January 12, 2021
Executives from streaming services gathered at the virtual CES Jan. 12 to discuss how they aim to please consumers in an increasingly competitive marketplace.
“We are all in this battle to make sure our customers can find our content as easy as possible,” said Stefanie Meyers, SVP of distribution at Starz, who manages its digital business.
Sarah Lyons, SVP of product experience at WarnerMedia, said the company’s new HBO Max service uses a blend of curation and data to target programming to consumers.
“About two-thirds of the time consumers know what they are looking for,” she said. “In those instances, get out of their way. Make it as easy as possible.”
As far as content, Lyons said, “you see tremendous engagement when you offer up lots and lots of content.” But that content has to be a mix of originals and catalog, she said.
Meyers agreed, noting that theatrical blockbusters with huge marketing campaigns are a draw, but “if you have a deep library, that can help with retention as well.”
Consumers are in different mindsets when they approach a service, Lyons said. Sometimes they are ready to sit down for a two-hour movie, and sometimes they just want to watch for a quick 30 minutes. She noted a trend of families coming together to watch a story, either virtually or in their homes, as families did in the past gathering around the TV.
“What’s old is new,” she said.
Indeed, streaming is the new TV, noted Andrew McCollum, CEO of virtual MVPD Philo.
“20 years from now people aren’t going to consider streaming TV streaming; they’re just going to consider it TV,” he said.
Thus, the competition is heating up in the virtual MVPD marketplace that replicates traditional TV, with consumers confronted with streamers, such as YouTube TV, that are having to raise prices to cover the cost of content, especially sports and news.
“A lot of the services came to market with price points that were not sustainable,” he said, citing YouTube TV’s price jump from $25 to $65.
Philo took a different tack, eschewing such costly content that consumers may not need or want.
“It was never our intention to be the lowest cost service, but it was our intention to be the best value service,” he said.
Consumers can now get bundles of streaming services “for less than they were paying for cable,” he said.
Pluto TV, now owned by Viacom, relishes its market leading position in the ad-supported VOD or free streaming marketplace, as well as the content available from its parent, said Pluto TV SVP of programming Scott Reich. Pluto fills a niche in the Viacom streaming strategy, he said.
“It’s about creating a complementary ecosystem,” he said. “Pluto is the priority on the free service side of things. Paramount+ and Showtime are obviously the priority on the paid side.”
Content from Viacom is filling Pluto’s AVOD pipeline, delighting customers with classic shows.
“This year we added a lot of CBS content,” Reich said, allowing Pluto consumers to revisit “Three’s Company,” “Love Boat” and “Happy Days,” among other classics.
“What’s old is new again,” he said.
Being a free service is an advantage in the crowded streaming market, he noted, “You just fire it up, and it works.”