Top Stories

  • Netflix Inc. added 8.8 million new subscribers in the fourth quarter, over 1 million more than the company’s previous estimate of 7.6 million and driven largely by growth outside the United States, where Netflix added 7.3 million net new paid subscribers in the last three months of 2018. The streaming service, which has been secretive about viewership numbers, estimated that original film “Bird Box,” will be viewed by more than 80 million households in its first month, and newly acquired television show “You” has been viewed by 40 million households during its first four weeks. (Financial Times)
  • Helios & Matheson Analytics Inc., the parent company of ticket subscription service MoviePass, said it created a new entity to take control of its MoviePass shares, as well as other film assets. The new entity, MoviePass Entertainment Holdings Inc., must be reviewed by the Securities and Exchange Commission and be accepted by a trading market before the spinoff is finalized. (The Wall Street Journal)
  • Walmart Inc. will not move forward with plans for an original streaming platform focused on content for “Middle America,” and instead intends to focus its interest on Vudu Inc., the streaming service it acquired in 2010, according to people familiar with the matter. Walmart reportedly did not feel comfortable investing in original content, and will instead focus on expanding Vudu’s content library. (CNBC)

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Has the Super Bowl become too politicized for advertisers?

New data from Morning Consult featured in The Wall Street Journal reveals whether consumers think the big game has become too political, how advertisers should use the moment to make a statement, and what that means for brands going forward.

General

Live Nation Investigation of Heather Parry Also Targets Leakers
Gene Maddaus, Variety

Over the past two weeks, the law firm of Paul Hastings LLP has been probing allegations reported by Variety last month that Heather Parry, the head of Live Nation Productions, had verbally abused employees and used offensive language in the workplace.

Film

Rotten Tomatoes Is Based On Bad Statistics. Use Metacritic Instead.
Dan Kopf, Quartz

Imagine you are deciding between two different movies. Five of your friends say movie A is nothing special, but definitely above average.

Where’d You Go, Bernadette Shifts Release Date—Again
Yohana Desta, Vanity Fair

Where’d You Go, Bernadette keeps pulling a disappearing act.

Television

Viceland Will Relaunch Primetime With Nightly Live Two-Hour Variety Show
Michael Schneider, Variety

F— it, Viceland is doing it live. The cable network will revamp its primetime lineup next month to launch a nightly two-hour live show that will serve as a showcase of sorts for all things Vice.

‘You’ was ignored on Lifetime. Then it blew up on Netflix. What does it mean for TV’s future?
Emily Yahr, The Washington Post

This past fall, Ashley Thomas of Los Angeles got quickly hooked on a new Lifetime drama titled “You,” starring Penn Badgley of “Gossip Girl” as a psychotic stalker who becomes obsessed with a woman who visits his bookstore. Thomas urged her friends, especially those who were “Gossip Girl” fans, to check it out, but they mostly ignored her suggestion.

Technology and New Media

Free TV With Ads Is Digital Media’s Old New Idea
Tom Dotan and Jessica Toonkel, The Information

Two years ago, streaming-device maker Roku circulated a presentation to partners that showed a school of fish swimming toward an area marked “subscription.” Meanwhile, a lone fish labeled “Roku” was heading away from the group toward an area called “advertising.”

What’s next after NBC, Netflix, Sinclair shake up streaming
Andrew Blustein, The Drum

NBCUniversal is launching a streaming service as it looks to remain competitive. Netflix is raising subscription prices in the US.

NBC News Snapchat show ‘Stay Tuned’ averages 25-30m viewers
Kerry Flynn, Digiday

NBCUniversal has been quite bullish on Snapchat for years. Now, the media giant says it can prove that Snapchat is helping it reach new viewers on mobile screens — thanks to Snapchat’s integration with Comscore.

Pocket.watch Rides Wave of Demand for Kids’ Content
Beejoli Shah, The Information

The explosion in demand for TV shows driven by streaming services is lifting all boats, but one genre may be rising more than most: children’s programming. Netflix, Hulu, Amazon Prime and Disney’s upcoming streaming service are all ordering more kids shows or movies.

Netflix’s price hike is a ‘Catch-22’ that actually helps Disney’s upcoming streaming service
Tyler Clifford, CNBC

Disney will have a competitive advantage over Netflix when the entertainment conglomerate launches a competing video streaming platform later this year, according to Wall Street analyst David Trainer.

Netflix Sees Fortnite as a Bigger Rival Than HBO
Nick Turner  and Christopher Palmeri, Bloomberg

The HBO network, now part of AT&T Inc.’s media-and-telecom empire, is often touted as one of Netflix’s biggest foes.

How AT&T, Verizon and T-Mobile Are Fighting for Dominance in the OTT Revolution
Matt Lopez, The Wrap

AT&T, Verizon and T-Mobile are no longer just companies that consumers turn to for phone, internet and TV service. As more people ditch their traditional pay-TV providers — like the 1.3 million who did so in the third quarter of 2018 alone — each of these companies has waded into the OTT industry to varying degrees.

Opinions, Editorials, Perspectives and Research

Les Moonves’s CBS Salary Grab Is Unseemly
Tara Lachapelle, Bloomberg

A flood of sexual-harassment allegations have been made against powerful men in various corners of the media industry and elsewhere during the past couple of years, prompting an unprecedented reckoning that toppled many of them and tarnished their reputations. Now, after judgment has been passed, questions are cropping up, such as when, if ever, should the accused be allowed to transition from pariah back into their careers and public prominence?

Disney’s Hunchback Remake Could Be Another Fascinating Battle in the War on Netflix
Laura Bradley, Vanity Fair

Considering Disney’s apparent quest to produce a “live-action” remake of every single film in its library, this week’s announcement that The Hunchback of Notre Dame will be next should not come as much of a surprise. Indeed, to some, it serves as proof that Disney’s tireless effort to exploit its existing intellectual property has begun to approach the bottom of the barrel.

Netflix’s Strategy Is Growth, So It Can’t Have Growing Pains
Shira Ovide, Bloomberg

Netflix must grow. It has no choice.

Morning Consult