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Most investors understand the traditional cable TV business is dying thanks to streaming alternatives like Netflix(NASDAQ: NFLX) and Walt Disney(NYSE: DIS), which owns Hulu and Disney+. What most investors may not yet fully appreciate, however, is just how much this paradigm shift has accelerated in 2020. This year is shaping up as the proverbial tipping point for linear cable names like Comcast's (NASDAQ: CMCSA) Xfinity and Charter's (NASDAQ: CHTR) Spectrum cable television businesses.
The funny thing is, it's not the subscription-based services doing all the recent damage to the cable industry. Ad-supported video alternatives are picking up lots of steam. Two new data nuggets revealed this week underscore this idea.
© Getty Images A hammer smashes the screen of a box TV.
Consumers flocking to AVOD
- Ad-Supported Video-On-Demand (AVOD) Ad-supported video-on-demand platforms like YouTube make their money off ads in between their content. As a result, the platforms are free for viewers.
- Known by an array of acronyms, such as AVOD (ad-supported video on demand), FAST (free ad-supported) and CTV (connected TV), ad-supported streaming varieties offer consumers yet another video option amid a vastly fragmenting sea of choice.
Free, ad-supported video on demand (or AVOD) isn't exactly a new idea. Fox's (NASDAQ: FOX)(NASDAQ: FOXA) Tubi has been around since 2014. Pluto TV, now owned by ViacomCBS(NASDAQ: VIAC)(NASDAQ: VIAC.A), has been around since 2013. Both are respected, but neither have been game changers. Consumers arguably saw these free video platforms through a 'you get what you pay for' lens.
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Spotify’s free tier isn’t really free; it’s ad-supported. Companies are paying Spotify to make you listen to ads every few tracks. Spotify makes less money per-play from ads than they do from Premium subscribers, so to encourage people to upgrade, the free tier is limited in certain ways. When using the desktop or web app with a free.
But it would be short-sighted to suggest the AVOD industry hasn't radically evolved over the course of last year and this year.
Yes, the advent of Comcast's Peacock contributes to that evolution with its pricing twist. While two tiers of its service require a small monthly payment of $9.99 or $4.99, the third tier that airs commercials during programming is entirely free. Watchers don't seem to care, either. CEO Brian Roberts commented at the Goldman Sachs Communacopia Conference held earlier this week that Peacock now boasts 15 million members, up from just 10 million as of the end July. Streaming service aggregator Reelgood estimates that about 90% of the content streamed through Peacock is consumed by users of the free tier. True to their word, television fans don't mind the occasional TV commercial.
Peacock isn't the only free streaming service to add a lot of viewers in a short period of time, though. Tubi also reported this week that its headcount now stands at 33 million regular monthly watchers, up 65% year over year, and well up from 25 million as of the end of 2019. These folks are watching a lot more of Tubi free ad-supported content, too. The 200 million streamed hours of TV Tubi per month since April is an increase of more that 100% compared to a year ago.
In this same vein, AT&T(NYSE: T) CEO John Stankey confirmed this week that a free, ad-supported version of HBO Max is coming sometime in early 2021.
In the meantime, nearly 4 million more traditional linear cable customers have cut the cord this year. That pace of cord-cutting slowed down during Q2, perhaps because most consumers have been stuck at home in an effort to avoid exposure to the coronavirus. Even so, some of those consumers are clearly swapping their paid-cable service for a free, ad-supported alternative.
Ad-supported Video On Demand Free Spotify Playlist
Just now reaching full stride
The dynamic is nothing new. Netflix and other paid-subscription streaming brands like Hulu and Disney+ started to chip away at the U.S. cable television industry's customer base beginning around 2013. Ad-supported video on-demand options haven't yet culled paid-streaming subscribers, but their operators haven't yet tried in earnest to do so. But that's what's new for 2020 and beyond: Backers are starting to take AVOD seriously. Comcast's ad management tool, called One Platform, was largely built from the ground up with Peacock in mind; One Platform is a 'data-driven cross-platform campaigns optimized for unduplicated reach across the company's linear, digital video and OTT [over the top television] footprint,' the company said in a release.
Translation: Advertisers will be able to do more with data gathered through streaming that simply doesn't exist with conventional cable alone.
