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Hulu… by Disney; Comcast Becomes Passive Partner in Streaming Service

Effective today, Hulu is now under the full control of the Walt Disney Company, ending a decade of a sometimes-uneasy partnership between rivals NBC-Universal, 21st Century Fox, Disney-ABC and Time Warner (Entertainment).

This morning, Disney and Comcast, the last two partners in the streaming venture, reached an agreement that will give full operational control of Hulu to Disney, in return for either company having the right to force Disney to buy out Comcast’s remaining 33% interest in the service beginning in 2024. In effect, with Comcast giving up its three seats on Hulu’s board and its veto power, the cable company now becomes a passive partner in the venture. At a Disney-guaranteed value of at least $27.5 billion five years from now, Comcast could eventually walk away from Hulu with at least $9 billion in compensation.

Today’s agreement means Disney will own and control multiple streaming services. Disney today announced it has big plans for Hulu, despite preparing to launch its own Disney+ streaming service and already operating its own streaming platform for ESPN. Disney CEO Robert Iger said Disney+ will now be focused on kids and family-friendly entertainment, while Hulu will be Disney’s platform for adult-focused movies and series. Disney’s recent acquisition of the 20th Century Fox content library and FX’s suite of cable channels gives it plenty of additional content to bring to both of its general entertainment streaming services.

To make sure of a smooth transition, both companies have agreed to a lucrative extension of Hulu’s license to stream NBC-Universal content and networks, as well as a retransmission consent agreement to allow Hulu Live to continue carrying NBC-Universal networks and TV channels until the end of 2024. That will deliver a significant revenue boost to Comcast, which can use the money to help build its own forthcoming streaming platform, launching in 2020.

“We are now able to completely integrate Hulu into our direct-to-consumer business and leverage the full power of The Walt Disney Company’s brands and creative engines to make the service even more compelling and a greater value for consumers,” said Iger in a statement.

NBC-Universal chief executive Steve Burke said in a statement that the deal is “a perfect outcome for us” because the “extension of the content-licensing agreement will generate significant cash flow for us, while giving us maximum flexibility to program and distribute to our own direct-to-consumer platform.”

For consumers, Iger is expected to consider offering a discounted bundled package to Hulu subscribers who also sign up for Disney+. With a combination of Hulu and Disney+, Netflix’s biggest U.S. rival is about to get considerably bigger.

Apple iOS Update Includes Apple TV App for Subscribing to Streaming Services

Phillip Dampier May 13, 2019 Apple TV, Competition, Consumer News, Online Video Comments Off on Apple iOS Update Includes Apple TV App for Subscribing to Streaming Services

Apple today released a software update for iOS device owners and some smart televisions that includes a new Apple TV streaming app designed to simplify the online streaming experience. This enhancement highlights the growing demand for innovative solutions in the tech industry, making it a great time to connect with an iOS app developer like the ios app developer sydney who can help bring unique app ideas to life.

The Apple TV app works similarly to Roku’s collection of subscription services. Through the app, viewers in 100 countries can subscribe to individual networks and access them without launching multiple separate apps to watch. Apple TV app also manages billing and collects viewing interests to provide recommended new shows and movies.

At present, most premium channels are available through the app for subscription, but you will pay a non-discounted price for each service, often at a premium. HBO, for example, can be had for as little as $5 a month through some platforms, but costs $14.99 through Apple TV. Other services often run their own discounted specials, but Apple TV customers will not get that pricing. Cord Cutters News reports these networks were available for purchase as of this morning (others are being beta tested):

  • HBO
  • Showtime
  • Starz
  • Cinemax
  • Epix
  • Smithsonian Plus
  • PBS Living
  • Acorn TV
  • Sundance Now
  • Lifetime Movie Club
  • Urban Movie Channel
  • Tastemade
  • Curiosity Stream
  • MTV Hits
  • Comedy Central Now

Apple TV is a precursor to the company’s more elaborate streaming and original content platform — Apple TV+ — expected to launch this fall. For now, Apple is taking a cut from reselling other companies’ content and wrapping it around its own interface. Some early subscribers report Apple TV subscribers get more generous multiple viewer allowances, and a large selection of live streams of certain networks like HBO that are not even available from HBO’s own app. Because finding content across a wide array of subscription services is becoming more complicated, users can also access a search utility to find favorite shows.

