The Medium by Andrew A. Rosen — The Information Subscriptions

entertainment media/telecom

Friday Mailing: Warner Bros. Discovery Is "A Real Company" Facing A Flip-of-a-Coin Future

By Andrew A. Rosen · Feb. 25, 2022 10:38 AM PST

Two quick follow-ups to past mailings:To Monday's Bored Ape Yacht Club, Hello Sunshine, World of Women & New Frontiers for IP, Nilay Patel of The Verge interviewed Tonya Evans, a law professor at Penn State Dickinson Law, about crypto assets and how they interact with the law (transcript and audio can both be found here)... Two quick follow-ups to past mailings:To Monday's Bored Ape Yacht Club, Hello Sunshine,...

Member Mailing: Fox's "Less is More" & Paramount Global (née ViacomCBS) in 2022

entertainment media/telecom

Member Mailing: Fox's "Less is More" & Paramount Global (née ViacomCBS) in 2022

By Andrew A. Rosen · Feb. 23, 2022 10:38 AM PST

Key TakeawaysInvestors reacted negatively to ViacomCBS's rebrand as Paramount Global and its growth story for streamingIn 2017, Paramount Chair Shari Redstone's push for the ViacomCBS merger ran contrary to how leaders like Fox's Rupert Murdoch and Disney's Robert Iger foresaw disruption in mediaThat foresight led to the sale of 21st... Key TakeawaysInvestors reacted negatively to ViacomCBS's rebrand as Paramount Global and its...

Monday AM Briefing: Bored Ape Yacht Club, Hello Sunshine, World of Women & New Frontiers for IP

culture entertainment

Monday AM Briefing: Bored Ape Yacht Club, Hello Sunshine, World of Women & New Frontiers for IP

By Andrew A. Rosen · Feb. 21, 2022 3:30 AM PST

First, in case you missed it, I had an opinion piece in The Information last Friday: Why Disney+, Paramount+ and Legacy Media Streamers Can’t Escape the Past.You can read it for free (with login) at the link above.I wrote Where Web3 & Legacy Media Overlap a few weeks back. In the essay, I took a stab at reverse-engineering the... First, in case you missed it, I had an opinion piece in The Information last Friday: Why Disney+,...

By Andrew A. Rosen · Feb. 18, 2022 10:39 AM PST

entertainment media/telecom

Friday Mailing: FX's John Landgraf At The Intersection of Volume, Quality & Cadence of Supply

By Andrew A. Rosen · Feb. 18, 2022 10:39 AM PST

There is an opinion piece I wrote for The Information that was just published earlier. It's about how the data from 2021 reflects how, in trying to compete against Netflix, legacy media companies wind up competing against their own back catalogs.It builds off the Chuck Klosterman perspective I wrote about in Monday's "Content Isn't King Because... There is an opinion piece I wrote for The Information that was just published earlier. It's about...

entertainment media/telecom

Member Mailing: If Investors AND A-List Talent Foresee Declining Returns from Streaming, Then What Happens Next?

By Andrew A. Rosen · Feb. 16, 2022 10:30 AM PST

[Author's Note: if you have clicked on links in this email or recent ones, and it has not taken you to a website, it is a back-end issue we are fixing today. My apologies for any inconvenience.]Key TakeawaysThe basic premise of the Curse of the Mogul is that content creators reap more value than shareholdersThere have been a few key twists in... [Author's Note: if you have clicked on links in this email or recent ones, and it has not taken...

Monday AM Briefing: Content Isn't King Because Culture Is "A Very Shallow Ocean"

entertainment media/telecom

Monday AM Briefing: Content Isn't King Because Culture Is "A Very Shallow Ocean"

By Andrew A. Rosen · Feb. 14, 2022 3:30 AM PST

In last Friday's mailing, I argued that Disney+ domestic growth of 2MM subscribers via a Hulu Live bundle suggests why marketing - and not content - may be king in streaming:Disney's "North Star" is also in understanding the types of pricing and other incentives a consumer needs to both sign-up and also not churn out. That is not only a... In last Friday's mailing, I argued that Disney+ domestic growth of 2MM subscribers via a Hulu...

entertainment media/telecom

Friday Mailing: Disney, The Hulu + Live TV Bundle & Why Marketing Is King

By Andrew A. Rosen · Feb. 11, 2022 9:39 AM PST

Two notable data points came out of Disney's Q1 earnings yesterday.First, it broke out its domestic U.S. and Canada subscribers for Disney+ for the first time, revealing it had 42.9MM in FY Q1 2022, and 36.3MM in FY Q1 2021. It confirms something that I had long suspected: Disney+ has struggled to break past 40MM subscribers in the U.S. ... Two notable data points came out of Disney's Q1 earnings yesterday.First, it broke out its...

