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Podcast Episode 39 is live! This week we breakdown all the key numbers you need to know from Q3 2022 earnings from OTT companies and streaming vendors including Disney, Netflix, Paramount, Roku, Fubo, WarnerBros. Discovery, FOX, Vimeo, Brightcove, Fastly, Cloudflare, Altice, DISH, Lionsgate and AMC Networks. Learn the latest D2C subscriber numbers, ARPU per user and how much money OTT platforms are still losing (Disney lost $1.47B, Paramount lost $343M). Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Disney, Netflix, Paramount, Roku, Fubo, WarnerBros. Discovery, FOX, Vimeo, Brightcove, Fastly, Cloudflare, Altice, DISH, Lionsgate, AMC Networks, Charter, Xumo, Tubi, NPR+.

Podcast Episode 38 is live! This week we breakdown Fubo’s decision to close and exit the Sportsbook market along with DAZN’s comments that betting within streaming services isn’t a reality in the next few years. We also highlight some new sports viewership numbers from NBC Sports and NFL; cover some recent pay TV losses by pay TV providers; detail Apple’s new Apple TV boxes and discuss the NBA’s new app that has 12-seconds of latency. Finally, while almost no video vendors are profitable, let alone seeing a positive return on their stock price over the past 12-18 months, we detail the numbers that make Harmonic the exception. Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Netflix, NBC Sports, Apple TV, Harmonic, Vimeo, NBA, NFL+, MLB, Amazon Prime Video, Verizon, DAZN, Fubo, Disney.

Podcast Episode 37 is live! This week we breakdown Netflix’s soon to be released AVOD offering and the fact that the video quality is limited to 720p with no ability for downloads. Are consumers willing to sacrifice video quality for price? Will the streaming industry need to re-think how they define video “quality” if consumers are willing to accept 720p as “good enough”? We also discuss Netflix’s measurement deals announced with Nielsen, BRB, IAS and DoubleVerify and what this means for advertisers. We also cover what some of the largest live streaming events on the Internet have generated from a viewership standpoint.

Companies, and services mentioned: Netflix, Peacock TV, Nielsen, DoubleVerify, Beamr, Roku, Apple TV, Disney+, BBC, Integral Ad Science, NBC Sports, Amazon Prime Video, Riot Games, Akamai, IPL. Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Netflix, Peacock TV, Nielsen, DoubleVerify, Beamr, Roku, Apple TV, Disney+, BBC, Integral Ad Science, NBC Sports, Amazon Prime Video, Riot Games, Akamai, IPL.

Podcast Episode 36 is live! This week we breakdown Nielsen’s confusing streaming rankings, which aren’t accurately comparing shows based on the same metrics. We also highlight Peacock’s latest paid sub numbers (15 million); Google’s expanded cloud deal with MLB; Mux’s recent round of layoffs; Vizio’s FAST ad revenue and Roku’s removal of all SDK1 channels. We also discuss how many companies hiring for new positions are not doing a good job following up, list jobs no longer open and need to do a better job of putting people first. Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Peacock, Comcast, HBO Max, Amazon Prime Video, MLB, Google Cloud, Nielsen, Netflix, Disney+, PlayStation 5, ByteDance, Vizio, Roku, Amazon, eBay, Mux.

In 2017, Roku said that SDK1 channels would be depreciated but no firm date was announced and there was no further communication until last month with the Roku OS 11.5 roll out. (release notes) On September 12th, Roku removed all SDK1 channels and deleted them from devices and their developer portal. Concerning is the loss of the installs and loss of ability to upgrade code base. It’s just gone.

I’ve been told that Roku’s Partner Success Managers are pointing to the Scenegraph SDK and stating that was the method to update. But there is no update path since all the channels have been removed from all devices and the developer portal. Even the link to the post about the SDK change has now been deleted from Roku’s website and the blog post gives a 404 error.

Roku says, “channels that still had these sunset components as of August 22nd were disabled and removed from the Roku Channel Store. These channels can no longer be installed or launched unless they were migrated to SDK2”. So unless developers already migrated to SDK2, there is no longer any way to update.

Roku developers have noticed 2 SDK1 channels that are unpublished and in the “Beta” state but it’s unclear what that means. Some developers say between all their channels, they have millions of cumulative installs. I’ve reached out to Roku for explanation and have not gotten any response. If someone from Roku wants to reply in the comments, please do so. You have some developers rightfully asking questions and looking for answers. I can’t find any thread on Roku’s developer blog that provides any more details.

It’s being reported across Twitter and LinkedIn that Mux did a recent round of layoffs of 20% of the company, or about 40 employees. (As of publishing, the company hasn’t replied to my inquiry) The company raised two rounds of funding in less than a year including $37M in a Series C round in 2020 and $105M in D Round in 2021. Too many streaming media vendors raised money during the pandemic thinking the growth of video consumption during that time would be the new norm, but that wasn’t reality. I still don’t know why companies had this line of thought since we all knew people would not stay inside their homes forever.

With Mux’s latest round of funding the company said they wanted to use the money to grow from 80 to 200 employees and they ramped up headcount. But like many other vendors, Mux had to pull back and do layoffs to cut costs. The valuation of companies like Mux, Vimeo, Hopin and others didn’t make sense at the time of their latest raise and companies set improper expectations with investors. During the height of covid and raising money, some streaming vendors were valued at 20x-70x revenue in their last round of funding. Just because a company can get that valuation, doesn’t mean they should take it or that it is good for their business. With big funding, comes big expectations.

I simply don’t understand why so many vendors are unrealistic when it comes to the true size of the market they are in and didn’t set proper expectations with investors. Doing so would allow them more time to organically grow their business in a more sustainable way without having to make big drastic changes when the growth doesn’t come. The moment a company takes hundred(s) of millions of dollars in funding, investors expect a level of growth that streaming vendors simply can’t match in the time frame investors expect.

Layoffs aren’t good, but if it helps re-set vendors and investors expectations on the proper TAMs (Total Addressable Market) and realistic rate of growth, then in the long run, this is a good thing.

IMAX has announced their acquisition of Ontario based SSIMWAVE, which licenses their AI-driven video quality technology to media and entertainment companies that includes Disney, Paramount Global, and Warner Bros. Discovery. IMAX is paying $18.5 million in cash and $2.5 million in stock for SSIMWAVE with additional earnout consideration of $4 million, subject to achieving certain operating performance and financial objectives.

To date, SSIMWAVE had raised just a few million dollars (under $5 million) and funded their entire operations based on the contracts they signed in the market. The company employees 40 people and the CEO tells me all employees including the current management team at SSIMWAVE will stay on with the acquisition. SSIMWAVE will be a fully owned subsidiary of IMAX but will keep operating independently and falls under IMAX Enhanced division.

This is an interesting acquisition for IMAX and a great fit for SSIMWAVE since IMAX has recently begun working on what they are informally calling IMAX 3.0. Their goal is to expand beyond film exhibition and add a regular slate of concerts, stand-up comedy performances and sporting events. The company also launched a major streaming partnership with Disney+ in Q4 of last year and created a series of exclusive events connecting theatrical and streaming. As part of that relationship, Disney has enhanced variations of select streaming titles on Disney+. The titles feature an expanded aspect ratio of 1.90:1 and allows viewers to see up to 26% more of the original image.

This is a great tie up for both companies since they are both focused on video quality. IMAX is all about the user experience within a theatre and it’s why consumers pay more for a ticket in IMAX. Using SSIMWAVE’s technology and expertise, IMAX wants to take that same approach with the use experience and bring a specific level of video quality to consumers at home. I’m excited to see what an enhanced video quality experience looks like within the home.