Streaming Services and Ancillary Rights
Streaming Services
Disney+:
Disney+ gained 11.7 million subscribers last quarter, outplacing all streaming services
Disney+, including Hot star: 118.1 million subscribers (up 11.7 million from last quarter); $4.41 global ARPU (up $0.29 per month from last quarter)
Hulu subscription video on demand, or SVOD, only: 40.9 million subscribers (up 1.2 million from last quarter); $12.96 ARPU (up $0.21 from last quarter)
Hulu SVOD+Live TV: 4.3 million subscribers (up about 300,000 from last quarter), $87.01 ARPU (up $2.12 from last quarter)
ESPN+: 21.3 million subscribers (up 4.2 million from last quarter), $5.16 ARPU (up $0.42 from last quarter)
Disney was arguably the biggest winner this quarter, gaining 11.7 million Disney+ subscribers on the strength of Marvel shows and movies and The Beatles documentary “Get Back.” Disney’s secondary products, Hulu and ESPN+, also showed strength — both gaining subscribers and while raising ARPU. Disney reaffirmed its target of reaching 230 million to 260 million Disney+ subscribers by 2024.
Disney Plus is one of Netflix's closest competitors -- for good reason. The streaming platform launched in late 2019 and has amassed nearly 130 million subscribers. It's the only place where you can stream the vast majority of the Disney and Pixar libraries, along with every Star Wars movie, Marvel films and new original TV shows, National Geographic content and 31 seasons of The Simpsons. While The Mandalorian was its first breakout series, its slate of Marvel shows, including WandaVision and Loki, have since drawn millions of viewers. Features such as Turning Red and Encanto won rave reviews. Plus, there's lots more Star Wars and Marvel original programming coming in the next few years.
Netflix:
Netflix added 8.3 million new subscribers, but shares fell when it forecast just 2.5 million new ads for the first quarter of 2022
222 million global paying subscribers (up about 8.3 million)
75.22 million paid memberships in U.S. and Canada (increased 1.19 million from last quarter)
Average revenue per user, or ARPU, for U.S. and Canada is $14.78 (up $0.10 since last quarter)
Netflix has consistently been a leader in terms of statistical clarity, providing ARPU and subscriber numbers in many regions of the country. Disney is another standout. (Both still don’t break out how many subscribers come from promotional wireless offerings, rather than pure signups, but maybe one day).
Netflix shares plummeted this quarter after forecasting just 2.5 million new net subscribers for next quarter. Its 8.3 million ads in the fourth quarter were slightly under its own forecast of 8.5 million. Netflix’s low first-quarter forecast — most analysts had estimated about 4 million to 7 million ads — spooked investors so much that it’s fair to wonder if the total addressable market for streaming video is lower than many had assumed. A January price increase in the U.S. and Canada may not help matters regarding slowing growth. Or, perhaps, the first quarter estimate will just be a small blip on Netflix’s path toward world domination. Still, Netflix at least referred to the idea that competition from other services could be making future growth more difficult.
There's a reason why Netflix has become shorthand for streaming in general. The veteran service evolved into the top-tier streaming service that's a must-have in 2022. When big originals like Bridgerton drop, they grab the attention of millions of viewers along with critical praise and awards, giving us the closest thing to watercooler conversations we have nowadays.
Starting at $10 a month for basic, its price is in the middle of the TV service pack, and its standard plan bumped up to $15.50 per month, which includes HD and two simultaneous streams. Recently, Netflix announced future plans to offer ad-supported price plans for members who want to pay less. But for the variety you get (and no commercials ever), it's still a top pick.
Amazon Prime Video:
Amazon increased the price of its annual Prime membership for the first time in four years to $139 from $119. The cost of monthly prime memberships will increase to $14.99 from $12.99. This change went into effect Feb. 18 for new members and will kick in March 25 for current members.
More than 175 million Amazon Prime members had streamed shows and movies in the past year. No updates have been given in the last three quarters.
It lacks the catalogs of Netflix and Hulu, and the star power of Disney's streaming platform, and I found its menus more confusing since there's some paid content mixed in with free content. Prime Video's new redesign aims to cut down on that confusion with clearer labeling and menu updates, and the upgrades will soon be available for every global customer. For millions of Prime subscribers, the Prime Video channel is already included at no extra cost. If you're interested in checking out any of its originals like the upcoming Lord of the Rings prequel or its large movie selection, it may even be worth paying the stand-alone $9 a month TV service fee (if you don't have Amazon Prime).
