Welcome to the blog of Dr. Lisa Burns' Media Studies senior capstone class (3:30 pm section) at Quinnipiac University. If you're looking for the latest on media industry trends and insightful media analysis, you've come to the right place!
Sunday, January 24, 2021
Media Economics Blog 1, Question 1 (due Tuesday, Feb. 2nd)
Which major media conglomerate is best positioned to
succeed and which organization will face the most challenges in 2021? Limit: 9 responses
A media conglomerate who is in a great position to succeed in 2021 is Netflix. Since the pandemic hit, their subscription numbers have continued to rise. With people having to practice safety and social distancing instead of going out and potentially exposing themselves to the virus, it goes without saying that boredom and finding new ways to pass the time have become extremely prevalent. With more spare time being spent in homes and dorm rooms, there have been more people who are willing to give Netflix a chance or to pick up new shows to keep them entertained as the pandemic continues to rage on. The numbers speak for themselves. According to Natalie Jarvey of the Hollywood Reporter, Netflix reached a staggering 204 million subscribers globally. 36 million new subscribers came in throughout 2020. Even after multiple estimates believed they would slow down during the 4th quarter of 2020, they still brought in 8 million new subscribers (Jarvey). Not even all of their new competitors and rivals on the market have been enough to halt their progress. If Netflix was able to so easily surpass the expectations set on them, it’s hard to see them slowing down while the pandemic still has relevance in the world. The fact that they are set to release 71 new films this year along with new potential Netflix exclusives ensures that there will be months’ worth of fresh content to consume. Some people might believe that eventually they’ll slow down since so many Americans will already be subscribed to the service. But I predict that that this won’t be an issue. The pandemic is relevant in other countries as well. In a survey conducted by Netflix and posted on Statista.com, it was found that in the third quarter of 2020, Netflix had 62 million subscribers from Europe, the Middle East, and Africa combined. Latin America had over 36 million subscribers and Asia posted 23.5 million as well (Statista). While the United States and Canada contribute the most subscribers, there is clearly plenty of potential to grow a loyal and large subscriber base outside of America. That is why I believe Netflix could continue to grow and be successful in the media world in 2021.
While they will definitely still find success thanks to their overwhelming presence in the industry, I believe that Disney could encounter some challenges during the first quarter or two of 2021. A similar challenge to last year presents itself. They don’t get to make nearly as much money as they could since movie theaters and theme parks will be relatively slow until vaccines can be widely administrated and the safety levels are where they need to be. The amount of money they spend and make from these 2 specific aspects is astronomical thanks to their parks being such popular tourists destinations and big name movies from the Marvel and Star Wars universes making millions, if not billions of dollars from box office sales. However, the pandemic greatly hinders this. As a result, they either have to release films on their streaming service and likely not make as much money as they would from the box office, or hold off and make no profit whatsoever until the world is safer. Either way, their potential profit is taking a hit. Disney are arguably still in a perfectly fine position thanks to their size plus the success of their streaming service. According to Rani Molla and Peter Kafka of the vox.com, Disney+ has around 87 million subscribers currently (Molla and Kafka). Listed at $6.99 per month, that’s a strong profit that Disney is bringing in. However, it can only make up for their loses from other places so much thanks to the public world being in the state it is. If they are going to invest so much in their projects, they need a big public turnout to truly benefit from it. It becomes increasingly difficult to be as successful as they once were since not everyone is going to buy into streaming services due to lack of interest or not being able to afford the subscription.
Works Cited
Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan, 2021. https://www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic. Accessed 28 Jan. 2021.
Molla, Rani, and Peter Kafka. “Here’s who owns everything in Big Media today.” Vox, 11 Jan, 2021. https://www.vox.com/2018/1/23/16905844/media-landscape-verizon-amazon-comcast-disney-fox-relationships-chart. Accessed 28 Jan. 2021.
Statista. “Number of Netflix paying streaming subscribers worldwide in 3rd quarter 2020, by region.” Statista, Oct. 2020. https://www.statista.com/statistics/483112/netflix-subscribers/. Accessed 28 Jan. 2021.
Today’s world is all about streaming. With the pandemic happening, everyone locked in their houses, with nowhere to go, the only entertainment someone had was their TV. This is why streaming services like Netflix, Amazon Prime, Hulu, or Disney Plus have been used more and more by the world. The time spent on streaming sites have doubled from the 2019. Disney has been present for a long time, with its original movies, Pixar, the Disney Lands and Worlds, and Disney Channel, but it was only in late 2019 that Disney Plus came out. It was a great timing because of the COVID-19 breakout, people started using more and more streaming services. The company’s target was to get 50 million subscribers in 2024, but have already attained this target, and their new target for 2024 is to attain 230 million and 260 million subscribers. Because of how famous Disney is, different companies like Marvel, Pixar and other, they were purchased by Disney and made it even better for Disney+ as it gave the subscribers a big variety of content. It is great for users because you can find family movies, children movies but also action and adventure like Marvel movies. I just got Disney + and it is such a great service it gave me so many different memories of my childhood.
Every streaming services can face challenges for any reason. Right now the biggest reason is the pandemic. Netflix, one of the biggest used streaming services, has been used even more because of the pandemic. People had to entertain themselves in any possible way while staying at home. While Netflix has been the most used stream service and still is, I believe that Netflix could face some challenges in this upcoming year. Netflix has competition and always had it. They have always been ahead of others but now that new or other streaming services are learning to get new ways to attract new users, Netflix could lose their dominance. For example, Disney Plus’ new content with their original movies and classic hits have been attracting lots of new users. Netflix is also raising prices because it “has exhausted its potential market in the US.” What Netflix should also be aware off is that these new streaming services, like Disney Plus or Warner Bros., is that they will act like Netflix, and will eventually be better. Netflix’s content has been slowing down, not putting effort, nor making good content. They should up their game because it will be a rough year for them.
Porter, Rick. “The Numbers Behind Media Giants' All-In Streaming Plays.” The Hollywood Reporter, 12 Dec. 2020
Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan. 2021
I believe a major media conglomerate that’s best positioned to succeed in 2021 will be Netflix. I was initially between Netflix and Disney+, but as seen in the articles, there was an insane growth in Netflix’s subscribers. “Netflix faced more competition than ever before in 2020, but the streamer is showing little sign of flagging, ending the year with an unprecedented nearly 204 million global subscribers (Jarvey).” Despite HBO Max and Peacock taking back their big name shows from Netflix like The Office and Mad Men, they still produce many Netflix original series with a great turnout for streaming. “The streaming service, which has nearly 200 million subscribers worldwide, announced that it plans to release high-profile movies every week in 2021, including both original productions and a handful of exciting acquisitions. It’s an ambitious plan, but one its users can look forward to, considering many of these are major movies you probably would’ve loved to see in the theaters, or highly anticipated films that had been moved or pushed off theatrical release calendar since the start of the pandemic (Bell).” As Netflix offers a “Notify me” feature, I personally like that I can see new content weekly. As binging has become the new norm, after a while without new content you can resort to repetitively watching one specific show/film and/or end up avoiding the streaming service when you hit the “I’ve seen it all” wall. This allows the subscribers to come weekly and check what’s new on. Disney+ has given us the classics, new Disney films like Soul and television shows like The Mandalorian. Disney+ has attracted more than 60 million subscribers in nine months (Matcho). The problem that lies with Disney+ falls as to where everything will be allocated. Unlike Netflix, Disney+ is the steaming service, multiple channels on television like ABC Family, ESPN, FX etc. This raises a concern as to where certain projects will be distributed. “…Daniel’s Media and Entertainment Distribution group will work with the studios to determine their overall budgets and to dictate the content needs of distributors like Disney+ and ABC.
