Business of Media
Netflix meltdown a warning to the whole streaming industry
As he built Netflix into the world’s biggest streaming service, one of Reed Hastings’ management mantras was for his staff to “tell the emperor when he has no clothes”, reports the financial times’ Alex Barker and Anna Nicolaou.
With Netflix losing almost two-thirds of its market value since November and analysts likening its fall to the dotcom crash, Hastings on Tuesday (Wednesday AEST) finally heeded his own advice and admitted that his corporate strategy might be seriously underdressed.
In the course of an hour, the Netflix founder and chief executive jettisoned his long-cherished principles, reorienting a media group that changed Hollywood to cope with leaner times of slow growth and spending restraint.
Sharing passwords? In 2016, Hastings quipped “we love people sharing Netflix”. Now, he plans to crack down on the practice; Hastings estimated 100 million people have been sharing accounts.
Competition? For years, he has dismissed the threat of Disney, Apple and HBO, insisting Netflix’s biggest competitors were Fortnite, YouTube and “sleep”. On Tuesday, he admitted Netflix needs to “take it up a notch” because its competitors have “some very good shows and films out”.But perhaps the clearest about-turn was on advertising. Having always defended Netflix as an advertising-free zone that allows viewers to “relax” without being “exploited”, Hastings flung open the doors to marketing money.
But perhaps the clearest about-turn was on advertising. Having always defended Netflix as an advertising-free zone that allows viewers to “relax” without being “exploited”, Hastings flung open the doors to marketing money.
Now streaming commercials: Netflix’s 180-degree turn stuns advertisers
Netflix’s revelation that it will introduce commercials was met with a mix of shock, cheers and scepticism from an advertising community that’s been shut out of the streaming service up to now, reports Bloomberg’s Gerry Smith and Carly Wanna.
“I thought, there’s no way it’s going to happen,” said Brian Wieser, global president of business intelligence at GroupM, a WPP company whose clients include Ford, Google and Unilever. “It’s such a 180 from what they stood for.”
With TV viewership in decline, advertisers are flocking to the growing number of streaming services that include commercials, including Walt Disney’s Hulu, Comcast’s Peacock, Fox’s Tubi and HBO Max, now owned by Warner Bros. Discovery Inc. They’re all catering to consumers who are willing to sit through a few ads in exchange for paying a low monthly subscription fee or nothing at all.
Ben Roberts-Smith link to three more war murders, court told
Ben Roberts-Smith and his former SAS patrol commander are implicated in three previously undisclosed murders of unarmed Afghans, it was alleged on Thursday in a day of high drama in the war hero’s defamation case, reports News Corp’s Stephen Rice.
The former commander, who has been giving evidence on behalf of close friend Roberts-Smith in his case against Nine newspapers, has had his legal expenses – amounting to at least $65,000 so far – covered by the VC winner’s employer, the Seven Network, it was revealed.
The witness, known as Person 5, told the Federal Court in Sydney he only became aware on Tuesday morning that his legal fees were being paid by Seven.
Legal bills in Ben Roberts-Smith case may be $100 million
Billionaire Channel 7 boss Kerry Stokes stepped in to pay the legal fees of a key witness in the Ben Roberts-Smith defamation case because the Australian Defence Force had offered him no support, reports News Corp’s Matthew Benns.
The Victoria Cross recipient’s former SAS patrol commander identified as Person 5 told the Federal Court yesterday that his $65,000 legal fees were being covered by Seven.
He is just one of a string of witnesses whose bills are being picked up in the long-running legal battle that is estimated could run as high as $100 million.
On the other side Nine, which is being sued by Roberts-Smith for falsely alleging he committed war crimes, is funding the legal bills of a string of witnesses including former soldiers.
News Brands
First leaders’ debate was watched by more than 400,000
The first leaders’ debate between Scott Morrison and Anthony Albanese reached more than 400,000 viewers across the country and delivered Sky News its best ratings result in three years, reports AFR’s Miranda Ward.
Ratings company OzTam found it was watched by 175,000 people on subscription television, with an extra 17,400 people watching via Foxtel Now and Foxtel Go.
It was watched by an average audience of 102,000 across Sky News Regional and there were 121,000 live streams across digital platforms including skynews.com.au and News Corp Australia mastheads including couriermail.com.au.
Wednesday night’s People’s Forum was also the No. 1 streamed program of April so far for Foxtel’s news streaming service Flash.
Wednesday night’s People’s Forum’s TV audience was 30 per cent up on Sky News Australia’s previous highest rated debate, between Julia Gillard and Tony Abbott in 2010. It was also 84 per cent up on the 2019 People’s Forum between Morrison and former Labor leader Bill Shorten.
Television
TV star pulls election campaign
Popular television host Barry Du Bois has pulled out of the race for federal parliament, , reports NNews Corp’s Jonathon Moran.
After previously vowing to “keep the bastards honest”, Confidential can reveal the Living Room presenter has pulled out of running for a NSW seat in the Australian Senate for health and family reasons.
“When I announced I was running, there were thousands of people who were incredibly supportive but I have realised that the strain this election campaign was going to put on my health was too great a challenge to me as an individual,” the 61-year-old father of two told Confidential.
“None of us know how much time we’ve got left here and ultimately, I’m a father first and an individual second so my family and my health needed to come first.”
“I didn’t want to let anyone down and to do this job the way I need to in order to win and make a change, while still caring for my health and family, wouldn’t have been possible.”
Podcasting
Obamas to leave Spotify, seek podcast deal elsewhere
Barack and Michelle Obama’s time with Spotify Technology SA is coming to an end.
The former first family’s production company, Higher Ground, won’t be signing a new deal with the audio platform, according to people familiar with the negotiations. The company is instead talking to other distributors about a deal worth tens of millions of dollars, among the most-lucrative in the podcasting business, reports Bloomberg’s Ashley Carman and Lucas Shaw.
Higher Ground is in the middle of negotiations with several potential partners, including Amazon.com Inc.’s Audible and iHeartMedia Inc., said the people, who asked not to be identified because the conversations are private. The company wants to pick a new home within the next few weeks. It has talked with multiple big networks, including Spotify, but the Swedish streaming giant declined to make an offer, according to three sources familiar with the discussions.
Higher Ground is seeking a deal that will allow it to produce several shows and release them on multiple platforms at the same time. This could explain iHeart’s interest given that it hasn’t historically relied on an exclusive strategy for its podcasts. This is one reason why some potential bidders, like Spotify, have bowed out — a widely released show will end up on their service anyway. Companies like Spotify and Amazon have pursued exclusive rights to promote their own services.
The Obamas are each willing to appear in an eight-episode program, which for some bidders isn’t enough of a commitment to justify a deal comparable to those for shows like SmartLess, Call Her Daddy and My Favorite Murder. Those shows appear weekly, or with a frequency to close to that, while Higher Ground’s programs featuring the Obamas have been limited series.
Higher Ground signed a deal with the music streaming giant in 2019 as the Obamas planned their post-presidency media business. The company has produced a few podcasts since then, starting with The Michelle Obama Podcast, which features the former first lady chatting with friends and family on the subject of relationships. Spotify said that show was one of its five most popular podcasts in 2020.