Who's winning the fight to dominate streaming media? Inside looks from Netflix, Quibi, Spotify, and more.

Insights: The Streaming Wars

[MUSIC PLAYING] MICHAL LEV-RAM: Netflix has been a really interesting company to watch over the years because it's made these really huge, disruptive pivots, and it's kind of done it at exactly the right time. It started out, as most of us know, as a DVD by mail company. And when the time came and they felt that people were ready to go into streaming and consume their content that way versus DVDs, they already had a built-in subscriber base. Netflix has managed to get through its former transitions really, really well. And this next one is a really big one, and it's really different because technology isn't going to win the game. At this point, it really is about content. Content is king. CINDY HOLLAND: We anticipated that the more successful we became, the less interested others would be in licensing content to us. And we also anticipated that as the marketplace heated up and others entered into the same part of the business-- Amazon, Hulu, others in the US and then others around the world-- that pricing for those very same TV shows and movies that we were licensing from others would increase. And at some point, it would be more efficient and more advantageous for us to be producing our own content. Our roots are as a technology company, but from the very beginning the company was founded on the belief that consumers love movies and TV shows, and wanted to have different ways of accessing them. From that perspective, we're not so different from any other entertainment company, and it's human beings deciding to work with other human beings and support them in the interest of making great art. We're really focused on finding the best stories that we can deliver to our members around the world. One of the ways that we can determine what's best is by having a lot of information about what people are interested in watching. MICHAL LEV-RAM: I think Netflix's technology, its ability to curate so much data and to use it has been kind of a double-edged sword. They're using data on the content side in a lot of ways. I mean, they're able to measure things that networks would only dream of being able to measure. But that doesn't necessarily translate to having the best content around. There is an example of a recent show called The OA, which was hugely popular among its audience. They chose to cancel it after two seasons even though it was supposed to play for five seasons. And one thing that the algorithms didn't measure, at least not accurately, is the heart of and sort of how hardcore the audience was behind The OA. And so there's been this huge uproar. People are really outraged that this was an algorithmic decision. CINDY HOLLAND: Certainly, the fans of The OA would have loved to see it continue. I would have loved that myself, as a personal fan. But we also are running a business. We wanted to back their vision, and we were able to do that for two seasons. Ultimately, we do take how much viewing we get into account and measure it against what a project cost us. And we realized that we weren't able to continue that story in its current form. MICHAL LEV-RAM: Netflix, obviously, it did believes and it has seen that new shows that are popular, that have loyal followings can lead to retaining subscribers and to attracting new subscribers. But then the reverse is also true. If you're turning people off because you're canceling shows that they're just so, so into, then you risk losing them. So I think they're starting to run into some of the shortcomings of the algorithms and being so dependent on data. You really are seeing Netflix kind of in between this push and pull of its roots and also where it's headed to next. It's going to be really interesting to see what they do globally because if they can really crack the code on creating content in one country that appeals to a really large number of people in completely different regions of the world, I think that that's going to be a huge competitive advantage for them. BELA BAJARIA: What's interesting about storytelling in all of these different countries is that I think that people sometimes think about, would you try to make an international show, or do you try to make a global show? That kind of becomes a show for nobody because you're trying to really manufacture something that you'll feel that travels. What really travels naturally are universal stories, a story that feels real and authentic. And what we really hope to achieve is that in some instances, it will be a mirror that can reflect back to you or your life. And another way, some shows are just a window into an entire different group or culture that you didn't even know existed, or nuances about a story like that. MICHAL LEV-RAM: One upcoming show that they have greenlit is called Monarca, and that is being produced by Salma Hayek's company. BELA BAJARIA: It's such a fun show. Salma Hayek, who is obviously an amazing talent in front and behind the camera, produced it for us. We shot the whole thing in Mexico. And it's the type of show that is beautifully produced, crafted beginning to end, that has great impact in Mexico. But it's that show that lots of people around the world really enjoyed. SALMA HAYEK: I think that it's very smart what they've done. First of all, I think each territory, including Mexico, feels respected. They're not just consuming what they give them. They feel respected because they are making things for them, especially. And then there is that sense of pride, that the product that we are doing here has the standards and the level to be respected around the world. They give you a lot of freedom. They understand that you're talking about something, that it's an experience you know. They are respectful of it. I really have loved working with them. MICHAL LEV-RAM: It's hard to see a day where Netflix doesn't have to spend really, really big on getting really good content. People have really high expectations, and they can be fickle because they don't have to be loyal to just Netflix. They can move their money elsewhere. The race to create content that people want is just going to get more intense. BELA BAJARIA: For me, when I look at even more streaming partners or other places, and it's just a more competitive environment, I think, honestly, it's great for consumers. I think choice is great for consumers. I think being competitive, having a more competitive environment is great for us. It just keeps everybody on their toes. It keeps people innovating. I think in the end of the day, this more competitive landscape is exciting for everybody. CINDY HOLLAND: From the moment the Reed Hastings founded Netflix, he believed that the majority, if not all, of television watching would someday come through the internet to our homes. And so from that very premise we have anticipated that most, if not all, of the traditional players would move into the on-demand space. I think it's a fantastic time to be a content creator, and I think it's a fantastic time to be an audience member. [MUSIC PLAYING] 

Insights: Inside Netflix's Streaming Wars Strategy

Uncategorized

Netflix is betting big on original content.

