Report: YouTube Top ‘Most Intimate Brand’ Among Millennials

YouTube ranked the “most intimate brand” among millennials for the first time, climbing from third last year, according to MBLM’s Brand Intimacy 2019 Study, a study of brands based on emotions.

The firm defines brand intimacy as something that leverages and strengthens the emotional bonds between a person and a brand.

“YouTube ranked 10th with millennials just two short years ago and has steadily made its way to the top,” said Mario Natarelli, managing partner, MBLM, in a statement. “The brand has demonstrated an ability to entertain a diverse millennial audience through its extensive content. It is also continuing its expansion of services, including the launch of YouTube Music in 2018, as it finds new ways to connect with consumers. Millennials in particular bond strongly with the media and entertainment industry, and YouTube is doing a good job at building a brand that caters to the wants and needs of this audience.”

Apple and Netflix ranked as the second and third most intimate brands for this generation. Comparatively, in MBLM’s 2018 study, Apple placed first followed by Disney and YouTube.

The other brands that rounded out the top 10 were, in order: Disney, Nike, Target, Xbox, PlayStation, Google and Walmart. Millennial men selected Xbox, PlayStation and Spotify as their top three and millennial women selected Target, Amazon and Disney.

The Brand Intimacy 2019 Report, to be released in full Feb. 14, contains the most comprehensive rankings of brands based on emotion, analyzing the responses of 6,200 consumers and 56,000 brand evaluations across 15 industries in the United States, Mexico and the United Arab Emirates, according to MBLM.

‘The Greatest Showman’ Home Entertainment Sales Spur Fox Studios Q2 Profit

Twentieth Century Fox Studios Feb. 6 reported second quarter (ended Dec. 31, 2018) operating income of $193 million, a 47% increase over the $131 million reported in the previous-year quarter.

Quarterly segment revenue decreased 4% to $2.16 billion from $2.24 billion, primarily reflecting lower home entertainment revenue at the film studio and lower syndication revenue at the television production studio.

Through half the fiscal year, revenue is down less than 6% at $3.97 billion compared to $4.2 billion in the previous-year period.

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Fox, which is in the process of closing its acquisition by The Walt Disney Co., said studio Q2 operating income reflected higher contributions from the worldwide theatrical performance of Bohemian Rhapsody (winner of two Golden Globes and nominated for five Academy Awards), lower theatrical releasing costs from a comparatively lower number of films released in the current quarter, and the worldwide home entertainment and pay-television performance of The Greatest Showman, partially offset by higher new series deficits and lower domestic syndication contributions at the television production studio.

The Greatest Showman, starring Hugh Jackman, was the No. 2 selling DVD/Blu-ray Disc title in 2018 after Disney’s Black Panther, according to The-Numbers.com. The title generated $66.4 million in revenue from sales of more than 4.3 million combined discs.

Separately, Fox upped its quarterly Hulu equity loss to $115 million, compared to an equity loss of $108 million last year. Through six months of the fiscal year, Fox’s equity loss with Hulu tops $229 million compared to $170 million during the previous-year period.

Disney Forgoing $150 Million in License Revenue Withholding ‘Captain Marvel’ From Output Deals for Pending SVOD Service

The Walt Disney Co. offered some insight on the financial impact its pending Disney+ SVOD service will have on existing distribution models.

Speaking on the Feb. 5 fiscal call, CFO Christine McCarthy said the company would forgo about $150 million in third-party license revenue in fiscal 2019 for the Q4 launch of the subscription streaming video service.

McCarthy added that the pending theatrical release Captain Marvel, with Brie Larson starring as Disney/Marvel’s first female superhero solo lead, would be excluded from traditional output deals in favor of Disney+.

“So that’s where you can see the forgone licensing revenue begin,” she said.

Disney plans to showcase the Disney+ service on its annual investor day on April 11.

“We’ll also take that opportunity to provide detailed insight into our overall DTC business,” said CEO Bob Iger.

Separately, Iger said he expects to expand Hulu into foreign markets once acquisition of select 21stCentury Fox assets (including Fox’s 30% stake in Hulu) is completed.

“We’ll own 60% when the [Fox] deal closes, and we’ll be prepared to talk more, perhaps, about Hulu’s strategy at that point,” he said.

“Having already designed much of the integration process, we are prepared to start effectively combining our businesses as soon as we obtain regulatory approval from the last few remaining markets,” added Iger. “We look forward to working with the tremendous teams at 21st Century Fox to create the world’s premier global entertainment company.”

