2019.01.18 Last Week in Digital Media

Here’s the news you may have missed last week in digital media.

GENERAL

OTT / VIDEO

  • Netflix’s quarterly results are out, with the company adding 1.53MM US domestic subscribers. This puts their total number of US domestic subscribers at just over 60MM or another way to look at it – an additional 1.53MM people decided to opt for an ad-free content experience and require better media and content strategies to reach them.
  • A telling line in Netflix’s letter to shareholders (PDF link, pp 5, Competition) was that they “compete with (and lose to) Fortnite more than HBO”. Demonstrating why clients should look to eSports and gaming as part of their media strategy as gaming is winning part of the war for attention.
  • Netflix’s results are a timely reminder of just how many companies are looking to get into the streaming OTT space. There are announced plans for a streaming service from NBC in 2020, Sinclair has launched a service local news focused one called STIRR, and still to come are services from AT&T and Disney. The mix of ad-supported services that have launched and that are on the horizon makes it reasonable to ask how long can Netflix keep raising prices before subscribers flee or it has to look to a hybrid ad-supported model?

RESEARCH

  • Are people comfortable with their data being used for targeted advertising? A new Pew Research study suggests when it comes to Facebook, the answer is no. Just over half of those surveyed were uncomfortable with Facebook compiling information on them and almost 3/4 were unaware the data was even collected (or the ad preferences page existed). As for the accuracy of the data collected, just over 1/4 said the data Facebook had collected was not accurate. The full report (PDF) can be downloaded here and it’s a good reminder that the industry needs to better explain everything from data collection to how targeting works (and why it is needed to fund content).
  • App Analytics company AppAnnie has released a report (PDF, free registration required) on the state of mobile in 2019. The detailed report (160pp) has some interesting stats, including that WhatsApp is Facebook’s most popular app/service (pp 49) and several pages of useful stats of the most popular apps are by usage, spend, and download across multiple countries (pp68 onwards). It’s worth taking some time to go through the report.

PRIVACY, TRUST, AND BRAND SAFETY

Have a great week.

Joshua

PS. A favor to ask this week. I have been writing this update for 3 years now and I’m just shy of 500 subscribers. If you have a moment, it would be great if you find this newsletter useful it would be great if you could forward this email onto someone at UM or IPG with a note to encourage them to subscribe.