Inside Netflix's Streaming Wars Strategy

The streaming wars are heating up, and Netflix is looking to original content to keep subscribers loyal and attract new members.

Netflix has been a really interesting company to watch over the years because it's made these really huge, disruptive pivots, and it's kind of done it at exactly the right time started out of most of us know as it DVD by mail company. And when the time came and they felt that people were ready to go into streaming and consume their content that way versus DVDs, they already had a built in subscriber base. Netflix has managed to get through its former transitions really, really well on Dhe. This next one is a really big one, and it's really different because technology isn't going to win the game, you know, at this point, it really is. It's about content. Content came, be anticipated that the more successful we became, the less interested others would be in licensing content to us. And we also anticipated that as the marketplace heated up and others entered into the same part of the business, Amazon, who others in the U. S. And then others around the world that pricing for those very same TV shows and movies that we were a licensing for mothers would increase, and at some point it would be more efficient and more advantageous for us to be producing our own content. Our roots are as a technology company, but you know, from the very beginning the company was founded on the belief that consumers love movies and TV shows and wanted to have different ways of accessing them. From that perspective, we're not so different from any other entertainment company and its human beings deciding to work with other human beings and support them in the interest of making great art really focused on finding the best stories that we can deliver to our members around the world. One of the ways that we can determine what's best is by having a lot of information about what people are interested in watching. I think Netflix is, uh, technology is its ability to thio jury so much data on dhe use. It has been kind of a double edged sword. They're using data on the content side and a lot of ways I mean, they're really they're able to measure things that networks would only dream of being able to measure. But that doesn't necessarily translate to having the best content around. There's an example of ah recent show called The Away, which was hugely popular among its audience. They chose to cancel it after two seasons, even though it was to play for five seasons. And one thing that the algorithm didn't measure, at least not accurately is the heart of and sort of, how hard core the audience was behind that away. And so there's been this huge uproar. People are really outraged that, like this was an algorithmic decision. Certainly the fans of the okay would have loved to have seen it continue. I would have loved that myself is a personal fan. But, you know, we also are running a business. We wanted to back their vision, and we were able to do that for two seasons. You know, ultimately, we do take how much viewing we get into account and measure it against what a project cost us, and we realized that we weren't able to continue that story in its in its current form. Netflix. Obviously, you know, he did believes that it has seen that new shows that are popular that have loyal followings can lead to retaining subscribers and attracting new subscribers. But then, you know the reverse is also true. You're turning people off because you're canceling shows that they're, you know, just so so into, Then you risk losing them. So I think they're starting to run into some of the shortcomings of the algorithms and being so dependent on data. You really are seeing Netflix kind of, you know, between this push and pull of its roots and also work headed to next, it's going to be really interesting to see what they do globally, because if they can really crack the code on creating content in one country, that appeals thio a really large number of people in completely different regions of the world, you know that that's really I think, that that's going to be a huge competitive advantage for them. What's interesting about storytelling? It always different countries is that, you know, we think that people something to think of it. Would you try to make an international show, or do you try to make a global show that kind of becomes a chauffeur? Nobody, right, because you're trying to overly manufacture something that you'll feel that travels. What really travels naturally are universal stories. Write a story that feels really an authentic and What we really hope to achieve is that in some insensitive it will be, you know, a mirror that we can reflect back to through the view or your life and another way. There. Some shows we're just window into an entire different group or culture that you didn't even know what existed or new one is about through a story like that. One upcoming show that they have greenlit is called Man Arca and that is being produced by Selma Hikes Company. It's such a fun show, some high end who is obviously an amazing talent in front and behind the camera produced it for us. We shot the holding in Mexico and the type of show that is, you know, beautifully produced, crafted, you know, beginning to end. That has great impact of Mexico. But, you know, it's that show that lots of people around the world really enjoyed. I think that if there's Martin what they've done, first of all, I think it's territory, including Mexico feels respected. They're not just consuming what they give them. They feel respected because they are making things for them, especially under there is that sense of pride that the product that we are doing here, Travis standards on a level to be respected around the world. Did you a lot of freedom. They understand that something about something that experience, you know, they are respectful of it. I really have loved working with him. It's hard to see a day where Netflix doesn't have to spend really, really big on getting really good contact. People have really high expectations, and they can be fickle because they don't have to be loyal to just Netflix. They couldn't move their money elsewhere. The race to create content that people want is just going to get more intense for me when I look at sort of even more of the streaming partners or other places, and it's just a more competitive environment. I think honestly, great for consumers. I think choice is great for consumers. Everything being competitive, having a more competitive environment is great for us, right? It just keeps everybody on their toes that keeps people innovating. I think in the end of the day, this more competitive landscape is exciting for ever. From the moment that Reed Hastings founded Netflix, he believed that the majority, if not all, of television watching would someday comes through the Internet to our home. And so from that very premise, you know, we have anticipated that most, if not all of the traditional players would move into the on demand face. I think it's a fantastic time to be a content creator. Andi. I think it's a fantastic time to be an audience member.

