Television
19th Apr 2024
In a nutshell: Netflix has added 9.3 million subscribers and announced profits of $2.3bn in the first quarter of 2024 (January-March). Netflix has credited the success of shows like Griselda for this jump, but a former Netflix director says it is likely to be the after effects of Netflix cracking down on password-sharing. The company brought in a system in May 2023 that set a “primary location” for users (using their IP-address to fix the location where their internet comes into). Anyone trying to login to the account outside that location is offered the chance to join Netflix as an extra member (for a fee, of course).
How to use this source: This is a great example of Hesmondhalgh’s theory about companies wanting to reduce risk and maximise profits. Password sharing means that people can watch Netflix content for free; cracking down upon on this sharing helps to maximise profits for the company, as the jump to $2.3bn in the fist quarter of 2024 shows.
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The article is also a great example of how video on demand services (VOD) generate money in different ways from commercial channels (like ITV, which shows adverts), and publicly-funded channels (like the BBC, which relies on the license fee).
The idea of more people watching either ITV or BBC is very appealing to those networks, as greater viewing numbers means more ad revenue (ITV), or more justification that the license money is being spent on products that please audiences. Neither of these networks is adversely affected by more people watching for free; Netflix is adversely affected.
Key information to include: Password crackdown began in May 2023; Netflix has added 9.3 million subscribers; profits have jumped to $9.3bn in the first quarter of 2024.
8th Feb 2024
In a Nutshell: Disney has announced plans to stream an exclusive version of Taylor Swift’s ‘Eras Tour’ on its Disney+ platform, as well as agreed a separate deal to allow characters owned by Disney to appear in the video game Fortnite. This includes characters from Disney, Pixar, Marvel, Star Wars and Avatar.
How to use this source: This source provides a great example of synergy. Disney does not own the Taylor Swift brand, but it will benefit from her fans (Swifties), who are not able to attend her concert in person, subscribing to watch her on Disney+.
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Similarly, Disney does not own the Fortnite brand, but will benefit from having dozens of players play as recognizable characters in Fortnite, so promoting the Disney brand more widely (and to a young audience).
Key Information to include: The deal with Fortnite makers Epic Games is worth $1.5bn; Disney’s chief executive is Bob Iger; Disney+ lost 1.3 million subscribers in the last three months of 2023.
27th Dec 2023
In a Nutshell: From February 2024 (in the U.K.), Amazon is putting Ads into many of the products available to stream on Prime Video.
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How to use this source: This article is very useful for discussing the changes in Media company funding models. In addition to being a subscription service (where users pay a monthly/yearly fee to access content), Amazon will now also raise money through adverting. This is a fine example of both Curran & Seaton’s theory (power and control) and Hesmondhalgh’s theory (minimise risk and maximise profits).
Subscriber numbers have been falling since the pandemic (when everyone was in lockdown), so relying purely on monthly subscriptions is now very risky.
Amazon can make more money through advertising and is gambling that the money they will make will be more than the money they will lose through people cancelling their subscriptions over having to watch a few ads. People can also pay to avoid seeing ads (which can be argued to be a stealth-price-rise in the subscription service, as customers will effectively have to pay more to receive the service they had before February 2024).
Key Information to include: Customers can avoid having to watch ads by paying an additional £2.99 per month; Disney and Netflix have also introduced cheaper subscriptions that include ads.
17th Dec 2023
In a Nutshell: Netflix has released its viewing figures for the first time, making it possible to make broad comparisons between the streaming service and other broadcast television channels (whose ratings are measure by BARB, in the UK, or Neilsen, in the US).
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How to use this source: Whilst there is some information about viewing figures and top performers, this is a story that is more important because it marks a change in Netflix's attitude to competition. They were criticised in the past for not even telling people who made their shows how well they had performed.
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The report can be read on Netflix's own website here.
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Key Information to include: The data was released on 12th December; the data only covers January-June 2023; the most-watched show was The Night Agent (812m hours).
3rd Dec 2023
In a Nutshell: This article talks about cuts to the BBC’s funding and the cost of the license fee.
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How to use this source: This is a good source to refer to in any industry question to do with funding or the BBC's business model (including any Public Service Broadcasting question.
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It is also a good source to quote for how the BBC has been responding to the cost of living crisis, and it is interesting for the fact that this is an article by the BBC *reporting on the BBC*.
Key Information to include: The BBC’s funding has been frozen for two years; the license fee has not raised in the same time (as that *IS* their main source of funding; the BBC has confirmed it needs to make £500m of savings; the current license fee is £159 per household, per year.