TikTok and Instagram join the battle, the honeymoon period of the US streaming media market is over

Competition in the streaming video market in the United States has become increasingly fierce.

Tencent Technology News reported on July 6 that competition in the streaming media video market in the United States has become increasingly fierce. While Netflix, Amazon, NBC Universal and other service providers continued to force the picture points to enjoy should use Instagram want to become more like the Overseas vibrato TikTok; TikTok is to extend the length of the video, making it more like YouTube; Roku seems Following the example of Netflix, investing in original videos. At the same time, the honeymoon period of the streaming video industry in the United States has quietly ended. When most Americans return to normal activities outside the home after the COVID-19 pandemic, the streaming video industry may not be so excited about returning to reality.

The streaming war is generally considered to be a competition between the world’s large traditional media companies-Disney, Comcast’s NBC Universal, AT&T’s WarnerMedia, Viacom CBS, Discovery-and Netflix and Amazon. It is there filling points reasons: they provide the products are similar, usually consists of movies, TV shows composition, and sometimes live news and sports.

Blurred boundaries of competition

As TV became predominantly distributed over the Internet, the boundaries of competition between traditional media companies and online video services such as TikTok, Google ’s YouTube, Facebook’s Instagram, and Amazon’s Twitch began to blur. As each company tries to dominate consumers’ attention, the differences that exist today—user-generated content vs. scripted, free vs. subscription, short vs. long videos, games and professional sports—will inevitably follow. It disappeared over time.

Kirby Grines, founder and CEO of 43Twenty, a strategic consulting and digital marketing company focused on the streaming video industry, said: “Although consumers and industry executives still generally believe that cable and streaming video services are Platforms such as’TV’, TikTok, Facebook and Instagram are’social media’, but they are one. These double tags are becoming more and more outdated every day.”

Last year, when Netflix first listed TikTok as a competitor, it understood this. From Netflix’s point of view, anything that interrupts Netflix’s service-even sleep-is competition. But Netflix specifically named TikTok for a reason. TikTok may initially be a service for users to make music and dance videos, but thousands of creators earn income by writing videos for TikTok. These Internet celebrities have become the first-line stars of teenagers, and the intersection between TikTok and Netflix has also emerged.

This is not the first time that Facebook’s Instagram has set foot in the video field. Instagram launched IGTV in 2018 and launched TikTok’s short video competition service Reels in August 2020, allowing Instagram users to create content with superimposed audio and augmented reality effects. Instagram’s move to display full-screen videos in user feedback shows that it hopes to get more video advertising revenue, while also developing more opportunities for its creators and providing users with new entertainment options.

Instagram CEO Adam Mosseri said in a video on June 30: “We are no longer a photo-sharing app. Now there is some very fierce competition. TikTok is strong, YouTube is stronger, and There are many other upstarts. People expect Instagram to become entertaining. The competition is fierce and there is more to do, and we have to accept this.”

Antitrust impact

Because the U.S. Congress and regulators are debating the appropriate impact on a technology industry that is increasingly influential in the global economy, Facebook, Google, and other large technology companies are under strict antitrust scrutiny. At present, there are only five companies in the United States with a market value of more than $1 trillion, and all of them are large technology companies-Apple, Amazon, Microsoft , Google’s parent company Alphabet, and Facebook, which has recently exceeded $1 trillion in market value.

As traditional media companies shift their business to streaming media, competitors that do not have enough content or global scale have begun to consolidate. AT&T’s decision to merge WarnerMedia and Discovery and Amazon’s $8.5 billion acquisition of MGM are the latest two examples. At the same time, Time Warner and Fox’s decision to sell AT&T and Disney can prepare for the ultimate decline of cable TV.

Because TikTok, Instragram, and YouTube have gradually become more direct competitors to traditional media, relatively small media companies, such as Viacom CBS and NBC Universal, all claim that they should be allowed to merge with each other or be acquired by larger competitors. . It is unclear whether the merger of the two major film production companies will have an impact on regulators if movies account for a small portion of entertainment viewing time.

The Federal Trade Commission’s decision to deal with Amazon’s acquisition of MGM will be a test of how the Commission views the technology industry’s entry into traditional media. Doug Melamed, a law professor at Stanford University and former Assistant Attorney General of the Antitrust Department of the Department of Justice (Doug Melamed) believes that if the Federal Trade Commission stops the transaction, it shows that the US government has taken the antitrust definition based on competition. Turn to “We don’t like big and powerful companies.”

Melamed pointed out that Lina Khan, the new chairman of the Federal Trade Commission, has such thoughts. In view of her previous criticism of Amazon’s market strength, the latter has called on her to withdraw from the ongoing antitrust investigation. Democratic Senator Elizabeth Warren wrote to the US Federal Trade Commission this week, urging it to conduct a “extensive and detailed review” of the MGM transaction, believing that the transaction may have an anti-competitive impact on the streaming media industry.