 ANDREW NUSCA: What actually is Quibi? Short form video, right? MEG WHITMAN: Well, Quibi is short form, very high quality video made from mobile. Like Hollywood quality video on a platform designed by the best of Silicon Valley in an entirely new format, you know, 10 minutes or less. JEFFREY KATZENBERG: In the first 12 months, we will publish somewhere between 5,000 and 6,000 chapters or quick bites. MEG WHITMAN: Quibis. JEFFREY KATZENBERG: Quibis. So literally, 6,000 Quibis in one year, so. ANDREW NUSCA: An enormous amount of content. MEG WHITMAN: Yeah. JEFFREY KATZENBERG: And we needed everybody to actually make content for us. ANDREW NUSCA: Meg, how do you get it to people? So one of the biggest challenges in the current media environment is distribution. MEG WHITMAN: Right. ANDREW NUSCA: A lot of companies have distribution, but not content. A lot of companies have content, but no distribution. MEG WHITMAN: But no distribution. ANDREW NUSCA: How do you get this great stuff in front of people? MEG WHITMAN: Well, this is an app, a Quibi app that you can download from the Apple Store or Google Play, so you'll be able to do it in the normal way. And then we will do distribution deals with a number of the telcos. We're going to launch in the US and Canada at first, so we will pick a telco to launch with. And in terms of a bundled deal, there might be an opportunity to do something with a streaming service. But then we have to explain to people what this is because it's an entirely new concept. So we will do brand marketing and make sure people understand what we offer. Because it's a completely different use case. Often, people think, oh, well, it's sort of like a Hulu or a Netflix. We love Hulu and Netflix. They've done amazing things. But this is an entirely different use case. It's on-the-go viewing, and we have to explain that to people. And then of course, we'll do content marketing. Not only our lighthouse shows, but also what we call our daily essentials, which is making things like news, we'll curate into a morning, noon, and night news offering in 6 and 1/2, 7 minutes. JEFFREY KATZENBERG: We went out and talked to every one of the major media companies and explained to them what we wanted to do. And they saw right off the bat that if we are right, if this is successful, it's a growth opportunity for the entire ecosystem. So not only is it good business for them individually, but for the industry as a whole, this actually could be a big new opportunity. And out of that, not only did they agree to give us access to the best show running talent, give us access to their best IP, but they actually invested. MEG WHITMAN: And frankly, given that there is no library to go by, without all eight major studios and a couple of the independents, I'm not sure that anyone could make the amount of content that we need to be successful. ANDREW NUSCA: How do you make sure that your end users consume? I know that they're spending time on phone because so am I. So are you. However, how are you going to get them to spend a few dollars on that? Because they're not today. And that's a big change in consumer behavior. MEG WHITMAN: Well, I think it's a couple of things. One is the content has to be great, right? It has to be unique content that fits that on-the-go, on-the-move moments every day. So it's a very unique use case that has to have a great content strategy. And then the experience has to be differentiated. Today, watching video on your mobile is a good experience, but it's not a fantastic experience. And so we need to change the way content is shopped to some degree, and then how we display it on the phone and how we handle changes in light environments and other things in a way that people go, wow, this is amazing, fantastic content in a user experience that they've not seen before. And then we're going to have to tell people about it. And if it's good, certainly, there'll be some virality to it as well. ANDREW NUSCA: So when you're talking about light environments, you're talking about literally being out in the open world and not-- MEG WHITMAN: Think about it. ANDREW NUSCA: --inside in a theater or a dark home. MEG WHITMAN: We're in this environment right now. If you walked out onto the street, it would be a completely different light environment. You got into your car, it would be another light environment. And we have to be able to adjust for that, without you leaving the app today and going to the controls on your phone. And just, there's 10 or 15 examples where I think we can make a meaningful difference from a tech platform perspective. JEFFREY KATZENBERG: So here's an amazing statistic that says when everyday there are these things that reveal themselves to us, and everyday we look at each other and we go, touchdown. So here's the latest one. In 2017, the average user in our demographic watched 38 and 1/2 minutes a day of short form video on a mobile device. ANDREW NUSCA: And this demographic is-- MEG WHITMAN: 25 to 35. ANDREW NUSCA: Got it. JEFFREY KATZENBERG: OK. This year in 2018, it passed 60 minutes. So think about that people are doing more and more of what we are setting out to do. They're watching more and more. We're not fighting a trend. We're just, we're literally diving right into-- they're leading. We're just going to go try and catch up with them. This is the old Wayne Gretzky. You can't skate to where the hockey puck is. You've got to go to where it's going. And that's what we're doing. ANDREW NUSCA: Tell me a little bit about how you make money, and just as well, how your content creators make money. MEG WHITMAN: So this will be much like the Hulu model. There will be a subscription with advertising, like a 10-second pre-roll in front of each piece of content, and then a subscription per month with no advertising. So that's our monetization mechanism. And it's differentiated in some ways because if you think about, well, why has no one done super high quality content in short form, it's because if the only way to monetize that content is advertising, it doesn't pay. Because at the kind of budgets that Hollywood and TV shows work at, you've got to have a subscription companion to the advertising. So that's how we make money. ANDREW NUSCA: Jeffrey, how big of a market opportunity do you think this is? You've been playing in content for a long time. JEFFREY KATZENBERG: It's unlimited. I mean, it's a global platform. And by 2020, there'll be three billion smartphones. That's our addressable market. 1% or 2% of a three billion market is a phenomenal, phenomenal success. Anything beyond that is extraordinary. But the thing that excited us about it is, is that, creatively, it's an opportunity to innovate in a way that is new and unique and is game changing. And for business entrepreneurs, for creators, if we get it right, the sky is the limit. There is no ceiling on this one. And that comes along once in a lifetime, if ever. You're lucky if it comes along once in a lifetime. And we've had some of those experiences. eBay was once in a lifetime. MEG WHITMAN: Sure. JEFFREY KATZENBERG: Disney, DreamWorks, these were once in a lifetime opportunities. This is one of those. And so we're excited. 