By developing its own ecosystem, Apple hopes to build an audience and subscriber loyalty by getting customers accustomed to visiting Apple TV to access their subscription content, which gives Apple an audience to sell other programming and content. In return, customers will not have to install multiple apps, or keep track of usernames and passwords for each of them.

Owners of recent Apple devices, as well as those with 2019 Samsung smart TVs (and some 2018 models) will find software updates including Apple TV starting today. Later this year, customers with certain Vizio, LG and Sony TVs will be able to use the TV app using AirPlay 2.

There are some caveats. Netflix is missing. The largest streaming provider in the world has made it clear it will not be a part of the Apple TV app. Also, only a handful of cable and streaming providers have signed on to allow customers to authenticate their TV subscriptions through the Apple TV app so far: Charter Spectrum, DirecTV Now and PlayStation Vue.

Those looking for convenience might find the Roku or Apple TV platforms a good place to bring content from multiple services together, but those looking for the best price will save money shopping around for subscription deals not available from Apple TV.

Hulu Readies Refreshed Interface, Limited Ad Breaks to Strengthen Subscriber Loyalty

Phillip Dampier May 1, 2019 Competition, Consumer News, Hulu, Online Video Comments Off on Hulu Readies Refreshed Interface, Limited Ad Breaks to Strengthen Subscriber Loyalty

Hulu, unlike its bigger rival Netflix, still depends on commercials for a substantial part of its income, and on Wednesday put on a presentation for advertisers hoping to maintain their interest in sponsoring the platform as it undergoes ownership and design changes.

Hulu announced it now has 26.8 million paid subscribers, and an additional 1.3 million free promotional accounts (many through a partnership with Spotify), totalling over 28 million customers overall. That is an increase of roughly three million since January.

Hulu is still a fraction of the size of its rival Netflix, which has 60.2 million U.S. subscribers and 148.8 million overall worldwide.

The past 12 months have been disruptive for Hulu because of ownership changes. Disney inherited an additional 30% ownership stake from its acquisition of Fox and bought out minority partner AT&T, which itself had acquired a 10% interest in Hulu when it merged with Time Warner (Entertainment). As of this month, Disney controls 67% of Hulu, with Comcast-NBC owning the remaining 33%. Comcast-NBC is said to be looking to sell its minority stake in Hulu, presumably to Disney, giving the owner of ABC and ESPN full ownership.

At the same time, Disney is working towards launching its own streaming platform, Disney+, this November, leading some to wonder what will become of Hulu. The answer came today — both platforms will continue, with an undisclosed price break for those agreeing to subscribe to both Disney+ and Hulu.

Originally a partnership between three of the four major American TV networks, Hulu was the original home for online streaming of current network TV shows. But as those networks drift apart to run their own ventures, Hulu appears to be investing in more original programming to hold viewer interest, but remaining open to advertising — a smaller Netflix with ads.

With so many new streaming services launching, Hulu is positioning itself to reduce customer alienation and try to increase subscriber engagement.

Subscribers will be gently introduced to a new user interface by this summer, with the option of switching back and forth during the test phase, to improve usability.

Peter Naylow, Hulu’s senior vice president and head of ad sales, also announced advertising limits and changes, including:

  • No ad breaks over 90 seconds
  • Viewers will not see the same ad more than twice per hour
  • The same ad will not be seen by viewers more than four times per day
  • Advertisers can sponsor ad-free viewing of individual episodes
  • Binge viewers may see personalized special offers from sponsors
  • Easter Eggs will be scattered on the platform, offering viewers obviously fake shows that, if selected, activate special offers from Hulu and “brand partners.”
  • Static ads will appear when viewers pause playback.

For $11.99/month, subscribers can continue to avoid all advertising on the Hulu platform entirely.

