Netflix Turn to Diss
Remember last week when Disney, which owns ABC, announced it was pulling its movie library from Netflix for its own OTT solution? Snap! Stunning turning of the tables in this week's ABC/Netflix soap opera. Shondra Rhimes, creator of ABC shows Gray's Anatomy, Scandal and How To Get Away With Murder, is moving over to Netflix. Can you imagine those shows without the restraints of censorship? Meanwhile, Netflix also engaged David Letterman and the Coen Brothers. Amazon signed up Walking Dead creator Robert Kirkman. And Apple announced its investing a paltry $1 billion to develop content. It's a tough new world for broadcast TV executives, who manage what is still the largest TV platform. But they are getting squeezed. Smaller entertainment companies are investing big-time in content, while simultaneously offering more money and sweet perks to star talent. I'll be curious how long before cable outlets start balking at the money they fork out to broadcast networks for carriage rights?
Media Outlets Struggle - Or Do They?
While we're on the subject of tough media models, there's more shakeup at Pandora, which hired a new CEO this week. Roger Lynch, the founder of Sling TV, has been appointed president and CEO. The new appointment comes on the heels of the service withdrawing in Australia and New Zealand a few weeks ago. What are some other new faces at Pandora? Snap Inc. chairman Michael Lynton joins the board of directors. Interesting match, if there wasn't some irony in knowing Snap's stock has been on a consistent slide and Fidelity dumped half its Snap stock since April. The fact that so many media companies are struggling with down earnings, Disney, Pandora, Snap, ABC, ESPN, Netflix, Viacom, Time Warner, etc., shows just how much our on-demand culture and fragmentation is really hurting. And yet media stocks rise.
Tiffany and Costco - Where's the Love?
As the CEO of a media buying agency I'm often accused of being a numbers geek, which is true. However, I also hold in high esteem the power of emotion via branding. That's why I read with interest this week the court case where Tiffany successfully sued Costco for brand denigration to the tune of $19 million in damages. At the crux of the suit was whether "Tiffany" is a proprietary brand name or a generic term to describe a certain cut of diamond. Costco was selling "Tiffany" rings and Tiffany didn't want its name associated with a wholesale retailer. The suit was filed on Valentine's Day 2014 and I can't help but wonder how much influence the PR team had there. Read more here.
Amazon Gets Social
Amazon announced this week the launch of a social media platform, Spark, integrating social and shopping. The user-friendly flow will make impulse shopping a breeze, says Amazon. Spark is only available to Amazon Prime users. I think this is going to be big and can't wait to test it. Read more here.
Check out Amazon's new social app, Spark.
Marilois Snowman| Mediastruction | 508-540-3600 |marilois@mediastruction