That group will also make the call about whether a project is destined for theatrical, linear TV or streaming distribution (Jarvey).” To make matters worse, General Entertainment chairman Peter Rice and Sports chairman Jimmy Pitaro will be the ones who will have the last say on a project (Jarvey). I find these problematic as projects can be completed and despite the hard work and efforts put into it, two people ultimately hold the future of the project. I can understand in budgeting and properly spending, but to know that a movie or television show with great potential can be thrown on the back burner because someone subjectively doesn’t think it would have potential is risky. I feel as this will cause a stir as it falls into play and can result in Disney+ dropping in numbers if they don’t exceed expectations of their faithful subscribers. A factor that clearly affects the budget spending is how Disney+’s streaming service is just a year old whereas Netflix has been around since the early 2000’s. As noted in the Jarvey article, “Netflix’s advantage is its sizable content budget, which has allowed it to ramp up production significantly compared to its rivals.” Netflix having such a great success can have more freedom with their money versus Disney+. The main problem for Disney+ will definitely be the allocation of their content which can perhaps be their downfall.
Works Cited
Bell, Sadie. “Netflix Is Releasing a Major Movie Every Week in 2021.” Thrillist, www.thrillist.com/entertainment/nation/netflix-releasing-a-movie-a-week-in-2021.
Jarvey, Natalie. “Disney's Streaming Pivot: How Will New Structure Work in Practice?” The Hollywood Reporter, 21 Oct. 2020, www.hollywoodreporter.com/news/disneys-streaming-pivot-how-will-new-structure-work-in-practice.
Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan. 2021, www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic.
Netflix looks to be one of the successful media conglomerates in 2021. The Pandemic turned out to be a blessing in disguise for the streaming platform and many people would use it because of the down time that they now had. “Netflix faced more competition than ever before in 2020, but the streamer is showing little sign of flagging, ending the year with an unprecedented nearly 204 million global subscribers.”(Jarvey) There was a rise in subscriptions due to the Pandemic as well with Netflix adding more than 36 million during the year. “Although Netflix remains the clear streaming leader, investors have started to question just how long its dominance can last.”(Jarvey) Netflix is sitting very comfortable as of now ,but with the increase in different streaming services it is hard to imagine if Netflix can continue this success beyond 2021. Another big reason for their success is “Netflix’s advantage is its sizable content budget, which has allowed it to ramp up production significantly compared to its rivals. The company started the year by informing subscribers that it would release 71 films in 2021, equating to at least one new movie every week.”(Jarvey) With Disney-plus releasing its own original series and HBO Max releasing all their movies on the streaming service as well as theaters, Netflix needs to keep up with them in order to maintain its own success.
Disney as a whole has been hard by the Pandemic. Disney-plus is really the main reason as to why Disney has still had some success during this unprecedented time. “Disney’s revenues fell 23% to $14.7 billion, while the company reported a loss of $710 million instead of the $777 million in profits it recorded in the year-ago period. That translated to a loss of 20 cents per share compared to the $1.07 in earnings per share that the company reported in the same quarter in 2019.”(Lang) Disney lost a lot especially since the country had to shut down at the start of the Pandemic since no one was very familiar with what Covid-19 was capable of doing. They could have their firework shows and their live events which led to a loss in revenue. “Disney estimated that COVID-19 had taken a $3.1 billion bite out of its quarterly revenues and a $7.4 billion chunk out of its annual sales. There were a few bright spots. The company did tout the ongoing success of Disney Plus, its Netflix challenger, saying the streaming service had attracted 73 million paid subscribers since launching last November.”(Lang) It won’t be hard for Disney to get back on its feet once the Pandemic is over ,but the longer it goes on Disney could continue to lose money. If it wasn’t for Disney-plus it is would be interesting to see where they would be at this moment in time. “In response to the challenges, Disney has sought to tighten its belt. It laid off 300 workers from ESPN earlier this week and also has drastically pared down the number of employees at theme parks. It also has sought to centralize more of its delivery to digital, last month rearranging various distribution departments of the company toward that aim, particularly on Disney Plus.”(Zeitchik) Streaming services have really been an aspect that has flourished during the Pandemic and will continue to be until normalcy returns to daily life.
Works Cited Jarvey, Natalie. "Disney’s Streaming Pivot: How Will New Structure Work in Practice?" The Hollywood Reporter 21 Oct. 2020. Lang, Brent. "Disney Quarterly Losses Mount, Even as Company Beats Expectations." Variety 12 Nov. 2020, Zeitchik, Steven. “Disney's Profits Plummet as Coronavirus Keeps Its Core Businesses Flailing.” The Washington Post, WP Company, 13 Nov. 2020, www.washingtonpost.com/business/2020/11/12/disneys-profits-plummet-coronavirus-keeps-its-core-businesses-flailing/.
2020 was easily one of the craziest years ever. Covid-19 hit companies and people in so many different ways, and it put a lot of Media companies in very intriguing positions to kick-off 2021. The way the world is trending, certain media companies will take a massive leap forward this year and make a large amount of money. On the flip side of it, there will be some big-time media companies this year that go under because there is not a need for their product. A media conglomerate that I believe is poised for a massive year is Barstool Sports. In January of 2020, Penn National Gaming bought a 36 percent stake of the company at an almost half a billion-dollar evaluation. Since that time, the Penn gaming stock went from a 4 dollar buy to now being over a $100 buy in the stock market. (Shriber)A big reason why Barstool will be massively successful is due to their sportsbook app becoming live in more states. In May of 2018, the supreme court federal legalized sports betting, and since then, sports betting has become legal in 15 states. And if you look at the revenues in all of those states, sports betting brings a massive profit. So far, the Barstool Sportsbook app is live in two states Pennsylvania and Michigan. Then several Penn Gaming casinos are opening in person Barstool Sportsbook. On top of them being involved with sports betting, they have over 100 podcasts going, several big-time marketing partnerships, and many other things that will enable them to have a massive push in 2021. Media conglomerates that are positioned very poorly coming into 2021 are MGM productions and Lionsgate productions. I know those are two different companies, but they are virtually each in the same boat when it comes to expectations in 2021. With streaming services becoming more potent by the day and will help keep individual movie studios in the business, the ones that had struggled in the past few years before corona and were going to merge anyway potentially will have a hard time staying above water. A piece from a Hollywood reporter article is talking about how some of the smaller movie studios would be rolled up. "While Lionsgate is a frequently discussed takeover candidate, it was not among the companies discussed this year," he noted. "MGM is the one traditional studio most expect to get acquired eventually only if it was finally willing to sell (this was before recent press reports the company is exploring strategic options)." (Szalai 5) If you are a movie studio, who has been struggling, you have to be very nervous about what 2021 will be like, and personally, I see a lot of significant mergers happening this year. You add on top of this the lousy year that AT&T had last year, with them losing 617,000 tv subscribers (Szalai 21) in the fourth quarter alone; you'd expect them to do everything possible to have a big bounce back in 2021. All in all, this will be one of the most exciting years when it comes to media companies and how they make a profit this year. Works Cited: Szalai, Georg. “WarnerMedia, AT&T Report Earnings.” The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/warner-bros-profit-drops-directv-subscriber-update. Szalai, Georg. “Analyst on Logical NBCU-WarnerMedia Merger.” The Hollywood Reporter, 5 Jan. 2021, www.hollywoodreporter.com/news/hollywoods-2021-investor-forecast-outlined-in-analyst-report. Shriber, Todd. “Penn Stock Hits $100 with Big Push from Barstool Sportsbook.” Casino.org, 12 Jan. 2021, www.casino.org/news/penn-stock-hits-100-with-big-push-from-barstool-sportsbook/.
