Previously Unimaginable
By now, you’ve all read the news, WarnerMedia will be releasing their 2021 theatrical slate on HBO Max concurrent with the movie theatre debut. There have been examples of this throughout the pandemic, such as Mulan releasing direct to Disney+. However, this is the broadest change in protocol among any of the major movie studios. Does it really come as a surprise? It’s unlikely that movie theaters will fully reopen until sometime in the second half of 2021. Meanwhile, the launch of DTC streaming services were already the industry priority. The convergence of these seismic events were bound to change the distribution landscape, one that content producers have wanted to adjust for years.
The NPD Take:
- The real question surrounds 2022. What will the theatrical and home video distribution model look like on the back-end of the pandemic? We expect a hybrid model where factors such as box office potential play into the release strategy and re-defined release windows start to settle into a more systematic structure.
- Short term, let’s expect a WarnerMedia-Roku deal to land soon.
Discovery+
Discovery just announced the upcoming launch of their much awaited DTC streaming service, Discovery+. The non-unique branding is actually rather refreshing as the consistent “plus” moniker across services will help viewers distinguish from the network channel or TV Everywhere asset. Discovery+ will arrive on January 4th and cost $4.99 for the ad-lite version and $6.99 for the ad-free version – competitive pricing in a competitive market. Notably, Discovery offers a unique value proposition for viewers as none of the other streaming services provide the depth of reality programming that they can encapsulate through ownership of the former Scripps Networks, Discovery channels and programming A&E Networks.
The NPD Take:
- Let’s face it, we tune into cable, satellite and vMVPD channels for this type of TV programming. I must have watched a dozen episodes of Bar Rescue this past weekend. While the service fills a gap for cord cutters, it remains to be seen how valuable it is to the majority of households that still subscribe to pay TV bundles.
- Striking deals with Roku and Amazon will be critically important to a successful launch. Missing these core access points will significantly stymie early success, a challenge that will be compounded by the prior point – how much value does this service have to pay TV subscribers.