Insights: Quibi Brings Hollywood to Mobile

Hollywood and Silicon Valley look to disrupt digital video.

Quibi Brings Hollywood to Mobile

what actually is quippy short form video, right? Well, Quimby is short for very high quality video made from mobile, like Hollywood quality video on a platform designed by the best of Silicon Valley in an entirely new format, you know, 10 minutes or less. In the 1st 12 months, we will publish somewhere between five and 6000 chapters or quit. Quit being so literally 6000 quid bees in one year, an enormous amount of content. And yeah, and we needed everybody to actually make content for us. May how do you get it to people? So one of the biggest challenges in the current media environment is distribution, but, um, a lot of companies have distribution, but not content. A lot of companies of content distribution. How do you get this great stuff in front of? Well, this is an app, you know, equipe app that you can download from, you know, the Apple store or Google play. So you bail to do in the normal way, and then we will do distribution deals with, you know, a number of the tacos we're gonna launch in the U. S. And Canada at first. So we will pick a tell kowtow launch with In terms of a bundle deal, there might be an opportunity to do something with streaming service. But then we have to explain to people what this is because it's an entirely new concept. So we will do brand marketing and make sure people understand what we offer because it's a completely different use case. Often people think, well, sort of like a whole ou r Netflix. We love who on Netflix. They've done amazing things, but this is an entirely different use cases on the go viewing, and we have to explain that to people. And then, of course, we'll do content marketing not only our lighthouse shows, but also what we call our daily essentials, which is, you know, making things like news will curate into a morning, noon and night news offering in six and 1/2 7 minutes. You know, we went out and talked every one of the major media companies and explain to them what we wanted to do. And they saw right off the bat that if we are right, if this is successful, it's a growth opportunity for the entire ecosystem. So not only is a good business for them individually. But for the industry as a whole, this actually could be a big new opportunity. And all of that, Not only did they agree to give us access to the best show running talent, give us access to their best I t, but actually invested. And frankly, given that there is no library to go by without all eight major studios and a couple of independence, I'm not sure that anyone could make the amount of content that we need to be successful. How do you make sure that your end users consume? I know that they're spending time on phone because So my, so are you. However, how are you going to get them to spend a few dollars on that? Because they're not today. And that's a big change in consumer behavior. Well, I think it's a couple things. One is the content has to be great, right? It has to be unique content that fits that on the go, you know, on the move moments every day. So it's a very unique use case that has to have ah, great content strategy and the next appearance has to be differentiated, you know, today watching video on your mobile is a good experience, but not fantastic appearance. And so we need to change the way content is shot to some degree, and then how we display it on the phone and how we handle changes in light environments and other things in a way that people go. Wow, this is amazing, fantastic content in the user experience that they've not seen before. And then we're gonna tell people about it, and if it's good, they're you know, certainly there will be some morality to it as well. So when you're talking about light environments, you're talking about literally being out in the in the open world and not inside in a new environment right now, if you walked out onto the street, that would be a completely different environment. Invite environment you got into your car. It would be another light environment, and the we have to be able to adjust for that without you leaving the app today and going to the you know, the controls on your phone and just theirs 10 or 15 examples where I think we can make a meaningful difference from a tech platform perspective. So here's an amazing statistic, which is, you know, when every day there were these things that reveal themselves off, and every day we look at each other and we go touchdown. So here's the latest one. In 2017 the, uh, average, uh, user and