Fandango buys Vudu
While new providers such as Redbox on Demand, AMC Theaters Video on Demand and Row8 have jumped into the already crowded transactional digital video market, Fandango is consolidating share through the acquisition of Vudu. This acquisition will leapfrog FandangoNow into the number three transactional video on demand spot behind only Amazon and Apple iTunes. It also diversifies the company’s distribution as FandangoNow users predominantly rent where Vudu has a strong sell through business.
The NPD Take:
- It’s hard to envision a long term strategy that does not integrate, to some extent, with parent companies Peacock streaming video service. This would provide audience reach and give viewers a multitude of options from AVOD, SVOD to TVOD.
- Which brand will survive? While Vudu has more transactional video consumers than FandangoNow, Fandango has strong brand equity in the theatrical market. Further, a holistic “Fandango” branding strategy across theatrical and home video has the potential to create numerous synergies.
Netflix subscriber base surges in Q1
Netflix experienced significant subscribers gains in Q1, way beyond company guidance and analyst expectations. Still, issues abound as it’s likely many of those subscriptions we’re pulled forward and will detract from subsequent quarters gains. Regardless, Netflix subscribers are engaged at record levels. For example, we’re seeing programs such as Tiger King experience enjoy faster full episode completion rates than any show in the past five year.
The NPD Take:
- Post COVID-19 retention rates will be critical. It’s plausible that once consumers are back out in public their interest in retaining Netflix may wane. Further, many of these consumers will look to tighten their spending.
- While Netflix rationalized a strong content pipeline there are two factors working against it. Hollywood’s production stoppage will inevitably limit available content. Further, the current rate of hyper compressed binge streaming will mean that viewers will have blown through the programming. This is bound to strain distribution or modify release strategies to ensure continued engagement.
HBO Max to launch May 27
AT&T just announced the launch date for their new streaming video service HBO Max; May 27th. The launch comes at a time where streaming video has reached a high point. Positively, HBO Max will contain a wide array of new content that will likely drive consumer engagement. This will help establish the value of the service for the millions of current HBO customers that will be transitioned onto the Max Platform.
The NPD Take:
- It’s looney toons. Children’s programming has been seeing rabid success during the stay-at-home orders. With many American’s kids likely out of school until the fall, it would make sense to focus on marketing the wide array of Children’s programming that HBO Max has to offer.
- Given economic strains and consumer’s focus on value priced entertainment, it may make sense to pull the ad-supported tier launch forward.