We have been thrown a lot of curveballs in the last year thanks to the big ole pandemic. While there has been a lot of hardships companies have faced, there are also a lot of companies that did very well, as crazy as that is, during this pandemic. A media conglomerate is a company that owns numerous companies such as Comcast, CBS, Viacom, AT&T, etc.…I feel that a major media conglomerate best positioned to succeed in 2021 is Netflix. The pandemic has benefited Netflix because while everyone has been in lockdown in their homes, they need to find some way to pass the time and what’s better than starting a new show? In an article from The Hollywood Reporter, Natalie Jarvey says “lockdowns around the world helped to significantly boost streaming sign-ups across the board, and Netflix benefitted from the industry’s overall boom, adding more than 36 million subscribers during the year”. That’s a lot of subscribers for Netflix and it’s no wonder they have so many now. The coronavirus has completely changed the way we live, the way we connect with the world, and the way we use our media… since movie theaters are closed and there are no restaurants to go to, we look for the entertainment in our streaming services to stay connected (Koeze and Popper). While Netflix has been rising with the pandemic still going on, there are media conglomerates that are facing challenges too. For example, Disney has been facing some issues this year in 2021, since their revenue has fallen 23 percent and have lost $710 million during the pandemic. I think this is because Disney isn’t just an entertainment companies for movies and TV shows, they have their resorts and amusement parks which obviously had to close once COVID hit. As things are now reopening, some parks have slowly opened as well but what’s really bringing in the money for Disney is there fairly new streaming service. In an article in Variety.com it was said that “During the pandemic, subscriptions soared” meaning that a lot of people signed up for their service Disneyplus, with good reasoning. But it also says, “The company said it took a $6.9 billion hit to its parks revenues this year because of the theme park closures and the slowdown in the tourism sector” (Lang). Disney could continue facing issues until this pandemic is over, whenever that will be. But it is good that their streaming service is doing super well, its perfect for families, children and even young adults/teens reminiscing on their childhood. They have the exclusive movies and TV shows you can’t get anywhere else now, in clusing stuff from Pixar, Marvel, Star Wars and National Geographic. The thing is, is that there are so may more branches to Disney and with these resorts, amusement parks and cruises closed… they will continue to lose money.
Works Cited: Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan, 2021. https://www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic. Accessed 28 Jan. 2021.
Lang, Brent. "Disney Quarterly Losses Mount, Even as Company Beats Expectations." Variety 12 Nov. 2020, https://variety.com/2020/film/news/walt-disney-earnings-coronavirus-disney-plus-1234830544/
Koeze, Ella, and Nathaniel Popper. “The Virus Changed the Way We Internet.” The New York Times, The New York Times, 7 Apr. 2020, www.nytimes.com/interactive/2020/04/07/technology/coronavirus-internet-use.html.
While the CoronaVirus pandemic has brought our lives to a slower pace, it’s effect on media consumption has helped speed up a transition from the reliance on traditional media outlets to mostly subscription based, on-demand video type of outlets. Generally big movies will be met with crowds at the box offices. This tradition has been made obsolete due to the pandemic and it’s restrictions in most places. In addition, television shows that appear in specific time slots and rely on ratings to determine their success are less desirable than an on-demand watch when you want type of platform. (Szalai) The beginning of 2020 clearly illustrates the growing reliance on subscription Video on-demand under the circumstance of the pandemic. While the first two months of the year still reflect a varying in audience mass, the month of march shows a huge increase in audience mass by no less than 30% for companies such as Netflix, Amazon Prime Video, Hulu, Disney+, and HBO. Apple Tv is the only SVoD outlet that saw a decrease in march. On average, all SVoD services saw an average audience increase of just above 40%.(Statista) We can conclude from this that the pandemic moved many people onto SVoD outlets. The pandemic did not really take its hold on our society in January and February, but March saw the crisis restrict our lives. Many universities and colleges shut down and did not bring students back from spring break, as well as schools being shut down at the highschool and elementary levels. Jobs were shut down due to restrictions and precautions, forcing people to be inside, confined to what they have to entertain themselves. This is when SVoD outlets were able to capitalize on a growing number of people looking for content to stream while forced inside their homes. Given the length of the pandemic and how long many people have been staying home and theatres being closed, it makes sense that most people have now gotten familiar with some sort of SVoD service. While box offices will return, the ever so convenient click of a button to watch what you want is now something that is embedded in our culture, and many people can't live without. HBO in particular saw the biggest growth in its subscribers in comparison to its competitors. One key element helped drive their total number of subscribers over 41 Million: the release of Wonder Women 1984. Its strategic release on the platform gave it’s viewers a massive new release to marvel over and get excited to be able to watch in their homes. While it was played in theatres when some opened in places around the country, the movie was a key driver in the subscribers for HBO going up. (Szalai and Jarvey) This is a great example that shows how SVoD has taken the public to a way more convenient and personal experience of massive movie releases that would normally be huge hits in the box office. The effects of the pandemic have helped speed up a transition from our traditional movie theatres and cable boxes, to personalized streaming services that give us what we want, when we want.
“Coronavirus: Impact on Media Consumption in the U.S.” Statista, 2020, www-statista-com.libraryproxy.quinnipiac.edu/study/71596/coronavirus-impact-on-us-media-consumption/. Szalai, Georg. “Analyst on Logical NBCU-WarnerMedia Merger.” The Hollywood Reporter, 5 Jan. 2021, www.hollywoodreporter.com/news/hollywoods-2021-investor-forecast-outlined-in-analyst-report. Szalai, Georg, and Natalie Jarvey. “HBO Max Subscriber Update: AT&T.” The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/hbo-max-subscriber-update. “Coronavirus: Impact on Media Consumption in the U.S.” Statista, 2020, www-statista-com.libraryproxy.quinnipiac.edu/study/71596/coronavirus-impact-on-us-media-consumption/.