Amazon is spending nearly $500 million on just the first season of “The Lord of the Rings: The Rings of Power,” which is set to debut later this year on Sept. 2. That sets up Amazon to have a surge in fourth-quarter subscribers later this year — when Amazon also gets the exclusive rights to “Thursday Night Football” for the first time.
Apple TV+
In September, a showbiz union representing behind-the-scenes workers says Apple claimed fewer than 20 million Apple TV+ subscriptions in the U.S. and Canada as of July 1. Apple did not update Apple TV+ subscribers this quarter.
Apple hasn’t broken ARPU for Apple TV+
At $5 a month, Apple TV Plus is the lowest-priced premium, ad-free streaming service available, with high-end features like 4K resolution, HDR and mobile downloads. However, it's also the only service on this list that includes only original content, and no back catalog of shows or movies to explore. While it now has more than 50 exclusive, big-budget original programming shows and movies, only a few have captured widespread attention, such as Ted Lasso and Severance, while CODA won Best Picture among other Oscars. Though the service is branching out with additions like live MLB baseball on Fridays, its library is far smaller than any of the others on this list.
Paramount
More than 56 million global streaming subscribers, 32.8 million of which are Paramount+
Paramount+ ARPU: About $9
Pluto TV: 64.4 million monthly active users (up 10 million from last quarter)
Pluto TV 2021 global ARPU: $1.64; U.S. ARPU: $2.54
Paramount Plus brings together live news and sports with on-demand shows and movies, including originals, leaning on parent company Viacom CBS' brands like popular channels CBS, MTV, BET, Comedy Central, Nickelodeon and Paramount Network, plus its Paramount Pictures movie studio.
Warner Media’s HBO and HBO Max
73.8 million global subscribers (up about 4.4 million from last quarter)
46.8 million domestic subscribers (up about 1.6 million from last quarter)
Domestic ARPU is $11.15 (down about $0.67 from last quarter)
HBO Max is a well-designed app full of popular TV shows and movies. It has HBO's entire library, DC Universe titles, along with favorites such as Friends, Rick and Morty, Sesame Street, the Lord of the Rings movies and almost every Studio Ghibli film. And it's the primary destination for new Warner Brothers-owned feature films. It's not Disney Plus, but HBO Max has a solid streaming collection for kids too, with the ability to control ratings on kids' profiles better than most other services.
Are Movie theatres Dead???
The fate of movie theaters has been up in the air for years. That’s only become more pronounced as we continue to adjust to COVID-19 and fears of public gatherings in places like cinemas. Meanwhile, streaming is primed to fill that void. It’s perhaps overly simplistic to frame this as a simple battle — movie theaters vs streaming services like Netflix — but we are watching the two film exhibition formats duke it out to some extent.
Because of the pandemic it has been thought that Box Office hauls have been down, however recent movies like Spiderman: No way home shattered that perception, at least a bit, as it broke records in its opening weekend. Also, titles like Batman and Doctor Strange in the multiverse of madness, have followed suit. Even an Indie film, Everything Everywhere all at Once, has done very well and proved mighty at the box office.
Box office has declined since 2020 due to the pandemic but even before this there has been talk about streaming services taking over box office.
Not all big movies are released in Movie theatres, Roma and the Irishmen were both released on Netflix during 2018-2019. During that same time period however, massive Blockbusters were also released in theatres. Avengers: Infinity War and Avengers: Endgame both broke box office records in theatres. Endgame still remains the highest-grossing film of all time.
People still prefer to watch movie premieres at home instead of at the theatres, according to a survey done by Civic Science from October 2021. In 2020 the amount of US streaming subscriptions went up by 50%.
Ancillary Rights
An agreement between a music production company and a musical artist in which the artist agrees to pay the company a share of income from activities other than recording, to be used in conjunction with a recording (production) agreement.
Ancillary rights refer to all rights that are related to exploiting property in ways that are different from their original format. You may often see the terms, allied and ancillary rights, listed on a purchase agreement or an option agreement. The term is also commonly used in the creation of feature films which will legally entitle you to have the right to create any other form of content that was based on the original feature film. This can include:
Merchandising
Sequels
Television series
Stage plays
Book publishing
Soundtrack recordings
Web series
Graphic novels
There are some important things to consider when considering ancillary rights. Ancillary rights:
Are supplementary or subordinate rights that arise from a primary right to the property
Exist by depending on and being reasonably linked to the primary claim
When related to entertainment law, a contractual agreement is considered where a percentage of the profits that are received come from the sale of items related to the film.