our demographic watched 38 a half minute today of short form video on a mobile device. And this demographic is when you live to 35 okay, this year in 2018 it past 60 minutes. So think about that. People are doing Maura and Maura of what we are setting out to do. They're watching more and more. We're not. We're not fighting a trend. We're just we're literally diving right into they're leading. We're just gonna go try and catch up with the old Wayne Gretzky. You can't skate to where the hockey puck is. You've got to go to where it's going, and that's what we're doing. Tell me a little bit about how you make money and just as well how your content creators make money. So this will be much like the Hula model. There will be a subscription with advertising like a 12th pre roll in front of each piece of content and then, um, a subscription per month with no advertising. So that's our monetization mechanism. And, um, it's differentiated in some ways because if you think about well, why has no one done super high quality content in short form? It's because it's the only way to monetize that content is advertising. It doesn't pay because at the kind of budgets that you know, Hollywood and TV shows work out, you can't. You've gotta have a subscription companion to the advertising. So that's how we make money. Jeffrey. How big of a market opportunity do you think this is? You've been playing in content for a long time. It's unlimited. I mean, it's a global platform. And, uh, by 2020 there'll be three billion smartphones. That's our addressable market. One or 2% of a three billion market is a phenomenal, phenomenal success. Anything beyond that is, you know, extraordinary. But But the thing that excited us about it is is that creatively, it's an opportunity to innovate in a way that, um, his new and unique and is game changing. Um, and for business entrepreneurs, for creators, if we get it right, the sky is the limit. There is no ceiling on on this one And that that comes along once in a lifetime. If ever you're lucky that comes along once in a lifetime and that we've had some of those experiences. EBay was once in a lifetime. You know, Disney, DreamWorks. These were once in a lifetime opportunity. Um, this is one of those, and so we're excited.

 ALEX NORSTROM: So if you look back in time, let's say 20 years ago, there were roughly 20,000 to 30,000 artists that were living off of their art. And cost of distribution was high. So you saw that the money went for the proven artists. And you couldn't really fault the industry for that, right? So at the same time, on the customer side, an album cost 15 bucks on average. And so you'd think twice before you would go for a new artist. Today, that cost is virtually zero, right? So just on Spotify alone, we have 11 billion artist discoveries every month, which literally means that there are 11 billion chances for artists like Fletcher to gain a new fan. So I think we've come a long way from what you described. If you peek a little bit under the hood, there are really three things that power the business models. One is Freemium. So you have the free product, and then you have separately also the premium product. And these are complementary products, right? So you start out on free, and eventually if you want more control and desire all the extras, you move on to premium. So the separate but complementary nature. And then you have ubiquity, which is hugely important for us. As an independent company early on, we decided we're going to be everywhere where our listeners are, right? Not tied to one specific ecosystem, because in the post PC era, people tend to have multiple devices, and they change them out over time. Thirdly, personalization-- also key to our business. We wanted to make a product that would improve on itself over time. All right, so for instance, a playlist would, because of our investments in machine learning and algorithms, improve over time. And if they get better over time, you will then stick around for longer. And if you do that, that's good business for us. So those are the three things that are really kind of making up our model and power the kind of growth of new things like Discovery Weekly and Summer Rewind and all these things that we put on top of this. 

Insights: Positives and Pitfalls of Spotify's Streaming Revolution

The platform was once derided for destroying an industry.

Spotify's Streaming Revolution

The streaming platform once derided for destroying an industry is now hailed for rescuing it. Can now-public Spotify discover profits? And how does its foray into podcasts figure?