As we enter the new year, media companies are working harder than ever to find new, innovative ways to reach their audiences better than ever before. Although the novel coronavirus pandemic has halted production activity and delayed releases for new media, distributors, content creators and Internet video companies are joining forces to solidify their position in the highly competitive atmosphere that has become the media landscape. While every major media conglomerate will inevitably face challenges in 2021, a few companies have undoubtedly benefitted from the pause COVID-19 has placed onto their consumers. After reviewing all of the articles and latest reports from major companies, it appears that AT&T/WarnerMedia may be best positioned for success in the near future. The conglomerate’s recent venture of launching a new streaming service, HBOMax, has exceeded all expectations put forth by investors, creators and consumers. According to an Hollywood Reporter titled “HBO Max Reaches 37.7M, Including 17.2M ‘Activated,’ Subscribers,” “Combined, HBO and HBO Max had 41.5 million U.S. subscribers as of the end of 2020, compared with 38.0 million as of the end of September” (Szalai et al.). Due to the release of Wonder Woman 1984 on the streaming service in December of 2020, HBOMax quickly gained traction “a full two years faster than [the] initial forecast,” according to John Stankey, the CEO of AT&T (Szalai). It is about time that AT&T/WarnerMedia properly enters the world of streaming, after some confusion regarding their initial streaming services like HBO Go and HBO Now. After seeing an exponential amount of achievement within the first year of its launch, HBOMax will only be one of the contributions to AT&T/Warner Media’s success. Another Hollywood Reporter article titled “Hollywood's 2021 Investor Forecast Outlined in Analyst Report” discusses the possibility of a merger between Comcast’s NBCUniversal with AT&T/Warner Media. In the article, MoffettNathanson analyst Michael Nathanson suggested that the potential merger would advance AT&T/Warner Media in the competition: “’Our thoughts about the logical combination of NBCUniversal and WarnerMedia to give the combined companies the needed scale to compete with Disney and Netflix were reinforced by other conversations across town’" (Szalai). While it is apparent that media companies like Netflix are currently dominating the streaming industry, it appears that AT&T/Warner Media will continue to establish its position from multiple angles. By its newfound success with HBO Max, the potential merger with another powerful conglomerate, and its bold plans to shift entirely to streaming, it would be unlikely that WarnerMedia will be falling behind in the race anytime soon. Although they may not be able to top Netflix just yet, I believe that their success will be recognized and applauded in the near future.
On the other hand, not every media conglomerate will be able to survive the adverse effects of COVID-19. Although Disney/21st Century Fox’s Disney+ had some exciting success when it first launched in November of 2020 with over 15 million subscribers in its first two weeks, there is little evidence to suggest that their prosperity will increase significantly in 2021. While many consumers first raved about the ability to watch old childhood films on demand, it is not likely that their nostalgic appeal will be enough to dominate the media industry in the near future. In a Vulture article titled “Let’s Evaluate Disney+’s First Year,” a LightShed Partners analyst named Rich Greenfield discussed this exact theory: “’Disney will need to give consumers reasons not to churn far more often, and we simply do not believe 8- to 9-month-old movies that have been in theaters and home video will be enough of a catalyst’” (Adalian). From a cultural and social standpoint, it does not appear that Disney has any future plans that can top their move with Disney+, hinting that the major media conglomerate may slowly fall behind this year. From an economic standpoint, “Disney’s revenues fell 23% to $14.7 billion, while the company reported a loss of $710 million instead of the $777 million in profits it recorded in the year-ago period,” according to a Variety article (Lang). Both of these factors seem to suggest that Disney will not be the conglomerate dominating the media industry in the coming months.
Lang, Brent. “Disney Quarterly Losses Mount, Even as Company Beats Expectations.” Variety, Variety, 13 Nov. 2020, variety.com/2020/film/news/walt-disney-earnings-coronavirus-disney-plus-1234830544/.
Szalai, Georg, and Natalie Jarvey. “HBO Max Subscriber Update: AT&T.” The Hollywood Reporter, The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/hbo-max-subscriber-update.
Szalai, Georg. “Analyst on Logical NBCU-WarnerMedia Merger.” The Hollywood Reporter, The Hollywood Reporter, 5 Jan. 2021, www.hollywoodreporter.com/news/hollywoods-2021-investor-forecast-outlined-in-analyst-report.
The COVID-19 pandemic put a freeze on many industries and they still haven’t recovered. However, the initial stay at home orders and the lifestyle change following them put media conglomerates in a unique position. They were already doing well with new streaming services launching beforehand like Disney Plus, but now people were staying at home and turning even more to services like Netflix to fill their days. In my opinion and based off the research, Netflix is the media conglomerate best positioned to succeed in 2021. Netflix is considered the pioneer streaming service and has a long history of blurring the line between content creation and distribution. Even though it faced more competition than ever in 2020 with other streaming services like Hulu, Amazon Prime, and the addition of HBO Max in the Spring, Netflix still added 8.51 million subscribers during the fourth quarter of 2020 (Jarvey). Netflix pushed through a slew of hit TV shows in the fourth quarters such as The Crown’s new season, Bridgerton, and The Queen’s Gambit (Jarvey). Netflix is known for its original programming and sinks a lot of money into it. It’s going to push 71 new films in 2021 and expects to become cashflow positive (Jarvey). Although I’ve heard from some users that they personally get frustrated with the amount of original content Netflix hosts, I think it still puts them in the best position to gain new subscribers than any other streaming platform, maybe besides Disney Plus because of their exclusive and highly curated content that appeals to families.
Although I believe Netflix is well-positioned, another notable addition to the streaming world this year was HBO Max which launched in May right in the thick of the pandemic. It faced a lot of roadblocks in terms of branding which I, as an activated user can attest to. The Hollywood Reporter mentions some of these issues such as HBO’s other services, HBO Go and HBO Now, being trusted platforms that led to customer confusion. As well as the fact that the service is not connected to two of the biggest TV platforms, Roku and Amazon Fire (Szalai and Jarvey). The fact that they had a confusing product that wasn’t widely available to some people outside of their laptops led to a slow start. I think what might push HBO Max to be a contender with Netflix in 2021 is the news of Warner Bros. releasing their entire 2021 slate on the platform (Guerrasio). With a new Matrix installment, the latest in the Conjuring films, the addition of Suicide Squad, and a new Clint Eastwood film the releases are intriguing and the release program might push the platform to a better position. The films will be available on the platform for a month before being shown exclusively in theaters (Guerrrasio).
Works Cited Guerrasio, Jason. “All 17 Warner Bros. Movies Expected to Premiere on HBO Max in 2021.” Insider, Insider, 2 Feb. 2021, www.insider.com/warner-bros-movies-premiere-hbo-max-2021. Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan. 2021, www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic. Szalai, Georg, and Natalie Jarvey. “HBO Max Subscriber Update: AT&T.” The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/hbo-max-subscriber-update.