 

Disney’s Direct-to-Consumer Biz Widens Q1 Operating Loss

Disney CEO Bob Iger says over-the-top video is the media giant’s future and No. 1 goal in 2019.

That future is expensive, too.

Disney Feb. 5 reported that first-quarter (ended Dec. 29, 2018) operating losses from the direct-to-consumer & international segment increased from $42 million in the previous-year period to $136 million. Revenue decreased 1% to $918 million from $931 million. The dip reflected a 4% decrease from an unfavorable foreign currency impact.

The increase in operating loss was due to the ongoing investment ramp-up in ESPN+, which launched last April and has about 2 million subscribers, a loss from streaming technology services and costs associated with the upcoming Q4 launch of Disney+, partially offset by an increase at the company’s international channels and a lower equity loss from its investment in Hulu.

Increased revenue at international channels was due to lower costs, affiliate revenue growth and higher program sales, partially offset by an unfavorable foreign currency impact.

Results for Hulu, which is co-owned by Disney, Fox, Comcast and WarnerMedia, reflected increases in subscription and advertising revenue, partially offset by higher programming costs. The service has more than 25 million subscribers.

“We look forward to the transformative year ahead, including the successful completion of our 21st Century Fox acquisition and the launch of our Disney+ streaming service,” Iger said in a statement. “Building a robust direct-to-consumer business is our top priority, and we continue to invest in exceptional content and innovative technology to drive our success in this space.”

Hulu Launching ‘Pause Ads’ into Programming

Hulu will soon begin placing on-screen ad images when programming is put on hold.

Dubbed “pause ads,” Hulu, beginning in the second quarter, will insert “non-intrusive” images of Coke and Charmin products on select test screens after a user has paused programming for at least three seconds. The image disappears when viewing commences.

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“Our research found that consumers generally preferred ads that were subtle … and that extensive audio and video [spots] when pausing was considered disruptive,” Jeremy Hefland, VP, head of advertising platforms, wrote in a Jan. 31 blog post.

Paused Hulu programming with Charmin image/ad.

Hulu, which currently runs ads on its $5.99 subscription plan, is looking to increase margins from its 25 million subscribers. The platform co-owned by Disney, Fox, Comcast and WarnerMedia continues to generate hundreds of millions of dollars in equity losses for its corporate partners.

Hefland said the pause ad takes advantage of the “natural behavior” exhibited by viewers streaming TV. He said the ads consists of two elements: a creative image supported by contextually “relevant” messaging along with a background gradient to distinguish the ad from the content scene.

“The research so far has shown a positive response from viewers,” he wrote.

 

 

 

Analyst: Major Studios Could Squeeze Netflix on Original Programming

As Netflix continues its global domination in subscription streaming video, the market leader is facing a looming threat to its vaunted original content pipeline from major studios such as NBC Universal, Warner Bros., Disney and Fox.

With WarnerMedia and Disney launching branded over-the-top video platforms later this year, and Comcast rolling out ad-supported VOD service to its subscribers in 2020, the studios at the same time remain creators of original content for Netflix.

Specifically, the four studios provide about 20% of Netflix’s overall content measured by available hours and nearly 40% of hours viewed on the service, according to Wedbush Securities digital media analyst Michael Pachter.

The analyst, citing a study published by Recode, said that 13 of the 20 most-viewed programs on Netflix were provided by the aforementioned studios, including the top six.

“By the end of 2020, we expect all of this programming to disappear from Netflix, and we think that the company will find replacing the content with originals a daunting task,” Pachter wrote in a Jan. 28 note.

The analyst said Netflix faces replacing existing content from the studios and competing against Amazon Prime Video, Hulu and potentially four competing new streaming services for original fare.

“The balancing act Netflix faces is potentially enormous,” wrote Pachter, a long-time Netflix bear.

He said Netflix continues to juggle licensed originals such as “Ozark” and “House of Cards,” which are owned by Media Rights Capital, and Lionsgate-produced “Orange is the New Black,” with proprietary original fare “Stranger Things,” among others.

Licensed content is subjected to recurring fees. The streaming service can offset the loss of Disney, Fox, Warner and NBC Universal content by licensing equal amounts of content from other sources or by creating its own – a strategy Netflix is pursuing with the hires of former ABC Entertainment President Channing Dungey; Ryan Murphy, producer of “American Horror Story,” Shonda Rhimes, creator of “Grey’s Anatomy” and “Scandal,” and Kenya Barris, creator of “Black-ish.”

