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Apple wants first pick on new movies (AAPL)
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Apple is reportedly in discussion with major Hollywood studios for first dibs on movie rental releases in the iTunes Store, Bloomberg reports.
Leading media houses are exploring new ways to distribute film releases to consumers. This includes major studios like 21st Century Fox, Time Warner's Warner Bros. and Comcast's Universal Pictures.
This new model for releasing new films could be game-changing:
Hollywood films typically abide by a "windowed" released cycle. This window guarantee a 90-day delay between theatrical and and home releases through DVD or online purchase. However, studios are thinking about breaking from tradition and releasing high-priced rentals as soon as two weeks after a movie hits the big screen.
Shorter release windows would satisfy film consumption patterns. Both movie theater attendance and home-video rentals have been stagnant in recent years. This new release model could worsen the decline in theatre ticket sales, but, according to Warner Bros. CEO Kevin Tsujihara, it would satisfy consumer appetite and potentially deter privacy too.
It also gives studios a defense against disruptor companies. Netflix is making movesto bring its original films direct to theatre in a way that repudiates traditional windowed film releases. Meanwhile, startups like Screening Room are looking to offer to give home viewers access to movies on the same day that they release in theaters.
Apple wants to be the rental house for the latest film releases. Securing new movies before anyone else would differentiate and provide extra stickiness for the iTunes Store, and also serve a complementary role to boost Apple TV. This could Apple’s play to carve out a meaningful place within the film universe.
But the studios could opt for a different technology platform. It might also make the most sense to license its content to as many platforms as possible, to maximize the distribution of its movie rentals. It would only make sense to give Apple first dibs on films if the technology company makes a generous financial offer.
If 2015 was the year that brands and advertisers embraced online video, then 2016 will see the medium take the next step as live streaming takes off.
Live streaming video refers to broadcasts in real time to an audience over the internet. While the concept of live streaming has been around for years, mobile-first video platforms with user-generated content have just recently begun to make serious waves thanks to improved video quality, faster broadband speeds, and enhanced mobile technology.
Online video has become a key part of the strategic business model for both brands and marketers as they seek more innovative ways to capture consumer attention. Creative live streaming video initiatives and campaigns are a way for companies to cut through the digital clutter and have emerged as the medium of choice not only for person-to-person sharing, but also for business-to-consumer (B2C) and business-to-business (B2B) communication.
Brands are increasingly using live streaming to reach audiences. Its importance has grown significantly thanks to substantial investments by social platforms such as Facebook, YouTube, Snapchat, and Twitter to build and enhance their live-streaming platforms.
And advertising dollars are likely to follow. 88% of agency respondents stated that they “might” or “definitely will” invest in live stream video advertising over the next six months, according to a recent Trusted Media Brands survey.
BI Intelligence, Business Insider's premium research service, has compiled a detailed report on live streaming video that examines the eruption of online video from the perspective of both consumers and advertisers and assesses how live streaming is emerging as the medium's next catalyst for growth.
Here are some key points from the report:
Live streaming video will further accelerate streaming videos overall share of internet traffic. Streaming video accounts for over two-thirds of all internet traffic, and this share is expected to jump to 82% by 2020, according to Cisco’s June 2016 Visual Networking Index report.
Live video’s value comes from its unique ability to add an authentic human element to digital communications. As a result, brands are leveraging three main streaming methods to connect with their viewers: tutorials, product launches, and exclusive and behind-the-scene footage.
Advertisers will continue to invest heavily in online video, especially as live streaming video gains traction. Already in the US, digital video ad revenue reached $7.8 billion in 2015, up 55% from 2014, according to figures from the Internet Advertising Bureau.
While live streaming is still in its early stages, brands are leveraging micropayments, mid-roll video ads and direct payments from social platforms, to monetize their live streaming videos.
The success of live streaming video hinges on brands overcoming a lack of measurement standards in the space, as well as changes in social media sites' algorithms that affect what content users see.
In full, the report:
Examines the eruption of live streaming video.
Explores the differences between platforms that host live streaming video.
Breaks down successful approaches from both brands and publishers.
Discusses unique monetization opportunities live streaming presents.
To get your copy of this invaluable guide, choose one of these options:
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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of live streaming video.
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