflix, known for its technological sophistication, has invested heavily in its own proprietary CDN, Netflix Open Connect, to optimize on-demand streaming. However, it remains unclear whether this CDN is being utilized for live streaming or if a different infrastructure is in place (perhaps a third-party service). This raises important questions about the readiness and scalability of current #streaming services, including Netflix, to handle live, high-profile events. The issue of scalability, particularly during surges in demand for live content, is a hurdle streaming platforms must overcome. Traditional cable providers, with decades to optimize their infrastructure, (arguably) largely solved these challenges. Streaming services, by contrast, are navigating these complexities with far less time to mature their technologies. It’s also important to acknowledge that streaming, as a medium, is still relatively new. These "kinks" are part of the growing pains associated with a rapidly evolving industry. As more platforms venture into live and interactive offerings, having the right technology is critical. Ensuring a seamless experience during high-stakes events like this requires robust, next-generation solutions capable of handling unpredictable demand spikes. What’s particularly notable in this case is that Netflix, widely regarded as a leader in streaming technology, has encountered such challenges. If even Netflix struggles with live event streaming despite its proprietary CDN and years of innovation, other platforms that lag behind in technological sophistication are likely to face even greater challenges. The key takeaway for the industry is clear: pay attention to your technology stack. Streaming providers must ensure their business strategies are tightly aligned with technology investments to meet the ever-increasing expectations of consumers. https://lnkd.in/epE6KZxR #StreamingTech #LiveSports  #LITrendingTopics

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AI is rapidly transforming how we approach #contentproduction and delivery in the #streaming industry. The integration of AI-generated captions on Warner Bros. Discovery’s #Max through its new deal with Google is the latest example of how technology will #enhance both efficiency and quality in production #workflows. But AI's impact goes beyond cost savings—it fundamentally changes the speed and scale at which content businesses can operate, making it possible to deliver #content faster and more accurately to audiences around the world. This capability is especially critical for unscripted programming, where rapid turnaround times are essential. By automating repetitive tasks like caption generation and using innovative technology to manage content translation, AI frees up human talent to focus on more creative and complex aspects of production, ultimately elevating the overall streaming experience. This synergy between human expertise and AI unlocks new possibilities for producing and delivering #media. As AI takes on more of the technical workload, companies that embrace AI and harness its potential are defining a new era of streaming, where technology and creativity intersect to redefine the future of #entertainment.   https://lnkd.in/gWW-9jpp #AI #Innovation #AIinMedia #CostCutting #StreamingTech #VertexAI

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For all intents and purposes, this puts The Roku Channel (not to be confused with the Roku platform or the Roku device) in the traditional "Cable TV" aggregator mode: A nice cluster of Free channels and services, with premium upgrade services on top. When the sports services sort out their issues (you know, some time in 2032 . . . ) I would see The Roku Channel putting those as premium upgrade services as well.

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Is streaming music hitting a plateau? Here's what might be happening 🤔 Recent financial reports from major music labels suggest a potential slowdown in streaming growth. But why? And where are listeners turning? Let's explore: 👉 Market Saturation Has streaming reached its peak in major markets? This could be a natural plateau after years of rapid growth. Have Spotify priced their rises and profitably to perfection or is this a factor? 👉 Economic Factors: Cutting back on non-essential services could be a reason. But this might only account for non-free tiers. 👉 Competition for Attention: There are SO MANY ways to listen to music out there now. Is the rise of other platforms and formats playing a part? Podcasts and audiobooks could also be stealing market share. With this in mind, where might listeners be turning? 🤔 🚨 Physical music formats: The tactile experience is making a comeback 🚨 Direct to Consumer: Artists are realising the power of connecting with their audience and dealing with them directly, often cutting out the middleman of streaming and earning more money. 🚨 Radio Resurgence: Free, curated content still has appeal - I recently wrote a post about how the younger generations still frequently listen to the radio. What do you think? Are you changing how you consume music? Share your thoughts below! 👇 #MusicIndustry #StreamingTrends #MusicTech

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STREAMING VIDEO: Those About to Die - 4/4: The recently released epic historical drama 'Those About to Die' is released on Comcast-owned streaming service 'Peacock' in the US and Prime Video in Europe and Internationally. However, the TV advertising from both providers couldn't be more different. The way Peacock presents the title and the way Prime Video presents the title makes them feel like completely different shows. Here's an example from Prime Video, this time from the Netherlands. What do you notice? #peacock #comcast #nbc #amazon #primevideo #tvcommercial #usa #international #svod #streamingvideo

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Another big licensing deal in podcasting! In addition to selling the audio podcast inventory, Amazon will distribute video episodes and translate them for global distribution. These types of deals show how effective podcasting can be in proving IP. Once you have a hit, you need to figure out your 360-degree strategy for global audiences, live events, merchandise, etc. Q3 just started, and we'll still see a couple more of these before the end of the year, as predicted in the DWNLOAD Media Report. https://lnkd.in/efJVZXEE

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Two strategies for companies... first be the best, and second if you cannot be the best then make a lot of yours so the sum is greater than the whole...

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The Growing Importance of TV Operating Systems in the Media Market The significance of TV operating systems (OS) in the media market is increasing rapidly. While Google and Apple dominate the mobile sector, TV platforms evolve beyond their influence. TV manufacturers create their own ecosystems through proprietary OS, offering consumers more choices. Media professionals must understand each manufacturer’s TV OS to grasp the unique content and user experiences provided. Historically, TVs were broadcast receivers. Today, they are smart media hubs led by platforms like Samsung’s Tizen, LG’s WebOS, Hisense’s VIDAA, and the recently launched Titan OS by Philips TV in February 2024. While Netflix, Amazon, Disney Plus, and YouTube are still central, proprietary platforms from TV manufacturers are growing, creating new revenue streams. From a global perspective, this discussion excludes Amazon Fire TV and Roku. Samsung’s Tizen OS is known for its intuitive interface and extensive content. Samsung TV Plus offers free content, enhancing user satisfaction. Samsung has also adopted FAST (Free Ad-Supported Streaming TV) and AVOD (Advertising Video on Demand) content, strengthening its platform. Similarly, LG’s WebOS, through LG Channels, provides diverse content with an OTT-like interface. LG has embraced FAST channels and AVOD content, offering a richer media experience. Their revenue model mirrors the advertising models of other OTT services, essentially providing free access to content. Hisense’s VIDAA OS, via VIDAA Channels, offers a wide range of free content, improving usability. However, Hisense lags behind Samsung and LG in adopting FAST and AVOD content. However, their growth has been the most remarkable recently. Meanwhile, Philips TV introduced Titan OS in February 2024, with user-customized content and a proprietary FAST platform. TCL uses various OSs, like Google and Roku, but also maintains proprietary platforms like TCL Channel and TCL TV+. These platforms offer unique content and services, differentiating user experiences through their ecosystems. Industry professionals must pay attention to TV manufacturers’ strategies. Leveraging these platforms is a critical opportunity for content distribution, opening new avenues for reaching audiences. TV OS has evolved to become central to the user experience. Major manufacturers like Samsung, LG, Hisense, Philips, and TCL offer distinct content and services through their OS. Samsung and LG, in particular, have enhanced their competitiveness by integrating FAST channels and AVOD content. As TV OS’s importance grows, understanding and utilizing these platforms will be essential for successful business ventures. #tvos #tizen #webos #vidaa #samsung #tcl #lg #hisense #titanos #philips

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