New original shows

To maintain viewer interest, Hulu’s partnership with Marvel will give subscribers two new live-action shows: “Marvel’s Ghost Rider” and “Marvel’s Helstrom,” scheduled to debut in 2020. Other Marvel productions will be found on Disney+ (which will cost $6.99 a month or $69.99 a year).

Other productions:

  • A new slate of cooking shows
  • Made-for-Hulu movies based on Liane Moriarty’s “Nine Perfect Strangers” and “The Dropout” — the story of Elizabeth Holmes, the founder of Theranos, starring Kate McKinnon.

Discovery Announces Major Partnership with BBC on New Streaming Service

Phillip Dampier April 1, 2019 Competition, Consumer News, Online Video Comments Off on Discovery Announces Major Partnership with BBC on New Streaming Service

Discovery has announced an exclusive agreement with BBC’s Natural History Unit that will open up decades of natural history and wildlife programming for on-demand viewing on Discovery’s forthcoming subscription streaming platform, planned for a 2020 launch.

“This is our largest-ever content sales deal,” said Tony Hall, BBC director general. “Global subscribers are in for a real treat — the best content on a great new platform.”

The BBC Natural History Unit is the world’s largest producer of radio, television, and online content dealing exclusively with natural history and wildlife programming. Launched in 1957, the department produces around 100 hours of television and 50 hours of radio programs annually. Some of that programming comes from well-known naturist Sir David Attenborough, himself responsible for hundreds of hours of award-winning BBC nature documentaries.

A limited amount of programming produced by the unit is already available on other platforms, like Netflix, usually branded as BBC Earth. But only a limited catalog of content is on offer, typically licensed for streaming for one year. The new agreement between Discovery and BBC will make Discovery’s forthcoming subscription video service the exclusive streaming home of all BBC nature and wildlife programs, except in the United Kingdom, Ireland, and China. More importantly, Discovery can make the full BBC catalog of nature programming available for viewing.

Discovery’s plans for its subscription streaming platform have quickly evolved since first announced last year. The original plan was to offer a $5-8/mo service showcasing programming from over 30 networks already operated or owned by Discovery worldwide. The well-known cable network announced its plans for a streaming service after completing its $14.6 billion acquisition of Scripps Networks Interactive in 2017. The acquisition allows Discovery to blend its own nature and history programs with lifestyle content from Scripps’ networks like HGTV, Food Network, and DIY.

Now, Discovery is planning several different tiers of its streaming service, each offering subscribers a very deep catalog of non-expiring content. The BBC Natural History programming add-on is expected to cost under $5 a month. Other planned add-ons may feature a rich catalog of educational videos for do-it-yourself home projects, a video cooking school, and others to teach people sports like golf or tennis.

Zaslav

Discovery CEO David Zaslav sees the opportunity for Discovery to launch the “Peloton of food,” a reference to the stationary bike manufacturer that also sells exercise routine subscriptions to owners. In such a scenario, a celebrity chef like Bobby Flay could host hundreds of hours of cooking content, teaching subscribers how to cook everything from a turkey to a complete cajun-style meal.

Discovery has already put its wheels in motion, launching streaming services with sports programming including cycling and golf which may feature products such as the SkyTrak+.

Zaslav envisions the future of Discovery’s streaming service to be the Netflix of factual content programming. He noted most of the huge entertainment companies are clashing head to head by competing with scripted entertainment programming. Discovery will differentiate itself with documentaries, education, sports, and nature specials.

“The scripted movie packagers are big boats, and they’re banging into each other,” Zaslav said. “They’re fighting over who can be the widest and who can be the fastest. Right now, we have some great lanes.”

Zaslav admits Discovery’s earlier forays into streaming, including its participation in TV Everywhere — offering a limited number of shows for streaming to authenticated cable or satellite subscribers — has not been very successful. Contract restrictions often limited how long series can remain available for viewing, and the catalog of options was never particularly deep. With the new ad-free streaming platform, Discovery envisions releasing a massive menu of content, frequently updated with new shows from its own production unit and its partners. Most of Discovery’s own programming was produced for its cable networks, but nothing stops Discovery from creating content specifically for its streaming platform. Discovery’s new agreements should also allow it to keep content available indefinitely.