Austin Pappolla (1/2)
ReplyDeleteA media conglomerate who is in a great position to succeed in 2021 is Netflix. Since the pandemic hit, their subscription numbers have continued to rise. With people having to practice safety and social distancing instead of going out and potentially exposing themselves to the virus, it goes without saying that boredom and finding new ways to pass the time have become extremely prevalent. With more spare time being spent in homes and dorm rooms, there have been more people who are willing to give Netflix a chance or to pick up new shows to keep them entertained as the pandemic continues to rage on. The numbers speak for themselves. According to Natalie Jarvey of the Hollywood Reporter, Netflix reached a staggering 204 million subscribers globally. 36 million new subscribers came in throughout 2020. Even after multiple estimates believed they would slow down during the 4th quarter of 2020, they still brought in 8 million new subscribers (Jarvey). Not even all of their new competitors and rivals on the market have been enough to halt their progress. If Netflix was able to so easily surpass the expectations set on them, it’s hard to see them slowing down while the pandemic still has relevance in the world. The fact that they are set to release 71 new films this year along with new potential Netflix exclusives ensures that there will be months’ worth of fresh content to consume. Some people might believe that eventually they’ll slow down since so many Americans will already be subscribed to the service. But I predict that that this won’t be an issue. The pandemic is relevant in other countries as well. In a survey conducted by Netflix and posted on Statista.com, it was found that in the third quarter of 2020, Netflix had 62 million subscribers from Europe, the Middle East, and Africa combined. Latin America had over 36 million subscribers and Asia posted 23.5 million as well (Statista). While the United States and Canada contribute the most subscribers, there is clearly plenty of potential to grow a loyal and large subscriber base outside of America. That is why I believe Netflix could continue to grow and be successful in the media world in 2021.
AUSTIN PAPPOLLA (2/2)
ReplyDeleteWhile they will definitely still find success thanks to their overwhelming presence in the industry, I believe that Disney could encounter some challenges during the first quarter or two of 2021. A similar challenge to last year presents itself. They don’t get to make nearly as much money as they could since movie theaters and theme parks will be relatively slow until vaccines can be widely administrated and the safety levels are where they need to be. The amount of money they spend and make from these 2 specific aspects is astronomical thanks to their parks being such popular tourists destinations and big name movies from the Marvel and Star Wars universes making millions, if not billions of dollars from box office sales. However, the pandemic greatly hinders this. As a result, they either have to release films on their streaming service and likely not make as much money as they would from the box office, or hold off and make no profit whatsoever until the world is safer. Either way, their potential profit is taking a hit. Disney are arguably still in a perfectly fine position thanks to their size plus the success of their streaming service. According to Rani Molla and Peter Kafka of the vox.com, Disney+ has around 87 million subscribers currently (Molla and Kafka). Listed at $6.99 per month, that’s a strong profit that Disney is bringing in. However, it can only make up for their loses from other places so much thanks to the public world being in the state it is. If they are going to invest so much in their projects, they need a big public turnout to truly benefit from it. It becomes increasingly difficult to be as successful as they once were since not everyone is going to buy into streaming services due to lack of interest or not being able to afford the subscription.
Works Cited
Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan, 2021. https://www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic. Accessed 28 Jan. 2021.
Molla, Rani, and Peter Kafka. “Here’s who owns everything in Big Media today.” Vox, 11 Jan, 2021. https://www.vox.com/2018/1/23/16905844/media-landscape-verizon-amazon-comcast-disney-fox-relationships-chart. Accessed 28 Jan. 2021.
Statista. “Number of Netflix paying streaming subscribers worldwide in 3rd quarter 2020, by region.” Statista, Oct. 2020. https://www.statista.com/statistics/483112/netflix-subscribers/. Accessed 28 Jan. 2021.
Today’s world is all about streaming. With the pandemic happening, everyone locked in their houses, with nowhere to go, the only entertainment someone had was their TV. This is why streaming services like Netflix, Amazon Prime, Hulu, or Disney Plus have been used more and more by the world. The time spent on streaming sites have doubled from the 2019.
ReplyDeleteDisney has been present for a long time, with its original movies, Pixar, the Disney Lands and Worlds, and Disney Channel, but it was only in late 2019 that Disney Plus came out. It was a great timing because of the COVID-19 breakout, people started using more and more streaming services. The company’s target was to get 50 million subscribers in 2024, but have already attained this target, and their new target for 2024 is to attain 230 million and 260 million subscribers. Because of how famous Disney is, different companies like Marvel, Pixar and other, they were purchased by Disney and made it even better for Disney+ as it gave the subscribers a big variety of content. It is great for users because you can find family movies, children movies but also action and adventure like Marvel movies. I just got Disney + and it is such a great service it gave me so many different memories of my childhood.
(this comment is by Zeinab Dore)
DeleteEvery streaming services can face challenges for any reason. Right now the biggest reason is the pandemic. Netflix, one of the biggest used streaming services, has been used even more because of the pandemic. People had to entertain themselves in any possible way while staying at home. While Netflix has been the most used stream service and still is, I believe that Netflix could face some challenges in this upcoming year. Netflix has competition and always had it. They have always been ahead of others but now that new or other streaming services are learning to get new ways to attract new users, Netflix could lose their dominance. For example, Disney Plus’ new content with their original movies and classic hits have been attracting lots of new users. Netflix is also raising prices because it “has exhausted its potential market in the US.” What Netflix should also be aware off is that these new streaming services, like Disney Plus or Warner Bros., is that they will act like Netflix, and will eventually be better. Netflix’s content has been slowing down, not putting effort, nor making good content. They should up their game because it will be a rough year for them.
ReplyDeletePorter, Rick. “The Numbers Behind Media Giants' All-In Streaming Plays.” The Hollywood Reporter, 12 Dec. 2020
Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan. 2021
Lachapelle, Tara. “2021’s Must-See Drama: Netflix Under Siege.” Bloomberg.com, Bloomberg, 14 Dec. 2020
(Zeinab Dore)
Katt Lekko
ReplyDeleteI believe a major media conglomerate that’s best positioned to succeed in 2021 will be Netflix. I was initially between Netflix and Disney+, but as seen in the articles, there was an insane growth in Netflix’s subscribers. “Netflix faced more competition than ever before in 2020, but the streamer is showing little sign of flagging, ending the year with an unprecedented nearly 204 million global subscribers (Jarvey).” Despite HBO Max and Peacock taking back their big name shows from Netflix like The Office and Mad Men, they still produce many Netflix original series with a great turnout for streaming. “The streaming service, which has nearly 200 million subscribers worldwide, announced that it plans to release high-profile movies every week in 2021, including both original productions and a handful of exciting acquisitions. It’s an ambitious plan, but one its users can look forward to, considering many of these are major movies you probably would’ve loved to see in the theaters, or highly anticipated films that had been moved or pushed off theatrical release calendar since the start of the pandemic (Bell).” As Netflix offers a “Notify me” feature, I personally like that I can see new content weekly. As binging has become the new norm, after a while without new content you can resort to repetitively watching one specific show/film and/or end up avoiding the streaming service when you hit the “I’ve seen it all” wall. This allows the subscribers to come weekly and check what’s new on.
Disney+ has given us the classics, new Disney films like Soul and television shows like The Mandalorian. Disney+ has attracted more than 60 million subscribers in nine months (Matcho). The problem that lies with Disney+ falls as to where everything will be allocated. Unlike Netflix, Disney+ is the steaming service, multiple channels on television like ABC Family, ESPN, FX etc. This raises a concern as to where certain projects will be distributed. “…Daniel’s Media and Entertainment Distribution group will work with the studios to determine their overall budgets and to dictate the content needs of distributors like Disney+ and ABC.
