The Entertainment Strategy Guide to 29-May-2020
HBO Max, Max, Max, Apple's Library and Toxic Workers
Welcome to the Entertainment Strategy Guy Newsletter! My favorite reads, listens, socials and more to keep you informed on the business of entertainment, with the links to my recent writing on my website and elsewhere.
While HBO Max was launching last week, the news quickly moved on to news of police brutality, protests, violence and outrage. I leave the politics to others unless it impacts the business of entertainment. Hollywood is still making news, especially the HBO Max ramifications, which I’ll have a few links to help explain.
As for newsletter news, I’ve decided that a bi-weekly release schedule is the best timing to ensure I’ve written a few pieces and that I’ve stored up a few good recommendations of content. Expect the next edition in two weeks.
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The Best of the Entertainment Strategy Guy
“My Unasked for Recommendations for Disney Streaming (2020 Edition)” at my website.
Disney+ is the (lone) traditional media success story in streaming. As little as they need it, I still think they could make a few additional strategic moves to take their streamer from “strong start” to “Netflix rival”. Should they add a new product feature or two? Yep. What should they do with Hulu’s launch? Find partners. And what about ESPN+? Well, there is one big thing they need.
“Coronavirus Impact on Entertainment – Film and TV Production” at my website.
If you think Coronavirus will change everything forever, don’t read my latest on how it could impact production. As crazy and locked down as things are right now, I have a feeling some things may revert to normal faster than we expect. Film and TV production fits that bill, but it’s complicated, which I explain in this article. (Read my other takes on how Covid-19 will impact Hollywood here and here.)
Cited over at Matt Stoller’s BIG Newsletter “The Great Intermission Hollywood”
How American antitrust law is enforced is one of the biggest regulatory influences on Hollywood. As such, I’ve been reading Matt Stoller’s blog for a while now and he cited me in his recent issue on Amazon potentially buying AMC Theaters.
Cited at the Couch Potato Newsletter in “Perspectives on JRE”
Paraj Mathur looks at a few different angles of the Joe Rogan-Spotify deal, including my take quoting Matt Stoller.
“Most Important Story of the Week: Apple Caves and Buys a Library” at my website.
A week after I published this, Apple tried to tamp down this narrative in the press. That said, the point still stands that Apple needs a library to compete, and that it is going to be increasingly hard and/or expensive to do so. Read all about that plus Spotify-Joe Rogan, Kevin Mayer to Tik Tok and more.
“Most Important Story of the Week: All the Complications of the AT&T and Amazon Show Down” at my website.
Despite the risk of customer dissatisfaction at Amazon and Roku, AT&T needed to take back control of the customer relationship from Amazon. If Amazon owns your customers, you don’t. That has implications for user experience, data and pricing. That plus a Quibi reset, DAZN on the market, Nielsen ratings and more.
The Best of The Rest
(These are the best reads, listens, newsletters, or social conversations I came across last week.)
Long Read of the Week - “Direct-to-consumer tv apps vs. streaming service aggregators: how to compete… against yourself?” by Kirby Grines
This gem from Kirby is from last year (with an update), but basically describes the drama of last week when HBO Max didn’t launch on Roku Channels and Amazon Channels. This line is one of the best explanations I’ve read for why, despite the pain, AT&T had to start moving HBO off Amazon Channels last week:
“We’ve had clients even tell us that the reason they love being a part of the Prime Channels program is because the customer acquisition cost is zero dollars….I hate to be the bearer of bad news, but what you’re gaining is subscriber, not a customer. Amazon gets the customer, their data, and the ability to market to them, not you.”
Kirby uses the brilliant analogy of Toys’R’Us partnering with Amazon as a metaphor for the OTT landscape. I’d add, he also points out how much Prime Video’s user experience is bad for related brands. Read the whole thing at Zemoga.
Other Long Read - “How AT&T Took HBO to the Max” by Masa Capital at TMT and Chill
Friend of the site—and fellow anonymous analyst—Masa Capital is out with a great long read on AT&T’s efforts to bring HBO Max to life. He also cites me for why you should put numbers to predictions. (Amen!) In all a great read, especially for the bull case for AT&T. Warning, it’s long. (Masa is also a good follow on Twitter if you want a lot of memes and Netflix criticism in your life.)
Other Long Read - “Deadspin’s traffic and execution will both need to vastly improve if the site wants to survive in the long term” by Ben Koo at Awful Announcing
I’m a sucker for stories that check back in on old news. The demise of Deadspin in November was covered by all the press. Now that it’s been sixth months, how are they doing? Koo says not well, and brings the Comscore receipts.
Non-Entertainment Read - “Michael Jordan: N.B.A. Champ, Marketing Legend and … Toxic Worker?” By Noam Scheiber
This opinion article in the Times captures the struggle over employing elite yet toxic stars like Michael Jordan. On the one hand, he brought championships. On the other, he punched fellow teammates. Are elite toxic workers worth it? Read this nuanced take that I enjoyed because it talks through all sides of the issue. (And it applies to Hollywood because many top stars/creators could fit this billing.)
(Honorable Mention goes to The Margins newsletter on Doordash and Pizza Arbitrage. Given that I saw this newsletter everywhere, I assume many of my readers did too. But if you haven’t, read about Doordash overpaying for pizzas.)
Twitter Threads
First, Netflix Film Project has a great thread on Netflix’s biggest originals.
Then Julia Alexander had a comment I called the Tweet of the week.
Finally, Kasey Moore uses IMDb data to shows what Netflix can do when it acquires a new series.
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(If this email was forwarded to you, and you’re wondering who I am, The Entertainment Strategy Guy writes under this pseudonym at his eponymous website. A former exec at a streaming company, he prefers writing to sending emails/attending meetings, so he launched his own website. You can follow him on Twitter or Linked-In for regular thoughts and analysis on the business, strategy and economics of the media and entertainment industry.)