Pachter contends the original content will be the subject of a bidding war with Prime Video, Hulu, HBO Now, WarnerMedia and Disney+, among others.

“We think that with lower access to high quality content, Netflix may actually end up spending less than it has historically, although the company must replace existing third party content with its own and may redouble its owned original efforts,” wrote the analyst.

 

Disney to Demonstrate DTC Service Disney+ April 11

The Walt Disney Co. will demonstrate its pending direct-to-consumer streaming service Disney+ and offer a first look at some of the original content being created by the company’s TV and film studios exclusively for the service at an investor day presentation April 11, the company announced.

Also, effective for the first quarter of fiscal 2019, the company will begin reporting segment operating results for four segments: media networks; studio entertainment; parks, experiences and consumer products; and direct-to-consumer and international (DTCI), the company reported Jan. 18 in a filing with the SEC. In the Form 8-K, the company also recast financial results for the past three fiscal years to reflect the reorganization of Disney’s business segments. In the fiscal year ended Sept. 29, 2018, recast numbers show the DTCI segment with a loss of $738 million.

“Our top priority is fully leveraging our global brands and great content to create world-class direct-to-consumer entertainment,” said Disney chairman and CEO Robert A. Iger in a statement. “We have the structure and management in place to drive growth in our DTC business, and our acquisition of 21st Century Fox further enhances our ability to deliver significant value to consumers and shareholders.”

“Acquiring BAMTech enabled us to enter the DTC space quickly and effectively, as demonstrated by the success of ESPN+,” Iger said in a statement. “The service surpassed 1 million subscribers in its first five months and continues to grow as it expands its content mix, all of which bodes well for our upcoming launch of Disney+. The ability to connect directly with millions of Disney, Pixar, Marvel, and Star Wars fans creates tremendous opportunities for growth. In addition to leveraging our existing IP in new ways, we’re making significant investments in original content exclusively for Disney+, creating an impressive pipeline of high-quality movies and series we believe will make the streaming service even more compelling for consumers.”

The slate of Disney+ content currently in production includes the first-ever live-action Star Wars series “The Mandalorian”; an original series based on Disney Channel’s “High School Musical”; an animated series based on Pixar’s “Monsters, Inc.” franchise; a new season of the “Star Wars” animated series “Clone Wars”; a live-action version of the animated classic Lady and the Tramp; and original docu-series. A live-action Marvel series starring Tom Hiddleston and a second “Star Wars” series starring Diego Luna are also in development, the company announced.

Neulion Rebranded to Endeavor Streaming, Snatches WWE from Disney’s BamTech Media

Backend tech support for streaming video is becoming big business.

Endeavor Talent Agency, whose subsidiaries include William Morris Endeavor, IMG, and Ultimate Fighting Championship, announced the formation of Endeavor Streaming, encompassing the company’s video streaming products and services.

The over-the-top video venture is driven by Neulion, which Endeavor acquired in 2018 for $250 million.

NeuLion, which provides backend support for live-sports streaming, is being absorbed within the new group alongside Endeavor’s internally developed video platform technology, and now operates under the Endeavor Streaming moniker.

Endeavor Streaming provides backend tech support for the NFL, NBA, UFC, and Euroleague. Notably, the platform just signed professional wrestling brand WWE away from Disney’s BamTech Media.

BamTech, which Disney acquired for about $3 billion, provides streaming tech support for ESPN+, HBO Now, PlayStation Vue, The Blaze and WatchESPN, among other services. It will also power Disney’s upcoming branded SVOD service.

With more than 1.6 million subscribers, WWE Network is one of the largest sports-entertainment OTT platforms in the world. Endeavor also supports U.K.-based BT and its new service, BT Sport Box Office; and OSN, the Middle East and North Africa’s entertainment network.

Endeavor Streaming will be co-led by chief technology officer Nick Wilson and president of business operations Will Staeger. Staeger previously served as SVP within IMG’s original content division following time at ESPN, WWE, and Dick Clark Productions.

“We’ve integrated Endeavor’s scalable platform with NeuLion’s industry leading technology and feature set to provide clients with the best tools and services in video streaming, removing technology as a barrier in reaching their consumers,” Wilson and Staeger said in a co-statement.

Endeavor Streaming will continue servicing major media providers, including Univision, Sportsnet, Sky Sports, MSG, National Geographic, and Big Ten Network. The group will also continue supporting Endeavor properties like PBR (Ride Pass) and UFC (UFC.tv and Fight Pass).

