Murphy's Multiverse

Tag: Business

  • Netflix’s Password Crackdown Led to Highest Subscriber Growth Since COVID

    Netflix’s Password Crackdown Led to Highest Subscriber Growth Since COVID

    There was a lot of controversy when Netflix started its password-sharing shutdown. It took big steps to avoid people sharing passwords cross-country and most of the Internet pointed to dropping their involvement with the streaming service. Most expected a massive loss in subscriber numbers but once again the Internet remains a smaller space than one might think.

    Netflix has reported that since their mail on password sharing was released on May 23rd, they saw around 100K daily new subscribers on May 26th and May 27th. Their current growth is even higher than what they saw during COVID, which is when people had nothing to do and were stuck at home most of the day.

    Antenna shared the following graph with The Wrap on how the sign-ups have developed since pre-pandemic times.

    Of course, cancelations have increased as well but they did not keep up with the sign-ups. It seems the rate has gone up by 25.6% in the previous 60 days. They are continuing to push the narrative that a Netflix subscription share is meant for a “household” and it#s surprising that there wasn’t a bigger drop overall.

    It’ll be interesting to see if this continues to keep up long-term subscriber growth going or if this is just a blip for now. Either way, Netflix is very happy with its decision and most of the PR discussions will be forgotten over time. Of course, the question is if their content will remain more consistent with fewer cancelations moving forward to keep people watching.

    Source: Deadline, The Wrap

  • Kareem Daniel to Leave Disney, Streaming Division Facing Reorganization

    Kareem Daniel to Leave Disney, Streaming Division Facing Reorganization

    It was only a question of time but it’s insane that it only took a day before the news hit that former Disney CEO Bob Chapek‘s internal executive structure is already falling apart. As it seems, the head of media and entertainment distribution, Kareem Daniel, is set to leave the company as well with former CEO Bob Iger returning. It was a strong move away from Iger’s creative-focused era that has left the company with a few scars in its wake, especially souring the views on its streaming ambitions with Disney+. Iger always was the kind of leader that used data but didn’t overly rely on it to muddle creative ambitions; the issue the current leadership fell into, especially with dramas surrounding Black Widow‘s release.

    In a world and business that is awash with data, it is tempting to use data to answer all of our questions, including creative questions. I urge all of you not to do that.

    Bob Iger

    Daniel and Chapek’s goals were quite ambitious and they aimed to grow Disney+ as fast as possible with investment, but it seemingly led to many sparks internally, especially with the issue of return on investment being left behind in those ambitions. Disney+, ESPN, and Hulu stand at a proud 235M combined subscriber base making it quite competitive with Netflix and shouldn’t be ignored, but the concern that the $1.5B investment can’t be recouped by the time it was meant to be is definitely one of the reasons for this massive executive switch. Still, with Daniel‘s exit, we can expect some major changes in Disney+’s streaming strategy and structure moving forward.

    Source: The Hollywood Reporter

  • Theater Owner Chief Announces the Death of Day-and-Date Releases

    Theater Owner Chief Announces the Death of Day-and-Date Releases

    There have been quite a few discussions since the start of the pandemic on what exactly the future of cinema looks like. The Batman‘s success in theaters and as a strong HBO Max addition seemingly added some momentum to the full recovery of cinema. It’s been rough since the pandemic started in 2020, but family and indie films are finally gaining some momentum again as that audience is slowly creeping back into theaters.

    As CinemaCon is currently ongoing, which is all about the “cinematic experience,” the National Association of Theatre Owners chairman John Fithian made a broad statement during his address. He believes that the day-and-date model has now died as they move forward in a more traditional direction, especially highlighting piracy as a reason.

    I am pleased to announce that simultaneous release is dead as a serious business model, and piracy is what killed it. When a pristine copy of a movie makes its way online and spreads, it has a very damaging impact on our industry.

    John Fithian

    Warner Bros. was one of the few to truly embrace the day-and-date model, as every release for the entire year got that special treatment. Now, they are still embracing a digital next model with a 45-day release.

    When analyzing title after title it becomes very clear that spikes in piracy are most drastic when a movie is first available to watch in the home: it doesn’t matter if its available via premium video on demand or subscription video on demand,” said Fithian. “Robust theatrical windows protect against piracy. If a major title that people are clamoring to see in theaters is released too quickly to the home and then pirated, the temptation to stay home and watch pirated films becomes greater for many potential moviegoers.

    John Fithian

    He goes on to highlight the issue of piracy without giving concrete examples. Still, their main focus will be on 2022 and moving forward, as the potential of this year’s releases offers a lot more box office momentum. One could argue that the topic is quite a bit more complex, especially given the personal investment in the medium also painting the full picture. Yet, the piracy issue has definitely left its impact on the industry, especially with the lack of Chinese releases.

    There’s no true answer and the model may not truly be dead, especially as streaming services start to crack on piracy concerns moving forward. Netflix’s recent fall will also bare its fangs moving forward, but the streaming market is definitely not something of the past. We’ll see if 2022 might be our first return to 2019 numbers, especially building upon the success of Spider-Man: No Way Home and The Batman.

    Source: The Hollywood Reporter

  • Blue Sky Studios Shut Down by Disney

    Blue Sky Studios Shut Down by Disney

    The studio that brought you the Ice Age franchise is closing its doors. Deadline revealed that Disney is shutting down Blue Sky Studios, which it acquired along with many other assets in the massive Fox takeover just two years ago. The studio was the prime money-maker of Fox’s animated division, having grossed $5.9 billion in total throughout thirteen films since 2002. Blue Sky produced numerous hits alongside the now-iconic Ice Age films, such as the Robin Williams vehicle Robots and the high-flying Rio. They also adapted critically-acclaimed classic properties like Dr. Seuss’ Horton Hears a Who! and The Peanuts Movie. The reason behind the closure is the aftermath of the COVID-19 pandemic, with losses from their theme park lockdowns and theater closure hindering the corporation’s ability to maintain three animation studios at once. Disney is instead opting to maintain funding for their mainstays, Pixar and Walt Disney Animation Studios.

    The entire Blue Sky library will remain a part of the Disney experience, and the previously-announced Ice Age series for Disney+ is expected to arrive. However, the studio’s next film, Nimona, a magic-based medieval fairy tale about a shape-shifting boy who partners with a mad scientist to topple an evil ruler, will halt production. It still required ten more months to finish. Tragically, the demise of Blue Sky will lead to the loss of 450 jobs. Deadline does report that Disney will work with the former employees to find positions at other internal studios. The world is sure to miss the storytelling prowess of Blue Sky and the diversity that another animation studio would bring to the table. The work of the company played a vital role in many childhoods. Sadly, the latest release of the Tom Holland-led Spies in Disguise failed to make the impact the company was hoping for. Here’s hoping that the workers impacted by the closure will find ample opportunity in their future elsewhere. We wish them all the best in their future endeavors and that they can find something soon.

    Source: Deadline