Ad:Tech 2019 – “Nobody Watches Crap Anymore”
According to Jeff Cole, founder and director at research and policy institute Center for the Digital Future, “nobody watches crap anymore”. He also said: “That’s actually not true. We watch plenty of crap. Nobody watches what is crap to them anymore”.
Speaking at ad:tech Sydney this morning, Cole shared his thoughts and research around the disruption and change taking place in the media and entertainment business.
About four years ago, Cole was interested in how much money the average household was spending each month on communication services that didn’t exist a generation or two ago.
He said: “I’m not talking about landline phones which our parents and grandparents had. I’m talking about mobile phones, broadband, cable or satellite, television, Spotify, Pandora or Apple Music.
“Incidentally in America last year, we’ve seen incredible growth in movie subscription plans, which have become much cheaper.
“We found that the average household is spending US$290 a month on all these types of communication services that didn’t exist 30 or 40 years ago.
“Mobile phones have long moved from being a luxury to a necessity. The poorest Americans, the poorest Australians have mobile phones.
“In 2009, at the height of the global recession we saw about two billion American households give up broadband and revert back to dial-up to save $30-40 a month.
“They were back on broadband within a matter of weeks. Because of the internet they had gotten used to, Netflix and YouTube wasn’t possible without it. So Broadband has really moved from a luxury to a necessity.”
Cole also spoke about the changes to television, which he said in Australia is different to the US.
He said: “At our peak, 91 per cent of us (Americans) had cable or satellite. You (Australia) peaked at 32 per cent.
“And 91 per cent of American households were spending $90 a month on TV or cable.
“So what that means is that cord-cutters, the people who don’t subscribe any more are freeing up about $90.
“Or those cutting back on their package are saving about $50 a month.
“The first thing we see about that is that Netflix already has a lock on $10-12 of that television budget. And that’s not likely to change.
Cole said it “drives the head of Netflix crazy” that people pay just $10-12 a month for Netflix.
He also ran through the history of Netflix, which started as the “Red Envelope” business – a mail system where you’d spend $17 a month and you would have five DVDs mailed to you.
At its peak, they were the second biggest customer of the US postal service.
Then CEO Reed Hastings broke Netflix in half. The red envelope business became Qwikster and the streaming part of the business took off.
As it grew, Hastings did something that HBO and Showtime had never done: he added old television shows.
Then they added originals like House of Cards, Orange is the New Black and The Crown.
If you look at it through the lens of what people were spending (i.e. $17 a month to get five DVDs of recent movies sent to them by mail) then what Netflix subscribers get now (i.e. hundreds of recent movies, old television and original content series) is actually worth $50.
However, Hastings started at $8 and now, all he can do is raise it by $1 each year.
Cole continued: “Netflix has dominated this world. They’ve spent $11 billion in original production.
“The problem for Netflix is the only way they can continue to fund this massive production is to continue growing.
“The other thing that gnaws at them is that Amazon is spending $5-6 billion on original content. The moment Bezos thinks he’s tired of competing with Netflix, he can up that spending to $20 billion!”
The studios have of course been doing very well from Netflix.
Yet to make all this money, Cole argues they created their biggest competitor, following the news Disney will no longer be selling any more content to Netflix.
“The minute they did that, everyone knew they were going to start their own streaming service, which will start in December this year”.
Next came WarnerBros, followed by Universal. And, Cole expects to hear that Paramount and Sony will follow.
“What we’re getting right now for $10-12 [a month], we’re going to have to spend $40-50 a month to get movies and content from all these studios.
“I don’t think all of these services are going to survive. We’ve had this incredible bargain for a few years and some will not make the cut.
“The only thing that matters any more is content. You don’t care about channels. You care about the content.
“You’ve heard ‘content is king’. We seek out the good content. We only watch what we want to watch.
“We don’t have loyalty to channels, content is the only thing we see”.
Please login with linkedin to comment
adtechLatest News
hipages & Harry’s Cafe de Wheels Launch New Pie To Fuel Tradies While On The Tools
Motivated by its vision to become the most trusted partner in the trade industry, Australia’s largest online tradie marketplace, hipages, has launched a new campaign to help Aussie tradies have a more productive day on the tools. Launched in partnership with iconic pie company Harry’s Cafe de Wheels, the campaign features a first-of-its-kind ‘Tradie Pie’, […]
Megan Dalla-Camina: What Is The True Cost Of Cutting DEI Spending?
