Silicon Valley is disrupting television, turning up the pressure on old-school media companies that have been slow to keep up with shifting consumers trends, said Lorne Brown, the CEO of the ad tech firm Operative.
The battle between new media and traditional content companies is highlighted by Netflix's strong first-quarter earnings. The streaming service reported stronger-than-expected growth in customers in the U.S. and overseas.
The real story, said Brown in an interview on Cheddar, is that the streaming company's U.S. subscribers are "growing at a rate that no one thought was possible."
If Netflix ー or any of its digital rivals ー is going to overtake traditional media, Brown said it will have to overcome a number of structural obstacles.
The streaming service's strategy to pay up to $8 billion for new content in 2018 could pay off, but "it's a bet at the end of the day," said Brown.
Incumbent media companies such as Comcast, the largest broadcasting and cable television company in the world by revenue, and Viacom, which owns ad-supported cable networks including MTV, Nickelodeon, and Comedy Central, must adjust to meet the challenges from well-funded tech rivals.
In some cases, however, the traditional media firms may find it beneficial to team up with big tech companies, said Brown. He called it “co-mingling."
The emergence of over the top (OTT) viewing options and the acceleration of cord-cutting has been a major concern for cable networks as advertisers trim their TV budgets.
TV ratings are declining, and Netflix and Amazon Prime are paying top dollar for the industry’s most well-known producers. If the trends continue, television advertising will continue to slide, shrinking revenue for traditional networks. As a result, TV's share of total U.S. media ad spending will slide from 33.9% in 2017 to 31.6% in 2018, according to the research firm eMarketer.
For full interview, [click here](https://cheddar.com/videos/old-media-vs-new-media-the-future-of-tv).
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
As Big Tech reports Q3 earnings, investors await proof that massive AI and cloud investments from Meta, Apple, Microsoft, and Alphabet are driving real growth.
Eric Trump joins us to discuss American Bitcoin’s mission, market strategy, and why he believes the U.S. must lead the next era of digital currency innovation.
