The Market And Streaming -- Monday, October 31, 2022

Link here.

Posted earlier but tomorrow is going to be a huge day for earnings.

Tomorrow, ticker (forecast earnings):

• LLY ($1.97), PFE ($1.47), MCK ($6.13),
• BP ($1.94), MPC ($6.80), EPD ($0.61), ET ($0.30)
• DVN ($2.13), PSX ($4.98)
• OKE ($0.93), CNP ($0.31), SUN ($1.14)
• UBER (a loss of $0.17),
• AMD ($0.55),
• and so many more

******************************
Streaming

This technology is just amazing. 

Within seconds of getting back from "trick or treating" with the grandsons, I was on the MacBook Air -- I'm traveling -- and watching the Bengals vs the Browns. Probably less than ten seconds to log on to Hulu which connected me directly to the game. Amazing. 

The technology is so good, this is what is important for folks streaming at home, perhaps in this order:

• size and resolution of the screen;
• how fast one can connect, but also how fast one can find what one wants to watch;
• size and resolution of the screen;
  
• how often one's programming is interrupted by ads -- that's a trade-off with price of the streaming bundle;
• size and resolution of the screen (did I already mention that?)
  
• content;
  
• pricing of the bundle

Pricing has pretty much become least important -- for basic content, one can find very inexpensive options, and if one wants, one can spend quite a bit for a la carte programming on top of the basic bundle, but the point is, once someone logs into to start viewing, no one thinks about the price they're paying.

Likewise, content has practically become a non-issue. Folks sign up for different streaming bundles based on the content they want, and as long as they have the content they want, they stick with what they have. And there is so much content, it is simply amazing. And the content keeps growing.

Most important is how fast one can connect and how fast one can find what they want. Today, I had a devil of a time finding a live event that was not part of the regular programming. "Networks" need to do a better job capturing these pop-up events. I ended up signing off; I couldn't find the event. Not what advertisers want.

Which brings us to advertising. This is a real challenge. I am quick to discontinue any programming -- even sports -- if there are too many ads. "Networks" and advertisers are going to have to become more innovative to make interruptions less irritating. Sixty-second ads are a deal killer and even thirty-second ads are too long for me; I can only imagine how "long" they seem for GenYers and GenXers. Fifteen-second ads may become the norm. Six-second and five-second ads on YouTube seem about right. Advertisers are going to have to learn to get their message out in five seconds or less. 

That thirty-second elevator speech is quickly become fifteen seconds.

But, wow, once one gets the right-sized screen and the bundle one wants, the technology is incredible.

By the way, getting back to price. Apple unapologetically raised their fees from $4.99 to $6.99 per month. That's a 40 percent jump in price just for Apple TV. I'm not convinced it's worth it but I doubt many who already subscribe will drop Apple TV. Most interesting, Apple is really, really adding original programming and that jump in the monthly subscription might be worth it. We'll see. Remember, Apple has the exclusive rights to major league soccer for eternity. And they're going after the NFL Sunday Night ticket (?) -- is that correct? Something like that.

From NBC Sports:

Apple had emerged as the favorite to secure the NFL’s Sunday Ticket franchise. After securing the rights to the Super Bowl halftime show for five years and upwards of $250 million, signs seem to be pointing even more clearly to Apple becoming the new home of Sunday Ticket.

Via Tripp Mickle of the New York Times, negotiations between the NFL and Apple have “dragged” due to the price the league seeks. Reportedly, the NFL wants $2.5 billion per year for the out-of-market games package.

I think Amazon paid $1 billion / year for Thursday Night Football. 

Right now, the NFL Sunday Night Ticket is exclusively an Apple app. 

You know, if Apple gets the SNF ticket, that $6.99 / month is going too look very, very good.