MLB looking for the DTC fastball
After years of relying on traditional distribution of local games via cable and satellite TV, Major League Baseball is in talks with regional sports networks to explore DTC streaming options for local fans. Online viewers will no longer need to authenticate themselves with login credentials for a TV service already carrying a regional sports network’s programming, rather the RSN would sell service direct to those fans. The blueprint of the DTC offering needs to be ironed out and it likely won’t come to market until 2022 at the earliest.
The NPD Take:
- An MLB pivot to DTC streaming would significantly impact cable and satellite TV churn rates. Regional sports access is among the last pillars keeping viewers beholden to the cable bundle.
- This is far from a done deal as there are numerous distribution models that could surface as a result of this exploration.
Netflix's subscriber numbers stunted
Netflix growth is slowing in 2021 as the competition gets stronger. Last year the pandemic caused Netflix subscriptions to spike, as the company added 16 million subscribers in three months. For the same period in 2021, it grew by a total of 3.98 million customers worldwide, which was a result of the pandemic levelling off and a lighter content slate in the first half of this year. According to Netflix, its biggest movie debuts of the quarter were Outside the Wire (66 million viewers) and To All The Boys I've Loved Before (51 million).
The NPD Take:
- As viewers explore their larger array of new streaming options, viewership is spreading among these services.
- Netflix’ unprecedented content spending is clearly needed to maintain domestic growth as early pandemic content production issues are now showing signs of impacting Netflix engagement.
Apple TV 4K finally has a new remote
Apple announced a new Apple TV 4K streaming box with a redesigned Siri remote. The remote includes an iPod-style scroll wheel, a five-way click pad allowing you to easily jump ahead to a specific point in a movie or TV show, a power button that can turn your TV on and off, and a mute button. Apple has also repositioned the Siri button to the side of the remote. The new remote is also compatible with the 2017 model and Apple TV HD. It comes with the new $179 4K set-top box, or it’s available separately for $59. Apple will also sell the remote bundled with the Apple TV HD for $149. Another new feature of the Apple TV is the company's A12 Bionic chip that allows the Apple TV to play HDR video with Dolby Vision at higher frame rates, as well as decode video faster.
The NPD Take:
- The upgraded remote at the same price point will result in a better user experience for existing Apple TV owners. That is, at $179 Apple TV has proven to successfully upgrade users, not increase its household base.
- Apple continues to produce a high-spec TV device, yet most of the traction in the streaming media player market occurs around the $30-50 price point. As such, the market for a high-end device like this remains limited.