By Andrew A. Rosen · Feb. 9, 2022 9:30 AM PST

Member Mailing: Why Peloton Within Apple or Amazon Would Be An Optimal 21st Century Media Business

By Andrew A. Rosen · Feb. 9, 2022 9:30 AM PST

Key TakeawaysPeloton's objectives to become the "Netflix of Wellness" hit a wall in its first two quarters of fiscal 2022Peloton has admitted to investors that it fundamentally misread the market and its target customersSales growth dropped to 6% YoY in Q2 of fiscal 2022, while its operating expenses jumped 92%The stock has declined 76% over the... Key TakeawaysPeloton's objectives to become the "Netflix of Wellness" hit a wall in its first two...

Monday AM Briefing: Tension between Creator Economy Strategies & Short-Form Video Business Models

Monday AM Briefing: Tension between Creator Economy Strategies & Short-Form Video Business Models

By Andrew A. Rosen · Feb. 7, 2022 3:30 AM PST

A Quick Follow-Up To Amazon Advertising's Seismic (?) Breakout QuarterI got a fun question from The Entertainment Strategy Guy (ESG) on Twitter shortly after Amazon Advertising's Seismic (?) Breakout Quarter went up:It's a great question: what evidence do we have that Amazon is monetizing video well? Since Amazon doesn't break out... A Quick Follow-Up To Amazon Advertising's Seismic (?) Breakout QuarterI got a fun question from...

Friday Mailing: Amazon Advertising's Seismic (?) Breakout Quarter

amazon entertainment

Friday Mailing: Amazon Advertising's Seismic (?) Breakout Quarter

By Andrew A. Rosen · Feb. 4, 2022 9:36 AM PST

Amazon broke out its Advertising business from "Other" in its earnings release for Q4 2021 yesterday. At $31.2B it's an enormous business, as Axios' Sara Fischer highlighted this morning: it's one of the fastest growing advertising businesses in the world and now generates more annual advertising revenue than Microsoft, Snapchat and... Amazon broke out its Advertising business from "Other" in its earnings release for Q4 2021...

google entertainment

Member Mailing: YouTube's Q4 Earnings & The Quiet Revolution of the AV1 Codec

By Andrew A. Rosen · Feb. 2, 2022 9:40 AM PST

Key TakeawaysYouTube's Q4 earnings highlighted quarterly revenues greater than Netflix's, but slowing ad growthYouTube offered creator economy, NFT and live shopping as potential models for growthBut, the underlying engine of growth may be market adoption of the AV1 codec, a core issue of last year's dispute with RokuIn other words, the AV1... Key TakeawaysYouTube's Q4 earnings highlighted quarterly revenues greater than Netflix's, but...

Monday AM Briefing: The Cola Wars, Retail Velocity & Why I Disagree With "The Streaming Wars"

Monday AM Briefing: The Cola Wars, Retail Velocity & Why I Disagree With "The Streaming Wars"

By Andrew A. Rosen · Jan. 30, 2022 8:16 PM PST

Monday AM Briefing: The Cola Wars, Retail Velocity & Why I Disagree With "The Streaming Wars"

entertainment media/telecom

Monday AM Briefing: The Cola Wars, Retail Velocity & Why I Disagree With "The Streaming Wars"

By Andrew A. Rosen · Jan. 30, 2022 8:16 PM PST

About 10 years ago I sat across from Shelly Palmer at an Un-Conference in Jackson Hole, Wyoming, and discussed with him why I believed linear ad sales were effectively the obstacle to digital growth at Viacom. He paused for a second, and then asked "Do you know why linear ad inventory is still more valuable than digital to... About 10 years ago I sat across from Shelly Palmer at an Un-Conference in Jackson Hole,...

e-commerce media/telecom

Friday Mailing: Where Web3 & Legacy Media Overlap

By Andrew A. Rosen · Jan. 28, 2022 10:54 AM PST

Because the chatter around Web3 and media is picking up steam, I figured this is as good a time as any to write about why haven't written about the topic yet (though I have written about the Metaverse in MGM Resorts M life "Convergence" vs. "Metaverse" Convergence).Last Thanksgiving I listened to a podcast interview with Eric Golden - a... Because the chatter around Web3 and media is picking up steam, I figured this is as good a time...

Member Mailing: If Streaming Growth *Is* Slowing, What Will Advertisers Buy In CTV?

entertainment media/telecom

Member Mailing: If Streaming Growth Is Slowing, What Will Advertisers Buy In CTV?

By Andrew A. Rosen · Jan. 26, 2022 7:28 AM PST

Key TakeawaysThe Connected TV ad marketplace has transformed from a growth story into a story about growing risk for all participantsAVODs and FASTs need higher CPMs from CTV and are betting on them for revenue growthOne implication is ad buyers seem not to currently value CTV inventory at the prices ad sellers offer. Reach is a... Key TakeawaysThe Connected TV ad marketplace has transformed from a growth story into a story...

