Product Strategy | MIDiA Research

Business Strategy

Why Apple could become the safe harbour for creatives

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Tim Mulligan

19 Feb 2019

On March 25thApple is planning an event to formally announce the launch of both its forthcoming video and news subscription services. Likely attendees include Jennifer Aniston, Reese Witherspoon, Jennifer Garner and director JJ Abrams – the Hollywood talent behind a slate of originals set to appea...

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Are prices for music publishing catalogue acquisitions justified?

Zach Fuller

15 Feb 2019

Music publishing

Scooter Braun and Zach Katz’s venture Raised In Space Enterprises, owned by Braun’s Ithica Holdings, announced last week it had acquired New York-basedAtlas Music Publishing. The deal was the latest in a wave of catalogue acquisitions, whereby it’s no longer just conventional music companies c...

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Will an EPL streaming service devalue domestic rights?

Alistair Taylor

15 Feb 2019

digital content

English Premier League

Following the English Premier League (EPL) announcing in November its plans to launch its own streaming service for the next rights cycle (2022-2025), the Sunday Times reported that the EPL is coming close to launching.

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Games Streaming
Tech Major Disruption is Coming

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Karol Severin

February 2019

tech majors

Attention economy

cross-platform gaming

Streaming is about to take the gaming world by storm. With new entrants including Google, Amazon, and Verizon, and others to come in the future, the traditionally siloed gaming model is becoming part of a wider cross-format, platform-agnostic play in the attention economy.

Spotify Q4 2018: Solid growth with a hint of profitability but longer term questions

Cover image for Spotify Q4 2018: Solid growth with a hint of profitability but longer term questions

Mark Mulligan

14 Feb 2019

Spotify earnings

Spotify financials

Spotify finished 2018 strongly, over performing in both subscriber and ad supported MAU additions. This was accompanied by Spotify’s first ever profitable quarter and two major podcast acquisitions early in 2019 hinting at a positive year ahead.

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Hulu and the egg: How an egg outfoxed a Kardashian and went on to win the Super Bowl with Hulu

Georgia Meyer

14 Feb 2019

Kylie Kardashian

The egg that beat Kylie Jenner for the highest number of likes on an Instagram photo partnered with Hulu to promo an ad following the Super Bowl. Rather than ‘sell out’ for a branded message, The Egg’s (also known by fans as ‘Eugene’) first spot on Hulu (titled: S1 E1), was a message encou...

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Another week, another direct-to-consumer service comes to market

Tim Mulligan

13 Feb 2019

direct-to-consumer

On Sunday (February 10), movie catalogue specialist Epix announced the launch of its first direct-to-consumer service Epix Now . Access to Epix’s programming was previously only available through its four channels currently carried by its pay-TV operator partners.

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Major games publishers are feeling the impact of peaking attention

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Karol Severin

12 Feb 2019

Just last week (February 5th) Electronic Arts (EA) reported disappointing quarterly results, now Activision has laid off nearly 800 staff, mostly in marketing and sales. As MIDiA has reported multiple times before , engagement has declined throughout the sector, suggesting that the attention economy...

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Spotify Q4 2018 Earnings
Strong Subscriber Growth With a Hint of Profitability but Long-Term ARPU Deflation

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Mark Mulligan

February 2019

Subscriptions

Streaming

Streaming Music

Spotify finished 2018 strongly, over performing in both subscriber and ad-supported MAU additions. This was accompanied by Spotify’s first ever profitable quarter and two major podcast acquisitions early in 2019, hinting at a positive year ahead. However, at the same time, premium ARPU continues a long-term decline.

ESPN+ leverages UFC appeal to double subscriber base to 2 million in five months

Alistair Taylor

8 Feb 2019

direct-to-consumer

Disney announced in its Q1 earnings call on Tuesday that its sports-centric streaming service ESPN+ had surpassed two million subscribers, doubling its subscriber base in less than five months. Launched in April 2018 , Disney revealed in September 2018 that it had taken less than five months to surp...

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Is Spotify’s acquisition of Gimlet (the ‘HBO for audio’) the beginning of the audio influencer boom?

Cover image for Is Spotify’s acquisition of Gimlet (the ‘HBO for audio’) the beginning of the audio influencer boom?

Georgia Meyer

7 Feb 2019

Audio Influencer

Influencer marketing

Following six days of speculation, Spotify announced yesterdaythat it is acquiring Gimlet Media (comprising Gimlet – the production house, and Anchor – the production, distribution and monetisation software tool), for an undisclosed sum.

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Podcasts: a Netflix moment for radio (but perhaps not the future of Spotify)

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Mark Mulligan

6 Feb 2019

spotify podcasts

Wednesday was a busy day for Spotify: it reported above-expected subscriber growth, hitting 96 million paid subscribers, strong total user growth reaching207 million MAUs, improved margins and its first ever profitable quarter, registering an operating profit of €94 million.

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Music Publishing Acquisitions
Bubble Business or Sustainable Market?

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Zach Fuller

February 2019

Apple

Spotify

Warner Chappel

Music publishing mergers and acquisitions have boomed in recent years, invigorated by streaming’s user growth and the multitude of revenue options becoming available outside of music sales, such as micro syncs afford by user generated content (UGC) on YouTube and the steep growth of podcasts.

Lessons from the disruption of news publishing

Zach Fuller

1 Feb 2019

At the 2019 DLD conference in Munich, various media commentators were suggesting that the attention economy paradigm of news mean ominous clouds are gathering not just over new media entities such as BuzzFeed, Vice and Vox, but also those with subscription businesses.

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The video subscription challenge in 2019

Tim Mulligan

1 Feb 2019

Video subscriptions

Critical Developments

Amid all the excitement in the media world around the 2019 launches of direct-to-consumer services from such illustrious content producers as Disney and Warner Media, one clear question remains unanswered – will the public pay for these additional subscription video on demand (SVOD) services? The ...

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Eleven Sports loses Serie A rights as partnership with IMG ends

Alistair Taylor

1 Feb 2019

audience acquisition

Eleven Sports, the fledgling sports-centric streaming service has lost the UK and Irish rights for Serie A and Eredivisie, following a strategic decision to ‘amicably’ end its partnership with international rights agency, IMG .

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MIDiA Research Music Forecasts 2018–2026

Cover image for MIDiA Research Music Forecasts 2018–2026

Mark Mulligan

February 2019

Business Strategy

This report presents the key figures, trends and drivers of MIDiA’s music forecast model. The figures presented in this report are retail values and in billions of US dollars unless otherwise stated. Retail values refer to total revenues generated, including retailer margin, music publishing royalties and sales tax.

Hulu takes aim at Netflix

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Tim Mulligan

25 Jan 2019

From February 26th, Hulu, currently the number three subscription video on demand (SVOD) service in the US, will reduce its ad-supported offering from $7.99 to $5.99. This comes one week after Netflix —currently the US SVOD leader — increased pricing for its membership plans.

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UFC’s debut on ESPN+ draws in record subs

Alistair Taylor

24 Jan 2019

The Ultimate Fighting Championship (UFC) debuted on ESPN+ this past weekend, featuring the highly touted championship fight, which saw Henry Cejudo knockout current Bantamweight champion TJ Dillashaw in just 32 seconds to retain his Flyweight title.

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Music tech and unintended consequences

Zach Fuller

23 Jan 2019

Recent discussions over how music will look in the app economy, with services such as TikTok effectively ‘meme-ing’ the concept of music and emphasising its social context, has led me to reflect on the second-order effects of technology on the arts - those unforeseen and often unpredictable cons...

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