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Future of TV briefing: The TV and streaming market is in a correction

  • The push-pull of panel measurement
  • Election Night at NBC News
  • Disney’s cost-cutting, Netflix’s live-action debut, Hollywood would-be writers’ strike and more
  • Market watch

    The key hits:

    • Buyers of TV and streaming shows are cutting their programming budgets.
    • Production budgets became an earlier part of the development process.
    • Buyers prioritize trending shows with big-name talent attached.

    The television programming and streaming market pendulum has swung wildly over the past few years. There was the frenzy of the first streaming wars, followed by the pandemic-induced production hiatus, the race back to set, and the resulting production backlog.

    Now the pendulum is swinging as show buyers and show makers seek to contain costs and protect programming bets amid the economic downturn.

    Buyers of TV and streaming shows including Disney, Netflix and Warner Bros. Discovery, are cutting their programming budgets. Meanwhile, production costs have risen with inflation, interest rates, supply chain challenges, and increased demand for cast and crew members.

    At the Digiday Future of TV Programming Forum on November 10, production and development heads from Magical Elves, Project X Entertainment and Telemundo assessed the state of the programming market and discussed how they are coping with the conditions. economic.

    “I think this is a market correction,” said Paul Neinstein, co-CEO of production company Project X Entertainment, whose portfolio includes the movie “Scream” and upcoming Netflix show “The Night Agent”. “But I think it will come back. It’s my two cents.

    “The market is definitely very tight right now. Many decisions are driven by cost. There is consolidation happening at all levels in our business. So we’re definitely seeing fewer purchases,” said Jo Sharon, co-CEO of production company Magical Elves, which produces “Nailed It! for Netflix and “Top Chef” for NBCUniversal’s Bravo.

    Speaking from a buying perspective as head of development and production for NBCUniversal Telemundo Enterprises’ Hispanic streaming group, Danny Villa acknowledged the “belt-tightening that’s happening at every level.”

    But he also pointed out that show buyers’ wallets remain open. For example, Telemundo’s Tplus streaming service plans to premiere original shows this week as part of a four-series original programming slate that will double to eight or nine series next year with per-episode budgets ranging from six to seven digits. to budgets for shows that NBCUniversal airs on its traditional television networks and Peacock streaming service, according to Villa.

    “I wouldn’t say our budgets are affected in a way that I’m concerned about on the creative side,” he said.

    Nevertheless, budgets are a concern in the general market. Typically, defining one for a show would be a secondary step in its production process, but now it’s an early part of the development process.

    “We talk a lot about money and cost and what the budget is as part of the development process, which isn’t like it used to be anymore,” Sharon said.

    Additionally, budgets are allocated in a way that pushes producers to get creative with how shows are produced and packaged for TV and streaming show buyers. Additionally, given budget pressures, buyers of TV and streaming shows are looking to make even safer bets on shows, prioritizing projects that have big-name talent attached and are likely to attract a lot. many people in the audience.

    “If you can get a great cast that people want to see early in a package before they go out [to pitch a show to buyers], it gives you the opportunity to play the market a little differently,” Neinstein said. “Where it’s difficult is that a lot of talent reps don’t want to tie up their clients until something is in place. But it’s much easier to get a bigger contract and real traction if you can attract talent early.

    “The first thing everyone says they want is ‘buzzy’. That’s been the word for the last two years,” said Sharon, whose company is no stranger to producing shows fashion.

    But what makes a project that has yet to be put into production, let alone presented to the public, qualify as a buzz?

    “That’s a very good question,” she said. “Welcome to the enigma of the market right now.”

    What we heard

    “I don’t have any reports yet on how it delivers other than what it delivers.”

    Juliana Wurzburger, Head of Media at Anheuser-Busch, on Netflix’s ad-supported performance so far

    The push-pull of panel measurement

    Yes, billboards are the past and present of TV commercial measurement. They should also be an integral part of its future.

    Look no further than Tuesday’s announcement that measurement provider iSpot.tv will integrate Tvision’s panel-based measurements as part of the latter’s $16 million funding round led by the former.

    Of course, this announcement came days after news broke that leading panel-based metrics provider Nielsen has yet to gain confidence from the Media Rating Council that the company has plugged the holes. its measurement panel.

    Both announcements demonstrate both the appeal and the problem of panel measurement. On the plus side, the panels provide a way to gather a more in-depth set of ideas from its participants. However, they may not be an accurate representation of the wider television audience.