Monday AM Briefing: Netflix's Hubris, Markets Cool to Warner Bros. Discovery

entertainment media/telecom

Monday AM Briefing: Netflix's Hubris, Markets Cool to Warner Bros. Discovery

By Andrew A. Rosen · Jan. 24, 2022 3:00 AM PST

* I wrote an essay for the Opinion section of The Information last week, "Why YouTube Sees Hollywood’s Future in the Creator Economy". It dove into the symbolism and significance of the departure of YouTube Global Head of Original Content Susanne Daniels, which came six weeks after the release of MrBeast's real-life version of Netflix’s Squid... * I wrote an essay for the Opinion section of The Information last week, "Why YouTube Sees...

Friday Mailing: Disney's Reorg, Netflix's Q4 2021 Marketing Expenses

Friday Mailing: Disney's Reorg, Netflix's Q4 2021 Marketing Expenses

By Andrew A. Rosen · Jan. 21, 2022 10:30 AM PST

Friday Mailing: Disney's Reorg, Netflix's Q4 2021 Marketing Expenses

entertainment e-commerce

Friday Mailing: Disney's Reorg, Netflix's Q4 2021 Marketing Expenses

By Andrew A. Rosen · Jan. 21, 2022 10:30 AM PST

It's been an eventful three days with both an(other) announced Disney reorg and Netflix's Q4 2021 earnings.Disney announced:To support the ongoing expansion of The Walt Disney Company’s direct-to-consumer business around the world and fuel the expanding pipeline of local and regional content for its streaming services, the Company is creating a... It's been an eventful three days with both an(other) announced Disney reorg and Netflix's Q4 2021...

Member Mailing: Does $115B+ in Content Spend Reflect Inelastic Demand? Or Marketing Challenges in Streaming, Instead ?

entertainment e-commerce

Member Mailing: Does $115B+ in Content Spend Reflect Inelastic Demand? Or Marketing Challenges in Streaming, Instead ?

By Andrew A. Rosen · Jan. 19, 2022 7:37 AM PST

Key TakeawaysMarketing is emerging as a pain point in direct-to-consumer models in 2022, and streaming is not immuneNot even Netflix is immune, something we learned from Nielsen's latest The GaugeA big emerging question is how the seemingly inelastic demand for content from streamers reconciles with that pain pointWhat we perceive as inelastic... Key TakeawaysMarketing is emerging as a pain point in direct-to-consumer models in 2022, and...

Monday AM Briefing: Nielsen's The Gauge, Netflix's Price Hike, Raise A Big Question in CTV

entertainment media/telecom

Monday AM Briefing: Nielsen's The Gauge, Netflix's Price Hike, Raise A Big Question in CTV

By Andrew A. Rosen · Jan. 17, 2022 3:30 AM PST

It was an unusual move by Netflix to embrace Nielsen's The Gauge in its Q3 2021 letter to shareholders, though unsurprising given Co-CEO Reed Hastings' public endorsement of The Gauge in Q2 2021. The Gauge suggests a worse story for Netflix in December than it had in May: But, in December, Nielsen "expanded viewing share calculations... It was an unusual move by Netflix to embrace Nielsen's The Gauge in its Q3 2021 letter to...

Friday Mailing: What will IAC Chairman Barry Diller Say About Streaming in 2022?

By Andrew A. Rosen · Jan. 14, 2022 11:00 AM PST

Researching Wednesday's Member Mailing - Chapek's "Three Pillars" for Disney's Future Faces Tough Trade-Offs In Sports Betting - brought me back to the roots of the PARQOR Hypothesis, which were two mailings from August 2020 (NOTE: these are in pre-Information and pre-Substack formatting):An essay on IAC Chairman Barry Diller's snarky... Researching Wednesday's Member Mailing - Chapek's "Three Pillars" for Disney's Future Faces Tough...

Member Mailing: Chapek's "Three Pillars" for Disney's Future Faces Tough Trade-Offs In Sports Betting

Member Mailing: Chapek's "Three Pillars" for Disney's Future Faces Tough Trade-Offs In Sports Betting

By Andrew A. Rosen · Jan. 12, 2022 8:33 AM PST

Member Mailing: Chapek's "Three Pillars" for Disney's Future Faces Tough Trade-Offs In Sports Betting

entertainment e-commerce

Member Mailing: Chapek's "Three Pillars" for Disney's Future Faces Tough Trade-Offs In Sports Betting

By Andrew A. Rosen · Jan. 12, 2022 8:33 AM PST

Key TakeawaysOn Monday, Disney CEO Bob Chapek sent out a memo outlining three pillars for the future of DisneyOne pillar argues for a "relentless focus on our audience", and "We must evolve with our audience, not work against them"Sports betting confronts Disney with a future where neither will 100% own the sports betting consumerThe sports... Key TakeawaysOn Monday, Disney CEO Bob Chapek sent out a memo outlining three pillars for...