Roku & Fire Excluded
HBO Max launched on May 27 with a significant number of distribution partners spanning traditional pay TV providers and connected device OEMs. Unlikely Disney+ who struck last minute deals to launch on key platforms such as Fire TV, HBO left critical partners out of the mix. The service isn’t available on Dish, Roku or Fire TV. This leaves HBO users on these major platforms with a choice. Keep old school HBO, cancel and sign-up for Max directly or bail on HBO all together.
The NPD Take:
- Far from seamless. For AT&T/DirecTV customers the switch to Max was seamless. But, for others such as those using HBO through Amazon Channels, they are left without access to the new programming. This is the kind of move that generated cable TVs low customer service ratings over the past decades.
- AT&T is looking for control of the customer relationship and data to monetize aspects of distribution such as ad-revenues for its upcoming AVOD tier. Access through aggregators such as Amazon or Roku channels limit that. Controlling the customer relationship hadn’t been a priority for HBO, but is now for AT&T as it monetizes its assets differently.
Down in Fraggle Rock
The absence of a content library has limited Apple TV+ engagement since launch in November despite “all original” being the strategy. This challenge has been further compounded by COVID-19 related compressed binge viewing and content production stoppages. Having additional content gives people more of a reason to stick around instead of relying on a sparser offering built on only originals. While the acquisition of 1980s Fraggle Rock is a strategy shift it is not a 180. Drafting off of new releases is a tried and true strategy. Further, it’s likely to be a welcome offering for viewers as they will be able to get everything related to this IP in one place; a decidedly Apple approach.
The NPD Take:
- According to our new TV Switching study, half of Apple TV’s subscriber base is on promotional/free trial. This, along with the absence of a content library and content production stoppages makes subscriber churn more likely. The acquisition of library content is critical and this move does that while delivering a consistent value proposition to viewers.
- Is 007 next?
ATSC 3.0 Launches in Vegas
The last upgrade to broadcast TV happened over a decade ago with the switch from analog to digital transmission. A long time in the making, industry consortium Pearl TV just coordinated the launch of NEXTGEN broadcast TV. The new OTA standard allows for delivery of 4k programming from local TV stations. It’s launching in Vegas on four of the biggest broadcast stations including Sinclair's KSNV (NBC) and KVCW (CW), Nexstar's KLAS (CBS) and Scripps' KTNV (ABC). Expect a slow roll out as access to the new broadcast standard requires the requisite tuner which is only available using a handful of high-end TVs.
The NPD Take:
- NEXTGEN TV delivers viewers an OTA broadcast in 4k UHD bringing local news, weather and TV programming up to date with TV standards and streaming services such as Netflix and Prime video.
- The IP nature of ATSC 3.0 allows for consumer targeting. Viewers will see more relevant programming/ads and broadcasters can better monetize ad-loads similar to the advantages seen through targeted ad insertion in AVOD streaming services.