The hosts dive deep into the challenges faced by popular free streaming services like Tubi and Roku, despite their impressive user bases. They dissect Comcast's earnings call and potential changes in cable network ownership, questioning the sustainability of ad-supported models. The upcoming election's effect on media consumption and industry dynamics is also explored, revealing a shift in audience behavior towards innovative platforms. Plus, there's a peek into the artistic process of orchestral scores intertwined with engaging discussions about new TV shows.
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Quick takeaways
Despite high subscriber counts for FAST services like Tubi and Roku, achieving profitability remains a considerable challenge within the industry.
Comcast's consideration of spinning off its cable networks reflects a broader strategic adjustment in the entertainment sector amidst evolving viewer behaviors.
Deep dives
Dodgers' World Series Triumph
The Los Angeles Dodgers secured a significant victory in the World Series, representing a major achievement for fans and the organization. Winning on home turf and overcoming both New York teams was emphasized as a best-case scenario, especially since it heightened the pain for Yankees fans. The celebration at the Dodgers’ stadium further added to the jubilation, showcasing the team's dominance during the postseason. This victory encapsulated the excitement and community pride surrounding the sport and the franchise.
Comcast's Cable Network Strategy
Comcast is exploring the potential sale of its cable TV networks, including brands such as Bravo and CNBC. This move signifies a strategic shift, as the company aims to get certain aspects off their books while maintaining its core cable business. Analysts have noted this study’s announcement suggests Comcast is testing the waters for interest from the market. The ongoing exploration coincides with broader trends in the entertainment industry, as companies adjust their strategies in response to changing viewer behaviors.
Challenges Facing Peacock
Peacock continues to struggle with profitability despite adding subscribers and leveraging events like the Paris Olympics and exclusive NFL games. The platform reported losses of $436 million, which although lower than the previous year, still raises questions about the sustainability of its business model. As subscriber numbers grow, the concern remains on how many additional price hikes are necessary to achieve profitability, especially given the limited ceiling on U.S. subscriber growth. The continuing exploration of password-sharing limitations has yet to be addressed, leaving uncertainty about how that might affect future growth.
Roku's Changing Business Model
Roku is transitioning away from providing detailed subscriber numbers, following a similar path recently taken by Netflix. The company aims to focus on revenue instead, which obscures vital metrics like average revenue per user, potentially masking declining financial health. Despite large user numbers for free ad-supported television (FAST), the profitability of these platforms remains elusive, with Roku reporting significant losses. The evolving FAST landscape serves as a reminder that user growth does not necessarily equate to profitability, prompting questions about the future of this genre in streaming.
FAST services are heralded for stratospherically high subscriber totals. Tubi has 80 million monthly active users, Roku’s got 85.5 million — Samsung is even at 88 million. So how come none of them are turning a profit? Elaine Low, Richard Rushfield and Sean McNulty evaluate free TV’s struggle (and how paid streaming compares). Plus: What Harris or Trump would mean for industry M&A; and NBCUniversal’s mysterious “study” of whether to spin off its cable networks.
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