That group will also make the call about whether a project is destined for theatrical, linear TV or streaming distribution (Jarvey).” To make matters worse, General Entertainment chairman Peter Rice and Sports chairman Jimmy Pitaro will be the ones who will have the last say on a project (Jarvey). I find these problematic as projects can be completed and despite the hard work and efforts put into it, two people ultimately hold the future of the project. I can understand in budgeting and properly spending, but to know that a movie or television show with great potential can be thrown on the back burner because someone subjectively doesn’t think it would have potential is risky. I feel as this will cause a stir as it falls into play and can result in Disney+ dropping in numbers if they don’t exceed expectations of their faithful subscribers. A factor that clearly affects the budget spending is how Disney+’s streaming service is just a year old whereas Netflix has been around since the early 2000’s. As noted in the Jarvey article, “Netflix’s advantage is its sizable content budget, which has allowed it to ramp up production significantly compared to its rivals.” Netflix having such a great success can have more freedom with their money versus Disney+. The main problem for Disney+ will definitely be the allocation of their content which can perhaps be their downfall.
ReplyDeleteWorks Cited
Bell, Sadie. “Netflix Is Releasing a Major Movie Every Week in 2021.” Thrillist, www.thrillist.com/entertainment/nation/netflix-releasing-a-movie-a-week-in-2021.
Jarvey, Natalie. “Disney's Streaming Pivot: How Will New Structure Work in Practice?” The Hollywood Reporter, 21 Oct. 2020, www.hollywoodreporter.com/news/disneys-streaming-pivot-how-will-new-structure-work-in-practice.
Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan. 2021, www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic.
Kenneth Gruenfelder
ReplyDeleteNetflix looks to be one of the successful media conglomerates in 2021. The Pandemic turned out to be a blessing in disguise for the streaming platform and many people would use it because of the down time that they now had. “Netflix faced more competition than ever before in 2020, but the streamer is showing little sign of flagging, ending the year with an unprecedented nearly 204 million global subscribers.”(Jarvey) There was a rise in subscriptions due to the Pandemic as well with Netflix adding more than 36 million during the year. “Although Netflix remains the clear streaming leader, investors have started to question just how long its dominance can last.”(Jarvey) Netflix is sitting very comfortable as of now ,but with the increase in different streaming services it is hard to imagine if Netflix can continue this success beyond 2021. Another big reason for their success is “Netflix’s advantage is its sizable content budget, which has allowed it to ramp up production significantly compared to its rivals. The company started the year by informing subscribers that it would release 71 films in 2021, equating to at least one new movie every week.”(Jarvey) With Disney-plus releasing its own original series and HBO Max releasing all their movies on the streaming service as well as theaters, Netflix needs to keep up with them in order to maintain its own success.
Disney as a whole has been hard by the Pandemic. Disney-plus is really the main reason as to why Disney has still had some success during this unprecedented time. “Disney’s revenues fell 23% to $14.7 billion, while the company reported a loss of $710 million instead of the $777 million in profits it recorded in the year-ago period. That translated to a loss of 20 cents per share compared to the $1.07 in earnings per share that the company reported in the same quarter in 2019.”(Lang) Disney lost a lot especially since the country had to shut down at the start of the Pandemic since no one was very familiar with what Covid-19 was capable of doing. They could have their firework shows and their live events which led to a loss in revenue. “Disney estimated that COVID-19 had taken a $3.1 billion bite out of its quarterly revenues and a $7.4 billion chunk out of its annual sales. There were a few bright spots. The company did tout the ongoing success of Disney Plus, its Netflix challenger, saying the streaming service had attracted 73 million paid subscribers since launching last November.”(Lang) It won’t be hard for Disney to get back on its feet once the Pandemic is over ,but the longer it goes on Disney could continue to lose money. If it wasn’t for Disney-plus it is would be interesting to see where they would be at this moment in time. “In response to the challenges, Disney has sought to tighten its belt. It laid off 300 workers from ESPN earlier this week and also has drastically pared down the number of employees at theme parks. It also has sought to centralize more of its delivery to digital, last month rearranging various distribution departments of the company toward that aim, particularly on Disney Plus.”(Zeitchik) Streaming services have really been an aspect that has flourished during the Pandemic and will continue to be until normalcy returns to daily life.
DeleteWorks Cited
Jarvey, Natalie. "Disney’s Streaming Pivot: How Will New Structure Work in Practice?" The Hollywood Reporter 21 Oct. 2020.
Lang, Brent. "Disney Quarterly Losses Mount, Even as Company Beats Expectations." Variety 12 Nov. 2020,
Zeitchik, Steven. “Disney's Profits Plummet as Coronavirus Keeps Its Core Businesses Flailing.” The Washington Post, WP Company, 13 Nov. 2020, www.washingtonpost.com/business/2020/11/12/disneys-profits-plummet-coronavirus-keeps-its-core-businesses-flailing/.
Kenneth Gruenfelder ^
Delete2020 was easily one of the craziest years ever. Covid-19 hit companies and people in so many different ways, and it put a lot of Media companies in very intriguing positions to kick-off 2021. The way the world is trending, certain media companies will take a massive leap forward this year and make a large amount of money. On the flip side of it, there will be some big-time media companies this year that go under because there is not a need for their product. A media conglomerate that I believe is poised for a massive year is Barstool Sports. In January of 2020, Penn National Gaming bought a 36 percent stake of the company at an almost half a billion-dollar evaluation. Since that time, the Penn gaming stock went from a 4 dollar buy to now being over a $100 buy in the stock market. (Shriber)A big reason why Barstool will be massively successful is due to their sportsbook app becoming live in more states. In May of 2018, the supreme court federal legalized sports betting, and since then, sports betting has become legal in 15 states. And if you look at the revenues in all of those states, sports betting brings a massive profit. So far, the Barstool Sportsbook app is live in two states Pennsylvania and Michigan. Then several Penn Gaming casinos are opening in person Barstool Sportsbook. On top of them being involved with sports betting, they have over 100 podcasts going, several big-time marketing partnerships, and many other things that will enable them to have a massive push in 2021. Media conglomerates that are positioned very poorly coming into 2021 are MGM productions and Lionsgate productions. I know those are two different companies, but they are virtually each in the same boat when it comes to expectations in 2021. With streaming services becoming more potent by the day and will help keep individual movie studios in the business, the ones that had struggled in the past few years before corona and were going to merge anyway potentially will have a hard time staying above water. A piece from a Hollywood reporter article is talking about how some of the smaller movie studios would be rolled up. "While Lionsgate is a frequently discussed takeover candidate, it was not among the companies discussed this year," he noted. "MGM is the one traditional studio most expect to get acquired eventually only if it was finally willing to sell (this was before recent press reports the company is exploring strategic options)." (Szalai 5) If you are a movie studio, who has been struggling, you have to be very nervous about what 2021 will be like, and personally, I see a lot of significant mergers happening this year. You add on top of this the lousy year that AT&T had last year, with them losing 617,000 tv subscribers (Szalai 21) in the fourth quarter alone; you'd expect them to do everything possible to have a big bounce back in 2021. All in all, this will be one of the most exciting years when it comes to media companies and how they make a profit this year.