If you look back in time, let's say, 20 years ago there were roughly 20 to 30,000 artists that were living off their art and cost. The distribution was high. So you you saw that the money went for the proven artist and he couldn't really fault industry for that, right? So at the same time, on the customer side, you know an album called 15 Bucks on average, as you think twice before you would go for a new artist. Today, that cost is virtually zero. So Justin Spotify along. We have 11 billion orders discoveries every month, which literally means that they're 11 billion chances for artists like Lecture to gain a new son. So I think we've come a long way from from from when you would you describe if you peek a little bit under the hood. The really three things that power the business models wanted freedom. You have the free product on, then you have separately or for the premium product, and these are complementary products. You start out on free, and eventually, if you want more controlling desire, all the extra C move on to premium. Um so the separate but complementary nature on. Then you have ubiquity, which is hugely important for us. That an independent company. Early on, we decided we're gonna be everywhere where our listeners are not tied to one specific eco system. Because in the post, p p Sierra people tend to a multiple devices changed amount of time. Thirdly, personalization also keep our business. We wanted to make a product that would improve on itself over time. So, for instance, the playlist would, you know, because of our investments in machine learning algorithms improved over time. And if they get better over time, you will don't stick around for longer on. If you do that, that's good. Good business for us. Um, so those are the three things that really kind of making up for our model on power, That kind of growth of new things, like, you know, Discovery Weekly and someone rewind and all these things that we put on top of this

 LISA MARIE SEGARRA: Welcome to Fortune Tech Debate, where we discuss the issues of the day in two minutes. Today, we are talking about AMC theaters and their new streaming site. I've got to say, David, this feels like a weird move. What do you think? DAVID MORRIS: Well, we definitely do have a lot of streaming options out there nowadays. But for AMC, this is much more about making things fit together with their theater operations, their other properties, and getting some synergy going. LISA MARIE SEGARRA: You know, you say synergy, I say stretching themselves too thin. I think that AMC actually delivers a great theater experience, but they are a theater company. They're not a tech company. It feels like they are really watering down their own brand. They know how to do theaters well. I know that they have these other opportunities with licensing that they have. But I don't think they're using it properly. DAVID MORRIS: Well, one of the problems there is that when you're really good at theaters, you've got a limit. Theaters are not growing, plateau of their revenue. You can only sell so many waffle chicken sandwiches. And so this allows them to, through their loyalty program, which is hooked into the new streaming option, get people motivated to do both at the same time and hopefully profit on both sides. LISA MARIE SEGARRA: Yeah, that's the thing about growth. Streaming is one thing that already has way too much growth. You've got Disney Plus coming. You've got Apple TV Plus. Plus, people that have been around or companies that have been around for a while, like Netflix and Hulu. Really, do we need another streaming service? And especially one that this isn't even their main focus, are they really going to deliver the best product? Probably not. DAVID MORRIS: Yeah, that remains to be seen, the experience. But it's definitely not trying to compete with Disney Plus or Netflix. It's an a la carte offering. It's not a subscription. If you are part of the loyalty program, you get points for buying movies online that then motivates you to go into the theaters, which is really interesting. They may actually be able to use their streaming service to get more people to go to the movie theater, which has not been an easy thing to accomplish lately. LISA MARIE SEGARRA: Yeah, they should focus on that problem. They are being too greedy, and I think it's going to come back to bite them. We've definitely seen other companies overreach, and it's been their downfall. So I would hate to see that happen here, too. 

Insights: Why Is AMC Getting Into the Streaming Business?

It's just launched AMC Theaters On Demand.

Why Is AMC Getting Into the Streaming Business?

Welcome to Fortune Detective A where we discuss the issues of the day in two minutes today we're talking about AMC, Cedars and their new streaming site. I gotta say, David, this feels like a weird move. What do you think? Well, we definitely do have a lot of streaming options out there nowadays. But for and see, this is much more about making things fit together with the theater operations. There are other properties and getting some synergy going. You know, you face energy, I say, stretching themselves too thin. I think that AMC actually delivers a great theater experience, but they are a theater company. They're not a tech company. Feels like they are really watering down their own brand. They know. How did you theaters? Well, I know that they have these other opportunities with licensing that they have, but I don't think they're using it properly. Well, one of the problems there is when you're really good at theaters, you've got a limit. Theaters not growing plateau of their revenue. You can only sell so many waffle chicken sandwiches. And so this allows them to through their loyalty program, which is hooked into the new streaming option. Get people motivated to do both at the same time and hopefully profit on both sides. Yeah, that's the thing about growth. Streaming is one thing that already has way too much growth. You've got Disney Plus coming. You've got Apple TV Plus plus people that have been around or companies that have been around for a while, like Netflix. And who Lou really do. We need another streaming service and especially one that this isn't even their main focus. Are they really going to deliver the best product? Probably not. Yeah, that remains to be seen the experience, But it's definitely not trying to compete with Disney Plus or Netflix. It's in all the cart offering. It's not a subscription. If you are part of the loyalty program, you get points for buying movies online. That motivates you to go into theaters, which is really interesting. They may actually be able to use their streaming service to get more people to go to the movie theater, which has not been an easy thing to accomplish lately. Yeah, they should focus on that problem. They are being too greedy and they cook. It's going to come back to bite them. We've definitely seen other companies overreach, and it's been there down call, so I would hate to see that happen.

