Showbiz Sandbox 365: As Cord-Cutting Grows, Media Company Revenue Falls
May 8, 2017
Media company stocks took a beating last week with a one-two punch from cord-cutting and a soft ad market. The first quarter of 2017 saw pay cable subscriptions fall by over 700,000 in the United States, the largest ever such loss. This has caused some concern that cord-cutting has accelerated just as major advertisers have started to spend less on marketing.
However, television networks may just be shifting where revenue comes from. Rather than huge carriage fees and ad rates tied to huge viewership, networks may now be earning money off licensing content to streaming video providers and selling ads on digital platforms. There’s just one problem; such digital platforms pay far less than networks used to getting.
Warner Music Group is also suffering from shrinking revenues thanks to consumer migration to streaming online services. The company signed a new licensing agreement with YouTube, but they aren’t happy with a deal they felt forced into accepting. We’ll explain why.
Of course, we also cover the week’s top entertainment news including the multiple “Game of Thrones” spin-offs planned by HBO, Harry Potter heads to Broadway and the return of “American Idol”.
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Showbiz Sandbox 79: A New Social Music Chart To Rival Billboard?
November 16, 2010
Media measurement company BigChampagne believes that ranking songs and musicians based on radio airplay and record sales is an antiquated method. Joe Fleischer, the company’s Chief Marketing Officer, explains how they’ve added social platforms such as YouTube, Facebook and Pandora into the mix to create the Ultimate Chart, a new music chart giving industry heavyweights Billboard and Soundscan a run for their money.
Speaking of media metrics, the biggest entertainment launch in history occurred last week and it wasn’t a James Cameron movie. In fact, it wasn’t a movie at all, but a video game. “Call of Duty: Black Ops” earned a record setting $360 million in its first day alone.
If that’s not strange enough for you, the biggest headlines coming out of the Country Music Awards may not have been from winners Miranda Lambert and Blake Shelton or even the red hot Taylor Swift. Instead it was actress Gwyneth Paltrow who performed the title song from her upcoming movie “Country Strong”. Paltrow proved she can really belt out a tune, though whether that helps rehabilitate her career or image remains to be seen.
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