Streaming Services
Disney+:
Disney+ gained 11.7 million subscribers last quarter, outplacing all streaming services
Disney+, including Hot star: 118.1 million subscribers (up 11.7 million from last quarter); $4.41 global ARPU (up $0.29 per month from last quarter)
Hulu subscription video on demand, or SVOD, only: 40.9 million subscribers (up 1.2 million from last quarter); $12.96 ARPU (up $0.21 from last quarter)
Hulu SVOD+Live TV: 4.3 million subscribers (up about 300,000 from last quarter), $87.01 ARPU (up $2.12 from last quarter)
ESPN+: 21.3 million subscribers (up 4.2 million from last quarter), $5.16 ARPU (up $0.42 from last quarter)
Disney was arguably the biggest winner this quarter, gaining 11.7 million Disney+ subscribers on the strength of Marvel shows and movies and The Beatles documentary “Get Back.” Disney’s secondary products, Hulu and ESPN+, also showed strength — both gaining subscribers and while raising ARPU. Disney reaffirmed its target of reaching 230 million to 260 million Disney+ subscribers by 2024.
Disney Plus is one of Netflix's closest competitors -- for good reason. The streaming platform launched in late 2019 and has amassed nearly 130 million subscribers. It's the only place where you can stream the vast majority of the Disney and Pixar libraries, along with every Star Wars movie, Marvel films and new original TV shows, National Geographic content and 31 seasons of The Simpsons. While The Mandalorian was its first breakout series, its slate of Marvel shows, including WandaVision and Loki, have since drawn millions of viewers. Features such as Turning Red and Encanto won rave reviews. Plus, there's lots more Star Wars and Marvel original programming coming in the next few years.
Netflix:
Netflix added 8.3 million new subscribers, but shares fell when it forecast just 2.5 million new ads for the first quarter of 2022
222 million global paying subscribers (up about 8.3 million)
75.22 million paid memberships in U.S. and Canada (increased 1.19 million from last quarter)
Average revenue per user, or ARPU, for U.S. and Canada is $14.78 (up $0.10 since last quarter)
Netflix has consistently been a leader in terms of statistical clarity, providing ARPU and subscriber numbers in many regions of the country. Disney is another standout. (Both still don’t break out how many subscribers come from promotional wireless offerings, rather than pure signups, but maybe one day).
Netflix shares plummeted this quarter after forecasting just 2.5 million new net subscribers for next quarter. Its 8.3 million ads in the fourth quarter were slightly under its own forecast of 8.5 million. Netflix’s low first-quarter forecast — most analysts had estimated about 4 million to 7 million ads — spooked investors so much that it’s fair to wonder if the total addressable market for streaming video is lower than many had assumed. A January price increase in the U.S. and Canada may not help matters regarding slowing growth. Or, perhaps, the first quarter estimate will just be a small blip on Netflix’s path toward world domination. Still, Netflix at least referred to the idea that competition from other services could be making future growth more difficult.
There's a reason why Netflix has become shorthand for streaming in general. The veteran service evolved into the top-tier streaming service that's a must-have in 2022. When big originals like Bridgerton drop, they grab the attention of millions of viewers along with critical praise and awards, giving us the closest thing to watercooler conversations we have nowadays.
Starting at $10 a month for basic, its price is in the middle of the TV service pack, and its standard plan bumped up to $15.50 per month, which includes HD and two simultaneous streams. Recently, Netflix announced future plans to offer ad-supported price plans for members who want to pay less. But for the variety you get (and no commercials ever), it's still a top pick.
Amazon Prime Video:
Amazon increased the price of its annual Prime membership for the first time in four years to $139 from $119. The cost of monthly prime memberships will increase to $14.99 from $12.99. This change went into effect Feb. 18 for new members and will kick in March 25 for current members.
More than 175 million Amazon Prime members had streamed shows and movies in the past year. No updates have been given in the last three quarters.
It lacks the catalogs of Netflix and Hulu, and the star power of Disney's streaming platform, and I found its menus more confusing since there's some paid content mixed in with free content. Prime Video's new redesign aims to cut down on that confusion with clearer labeling and menu updates, and the upgrades will soon be available for every global customer. For millions of Prime subscribers, the Prime Video channel is already included at no extra cost. If you're interested in checking out any of its originals like the upcoming Lord of the Rings prequel or its large movie selection, it may even be worth paying the stand-alone $9 a month TV service fee (if you don't have Amazon Prime).