ReplyDeleteWorks Cited:
Szalai, Georg. “WarnerMedia, AT&T Report Earnings.” The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/warner-bros-profit-drops-directv-subscriber-update.
Szalai, Georg. “Analyst on Logical NBCU-WarnerMedia Merger.” The Hollywood Reporter, 5 Jan. 2021, www.hollywoodreporter.com/news/hollywoods-2021-investor-forecast-outlined-in-analyst-report.
Shriber, Todd. “Penn Stock Hits $100 with Big Push from Barstool Sportsbook.” Casino.org, 12 Jan. 2021, www.casino.org/news/penn-stock-hits-100-with-big-push-from-barstool-sportsbook/.
Doug Cahn
DeleteWe have been thrown a lot of curveballs in the last year thanks to the big ole pandemic. While there has been a lot of hardships companies have faced, there are also a lot of companies that did very well, as crazy as that is, during this pandemic. A media conglomerate is a company that owns numerous companies such as Comcast, CBS, Viacom, AT&T, etc.…I feel that a major media conglomerate best positioned to succeed in 2021 is Netflix. The pandemic has benefited Netflix because while everyone has been in lockdown in their homes, they need to find some way to pass the time and what’s better than starting a new show? In an article from The Hollywood Reporter, Natalie Jarvey says “lockdowns around the world helped to significantly boost streaming sign-ups across the board, and Netflix benefitted from the industry’s overall boom, adding more than 36 million subscribers during the year”. That’s a lot of subscribers for Netflix and it’s no wonder they have so many now. The coronavirus has completely changed the way we live, the way we connect with the world, and the way we use our media… since movie theaters are closed and there are no restaurants to go to, we look for the entertainment in our streaming services to stay connected (Koeze and Popper).
ReplyDeleteWhile Netflix has been rising with the pandemic still going on, there are media conglomerates that are facing challenges too. For example, Disney has been facing some issues this year in 2021, since their revenue has fallen 23 percent and have lost $710 million during the pandemic. I think this is because Disney isn’t just an entertainment companies for movies and TV shows, they have their resorts and amusement parks which obviously had to close once COVID hit. As things are now reopening, some parks have slowly opened as well but what’s really bringing in the money for Disney is there fairly new streaming service. In an article in Variety.com it was said that “During the pandemic, subscriptions soared” meaning that a lot of people signed up for their service Disneyplus, with good reasoning. But it also says, “The company said it took a $6.9 billion hit to its parks revenues this year because of the theme park closures and the slowdown in the tourism sector” (Lang). Disney could continue facing issues until this pandemic is over, whenever that will be. But it is good that their streaming service is doing super well, its perfect for families, children and even young adults/teens reminiscing on their childhood. They have the exclusive movies and TV shows you can’t get anywhere else now, in clusing stuff from Pixar, Marvel, Star Wars and National Geographic. The thing is, is that there are so may more branches to Disney and with these resorts, amusement parks and cruises closed… they will continue to lose money.
Works Cited:
Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan, 2021. https://www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic. Accessed 28 Jan. 2021.
Lang, Brent. "Disney Quarterly Losses Mount, Even as Company Beats Expectations." Variety 12 Nov. 2020,
https://variety.com/2020/film/news/walt-disney-earnings-coronavirus-disney-plus-1234830544/
Koeze, Ella, and Nathaniel Popper. “The Virus Changed the Way We Internet.” The New York Times, The New York Times, 7 Apr. 2020, www.nytimes.com/interactive/2020/04/07/technology/coronavirus-internet-use.html.
Reese Mentiply
ReplyDeleteWhile the CoronaVirus pandemic has brought our lives to a slower pace, it’s effect on media consumption has helped speed up a transition from the reliance on traditional media outlets to mostly subscription based, on-demand video type of outlets. Generally big movies will be met with crowds at the box offices. This tradition has been made obsolete due to the pandemic and it’s restrictions in most places. In addition, television shows that appear in specific time slots and rely on ratings to determine their success are less desirable than an on-demand watch when you want type of platform. (Szalai) The beginning of 2020 clearly illustrates the growing reliance on subscription Video on-demand under the circumstance of the pandemic. While the first two months of the year still reflect a varying in audience mass, the month of march shows a huge increase in audience mass by no less than 30% for companies such as Netflix, Amazon Prime Video, Hulu, Disney+, and HBO. Apple Tv is the only SVoD outlet that saw a decrease in march. On average, all SVoD services saw an average audience increase of just above 40%.(Statista) We can conclude from this that the pandemic moved many people onto SVoD outlets. The pandemic did not really take its hold on our society in January and February, but March saw the crisis restrict our lives. Many universities and colleges shut down and did not bring students back from spring break, as well as schools being shut down at the highschool and elementary levels. Jobs were shut down due to restrictions and precautions, forcing people to be inside, confined to what they have to entertain themselves. This is when SVoD outlets were able to capitalize on a growing number of people looking for content to stream while forced inside their homes. Given the length of the pandemic and how long many people have been staying home and theatres being closed, it makes sense that most people have now gotten familiar with some sort of SVoD service. While box offices will return, the ever so convenient click of a button to watch what you want is now something that is embedded in our culture, and many people can't live without. HBO in particular saw the biggest growth in its subscribers in comparison to its competitors. One key element helped drive their total number of subscribers over 41 Million: the release of Wonder Women 1984. Its strategic release on the platform gave it’s viewers a massive new release to marvel over and get excited to be able to watch in their homes. While it was played in theatres when some opened in places around the country, the movie was a key driver in the subscribers for HBO going up. (Szalai and Jarvey) This is a great example that shows how SVoD has taken the public to a way more convenient and personal experience of massive movie releases that would normally be huge hits in the box office. The effects of the pandemic have helped speed up a transition from our traditional movie theatres and cable boxes, to personalized streaming services that give us what we want, when we want.
“Coronavirus: Impact on Media Consumption in the U.S.” Statista, 2020, www-statista-com.libraryproxy.quinnipiac.edu/study/71596/coronavirus-impact-on-us-media-consumption/.
DeleteSzalai, Georg. “Analyst on Logical NBCU-WarnerMedia Merger.” The Hollywood Reporter, 5 Jan. 2021, www.hollywoodreporter.com/news/hollywoods-2021-investor-forecast-outlined-in-analyst-report.
Szalai, Georg, and Natalie Jarvey. “HBO Max Subscriber Update: AT&T.” The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/hbo-max-subscriber-update.
“Coronavirus: Impact on Media Consumption in the U.S.” Statista, 2020, www-statista-com.libraryproxy.quinnipiac.edu/study/71596/coronavirus-impact-on-us-media-consumption/.