 LISA MARIE SEGARRA: Welcome to Fortune Tech Debate, where we discuss the issues of the day in two minutes. Today, we are talking about Google Stadia and Apple Arcade and whether streaming is the future of games. Chris, what do you think? CHRIS JOSLIN: I think it is. I think that the console experience is going to disappear. It's clunky. It costs too much money. I went and bought a Switch recently. And by the time I left the store, I had spent $400, right? I think this is going to be something that people are really going to attach to. You know, they can just turn on their laptop and stream Call of Duty with Stadia. You know? I mean, like, this is the future. LISA MARIE SEGARRA: Yeah, it's interesting that you mentioned the cost, though. For example, games typically, with some exceptions, cost about $60. That hasn't changed much over the last decade. That can't be good for the teams working behind this. And especially when you have EA and Activision and Telltale laying off people, you wonder, is this price model, a subscription type model, going to be sustainable for the game companies? CHRIS JOSLIN: Well, I don't think so. So what I think is going to happen is developers are going to start leaning towards the subscription model. They're going to want their games to be easily accessible. And so they're going to basically pull back their budget so that they can optimize their games for these more streaming type services, or like Apple, right? Smaller games that you can download quickly. People don't want to waste time. You know, you go and buy a game now. It's $60. You bring it home, you put it in the console, and you have to wait two hours for it to install, depending on your internet connection, obviously. So I think-- LISA MARIE SEGARRA: Yeah, but you said it. It depends on your internet connection. And if you have to take a long time to download it, imagine the lag and the terrible experience if you don't have a solid enough internet connection and you have to stream the games now. That is just not going to work for a lot of people. It's going to leave a massive market out that just don't have control over the internet in their area. CHRIS JOSLIN: Yeah, I think that's a fair point, except I don't think that the console games are going to go away. I think that the streaming, though, is really just going to become the bigger part of the market share. LISA MARIE SEGARRA: Yeah, maybe for a bit, but I think it's ultimately going to just be a fad. 

Insights: The Future of Gaming Isn’t Consoles, It’s Streaming

The Future of Gaming Isn’t Consoles, It’s Streaming

way. Welcome Fortune, Detective eight, where we discuss the issues of the day in two minutes. Today we are talking about Google stadia and Apple Arcade and whether streaming is the future of games, Chris, what do you think? I think it is. I think that the console experience is going to disappear. It's clunky. It costs too much money. I went and bought a switch recently, and, uh, by the time I left the store, I spent $400 right? I think this is gonna be something that people are really gonna attach to. You know, they can just turn on their laptop and stream call of duty with stadium, You know, I mean, like, this is the future. Yeah. It's interesting that you mentioned the cost. For example, games typically with some exceptions, cost about $60. That hasn't changed much over the last decade. That can't be good for the team's working behind this. And especially when you have, you know, e A and Activision and telltale laying off people. You wonder. Is this price model a subscription type model going to be sustainable for the game companies? Well, I don't think so. So what? I think is going to happen is, uh, developers are going to start leaning towards the subscription model. They're gonna want their games to be easily accessible. And so they're gonna basically pulled back their budget so that they can optimize their games for these more streaming type service's or like Apple, right, smaller games that you can download quickly. People don't wanna waste time, you know. You go on by a game. Now it's $60. You bring it home, you put it in the console and you have to wait two hours for it to install. Depending on your Internet connection, obviously. So I think, Yeah, but you said it. It depends on your Internet connection. And if you have to take a long time to download it, imagine the lag and the terrible experience. If you don't have a solid of Internet connection and you have to stream the gains now, that is just not going to work for a lot of people. It's going to leave a massive market out there. Just I don't want control over the Internet in their area. Yeah, I think I think that's a fair point, except I don't think that the console games. They're gonna go away. I think that the streaming, though, is really just gonna become a bigger part of the market. Share. Yeah, maybe for a bit, but I think it's ultimately going to just be sad.