The platform recently streamed “UFC 229: Khabib vs. McGregor,” and received the “OTT TV Service of the Year” award at the Content Innovation Awards ahead of MIPCOM for its work on the NBA League Pass International product.

Meanwhile, the group has launched several new consumer products, including “Serie A Pass” and “Strive,” the latter of which features action from both Serie A and La Liga, Italy and Spain’s professional soccer leagues, respectively.

 

 

Disney Celebrates ‘Little Mermaid’ 30th with 4K Ultra HD Blu-ray Release

Walt Disney Studios Jan. 11 announced the 4K Ultra HD Blu-ray debut of The Little Mermaid in honor of the animated classic’s 30th anniversary.

The musical tale of princess Ariel and her sidekicks Sebastian and Flounder will be released as part of the “Signature Collection” Feb. 26 on 4K Ultra HD Blu-ray as well as on standard Blu-ray Disc.

The Signature Collection edition of the 1989 film — which won two Oscars, for Best Original Score and Best Original Song (“Under the Sea”) — will be released digitally two weeks earlier, on Feb. 12, in HD and 4K Ultra HD.

New bonus features bring celebrated composer Alan Menken and some of Disney’s most recognizable leading ladies together around a piano to reminisce, sing and celebrate “The Little Mermaid.” The latest installment of “Stories from Walt’s Office” compares Walt and Ariel’s love of collecting treasures. Viewers will also receive an inside look at the “The Little Mermaid” cast in their original recording sessions, explore hidden treasures and fun facts from the film, and enjoy a special performance of “Part of Your World” by Disney Music Group a cappella singing group DCapella.

Based on Hans Christian Andersen’s classic fairy tale about a beautiful mermaid princess who dreams of becoming human, The Little Mermaid was directed by John Musker and Ron Clements and features the voice talents of Jodi Benson as Ariel, Pat Carroll  as Ursula, Samuel E. Wright as Sebastian, Christopher Daniel Barnes as Eric, Kenneth Mars as Triton, Buddy Hackett  as Scuttle, Jason Marin  as Flounder and René Auberjonois as Chef Louis. The film was originally released in theaters on Nov. 15, 1989 and is the 28th film from Walt Disney Animation Studios, and the first in what many described as a new Disney animation renaissance.

The Little Mermaid is the seventh title to join the Walt Disney Signature Collection. Others are Snow White and the Seven Dwarfs, Beauty and the Beast, Pinocchio, Bambi, The Lion King and Lady and the Tramp.

Panelists Discuss SVOD Battle, Content Overload in the Entertainment Market on Eve of CES

Netflix has a fight on its hands as new subscription video-on-demand services from the big studios enter the marketplace this year.

That’s the opinion of Laura Martin, managing director and senior analyst, entertainment and Internet, Needham & Company, speaking on the panel “The Business of Video: Insider Insights for Going Global” in Las Vegas Jan. 7 on the eve of CES. While Netflix is getting into the studio game with content, it can’t match the marketing savvy of the big studios, she said.

“Netflix will spend $12 billion dollars on content, and they are shitty marketers [compared to the big studios],” Martin said.

Walt Disney Studios, with its impending launch of Disney+, and WarnerMedia, with its impending service, represent “two marketing juggernauts.”

“I think this is the big change that is happening to OTT,” she said. “I think the traditional content marketers [are positioned to win].”

She said the online entertainment space is getting saturated.

“There’s too much content being made,” she said. “Eventually those [capital investment] funds will not get a return on content.”

Ted Schilowitz, futurist in residence at Paramount Pictures, agreed that there is “content exhaustion.”

“There is so much content being made at various levels of quality,” he said, with companies such as HBO making a small amount of high value content and Netflix and Amazon making a large amount of content of varying value.

“It’s overwhelming,” he said.

Niche SVOD players will have to find their audience and a level of success they can live with, said Ooyala co-founder and CTO Belsasar Lepe, whose company helps services wring costs out of the process. They will have to figure out pricing and content models that work to discover “what does success look like?” he said.

The content mix is key for SVOD players, panelists said.

Schilowitz noted that the WWE SVOD service draws in subscribers with big events, but keeps them with the library content.

He questioned the hype surrounding bite-sized mobile programming backed by such ventures as NewTV from Jeffrey Katzenberg and Meg Whitman, calling the idea of short content demand somewhat of a “misconception.” Consumers are actually watching long form content in short bursts, he said.

“We talk about it as start, stop TV,” he said. Short form content limits character development and story arc, he said.