Discovery plans on spending hundreds of millions of dollars to develop and market its new services. It will face the challenge of convincing customers that subscribing to yet another streaming service is worthwhile. A 2018 survey from Magid Research found consumers were willing to spend up to $38 a month on a combination of streaming services like Netflix, Hulu, and Amazon Prime Video. Discovery hopes to launch its new platform in time to grab subscribers before new competitors from Disney, WarnerMedia, and Apple take hold and possibly tap out would be customers.

The deal with the BBC is part of a larger transaction between the two programmers over their European networks. The BBC is spending $225 million and assuming $90 million in debt to acquire Discovery’s share of several UKTV networks, including Alibi, Dave, Drama, Eden, Gold, W, and Yesterday. In turn, Discovery assumes full control of lifestyle channels Home, Good Food, and Really.

Comcast Introduces $5/mo Flex Streaming Device for Cord Cutters

Phillip Dampier March 21, 2019 Comcast/Xfinity, Competition, Consumer News, Editorial & Site News, Online Video Comments Off on Comcast Introduces $5/mo Flex Streaming Device for Cord Cutters

Xfinity Flex

Comcast today announced the launch of Xfinity Flex, a $5/month service targeting Comcast’s internet-only customers with a streaming set-top box capable of accessing Comcast-approved apps including Netflix, Amazon Prime Video, HBO, and other services.

Subscribers must have a Comcast-supplied internet connection, no video package, and an xFi Gateway (a cable modem/router combination that costs between $10-13 a month to lease). After the new service becomes available nationwide next week, those enrolling will receive a small set-top box comparable to a Roku capable of streaming 4K HDR video. Comcast also supplies its own voice remote, and bundles access to Comcast’s apps that manage in-home Wi-Fi, mobile, security, and automation services for easy access.

“Xfinity Flex will deepen our relationship with a certain segment of our Internet customers and provide them with real value,” said Matt Strauss, executive vice president of Xfinity Services for Comcast Cable. “For just five dollars a month, we can offer these customers an affordable, flexible, and differentiated platform that includes thousands of free movies and shows for online streaming, an integrated guide for accessing their favorite apps and connected home devices, and the ease of navigating and managing all of it with our voice remote.”

A closer look at the device and the fine print suggests customers may want to carefully evaluate whether Flex offers good value for money. Instead of buying a traditional streaming set-top box like Roku, customers can only lease the Flex box for $5 a month… indefinitely. Comcast is not including any programming with the box, just hardware to access streaming content already available, often for free, on other streaming or desktop platforms. Flex’s search function is supposed to make it easier to find programming across a wide number of services, but you will have to subscribe to each service independently.

Comcast also warns that using Flex will count against your monthly data cap.

The 4K capable Roku 3920R can be purchased from Best Buy for $39.99.

Comcast has also carefully designed the box to protect the cable company from any competitive threats. Competing streaming services like DirecTV Now, Sling TV, YouTube TV, Hulu Live, and other services are intentionally blocked, another example of life without net neutrality. The only available path to cable TV programming using Flex is to visit the ‘easy upgrade’ app that will sign you up for Comcast’s X1 cable TV service, presumably the one you cord-cut before you signed up for Flex.

The service is also designed to protect other cable companies from competition from Comcast. Only Comcast internet customers can purchase Flex service, so it is not available to customers of Charter Spectrum, Cox, Altice, or other cable operators.

The $5 subscription fee is also misleading, because you will also have to rent Comcast’s own xFi Gateway, which costs between $10-13 a month, instead of using your own cable modem. That suddenly makes Flex a $15 a month service that essentially just gives you access to a walled garden of the services Comcast approves of for around $180 a year (including the Gateway).

Comcast probably won’t attract a big audience for Flex because of all the restrictions it comes with.

Consider buying a streaming set-top box outright instead of living with Comcast’s restrictions and mandatory gateway fees. Shoppers can find basic Roku devices for purchase under $30, with more capable 4K-compatible devices starting at around $40.

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