To choose your adventure. A perfect example of, despite saying they were committed to winning in SVOD, Big Media wants to have their cake, eat it to - and then hope they get a 3rd cake They’re the best. We have Jeff Bezos onstage. $120 for a year of Spotify or Apple Music (i.e. Why Amazon is going to be one of the winners of the streaming video wars, This story is part of a group of stories called, Donald Trump just issued a surprise pardon for the man at the center of an epic fight between Google and Uber. But there’s no one — really — to police the platforms except their owners and employees. It’s true that many media businesses achieve decades of high margins and reliable revenues. Some of them charge, some don’t; some will generate direct profits, some won’t; some aspire to maximize view time, others just want a part of it. We reinterpret it as The Grand Tour. Prime is bigger. They’re all these strange inheritances that we’ve gotten from the old world, that do or do not position you well. Netflix is in the crossfire of this ecosystem war and will need to excel through specialization and a first-mover advantage to be sustainable. OTT Video. We have all this other stuff we put out through Turner. I want to go through a few more media companies and then I want to talk more about you. Amazon is “guaranteed” to be one of them, he says. And we get it for free, awesome. Please consider making a contribution to Vox today, from as little as $3. The bundle needs to exist. In 2017, legendary music producer and Apple Music executive Jimmy Iovine even boasted to Billboard that “[independent] streaming services have a bad situation, there’s no margins, they’re not making any money… Amazon sells Prime; Apple sells telephones and iPads; Spotify, they’re going to have to figure out a way to get that audience to buy something else.” To point, Spotify, the only at-scale pureplay music service and the overall market leader, has a 25% gross margin (and royalty agreements cap margins at 30%) and a negative 2% profit margin. Everyone else, question mark. Yeah, and part of that is really just a question of brand. And if you have a guaranteed business model – say, selling another iPhone, Showtime subscription, ad impression, datapoint, or two-year wireless subscriptions – there are incentives to maximize your userbase (more people you can upsell to) and the amortization of fixed costs (the higher your unit contribution). Once you look at those default subscriptions, the free services like Apple, like Amazon, the effectively free services like a Netflix, the guaranteed services, or at least very compelling services like Netflix, you start to get into a world in which you are spending $20-30 getting a tremendous amount of content. So, I was told very clearly, “You have to stop this. They may be coming late to market, but they are coming out with such a high volume of outstanding quality. What were you doing prior to writing for Jason Hirschhorn? Disney is likely to capture the entirety of that, or go after the entirety of that, with their SVOD service. Amusingly, the shift to using video to sell other things reflects a reversion to where TV began. Its arrival also kickstarts a never-ending stream of new episodes, new series, and new films. Yeah, I certainly agree with that, and as I mentioned earlier, one of the big challenges is, we ask this existential question which is, “How many services is it going to be?” John Stankey has said that he believes this — this is the CEO of WarnerMedia. Recode and Vox have joined forces to uncover and explain how our digital world is changing — and changing us. Yeah, I think that’s right. A few pureplay media companies exist, but few are optimistic about their future beyond supplying content to these tech or tech-telco companies. Yeah. This brings us to the final, if anti-climactic question: what became of the long-foretold battle between Hollywood and tech? Thank you for coming. Bonus and ad-free content available with Stitcher Premium. So the Netflix stuff is going to disperse to different services. No one ever programs for the audience they don’t have. The big platforms finally policed Donald Trump. That’s a terrible experience. I think the lesson here, I’m guessing, is it’s very hard for the incumbent company to figure out how to do a different version of itself. HBO in the United States has 36-38 million subscribers. Film ticket prices are up 12% since 2000, but this amounts to only one extra dollar and is no different than the inflation adjusted prices of the late 1980s. You can listen to Recode Media wherever you get your podcasts — including Apple Podcasts, Spotify, Google Podcasts, Pocket Casts, and Overcast. If you take a look at all of the advances that Netflix has made, that they’ve invested in, the supposed benefits that they’ve accrued from that, you have to put a lot of stock into that. Music is an even more modest $33B. Right, and there’s actually significant upside to Disney, because if you think about that $3.2 billion in consumer spend, half of that is markup that goes to the retailer. This sounds like something I wrote. Had you said you were coming? No. Those customers who are late adopters, they’re typically harder to get. By the way, you can already buy HBO and Showtime, etc., and the thought is we’re going to spend maybe billions of dollars to create content that we’re either going to give away or give away for a very little fee in order to get people to hang out and buy more stuff. There’s this thing where people will talk about the fact that Amazon was doing Silver Lake programming. In the simplest way, I think what they’re trying to do is replicate what Amazon has been doing for several years. They’re paying a lot of people with well-known names, Steven Spielberg, Jennifer Aniston, etc., to make content. Their first foray into video, they did that at a $3,000/ticket Code Media conference. Ultimately, this may mean the “Streaming Wars” never happen – or not directly, at least. Why the best referees for Twitter and Facebook may be the people who work there. Matthew Ball. 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