This is your midweek Fix, going deeper on our core topics. This week newTV, next week Merchants and we will alternate. We will get this onto a separate database so people can opt out of this if they want - but if you unsubscribe now you lose Fix Friday too. Would love your thoughts on how we make this better - hit reply.
$Millions in motion.
A new Goldman Sachs report show the move of money from TV to digital will accelerate
This issue is covered more here and we do see people trying to solve it - VUniverse and Paket are the latest. But you can only aggregate if people allow you and Amazon, Roku and Apple all see good business in maintaining their role as a gateway.
And then there is the issue of paying for all these options. A VC has a good analysis of Apple TV deducing that they will hit c50m active subscribers by year end. But only 5m will be paid, as most get the service free through buying an Apple product. They predict a healthy future, based on a model that presumes half of these users upgrade to paying. Really?
A US survey from Park shows Apple to be doing well - but that many Apple and Disney subscribers have dropped other OTT services. They are not huge numbers but given many (most?) Apple and Disney subscribers are on free or discounted packages, what happens when they go full price?
The new Comscore study we mentioned at the start shows that many marketers take a narrow view of Connected TV - only considering viewing on the TV set - whilst just over a third favour any video ad consumed via OTT (Over The Top) devices. That’s my take on newTV
The definition of streaming is important as it does influence decisions on budget. In a good piece on YouTube ambitions to take money from TV we see this;
I think this device question is really significant. Especially as we are in lockdown. I suspect mobile use for older groups is reduced as lockdown means the big TV and the laptop are always to hand. For the young though, the mobile is their personal screen - away from their parents. So - I think - mobile services aimed young like TikTok and Snap do really well and those aimed older (Quibi?) suffer. I’m looking for data to validate this.
The fight in newTV extends to the tech used to automate the buys - both Roku and Amazon have strong DSPs - with advantages in both inventory and data - so brands really need both.
It’s clear Amazon is lining up access to more inventory. A core part of their deals to enable Amazon Prime customers access to streaming devices, is that Amazon gets inventory to sell. So the refusal by HBO / AT&T to play ball is behind the absence of Max from the Amazon platform.