As the cost of living bites, there’s a real danger that more companies will cut DEI spending. Megan Dalla-Camina, founder and CEO of Women Rising ( a women’s leadership program) and B&T’s Woman of the Year at our 2023 Women Leading Tech Awards, warns that the long-term downside could outweigh any short-term savings. The numbers […]
Thrive Introduces A Batch Of New Senior Leadership Roles
Thrive, an Australian-based PR and Communications agency has strengthened its team, creating new senior roles in their Sydney and Melbourne locations. Thrive has created new senior leadership roles for Ashleigh Bruton as integration director and Natalie Liebmann as associate director at Thrive Sydney and appointed Chloe Jeffers as business director in Melbourne. Thrive Melbourne has […]
It’s Coming Home! Sponsors Make Subbuteo World Cup Finals Free
The World Cup Finals of football (soccer) table game Subbuteo will be free to all spectators, thanks to sponsorship from Royal Tunbridge Wells Borough Council and Eland Cables. Just when you think you’ve seen it all, the universe throws another weirdly niche sporting event at you. The World Cup finals will see players from 32 […]
Media Bigwigs Bet On Predictive Intelligence Platform Prophet In $5M Seed Funding
Media industry leaders including Australia Community Media exec chairman Antony Catalano, Dentsu Creative APAC CEO Cheuk Chiang and Seek co-founder Matt Rockman have all invested in Prophet, a predictive intelligence platform that promises marketers predictive ROI on campaigns. Lead image: Sean Taylor, co-founder and executive chairman; Jordan Taylor-Bartels co-founder and CEO; and Paul Veltman, chief […]
CommsDeclare Brands Shell Energy An “Olympic Gaslighter” & Urges Agencies Not To Pitch For Creative Account
CommsDeclare’s Belinda Noble has branded Shell Energy an “Olympic Gaslighter” and urged agencies not to pitch for its creative account. Speaking to B&T, Noble said that Shell and its various subsidiaries “talk up” its role in the energy transition but that its recent abandonment of one emissions target and the weakening of another show that the […]
AFL Wins Battle With Warner Bros. As New AFL Team Is Revealed
After being criticised for its logo, which resembles Warner Bros. Looney Tunes character Taz, the AFL has reached an amicable agreement with the entertainment giant. Lead Image: Tasmanian Football Club Chair, Grant O’Brien. The Tasmanian Devil is native to the state and the Tasmanian under-18’s club owns the trademark to the name, but Warner Bros. […]
BBC Podcasts Go Global With Amazon Music
BBC Goes global in partnership with Amazon Music, taking BBC podcasts outside of the UK for the first time. The regal BBC has officially partnered with American Amazon Music to offer listeners exclusive access to a curated suite of over 50 of the BBC’s most popular podcasts ad-free. The new deal will now allow global […]
Johnson & Johnson’s Former Consumer Healthcare Arm Reviews Creative
J&J drew inspiration from the Scottish term for knowledge 'ken' in its rebrand; nothing says 'wise' like a shot of Listerine.
Kat & Co Transforms Into THE WORLD OF Experiential Agency
After more than twelve years of producing experiences for some of the world’s most innovative brands, including Hermes, Van Cleef & Arpels, Louis Vuitton, and Tiffany & Co, Kat & Co has quietly metamorphosed into THE WORLD OF. THE WORLD OF is an experiential agency at the juncture of culture, technology and the human condition. […]
Adobe Brings Firefly Generative AI Into Substance 3D Workflows
Today, at the Game Developers Conference (GDC) 2024, Adobe debuted new Firefly-powered generative AI features directly within Adobe Substance 3D design and creative workflows. This first integration of Adobe’s popular family of Firefly generative AI models directly into the Substance 3D ecosystem ushers in a new era of creativity and efficiency for industrial designers, game […]
Clemenger BBDO Introduces Saucy Campaign With Declan Cleary & Lee Kum Kee
Declan Cleary, celebrity chef and 2023 MasterChef finalist, has partnered with Lee Kum Kee to bring Asian fusion to Bondi Beach. Over the weekend, Cleary and Lee Kum Kee gave the nippers sausage sizzle some healthy competition with free egg, bacon, and crispy hashbrown boa buns from a food truck outside the notorious North Bondi […]
Gawk Acquires 40 Billboard Locations From Transad
Gawk has partnered with Transad to take over outdoor advertising in regional Victoria and expand into NSW. Gawk has recently increased its market leadership in the roadside outdoor advertising market in Regional Victoria, acquiring an additional 40 billboard locations from Transad. These new locations are primarily located across Regional Victoria, with a handful located in […]
All About Attribution: Commission Factory Releases New eBook
Affiliate Marketing Network Commission Factory has released a free eBook that takes a deep dive into attribution. The concept of attribution is familiar in affiliate marketing, but the term has received much more attention in recent years. It’s not uncommon for marketers to incorporate multiple marketing channels in their overarching plan, but how is the […]
SMG Studio Launches Risk: Global Domination X Dune Part Two
Through a licensing agreement with Legendary Entertainment, SMG Studio inked the rights to adapt Dune: Part Two into a game based on Risk: Global Domination, Hasbro’s interactive board game. Inspired by Denis Villeneuve’s cinematic masterpiece, Dune: Part Two, this new digital adaptation, RISK: Global Domination X Dune: Part Two, is poised to captivate players from […]
