In a proposed settlement of Disney's lawsuit against Redbox for reselling codes to allow streaming of movies that clearly are marked not for sale or transfer (see 1712010053), Redbox would stop the practice, according to a proposed stipulated consent judgment and permanent injunction (docket 17-cv-08655) (in Pacer) filed last week in U.S. District Court in Los Angeles.
An Apple services bundle combining Apple News Plus, TV Plus and Music in one paid service could launch next year to lure more subscribers, Bloomberg reported Thursday. CEO Tim Cook said on the company’s Oct. 31 earnings call bundling won’t be a “pattern” but wouldn't rule it out “for the future that we might not see another opportunity at some point”(see 1910310037). Monthly fees are $9.99 each for Apple News Plus and for Music and $4.99 for TV Plus. Apple declined to comment.
A day after Disney vaulted into streaming video including with kid-friendly content (see 1911130053), Netflix announced a multiyear deal with Nickelodeon to produce original animated feature films and TV series. Including Nickelodeon’s library of characters and new intellectual property, it expands their relationship, they said Wednesday. “Nickelodeon’s next step forward is to keep expanding beyond linear platforms, and our broader content partnership with Netflix is a key path toward that goal,” said Brian Robbins, Nickelodeon president.
Disney Plus reached 10 million sign-ups, said the company Wednesday, following the Tuesday launch (see 1911120048) of the $6.99 monthly service. Disney is offering a free seven-day trial; Verizon is offering a free year of service to its unlimited data customers. Disney said Wednesday it won't release further subscriber data outside of quarterly calls. Widespread reports documented glitches with the streaming service’s debut. The content provider acknowledged complications in a tweet, saying launch “exceeded our highest expectations. We are so pleased you’re excited to watch all your favorites and are working quickly to resolve any current issues. We appreciate your patience.” Vizio SmartCast customers were left out due to incompatibilities with Chromecast. A Vizio spokesperson emailed us Tuesday that the TV maker “is working diligently to implement the new version of Chromecast and will start rolling out the update to our SmartCast TVs as soon as possible.” He suggested a workaround for Vizio TV owners by using Apple’s AirPlay. A Disney spokesperson emailed that “Vizio is currently not running on Android TV and therefore will not receive Disney+ as part of our compatibility.” Her solution: “If you plug in a Chromecast device into the Vizio TV, the end-user will be able to access Disney+.” She said users also can plug in an Android TV device such as an Nvidia Shield, Mi Box or JBL Link Bar to get access. Disney's website said the streaming service is also available on Roku and Amazon Fire TV devices; LG and Samsung TVs; and PS4 and Xbox One game platforms.
U.S. consumer spending on home entertainment content jumped 11.33 percent in Q3 to $6.33 billion, reported Digital Entertainment Group Friday. Spending in 2019's first nine months jumped 8.26 percent to $18.34 billion. Total digital spending in Q3 increased 19.14 percent to $5.25 billion, making digital 83 percent of the home entertainment pie. Subscription streaming was the biggest single category in digital and overall, rising 24.67 percent in Q3 to $4.11 billion and 22.89 percent in the nine months to $11.58 billion. Sell-through of packaged goods continued its steady decline, falling 12.86 percent in the quarter to $735.69 million and 18.51 percent for the nine months to $2.27 billion.
Disney is adding “distribution partnerships” with Amazon Fire, LG and Samsung for the Disney Plus streaming service launching Tuesday in the U.S., said CEO Bob Iger on fiscal Q4 call Thursday. It already had partnerships with Apple, Google, Microsoft, Roku and Sony. Disney Plus also will launch March 31 in “markets across Western Europe,” said Iger. The company won’t disclose “specifics” on Disney Plus preorders, he said. Consumers are greeting with “great enthusiasm" the $6.99 monthly price but also the $169.99 three-year subscription offer, “which is a big deal for us in terms of lowering churn,” he said. “We're still relatively small in terms of the scope of things,” but “we certainly feel good about the product that's going into the marketplace,” he said. “We'll know a lot more in just a few days.”
Comments now are due Feb. 21, replies March 6, on a Pluto TV ask for a one-year waiver of rules requiring closed captioning of IPTV content, said an FCC Media Bureau public notice In Thursday's Daily Digest. The bureau OK was for a second deadline extension, this sought by Pluto and Telecommunications for the Deaf and Hard of Hearing as they said they're collaborating on technical issues. Pluto also received an extension in July.
Roku shares plummeted 16 percent to close at $118.46 Thursday after the company reported its Q3 net loss widened 164 percent to $25.2 million. Roku finished the quarter with 32.3 million active accounts, a net addition of 1.7 million from Q2, when analysts had predicted 2.1 million net adds. Senior management nevertheless said Roku was well-positioned for the Apple TV Plus and Disney Plus streaming-service launches. The new services “are good for Roku in a bunch of ways,” said Roku CEO Anthony Wood on a call Wednesday with analysts. Besides driving “engagement” on the Roku platform, they’ll “increase the interest in viewership moving from traditional TV to streaming,” he said. “We think that, eventually, all TV is going to be streamed.” The rise of “all these new services will help encourage that transition,” he said. There's "lots of room to grow engagement" on the Roku platform, said Wood. "Our primary competitor is not other services," it's "linear TV," he said. "Most TV in the country is still regular linear TV and people are moving to streaming and cutting the cord and this will help drive that."
SiriusXM is “now easily available in the home and on the go on a growing number of connected CE devices,” said CEO Jim Meyer on a Q3 call Thursday: “Subscriber growth" contributions "from these areas are small today but have plenty of room to grow.” SiriusXM programming is coming to Google Assistant devices (see report, Oct. 31). SiriusXM “moved very quickly” since buying the streaming service in February (see 1901300019), said Meyer. “We have moved the business to profitability through cost efficiencies, and we are continuing to make strides in monetization.” Advertising-supported Pandora listening hours fell 7.5 percent from a year earlier, “an improvement from declines of 9.6 percent" in Q2 and Q1's 11.2 percent, said Meyer. “We have a lot of heavy lifting ahead.” SiriusXM close up 3.9 percent at $6.72.
Apple TV Plus, described as “the first all-original video subscription service,” debuts Friday in more than 100 countries and regions at $4.99 per month with a seven-day free trial. In addition to the iPhone, iPad, Apple TV, iPod touch and Mac, the streaming service will be available online and on select Samsung smart TVs and Roku and Amazon Fire TV devices. Consumers who bought an eligible Apple product after Sept. 10 are eligible for a free year of Apple TV Plus if they opt in within three months, Apple said.