Why this is necessary: TV networks (national) currently have to work with pay-TV providers to identify users through subscriber data. To make matters worse, this is a fractured process with no standard between pay-TV providers.
How it will work: Inscape will develop the watermarking standard to help TV networks send targeted ads to smart TVs. The standard will be open and available to other smart TV manufacturers such as Samsung and LG.
Quote from Jodie McAfee — SVP, Sales + Marketing @ Inscape: “The only way this really works is if there is a direct relationship between the publishers and OEMs [original equipment manufacturers],”
The players in Project OAR: 1) AMC Networks 2) AT&T 3) CBS 4) Comcast NBCUniversal 5) Discovery 6) Disney 7) Freewheel 8) Hearst 9) Inscape 10) Turner 11) Xandr 12) Vizio
Average combined primetime viewership for 18–49 across ABC, CBS, Fox and NBC (YoY growth): 1) 2016-Q4–9.6M 2) 2017-Q4–7.9M (↓18%) 3) 2018-Q4–7.0M (↓11%)
Interesting question: Who are the people that are shifting consumption? Are they high income? Low income? Are high-income consumers more likely to pay for ad-free viewing? Mike Shields argues this is something worth more attention in his latest piece for TV[R]EV.
Interesting data: Nielsen released a viewership estimate for The Marvelous Mrs. Maisel (a favorite of Mrs. Screens) that projected 1.9M viewers/episode.
The most interesting data point was an estimated average income of $95K which is well above the national average of $61K.
Quote from Bob Iger — CEO @ Disney: “We aim to use the television production capabilities of the combined company to fuel Hulu with a lot more original programming, original programming that we feel will enable Hulu to compete even more aggressively in the marketplace.”
Old is new: Could we see some type of “new bundle” that consists of Disney+, ESPN+, and Hulu? What a concept!
The digital video world as if it were Game of Thrones: 1) House Netflix — The White Walkers 2) House Disney — The Starks 3) House Amazon — The Lannisters 4) House Warner — The Iron Bank of Braavos 5) House Comcast — The Tyrells 6) House Apple — The Targaryens
Cost per episode by show: 1) Game of Thrones (HBO) — $15m 2) The Crown (Netflix) — $10m 3) Jack Ryan (Amazon) — $8m 4) American Gods (Starz) — $8m 5) Stranger Things (Netflix) — $6m 6) American Crime Story (FX) — $6m 7) The Tick (Amazon) — $5m 8) Will (TNT) — $5m 9) Carpool Karaoke (Apple) — $2m
Quote from Michael Pachter — Research Analyst @ Wedbush Securities “It’s an arms race, and it’s going to be that way until somebody realizes they’re just beating their head against the wall and not getting anywhere,”