Amazon promotes free video
Amazon just rolled out a new feature that highlights ad-supported streaming services such as Tubi, Pluto TV and Crackle along with its own IMDbTV. It also directs users to apps such as PBS Kids that offer free content. The stay-at-home orders have prompted more consumers to try free streaming video and Amazon is leveraging its assets to take advantage of this trend. To put it in perspective, in April 44 percent of consumers said they were using free streaming video services more often due to the pandemic.
The NPD Take:
- Our research is consistently showing a migration to free streaming video. The combination of being stuck at home and an economic downturn have bolstered this part of the market. What remains unknown is the extent to which this habit will continue during the recovery phase.
- Free services have been developing for the past year and a half. This crisis presented an opportunity to increase user engagement which is generally still low. Of note, Amazon’s IMDbTV services generates only eight percent daily usage among its base of viewers.
Hamilton pulled forward
Timed for the eve of Independence Day, Hamilton will be airing on Disney+ July 3rd. The release is in lieu of the theatrical run slated for October 2021. As the pandemic continues, the new normal is anything but normal. Disney is facing lost revenue from non-existent theatrical runs and at the same time production halts are impacting new programming that was slated for their streamer this year. As with other Hollywood studios, Disney is tinkering with its release strategy to keep subscribers engaged and the revenue flowing.
The NPD Take:
- With Broadway closed through the summer months, this release is impeccably timed to capture the attention of those missing live shows.
- The lack of movie and TV show production is starting to show signs of what’s to come. That’s pulled forward releases and a potential content shortage.
Max may not be on Fire TV & Roku
As the launch for HBO Max nears later this month, there has been an increasing amount of news surrounding its partners. There have been deals struck with YouTube TV, Charter and Hulu. Meanwhile it was noted that the company is at an impasse with Amazon for distribution on Fire TV. A similar situation occurred with Disney+, so this may be no more than the companies working out the details of the partnership. However, it was surprising to hear Roku comment publically that no deal has been established to launch on their platform, the most common TV-connected device platform in the U.S.
The NPD Take:
- The launch partners for Max are looking more like those of a premium cable channel than an SVOD service.
- Carriage deals used to be between the content provider and the cable operator. Now they are increasingly among the content owner and hardware platform. Expect more of this down the road.