Summer Perratti (Part 1)
ReplyDeleteAs we enter the new year, media companies are working harder than ever to find new, innovative ways to reach their audiences better than ever before. Although the novel coronavirus pandemic has halted production activity and delayed releases for new media, distributors, content creators and Internet video companies are joining forces to solidify their position in the highly competitive atmosphere that has become the media landscape. While every major media conglomerate will inevitably face challenges in 2021, a few companies have undoubtedly benefitted from the pause COVID-19 has placed onto their consumers. After reviewing all of the articles and latest reports from major companies, it appears that AT&T/WarnerMedia may be best positioned for success in the near future. The conglomerate’s recent venture of launching a new streaming service, HBOMax, has exceeded all expectations put forth by investors, creators and consumers. According to an Hollywood Reporter titled “HBO Max Reaches 37.7M, Including 17.2M ‘Activated,’ Subscribers,” “Combined, HBO and HBO Max had 41.5 million U.S. subscribers as of the end of 2020, compared with 38.0 million as of the end of September” (Szalai et al.). Due to the release of Wonder Woman 1984 on the streaming service in December of 2020, HBOMax quickly gained traction “a full two years faster than [the] initial forecast,” according to John Stankey, the CEO of AT&T (Szalai). It is about time that AT&T/WarnerMedia properly enters the world of streaming, after some confusion regarding their initial streaming services like HBO Go and HBO Now. After seeing an exponential amount of achievement within the first year of its launch, HBOMax will only be one of the contributions to AT&T/Warner Media’s success. Another Hollywood Reporter article titled “Hollywood's 2021 Investor Forecast Outlined in Analyst Report” discusses the possibility of a merger between Comcast’s NBCUniversal with AT&T/Warner Media. In the article, MoffettNathanson analyst Michael Nathanson suggested that the potential merger would advance AT&T/Warner Media in the competition: “’Our thoughts about the logical combination of NBCUniversal and WarnerMedia to give the combined companies the needed scale to compete with Disney and Netflix were reinforced by other conversations across town’" (Szalai). While it is apparent that media companies like Netflix are currently dominating the streaming industry, it appears that AT&T/Warner Media will continue to establish its position from multiple angles. By its newfound success with HBO Max, the potential merger with another powerful conglomerate, and its bold plans to shift entirely to streaming, it would be unlikely that WarnerMedia will be falling behind in the race anytime soon. Although they may not be able to top Netflix just yet, I believe that their success will be recognized and applauded in the near future.
Summer Perratti (Part 2)
DeleteOn the other hand, not every media conglomerate will be able to survive the adverse effects of COVID-19. Although Disney/21st Century Fox’s Disney+ had some exciting success when it first launched in November of 2020 with over 15 million subscribers in its first two weeks, there is little evidence to suggest that their prosperity will increase significantly in 2021. While many consumers first raved about the ability to watch old childhood films on demand, it is not likely that their nostalgic appeal will be enough to dominate the media industry in the near future. In a Vulture article titled “Let’s Evaluate Disney+’s First Year,” a LightShed Partners analyst named Rich Greenfield discussed this exact theory: “’Disney will need to give consumers reasons not to churn far more often, and we simply do not believe 8- to 9-month-old movies that have been in theaters and home video will be enough of a catalyst’” (Adalian). From a cultural and social standpoint, it does not appear that Disney has any future plans that can top their move with Disney+, hinting that the major media conglomerate may slowly fall behind this year. From an economic standpoint, “Disney’s revenues fell 23% to $14.7 billion, while the company reported a loss of $710 million instead of the $777 million in profits it recorded in the year-ago period,” according to a Variety article (Lang). Both of these factors seem to suggest that Disney will not be the conglomerate dominating the media industry in the coming months.
Summer Perratti (Part 3)
DeleteWorks Cited
Adalian, Josef. “Let's Evaluate Disney+'s First Year.” Vulture, Vulture, 29 Oct. 2020, www.vulture.com/2020/10/disney-plus-one-year-report-card.html.
Lang, Brent. “Disney Quarterly Losses Mount, Even as Company Beats Expectations.” Variety, Variety, 13 Nov. 2020, variety.com/2020/film/news/walt-disney-earnings-coronavirus-disney-plus-1234830544/.
Szalai, Georg, and Natalie Jarvey. “HBO Max Subscriber Update: AT&T.” The Hollywood Reporter, The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/hbo-max-subscriber-update.
Szalai, Georg. “Analyst on Logical NBCU-WarnerMedia Merger.” The Hollywood Reporter, The Hollywood Reporter, 5 Jan. 2021, www.hollywoodreporter.com/news/hollywoods-2021-investor-forecast-outlined-in-analyst-report.
Rachel Sapienza
ReplyDeleteThe COVID-19 pandemic put a freeze on many industries and they still haven’t recovered. However, the initial stay at home orders and the lifestyle change following them put media conglomerates in a unique position. They were already doing well with new streaming services launching beforehand like Disney Plus, but now people were staying at home and turning even more to services like Netflix to fill their days. In my opinion and based off the research, Netflix is the media conglomerate best positioned to succeed in 2021. Netflix is considered the pioneer streaming service and has a long history of blurring the line between content creation and distribution. Even though it faced more competition than ever in 2020 with other streaming services like Hulu, Amazon Prime, and the addition of HBO Max in the Spring, Netflix still added 8.51 million subscribers during the fourth quarter of 2020 (Jarvey). Netflix pushed through a slew of hit TV shows in the fourth quarters such as The Crown’s new season, Bridgerton, and The Queen’s Gambit (Jarvey). Netflix is known for its original programming and sinks a lot of money into it. It’s going to push 71 new films in 2021 and expects to become cashflow positive (Jarvey). Although I’ve heard from some users that they personally get frustrated with the amount of original content Netflix hosts, I think it still puts them in the best position to gain new subscribers than any other streaming platform, maybe besides Disney Plus because of their exclusive and highly curated content that appeals to families.
Although I believe Netflix is well-positioned, another notable addition to the streaming world this year was HBO Max which launched in May right in the thick of the pandemic. It faced a lot of roadblocks in terms of branding which I, as an activated user can attest to. The Hollywood Reporter mentions some of these issues such as HBO’s other services, HBO Go and HBO Now, being trusted platforms that led to customer confusion. As well as the fact that the service is not connected to two of the biggest TV platforms, Roku and Amazon Fire (Szalai and Jarvey). The fact that they had a confusing product that wasn’t widely available to some people outside of their laptops led to a slow start. I think what might push HBO Max to be a contender with Netflix in 2021 is the news of Warner Bros. releasing their entire 2021 slate on the platform (Guerrasio). With a new Matrix installment, the latest in the Conjuring films, the addition of Suicide Squad, and a new Clint Eastwood film the releases are intriguing and the release program might push the platform to a better position. The films will be available on the platform for a month before being shown exclusively in theaters (Guerrrasio).
Works Cited
Guerrasio, Jason. “All 17 Warner Bros. Movies Expected to Premiere on HBO Max in 2021.” Insider, Insider, 2 Feb. 2021, www.insider.com/warner-bros-movies-premiere-hbo-max-2021.
Jarvey, Natalie. “Netflix Tops 200 Million Subscribers Amid Pandemic.” The Hollywood Reporter, 19 Jan. 2021, www.hollywoodreporter.com/news/netflix-tops-200-million-subscribers-amid-pandemic.
Szalai, Georg, and Natalie Jarvey. “HBO Max Subscriber Update: AT&T.” The Hollywood Reporter, 27 Jan. 2021, www.hollywoodreporter.com/news/hbo-max-subscriber-update.