And it's not just Comcast. In March, AT&T's advertising unit Xandr (yes, the one it's reportedly looking to sell now) unveiled its new 'data-driven linear TV technology.' Earlier this month, Verizon(NYSE: VZ) and Dish Network(NASDAQ: DISH) -- the name behind Sling TV -- teamed up to improve the efficiency of buying connected-television and over-the-top television ads.
Read between the lines. These media companies are now showing more interest in maximizing the monetization potential of streaming video than they ever have in the past. Better monetization potential of a growing number of AVOD viewers means it finally makes sense to make more deliberate investments in the model, which in turn grows the audience, which in turn boosts ad revenue, etc. Peacock and Tubi alone added nearly 30 million new viewers between them in just a few months. Just wait until these media companies really pull out all the stops.
Bottom line? This is the tipping point, which is tough news for SVOD names like Netflix and Hulu, but awful news for cable operators like Charter, and even Comcast's Xfinity cable business. Tubi CEO Farhad Massoudi arguably summed it best, saying in a release, 'Tubi's surge in viewership is a testament to 2020 becoming the year of AVOD.'
James Brumley owns shares of AT&T. The Motley Fool owns shares of and recommends Netflix and Walt Disney. The Motley Fool recommends Comcast and Verizon Communications and recommends the following options: long January 2021 $60 calls on Walt Disney and short October 2020 $125 calls on Walt Disney. The Motley Fool has a disclosure policy.
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https://asnhyd.weebly.com/blog/how-to-sync-reminders-app-with-mac. Over the past decade, a set of acronyms — AVOD, SVOD, TVOD, vMVPD — have seeped their way into the vocabulary of entertainment reporters, business-minded media folk and a growing number of consumers. You may have noticed them being tossed around in conversations related to streaming or content distribution, but are unsure of their exact meanings. https://armclever871.weebly.com/fl-studio-11-mac-beta-download.html.
However, this alphabet soup is not as complex as you might think. In fact, most of the acronyms share a common set of letters, VOD, which stands for video-on-demand. VOD allows viewers to choose from a selection of titles that they can watch at any time from beginning to end (unlike a TV channel which airs a programming block in a specific, linear order).
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Here is the complete break down of the terms.
Subscription Video-On-Demand (SVOD)
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Probably the most commonly used term is SVOD, which stands for subscription video-on-demand. The “subscription” part of the term just means that a user will need to pay to access the content. A few services that fall under this category include Netflix, Hulu and Amazon Prime.
Typically, SVOD services make their money off of subscription fees — which is one of the reasons why Netflix has been able to operate without running ads. However, this is not always the case. For example, Hulu charges a $5.99 per month fee for its first tier of service, which includes advertising. Customers need to subscribe to the pricier $11.99-per-month option if they want to bypass these ad breaks.
Recap: Are you paying for the service? Yes? Then it’s an SVOD service.
Also Read:How YouTube TV and Other vMVPDs Are Fighting for Profitability
Download jw player video mac. Ad-Supported Video-On-Demand (AVOD)
Ad-supported video-on-demand platforms like YouTube make their money off ads in between their content. As a result, the platforms are free for viewers. As more subscription services emerge on the market, AVOD platforms are becoming a popular option for entertainment seekers who don’t want to pay for yet another service.
A recent study from the Interactive Advertising Bureau found that 73 percent of adults 18 and older who typically watch streaming video say they use ad-supported services. In addition to YouTube, platforms that fall within the AVOD category include The Roku Channel, Tubi, iMDB’s FreeDive, Popcornflix and Crackle.
Recap: Are you paying for the service? No? Do ads run between the content? Yes? Then it’s an AVOD service.
Also Read:Sony Sells Majority Stake of Crackle to Chicken Soup for the Soul
Transactional Video-On-Demand (TVOD)
Unlike SVOD services, which charge a monthly price to access their content, transactional video-on-demand requires viewers to pay for each title they watch. It works much like the now-defunct Blockbuster model where users get a select number of days to watch the title before they have to pay to rent it again. Many TVOD services also allow users to purchase the title for their own digital collections. TVOD services typically offer more recent releases, which is beneficial to rights holders since it yields higher revenues.
