What's next for streamers after Hollywood strikes wrap up?
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Hollywood studios and streaming platforms are entering comeback mode from the Hollywood strikes that halted major productions and slowed down fresh content output.
Brightcove (BCOV) CEO Marc DeBevoise sits down in-studio with Yahoo Finance Live to highlight how streaming bundling strategies and ad-tier subscription prices may bring business back to streaming services like Netflix (NFLX), Amazon (AMZN), Warner Bros. Discovery (WBD), Disney+ (DIS), and Paramount (PARA).
"The free ad-supported streaming television revolution... has really ramped up the opportunity for advertising on these services. You'll see each subscription service also have an ad-supported with lower priced tier over time," DeBevoise says, adding: "The winner there is streaming overall."
Click here to watch the full interview on the Yahoo Finance YouTube page or you can watch this full episode of Yahoo Finance Live here.
This post was written by Luke Carberry Mogan.
Video Transcript
- And Marc, when it comes to the fact that so many of these companies overspent, to put in your words, when it comes to content, we've seen those losses really be a theme here over the last several quarters.
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We also started to see more bundling.
And we're seeing more and more companies, it seems by the month, that are trying everything they can to lower those churn rates.
Do you think that's going to work?
And I guess what does that signal just in terms of is this the first step to broader consolidation?
MARC DEBEVOISE: Yeah.
So look, I think they are certainly looking at bundling as a way to reduce churn or a way to impact, you know, how they can retain those customers longer-- longer term.
But at the end of the day, you're going to see those ARPPUs come down as you do those bundles, right?
That ARPPU being Average Revenue Per User.
So I think at the end of the day, they're going to give consumers a lot of different choices over the next few years.
You're seeing Max and Netflix come together on Verizon's +play.
You see the rumor about my old job Paramount Plus and-- and-- and Apple coming together.
I think ultimately the long term those-- those channel storefronts that you see on Amazon and Apple and others and I think many other technology platforms will start to bring together a lot of consumer options.
Right?
You'll have multiple choices of where to go.
And you'll have multiple choices of what bundle to create on your own.
And I think that's going to be a really great opportunity for consumers.
Hopefully, it reduces that churn.
But at the end of the day, these services are going to need to find a way to be more efficient with the spend that they're doing.