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."
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.
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