RMIT Study Reveals That 73% Of Employees Don’t Believe Gen AI Is Relevant
Research from RMIT Online in partnership with Deloitte Access Economics, reveals Australians lack a crucial understanding as to the extent Generative AI is expected to disrupt their roles. The ‘Ready, Set, Upskill’ report highlights that almost half (47 per cent) of employees have never used Generative AI in their role, and 73 per cent say […]
Australian Eggs Launches Egg-citing New Campaign Via Connecting Plots
Australian Eggs has launched the latest instalment of its “Bring The Bright” campaign via Connecting Plots. ‘Bring The Bright’ launched last September and shows how eggs bring brightness and fun to Aussie mealtimes. The new work continues to drive this positioning while elevating the use of eggs to consumption beyond just breakfast. “The ‘Bring the […]
Future Lions 2024 Invites Young People To Be Heard With Spotify
Entries are now open for Future Lions, the annual global competition in partnership with AKQA and the Cannes Lions International Festival of Creativity, celebrating young people’s bold and progressive ideas. Future Lions 2024 is a call to action for young innovators to spread positivity by using technology to bring listeners closer to the creators and […]
QMS: Taylor Swift, Lunar New Year & Mardi Gras Were Boon For OOH Market
Taylor Swift, Lunar New Year and the Sydney Gay and Lesbian Mardi Gras Festival have had a dramatic impact on the number of people moving in and around Sydney over the past month, drawing big crowds into the heart of the city and its surrounding suburbs. New data from digital outdoor company QMS reveals a […]
Legend John McEnroe Joins Pepperstone’s Team Of Global Tennis Ambassadors
Tennis legend, former World No. 1 and seven-time grand slam singles champion John McEnroe has joined forces with Forex (FX) and Contracts for Difference (CFD) broker Pepperstone. Lead image: Tamas Szabo, Pepperstone Group CEO and John McEnroe McEnroe joins Australian and current World No. 9 Alex de Minaur in Pepperstone’s stable of stars, with the […]
LinkedIn Launches New Thought Leader Ads For Companies To Promote Member Posts
LinkedIn has announced the expansion of its Thought Leader Ads’ capabilities so advertisers can sponsor content from any member – not just employees – to enable brands to amplify a diverse range of influential, trusted, and expert voices and member posts on the platform. 73 per cent of decision-makers say that an organisation’s thought leadership […]
Latrell Mitchell Smacked On Wrist After Dropping Multiple F-Bombs In Post-Match Triple M Interview
Andrew Abdo has confirmed he is not angry... just disappointed.
TV Ratings: “When You Do Love Yourself, You’re Amazing” – Is This MAFS Most Heart-breaking Split?
Hold the press. MAFS groom and bride actually shown to be nice people.
Opinion: The Only Drag Marketers Should Be Worried About
Thought Transactional Drag was a lifeless club night in Newtown? Read this and you'll think again.
AWARD School Welcomes Class Of 2024
It's best to think of AWARD School like Survivor but with pitch decks instead of swimwear.
Interest In Motorsports Reaches New Heights As Formula 1 Grand Prix Revenue Expected To Surpass $100 Million
Need to get a dull sports client some quick results? Rustle up a Netflix series and watch the dollars roll in.
Chair Rob Murray To Depart As SCA Considers ARN’s Latest Takeover Bid
Struggling to make heads or tails of the SCA & ARN saga? Add this to your woes.
Adland Legend John Singleton Separates From Seventh Wife
Singo calls it quits with seventh wife as his race with Rupert Murdoch to become the most-married man continues.
ACCC Eyes Search Competition, Citing ‘Decreasing’ Quality & Rise In Generative AI
The only decline in search quality we notice is when B&T doesn't appear at the top of Google.
“Imagine A Career Above The Clouds”: Royal Australian Air Force Launches New Campaign Via VML
Don't worry about the forthcoming war with China - at least you'll get a bird's-eye view of the apocalypse.
MKTG Launches PR & Talent Division Realigning Business Structure
Dentsu‘s MKTG Sports and Entertainment has unveiled a significant evolution, including the launch of a specialised PR and Talent Marketing division, investment in expanding its Creative Services group, and a centralised approach to brand and rights holder servicing with increased production capabilities and a strengthened in-stadium sports presentation team. Lead Image: MKTG CD Ross Allen; […]
Darren Wick Explains Absence As He Departs From Nine: “I’m Tired & Need A Rest”
We're always tired and need a rest, too. But that's because the coffee machine in our office is broken.
ACCC Asks Media Companies About The Value Of Facebook & Instagram
We're sure the big media players will have measured responses to the ACCC's questioning.
Paramount Global Appoints Beverley McGarvey President Of Network 10, Head Of Streaming & Regional Lead For ANZ
McGarvey's original request to be called "Supreme Leader" was nixed after HR couldn't fit the role into org chart.
Bohemia Mixes Up Media Partnership With Fever-Tree
Frankly, when 3/4 of B&T's home-measure G&Ts are gin, it doesn't matter what brand of tonic we use.
Dan Murphy’s Pays Homage To Founder’s Fine Dining History For Melbourne Food & Wine Festival
Sadly, you'll only be able to order single beers at this new Dan Murphy's restaurant, rather than by the case-load.