Melamed also said that from a strict antitrust perspective, more competition among large companies should be good news for companies that want to participate in transactions. He said: “If there are 10 competitors restricting you, the competitors may steal your customers. As a regulator, you will not worry as much as there are only two or three competitors.” He also said, but the paradox is that the regulation Organizations may decide that a more realistic way to counter the dominance of big technologies is to support their expansion into non-core areas. In other words, regulators can ensure that Facebook, Google, Amazon, Apple, and Microsoft will not dominate an industry by promoting competition with each other and with other big companies such as TikTok, Disney or Comcast.

TikTok and Instagram join the battle, the honeymoon period of the US streaming media market is over

Honeymoon period is over

During the new crown pneumonia pandemic, because of the launch of the home isolation policy, American streaming video service providers ushered in a rare opportunity for development. Comcast’s NBC Universal, Viacom CBS, AT&T’s Time Warner and Discovery all launched streaming video services during the pandemic. Driven by hundreds of millions of people in China, streaming video has become one of the big winners of this pandemic, and the usage of subscription services has surged. According to data from research company Conviva, in the fourth quarter of 2020, Americans spent 44% more time on streaming video than a year ago.

Now, the streaming media war has really begun. Media and technology companies will need to show investors that when everyone can go out, they can still increase streaming media users. Identifying winners and losers is not the easiest task. But an easy way to measure which companies are doing well and which ones are not good is to look at two pieces of data: the total number of subscribers and the average revenue per user.

The problem is that not all companies will disclose this data. If a company chooses to confuse them, there may be reasons for it. Subscribers and average revenue per user may be the most obvious signs of who has won or lost in this streaming media war. As the pandemic subsides, here is the current status of the main players in the American streaming war:

Netflix

· Has 208 million paid subscribers

74.4 million subscribers in the U.S. and Canada

The average revenue per user in the United States and Canada is $14.25

Netflix is ​​the gold standard for transparency. The company divides paid subscription users and average revenue per user for its U.S. and Canada, EMEA (Europe, Middle East and Africa), Latin America and Asia Pacific regions. Netflix has no advertising revenue, so there is no need to disclose financial status related to commercial advertising.

Disney

·Disney+ has 103.6 million subscribers, and the global average revenue per user is US$3.99

·Hulu SVOD has 37.8 million subscribers, with an average revenue per user of $12.08

·Hulu SVOD+Live TV has 3.8 million subscribers, with an average revenue per user of US$81.83

·ESPN+ has 13.8 million subscribers, with an average revenue per user of US$4.55

Disney’s data is somewhat transparent, but not as clear as Netflix. Instead of explicitly listing the number of Disney+ users, Disney included Hotstar, a significantly lower-priced and faster-growing Indian streaming service, into its Disney+ data. The company has not released data for each region. There were reports last week that Disney+’s growth in the United States and Canada may stagnate. Disney did not clarify how many streaming media body passenger door is a free trial customers, such as the number of Verizon customers it provides one year of free service.

HBO and HBO Max from WarnerMedia

· Has 63.9 million global subscribers, including 44.2 million US subscribers

· Average monthly revenue per user is $11.72

The HBO numbers are quite confusing, AT&T can clarify, but choose to keep it vague. Some pay TV customers get the HBO Max service for free because they have already paid for HBO. The HBO Max service is also included in the packages of other AT&T wireless users. The company chose not to disclose how many people are using HBO Max. But it gives a reliable data on average revenue per user-highlighting the relatively high price of streaming services to investors. AT&T is currently splitting WarnerMedia and Discovery to merge. This transaction is expected to be completed in the middle of 2022.

Amazon Prime Video

The world has more than 200 million gold members-175 million of whom have watched TV series and movies in the past year

·Gold membership fee: US$12.99 per month, US$119 per year

Amazon did not announce the average revenue per user or the number of gold members, but the company’s approach to streaming media services is different from other companies. Most gold members may not only be video subscribers, but can also enjoy free and fast delivery from Yamama, discounts at Whole Foods, and other benefits. Unlike other streaming media service providers, Prime Video’s lack of information disclosure is not a red flag.

apple

The number of Apple TV+ global subscribers is unknown

·The average revenue per user is unknown

Among all streaming video service providers in the United States, Apple has the lowest transparency. Since the launch of the Apple TV+ service in November 2019, the company has hardly disclosed any information about the service. Apple gave away one year of Apple TV+ subscription service for free, and then extended these free trials. Many of these trials will end, and users will need to decide whether they want to spend $4.99 a month on this service. Maybe Apple is waiting to announce statistics until it starts to earn recurring revenue from users.

Having said that, Apple has extended the free trial from the very beginning for a reason-Apple TV+ has a serious shortage of content, especially during the pandemic that many original content has been postponed. Apple does not have a library of movies and TV series to compete with other streaming video service providers, and the monthly offer of $4.99 seems unreasonable. In this case, don’t expect Apple to disclose Apple TV+ data in the next few quarters.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/tiktok-and-instagram-join-the-battle-the-honeymoon-period-of-the-us-streaming-media-market-is-over/
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