Disney+ launched two days ago to more than 10 million signups, indicating the streaming wars are still gaining steam. As streaming services battle it out, technology and strategy consultant Michael Wolf says companies like Amazon and Apple, who can offer cross service bundles, will come out on top.
Amazon ($AMZN) and Apple ($AAPL) offer two services for streaming. First, the companies offer respective subscription services, but both also offer a "tax" on other services that use those platforms to stream. For example, the Apple TV app includes other, non-Apple subscription services, like Hulu and Netflix.
"The biggest winners ... the people who are going to make the most money, are going to be Amazon and Apple, because they're going to get this tax on everyone's [subscription] sold, with no cost attached to it," Activate's founder and CEO Michael Wolf told Cheddar in an interview Thursday.
Studios are spending billions of dollars for rights to new stories for original content. Almost 500 scripted shows came out in the U.S. in 2018, with the number likely to grow as new players enter the race this year.
"If you look at how people are signing up for these services, the great majority of signups for all the other services are going first through Amazon and then through Apple," he said. "Both Amazon and Apple are taking a hefty tax, over 30 percent of that revenue, every single month for selling those services."
Globally, internet and media businesses are expected to add $300 billion in growth dollars, according to Activate's new "Technology and Media Outlook" report. That number is growing faster than the GDP, according to the report, compiled with information from the International Monetary Fund, among others.
"We forecast that, within four years, the average American is going to be using five of these [streaming] services," Wolf said.
Major players in the streaming wars currently include Amazon's Prime Video, Apple's Apple TV+, and At&T's forthcoming HBO Max, but it remains to be seen which of the services consumers will turn to in the long run.
Wolf said he expects to see more bundling of services, like the Disney+ deal that includes Hulu and ESPN+.
His team analyzes consumer trends, technological innovations, and industry dynamics annually, compiling a "Technology and Media Outlook."
He called the report a "glimpse of how people will spend their time and money."
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
With a merger this big, creators, studios, and theaters all face uncertain futures. Here’s what experts are worried about and what good could come from it.
With disengagement rising and hybrid work shifting, 'Everybody Matters' author Bob Chapman explains why treating people well could define the future of work.
We sat down with Ali Furman, U.S. Consumer Markets Industry Leader at consulting firm PwC to ask what trends she garnered from the initial data this year.