Amazon is spending nearly $500 million on just the first season of “The Lord of the Rings: The Rings of Power,” which is set to debut later this year on Sept. 2. That sets up Amazon to have a surge in fourth-quarter subscribers later this year — when Amazon also gets the exclusive rights to “Thursday Night Football” for the first time.
Apple TV+
In September, a showbiz union representing behind-the-scenes workers says Apple claimed fewer than 20 million Apple TV+ subscriptions in the U.S. and Canada as of July 1. Apple did not update Apple TV+ subscribers this quarter.
Apple hasn’t broken ARPU for Apple TV+
At $5 a month, Apple TV Plus is the lowest-priced premium, ad-free streaming service available, with high-end features like 4K resolution, HDR and mobile downloads. However, it's also the only service on this list that includes only original content, and no back catalog of shows or movies to explore. While it now has more than 50 exclusive, big-budget original programming shows and movies, only a few have captured widespread attention, such as Ted Lasso and Severance, while CODA won Best Picture among other Oscars. Though the service is branching out with additions like live MLB baseball on Fridays, its library is far smaller than any of the others on this list.
Paramount
More than 56 million global streaming subscribers, 32.8 million of which are Paramount+
Paramount+ ARPU: About $9
Pluto TV: 64.4 million monthly active users (up 10 million from last quarter)
Pluto TV 2021 global ARPU: $1.64; U.S. ARPU: $2.54
Paramount Plus brings together live news and sports with on-demand shows and movies, including originals, leaning on parent company Viacom CBS' brands like popular channels CBS, MTV, BET, Comedy Central, Nickelodeon and Paramount Network, plus its Paramount Pictures movie studio.
Warner Media’s HBO and HBO Max
73.8 million global subscribers (up about 4.4 million from last quarter)
46.8 million domestic subscribers (up about 1.6 million from last quarter)
Domestic ARPU is $11.15 (down about $0.67 from last quarter)
HBO Max is a well-designed app full of popular TV shows and movies. It has HBO's entire library, DC Universe titles, along with favorites such as Friends, Rick and Morty, Sesame Street, the Lord of the Rings movies and almost every Studio Ghibli film. And it's the primary destination for new Warner Brothers-owned feature films. It's not Disney Plus, but HBO Max has a solid streaming collection for kids too, with the ability to control ratings on kids' profiles better than most other services.
Are Movie theatres Dead???
The fate of movie theaters has been up in the air for years. That’s only become more pronounced as we continue to adjust to COVID-19 and fears of public gatherings in places like cinemas. Meanwhile, streaming is primed to fill that void. It’s perhaps overly simplistic to frame this as a simple battle — movie theaters vs streaming services like Netflix — but we are watching the two film exhibition formats duke it out to some extent.
Because of the pandemic it has been thought that Box Office hauls have been down, however recent movies like Spiderman: No way home shattered that perception, at least a bit, as it broke records in its opening weekend. Also, titles like Batman and Doctor Strange in the multiverse of madness, have followed suit. Even an Indie film, Everything Everywhere all at Once, has done very well and proved mighty at the box office.
Box office has declined since 2020 due to the pandemic but even before this there has been talk about streaming services taking over box office.
Not all big movies are released in Movie theatres, Roma and the Irishmen were both released on Netflix during 2018-2019. During that same time period however, massive Blockbusters were also released in theatres. Avengers: Infinity War and Avengers: Endgame both broke box office records in theatres. Endgame still remains the highest-grossing film of all time.
People still prefer to watch movie premieres at home instead of at the theatres, according to a survey done by Civic Science from October 2021. In 2020 the amount of US streaming subscriptions went up by 50%.
Ancillary Rights
An agreement between a music production company and a musical artist in which the artist agrees to pay the company a share of income from activities other than recording, to be used in conjunction with a recording (production) agreement.
Ancillary rights refer to all rights that are related to exploiting property in ways that are different from their original format. You may often see the terms, allied and ancillary rights, listed on a purchase agreement or an option agreement. The term is also commonly used in the creation of feature films which will legally entitle you to have the right to create any other form of content that was based on the original feature film. This can include:
Merchandising
Sequels
Television series
Stage plays
Book publishing
Soundtrack recordings
Web series
Graphic novels
There are some important things to consider when considering ancillary rights. Ancillary rights:
Are supplementary or subordinate rights that arise from a primary right to the property
Exist by depending on and being reasonably linked to the primary claim
When related to entertainment law, a contractual agreement is considered where a percentage of the profits that are received come from the sale of items related to the film.
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