The Black Friday myth and John Malone says Netflix is upending Hollywood

Posted 5 months ago by The Black Friday myth and John Malone says Netflix is upending Hollywood

At a critical time for the entertainment industry when media companies are merging (AT&T and Time Warner, Disney and Fox, Comcast and NBC Universal) and the streaming media business is growing at a dizzying pace, Disney recently drew a line in the sand with plans to end its distribution deal with Netflix and jump into the streaming fray with Disney+.

The exclusive direct-to-consumer streaming service will go head-to-head with Netflix and other tech and media giants already dominating the marketplace and will feature Disney’s vault of TV, movie, and video content that includes Marvel, Pixar, National Geographic, and Lucasfilm. In addition, though its acquisition of Fox, Disney will own a majority stake in Hulu, giving it an added punch against established streaming competitors.

In an interview with CNBC, industry veteran and Liberty Media Chairman John Malone characterized Disney’s move as stepping into a “food fight” with the streaming giants. And while he felt that Disney has the best brand in streaming, it was entering the marketplace at a subscriber disadvantage.

“They have great brand, there’s no question, and they really know the entertainment business,” Malone told CNBC. “What they don’t have is a massive number of global credit cards. They don’t have massive direct consumer relationships at this point, and those are not easy to come by.”

Malone speculates that to compete with Amazon’s built-in subscriber base through its retail presence and Amazon Prime, and Apple’s massive consumer reach as a hardware and software giant, Disney will have to find creative ways to parlay its dedicated brand followers and theme park guests into Disney+ streaming subscribers.

In case your head is spinning, here is a great media landscape chart from Recode organized by distributors, content companies, and internet video companies to help keep it all straight…for the moment.


More you should know...


What: Facebook is Shutting Down its Connected TV Ad Network
Why: In an apparent ad-revenue tussle with Roku and others, Facebook is exiting the connected-TV ad market by shuttering the Audience Network side of its ad network, but it will still focus efforts on the Facebook Watch OTT app.

What: Your Customers Aren’t Waiting Until Black Friday
Why: According to a survey by the NPD Group, the percentage of shoppers that start their shopping before Thanksgiving has remained fairly consistent over the past decade, raising questions for marketers about the concept of Black Friday and Cyber Monday.

What: Nielsen Unveils New Product to Measure Advanced Audience Segments
Why: Answering to a demand for more granular measurement on cross-media platforms, newly launched Nielsen Advanced Audience measures segment-based media buying across linear and digital markets.

What: IAB: Mobile Leads U.S. Mobile Marketing Ad Revenue, Audio Investment Rising
Why: As part of its annual half-year update with partner PwC, the report found that marketing budgets are heavily invested in mobile, video, social media, and that digital audio advertising revenue grew by 31 percent in H1 to $935 million.

What: John Malone Says Netflix’s Direct-to-Consumer Strategy Leaves Studios, Networks Ripe for M&As
Why: Billionaire investor and Liberty Media Chairman John Malone said that by removing middlemen from content production, Netflix is disintermediating traditional content producers in Hollywood and making them targets for M&A activity.

What: DOJ Settles With Tribune and Five Other Broadcasters on ‘Unlawful’ Information Sharing
Why:Sinclair Broadcast Group, Tribune Media Company, Meredith Corp., Raycom Media, Griffin Communications, and Dreamcatcher Broadcasting all reached an antitrust settlement regarding the unlawful sharing of competitively sensitive information, which according to the DOJ, disrupted the process of spot advertising across the U.S.

What: The Golden Age of Branded Television Will See Brands Seamlessly Integrated Into Top Programming
Why: Direct relationships between brands and creators matter now more than ever in an age when viewers have become homing devices for inauthenticity. Audiences are paying to avoid your ads and traditional media spend is losing its impact. Here’s why.

What: The 10 Best Thanksgiving Movies to Stream Over the Holiday
Why: This list features timeless classics like “Trains, Planes, and Automobiles” and “Jim Henson’s Turkey Hollow” in addition to more sobering holiday dramas like “The Ice Storm” and “Pieces of April.”