We are in a streaming first demos plus world

Over the last few months Disney (ESPN, ABC, Hulu,…) NBC Universal, Warner Media and Viacom CBS have all announced consolidations and transitions to focus on streaming video (CTV| OTT).

One executive said of streaming- It’s not about better programming, it is about superior technology. I think that statement is half true. Streaming | CTV does have some better programs, just look at shows that are winning all of the awards.

Cable companies are acknowledging that there just is not much margin in the video bundle. A CEO of a large Cable company said it just does not make sense to deliver $60 of video to a subscriber for $40. Cable companies are making money on broadband service.

Need more evidence that the shift to streaming has occurred. Look to 3rd quarter 2020 earnings and active users.

3rd Quarter 2020

Roku revenue up 73%

Trade Desk revenue up 32%. (I think CTV revenue was up 100%)

Tubi 33 million active users

Pluto 24.8 million active users

Sling, YouTube TV, Philo all add subscribers to their skinny bundles

CTV | OTT always getting better for advertisers and viewers