First, you need to download music from Spotify. Then you can use a CD burner to burn Spotify songs to a CD disc. As a Spotify premium user, you can handily do the downloading work. This part will show you how to burn a CD from Spotify in details. Can you download songs from spotify onto a cd. Step 2: Burn the Converted Spotify Playlist Onto A CD Please open NoteBurner, and choose ' Tools ' ' Burn CD ', a window will pop up to indicate you to add music from your computer, insert CD, and rename the CD's name. All you need is to follow its indications. It only takes several minutes, your songs will be burned to a CD successfully. Now we can continue to burn Spotify files to CD with Sidify program, please refer to the following guide: Step 1 Insert a blank CD disc Firstly, you need to insert the blank CD into your computer, waiting until the disc is recognized. Step 2 Choose output audio files for burning. In the built-in file browser on uppper left, browse to output folder of downloaded Spotify songs, choose the songs and click 'Add' button to burning list. Insert a blank CD-R or a rewritable CD-RW disc. When the settings are ready, click Burn button to start burning Spotify songs to audio CD. Spotify’s streaming tracks are encrypted, so even if you sync them to your computer or desktop app, you can’t burn them straight onto a disc. Only tracks you buy from a download store such as iTunes or Spotify’s in-house MP3 music store, or ones you’ve already ripped from a disc, can be copied onto CD.
In 2018, about 85.5 million people purchased a TV series, according to a study carried out by Statistica. Companies that offer TVOD include Amazon, Walmart’s Vudu, iTunes, Google Play and YouTube Movies. At the start of 2018, Amazon held 17.9 percent of the TVOD market in the United States, iTunes held 7.9 percent, and Google Play held 7.2 percent.
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Recap: Are you paying for the individual title? Yes? Then it’s a TVOD.
https://brownhost349.weebly.com/blog/spotify-download-apk-latest-versiob. Also Read:Mark Zuckerberg Says Facebook Could Pay for 'High-Quality News' - Should It?
Virtual Multichannel Video Programming Distributor (vMVPD)
Ad-supported Video On Demand Free Spotify Playlists
Virtual multichannel video programming distributors (vMVPD) — also referred to as streaming TV services — aggregate live and on-demand TV and deliver the content over the internet in a linear fashion. vMVPD services resemble the familiar layout of cable packages where users can browse a guide or flip through channels that stream programming 24 hours a day. These services are often used by recent cord-cutters who want to keep select channels from their cable packages but at a lower price.
vMVPD services include Sling TV, Hulu Live TV, YouTube TV, DirecTV Now, fuboTV, PlayStation Vue, Viacom’s Pluto TV and Xumo. According to Rich Greenfield of BTIG, paid vMVPD subscribers hit a high of 7.7 million last year.
And that’s expected to grow: vMVPDs gained a combined 2.1 million subscribers over the first nine months of 2018, according to a recent Conviva study, which is starkly correlated with the loss of 2.8 million subscribers for cable and satellite during the same time period.
“We were delighted by the response of our first Google Home Mini offer last year, which is why we’re excited to extend our partnership with Google and expand the offer to now include both Family and Individual Premium plans,” said Marc Hazan, Spotify vice president of Premium Partnerships, in a release.Spotify has rolled out the promotion to “make it even easier to discover and listen to Spotify via Google Home Mini and other Assistant-powered devices,” according to the release.Giving out $49 Google Home Minis for free right before the holidays is not a coincidence. Once selected, the Spotify-distributed discount code will automatically apply at the checkout page, but users still have to provide an approved method of payment.Only one promotional code can be used by each paying subscriber, and those who’ve previously used Spotify-sponsored codes on the Google Store are not eligible for this promotion.The offer ends Nov. This will authorize Google to view subscribers’ Spotify data and activity while taking actions in the music-streaming service on their behalf.Next, users will be taken to the Google Store to select their colored Google Home Mini, which comes in coral, charcoal, chalk and aqua. The streaming giant wants to “fill your homes with music you love by simply using your voice,” the release reads.To redeem the promotion, Spotify Premium Individual and Family subscribers must sign into their accounts on Spotify’s website and to their Spotify. Spotify giving away free google home mini.
Recap: Does the digital service offer content in a linear fashion (like days of cable and broadcast)? Yes? Then its a vMVPD.
Hybrid Models
Several streaming services fall into more than one category. For example, while Pluto TV (which claims 12 million monthly active users) and Xumo (5.5 million active users) both offer 100-plus linear channels for livestreaming, they also offer a growing collection of video-on-demand programming.
Ad-supported Video On Demand Free Spotify Subscription
The Roku Channel, while its primary offering is ad-supported video-on-demand, also includes a small collection of linear channels.