    The plus-minus of measurement panels is why industry organizations, the Association of National Advertisers and the VAB, have worked to establish their own measurement panels. They aim to provide their own panels, if only as a check against the various panels proliferating in the market.

    The ANA opened a request for proposals process in February and received responses from eight companies. “We are currently evaluating responses to the bidding process, and that’s about all I can say about it at this time,” Jackson Bazley, ANA’s head of measurement, said during the interview. an interview last month.

    The VAB is working to set up “an industry benchmarking panel that any qualified measurement company could access,” VAB CEO Sean Cunningham said in a separate interview last month. Rather than an attempt to recreate and compete with the Nielsen Panel, VAB’s goal with the Audience Calibration Panel is to serve as a benchmark to help buyers and sellers of ads identify and resolve discrepancies between measurement providers.

    Numbers to know

    $7.7 billion: How much revenue subscription streaming services generated in the United States in the third quarter of 2022.

    981 674: Number of subscribers lost by the top seven US pay-TV providers in Q3 2022.

    37 million: Number of people in the United States who have used an ad-supported streaming service.

    $10 billion: How much ad revenue TikTok expects to generate in 2022, down from its previous estimate of $12 billion.

    80 million: Number of paid YouTube subscribers.

    25.4 million: Number of people who watched election coverage on traditional TV channels during prime time, down nearly 30% from 2018.

    Election Night at NBC News

    Last week, I dropped by 30 Rockefeller Center on the night of Nov. 8 to take a look at NBC News’ election night operation, including stops at its NBC News studio and control room. Now, as well as a tour of its digital newsroom and time with its TikTok team. To see what the NBC News Election Night streaming and digital operation looked like, watch the video above.

    What we’ve covered

    Why Anheuser-Busch prefers PMPs over guaranteed programmatic deals for streaming ads:

    • The beer giant prefers PMPs for a better ability to manage ad frequency on streaming services.
    • Anehuser-Busch’s Juliana Wurzburger also spoke about being the first beer advertiser on Netflix during the Digiday Future of TV Advertising Forum.

    Learn more about Anheuser-Busch’s programmatic streaming advertising strategy here.

    Horizon Media and Magnite ink SPO reach agreement to consolidate purchases and focus on CTV:

    • Magnite will become the preferred supply-side platform for Horizon Media’s private market and programmatic guaranteed CTV deals.
    • The media agency and ad tech company aims to provide advertisers with greater control and transparency over where their streaming ads are shown.

    Learn more about Horizon Media and Magnite’s CTV orientation here.

    How Bleacher Report uses animation to differentiate its World Cup coverage:

    • B/R will air a special episode of its animated series “The Champions” as well as a new, shorter-format show.
    • The B/R Football account sees animated content attract more shares, likes and comments than other content it posts.

    Learn more about Bleacher Report’s animated videos here.

    Vox’s short-form video strategy faces TikTok’s monetization problem, but fulfills the publisher’s “civic duty”:

    • After being inactive on TikTok for over a year, Vox began posting on the platform this month.
    • The publisher has yet to form a dedicated TikTok team in light of TikTok’s nascent monetization program.

    Learn more about Vox’s short video strategy here.

    YouTube highlights its shoppable videos with the holiday gift guide festival:

    • YouTube is hosting a 10-day buy event featuring YouTube creators.
    • Ulta Beauty, Tula and REM Beauty are among the participating brands.

    Learn more about buyable videos from YouTube here.

    What we read

    Disney’s Cost Reduction:
    Disney will suspend hiring and lay off some employees as the company’s streaming losses mount while its TV ad revenue fell in the last quarter, according to CNBC.

    Netflix Live Debut:
    Netflix will air a live show of a Chris Rock stand-up special next year, which may lead the streamer to invest in more live programming in the future, according to Variety.

    Potential Hollywood writers go on strike:
    According to Puck, Writers Guild members could strike on May 1 as they demand better pay at a time when film and TV studios are looking to rein in spending.

    Nielsen Accreditation Status:
    The Media Rating Council has voted to extend Nielsen’s accreditation suspension as the measurement giant fixes its rating deficiencies and prepares its updated measurement system, according to Ad Age.

    Studio Vaccine Mandates:
    Disney, Netflix and Paramount are easing their requirements that cast and crew members in productions must be vaccinated against COVID-19, according to The Hollywood Reporter.

    #Future #briefing #streaming #market #correction

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