Two weeks ago I wrote about Netflix losing customers for the first time and how they are struggling with increased competition, pricing wars and losing major IPs like friends. This week I’d like to return to the entertainment business and to follow up, I’ve got 3 interesting articles to share with you.
Technology as a commodity
Honestly, one takeaway for me was the term D2C, direct-to-consumer, describing businesses that sell directly to their customers online, whereas traditional B2C companies still rely on retail / a middleman.
Also, I found it pretty amusing that he chose Sky as an example. It’s true, Sky does have some good content, mostly because they buy the rights to show HBO shows in Europe, though. But to me, the user experience of using Sky is one of the worst nightmares and so unbelievably bad that I wouldn’t pay for the service no matter the content (I only watch Sky when they offer a free month for promo)
But the important thing is that if technology is only a secondary, it doesn’t matter that Netflix has the best infrastructure and viewing experience, what matters is only the content. And with Disney pulling all their IP, Netflix could actually lose its edge.
Disney strikes back
Disney announced a new bundle
containing Disney+, ESPN+, and Hulu for only $12.99. That’s some pretty aggressive pricing by Disney and once they got customers lured in, they will probably increase the price by a lot.
All of this shows how serious Disney is about entering the streaming market and with such a strong portfolio of brands and IPs, they will pretty sure become a major player real quick.
The Absurdities of ‘Franchise Fatigue’
'Franchise Fatigue’ is often cited as the main reason for declining ticket sales, blaming franchises like Fast & Furious or Spiderman for being boring and unattractive for movie-goers.
In fact, the segment of the population that doesn’t attend “the movies” has been unchanged since 2002 at one in four, and a greater share of the population goes to the theater today than at any time between 2009 and 2017.
Nearly all the decline in theatrical consumption has instead come from a reduction in the frequency of attendance by the most intense moviegoers. This reiterates the idea of secular decline; those who loved the product most, love it less each year.
There are many more super interesting facts and insights, simply too many to summarize here. Go read it.