[MUSIC PLAYING] SPEAKER 1: So what's king today? I mean, it's long been said that content is king and that that doesn't change. But today, is it your social media following and your ability to connect one-on-one? Or at least give the perception that you're connecting one-on-one with the fans? Is it your platform and the ownership of the platform? What is it? SPEAKER 2: I think for us, we've really enjoyed-- The Handmaid's Tale is a perfect example of that-- is having the data or about your customer. That one-to-one personal relationship that we have with our users gives us an ability to communicate with them in different ways. Not every subscriber of Hulu is a Handmaid's Tale watcher. They may watch Fear The Walking Dead, which we have the first season of. And they may watch a variety of other things. SPEAKER 1: Only the first season? Come on. CHARLIE: Well it's coming. It's coming. [LAUGHTER] SPEAKER 2: We'll get that second season. CHARLIE: Exactly. SPEAKER 2: And so we have 3,500 series of TV, and so we have these different groups of people watching different things. And that knowledge and information allows us to really go out and communicate with them in unique ways, both on the platform and off. And so for us, I think that's really critical. And I think it's an advantage that we bring to the market. SPEAKER 1: What, for example, have you found out about fans of The Handmaid's Tale that have helped you, in any way, to connect with them? To give them-- to distribute what they want? SPEAKER 2: Sure, well, you can look at exactly what they're watching. So we know that The Handmaid's Tale viewer correlates really well to another original that we have called Harlots. And so we can really look at those customers, really look at the unique attributes of them, and we can do look alike marketing to bring new people in. And then that's a database that we're collecting over time. And as you know, each and every year that goes by, you just get better and better at that. And so that's a pretty unique insight. And actually when I think about what Charlie has to do when he looks at Nielsen ratings, it doesn't really tell you what the viewers of Walking Dead are also watching on your platform or on the other platforms. And think that kind of data really helps you in a variety of ways. Not just for marketing back to new customers, but for what kinds of programming you should be making in the future. CHARLIE: Sure. And, well, we very much jumped into it. Built platforms that are based on not just Nielsen data at large but respondent level data. We work with a lot of third parties to build on our data sets and get pretty meaningful patterns. And what's interesting is you talked about you launched Handmaid's Tale, and you did it with Super Bowl spots. So there was an example this year where we used our analytics to look at our advertising on The Walking Dead and whether or not a Super Bowl spot would matter. It's the number one show on television, so does it need reach? Does it need frequency? When-- where is that event proximate to ours? And we very much used analytics in a way that again-- I don't know if you were generally surprised-- but 15 years ago, that wouldn't have been an analytics-based decision. [MUSIC PLAYING] 

Insights: Data Is the New King of TV and Streaming

Mike Hopkins, of Hulu, and Charlie Collier, of AMC, explain.

Data Is the New King of TV and Streaming

Mike Hopkins, CEO of Hulu, and Charlie Collier, president of AMC and Sundance TV, explain.

what What king today? I mean, it's long been said that content is king and that that doesn't change. But today Is it Is that your social media following and your ability to connect one on one, or at least give the perception that you're connecting one on one with the fans? Is it your platform and the ownership of the platform? What? What is it? I think for us, you know, we've really enjoyed in The Handmaid's Tale is a perfect example of that is having the data or about your customer? That one. The one personal relationship that we have with our users gives us an ability to communicate with them in different ways. You know, not every subscriber of who is a handmade still watcher. They watch. They may watch the walking dead, which we have the lab the first season of, and they may watch the variety of coming with that exactly, you know, So we have 3500 series of TV, and so we have these different groups of people watching different things, and that knowledge and information allows us to really go out and communicate with them and unique ways, both on the platform and off for us. I think that's really critical. I think it's an advantage that we bring to the market. What, for example, have you found out about fans of Handmaid's tale that have helped you in any way to connect with them, to give them to distribute What? Theywant? Sure. Well, you know, you can look at exactly what they're watching. So we know that The Handmaid's Tale viewer correlates really well to another original that we have called Harlot. So we can really look at those customers. Really look at the unique attributes of them, and we can do look alike marketing to bring new people in on. And then that's a database that we're collecting overtime, and each and every year that goes by, you just get better and better at that on. So that's a pretty unique insights. And actually, you know, when I think about what Charlie has to do when he looks at Nielsen ratings, it doesn't really tell you what the viewers of walking dead are also watching on your platform or on the other platforms and think that kind of data really helps you in a variety of ways, not just for marketing back to new customers, but for what kinds of programming you should be making in the future. We very much jumped into it bill platforms that are based on not just Nielsen data writ large but respondent level data. We work with a lot of third parties to build on our data sets and get pretty meaningful patterns. And what's interesting is, you know, you you talked about your launch handmaid's Tale and you did it with Super Bowl spies. So there was an example this year where we used our analytics toe. Look at our advertising on the walking dead and whether or not a Super Bowl spot would matter is the number one show in television. So does it need reach? Doesn't need frequency when you know where. Where is that event. Approximate two hours and we very much used analytics in a way that again, uh, I don't know if you were generally surprised, but 15 years ago that wouldn't have been on analytics based

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