On The Rock
Top Themes of the Week
Greetings and Happy Sunday!
The future of entertainment is streaming, and companies like Netflix NFLX 0.00%↑, Disney DIS 0.00%↑, and Roku ROKU 0.00%↑ are leading the charge. Revenues are expected to reach $100 billion by 2029, a significant jump from $81 billion in 2023. According to Digital TV Research, North America will be a major contributor to this growth, with the US alone generating an additional $16 billion in streaming revenue by 2029.
Ad-Supported services, which offer free content with commercials/breaks, are also gaining traction. Their revenues are expected to reach $25 billion by 2029, up from $17 billion in 2023. This highlights the demand for flexible and affordable options.
Sports
FuboTV Prepares for a "Duel to the Death" in Streaming Wars
FuboTV, known for its sports focus, is bracing for a major battle. CEO David Gandler recently referred to the company's fight against a new streaming joint venture formed by Disney, Fox, and Warner Bros. Discovery as a "duel to the death."
FuboTV has already filed a federal antitrust lawsuit against the media giants. The new app is seen as a threat to FuboTV's competitive advantage. The lawsuit aims to block the joint venture or impose restrictions, such as fair terms for sports rights. FuboTV is also seeking damages, though the exact amount remains unspecified.
Super Bowl Viewership Grows Internationally
The NFL's international audience for the Super Bowl continues to expand. This year's game saw a 10% increase in viewership compared to 2023. Notably, the US audience reached a record high with 202.4 million viewers. Beyond the US, the Super Bowl drew an audience with 24.1 million viewers in Mexico, 18.8 million in Canada, and 3 million viewers each in Germany, the UK, and Australia.
Netflix Scores Big with Mike Tyson vs. Jake Paul Fight
Netflix continues to make a splash in the world of sports by streaming the highly anticipated boxing match between Mike Tyson and Jake Paul. The fight, featuring the boxing legend against the influencer-turned-boxer, is expected to be one of the most-watched sporting events of the year. It will take place on July 20th at the massive AT&T Stadium in Arlington, Texas, marking Netflix's third venture into live sports streaming after "The Netflix Cup" and "The Netflix Slam."
Media
Temu Emerges as Top Advertiser on Meta
The Chinese e-commerce giant, Temu, has become a major advertising force. In 2023, they emerged as the top advertiser on Meta platforms, spending a staggering $2 billion on Facebook and Instagram ads to reach over 50 million potential customers.
Netflix Makes Big Moves
Netflix is solidifying its content strategy. The streaming service doubled down on its live-action adaptation of "Avatar: The Last Airbender" with a two-season renewal, following the animated series. Netflix's subscriber growth might be impacted by the overall decline in traditional TV ad spending, which reached a 7% year-over-year drop in Q4 2023.
Apple’s BlockBuster Gamble Could Pay Off
Apple AAPL 0.00%↑ is having a strong year in media and entertainment. The company secured the second-highest number of Oscar nominations (13) among studios and streamers thanks to their historical epics "Killers of the Flower Moon" and "Napoleon."
Tech Titans
Meta Streamlines Operations and Invests in AI
Meta META 0.00%↑ is undergoing several changes to improve efficiency. Facebook Messenger recently laid of 50 employees as part of a reorg. Meanwhile, Instagram is empowering users with new features: the ability to edit sent messages for 15 minutes and pin important conversations to the top of their inbox.
Additionally, Meta continues to invest in AI, developing a system that will power video recommendations across all its platforms, including the popular Reels and traditional video formats.
Amazon Ventures into Grocery Convenience and AI-powered Shopping
Amazon is expanding its reach in the grocery sector with "Whole Foods Market Daily Shop," a convenience store launching in NYC. These smaller stores will focus on prepared meals, seasonal produce, and grab-and-go options. The company is also making strides in AI-powered experiences. "Rufus," a generative AI chatbot, is being introduced to assist users with personalized recommendations and other tasks.