A New Entertainment World Order

Automatic TRANSCRIPT

Welcome back this product. We'd take ten minutes to get you smarter on the collision of Tech Business Politics. I'M DEBORAH MAC and today show apple's new fight and the end of the WTO the first a new entertainment world order yesterday. The Golden Globes announced its nominations and on the television side the broadcast networks. Were shut out completely. And maybe even more notably there were twice as many nominations for streaming companies shows as the were from shows from premium cable networks. And then they're even less for shows from basic cable so a big day for Netflix and Hulu and Amazon and even apple which got three nominations for its critically show the morning show. Oh wait fewer cheers for. Hbo Showtime Fx and BBC. America at least for now since obviously it is possible. Streamers could get rolled once the actual envelopes are opened. Why the nominations matter beyond the Hollywood egos is that they reflect how? The entertainment industry's Power Center shifted. And would that shift is coming tons. Sons of investment new programs suggesting the golden age of television is really the platinum age with all of the streamers including new entrant Disney spending billions and billions of dollars to be the one with the little trophies at the end. The big question though is if these investments are actually worth it remember the Golden Globes themselves will still be broadcast on. NBC ABC a Broadcast Network. Because that's where it still easiest to get a live audience and no matter how many awards streaming show gets. We still have no clue if that show has more viewers than typical broadcast network Sitcom or a basic cable reality show the economics may be changing. But they're hardly decided added in fifteen seconds we'll go deeper with media reporter Sara Fischer but first this axiom chief. Technology correspondent Dana free shares breaking news in analysis on the most consequential companies players intact from the valley to DC. Subscribe to get smarter. Faster at sign-up dot axios Dot Com and now back to the program podcast. We're joined now by actually media reporter Sara Fischer Sarah. Let's start here. Why do these These companies whether they'd be streaming or cable. Why do they care so much about award? I mean is it just executive ego the ability to attract talent for future projects or or the really monetary value believed to be attached to it. I think they care about awards. First and foremost because there is monetary value attached to it. We've done some reporting that suggests just that before a movie wins an Oscar but after its nominated is when it makes most of its money so does how get some butts in seats. The other thing hanging to your point about talent it does help them. Recruit not just great actors but also producers great directors if they think that they are going to go to a studio and be able to create a hit where they can get recognized for it and then the last thing is I think it helps them control narrative. Were in a situation. Where a lot of these companies are trying to broker sponsorship some partnerships whether they'd be with commercial brands and if you have the ability to say look we want X. amount of Oscars last year? We're still relevant. That helps your company. drive results even throughout the rest of its business ventures it can be very powerful on the TV side is what we're seeing here with the Golden Globe nominations yesterday and the streaming companies really dominating certainly compared to broadcast but also compared to cable is what we're seeing basically just kind of twenty years later. The same thing we saw when cable started overtaking broadcast. Yeah I think that these things move in waves I think that when cable started to overcome broadcasts a large part of it was because it gives consumers choice consumers wanted to be able able to get niche access to something they're passionate about whether it was music and MTV and vh one or sports with ESPN. But now we're seeing sort of a rejection of that model consumers feel as though they are being forced to consume everything when they buy these big bulky expensive cable bundles and they actually probably just want the very generic few do things that they need. which typically is just you know the broadcast networks and then they'll pay all for the stuff they want whether that's a streaming subscription to espn plus or or maybe NFL network or? Maybe it's you know just an add on package but they don't WanNa have to be burdened with these heavy thick cable packages anymore we've seen seen obviously from the streaming companies led by Netflix but all of them huge investments in content. Over the past. Couple of years I mean just incredible investments the Golden Globe nominations yesterday is that a reflection reflection that the investment is paying off. And I don't just mean oh we're getting nominations but paying off in a call a return on investment way or is it more well if Throwing two hundred shows out there couple of we're going to get nominated. No it's definitely paying off investment perspective network suspending unprecedented amount of money to make sure that these films are going to be hits and the reason that they're doing that by the way is to help make sure that they stay relevant in the streaming wars. They'd know that they have a big bulky content library where could be hard to sift through to find the good stuff and what they do is invest in really high quality content noxious TV shows but also films like the Irishman so that you as a consumer consumer can associate Netflix with being a brand that houses quality content similar to the way people thought of H. B. O.. For a really long time. That's why they're spending really they want consumers to feel as though it's a place that can get deliver high quality content as well as a multitude of everyday content that you just need for utility if if you're say the broadcast networks which got shut out and as you write today obviously the the actual Golden Globe awards are going to be broadcast on NBC. Because that's still where you can get a live audience but is the way the broadcast nets respond to this. Did they start throwing huge amounts of cash or do they just say you know what that's not our game anymore. They can't these broadcasts. Networks are held to a different standard gender by Wall Street in many cases. You don't have the leverage if you are comcast NBC universal to dump whatever it is fifteen billion dollars net flicks is dumping into its streaming platform in content there. You just don't have the same type of leeway to do that so even if they wanted to they can't. I know I actually was laughing a little bit yesterday yesterday. Comcast came out and they said we're GONNA pour two billion dollars into our streaming service peacock and I was thinking to myself. Wow that's interesting. Because Disney's looking spend north of fifteen fifteen billion dollars net flicks suspending around that much and comcast does spend a lot of money. But you're going to have to spend unprecedented amount of money and if you're broadcast network that's owned by Telco Toko. Investors want to see Telco spending all that cash on content. Look what's happening with. At and T.. It used to be the way we judged television shows shows successor or the way at least the business world generally judged. It was ratings right. You know this is the number one show where it's the number one show on Thursday nights or whatever it is we still am. I correct. Reckon saying whether it be Netflix or Amazon Apple. TV They might win awards but we don't really know how many people are watching any of those programs whereas we still know how many people are watching something on ABC see your CBS or Fox. That's right and we have Nielsen. Ratings to measure television and even though they're imperfect they're the best we've got. They allow us to compare apples to apples Different different shows across broadcast television and cable. Television anything that you would watch linearly the problem with streaming is that these streamers will often dispute third party figures Nielsen has started it to measure streaming content. And instead they'll say well we'll selectively put out figures when we think that's right. It's hard to actually say whether or not x amount of People Watch Bird Erdman X.. Amount of people really watch the Irishman at think in the future. If the streamers WANNA be taken seriously by brand partners especially they're going to have to start coming coming up with a way to uniformly measure their content and there are a lot of vendors out there that are trying to measure streaming. But they don't have the buy in from the full industry until we get to a point where we can measure streaming uniformly with one trusted source. Maybe a few trusted sources the way that we can with television. I think it's going to hold the industry back Sir or Fisher axios media reporter thank you so much for joining us my final two right after this. There's more news out there than ever before but these days it's harder than ever to find it and to know what to trust axios. AM takes the effort of getting smart by synthesizing. The ten stories. That will drive the day and telling you I they matter subscribe at sign up dot axios Dot Com and now back to the podcast. Now it's time for my final two and I up his apple which in August due to former employees for breach of contract contract and specifically the ex employees left to launch a new server chip startup called Nubia and poached a bunch of his former apple colleagues thus pissing off apple so this is interesting for contract lawyers but the real intrigue is that Apple's complaint implies at accessed the ex employees phone records and text messages and that could could be a PR mess for a company so focused on positioning itself as pro privacy. That's even sometimes using animation that converts these stem. It's apple into the top of a lock and finally the White House. Today will effectively kill the World Trade Organization which was formed to settle trade disputes between nations. Around twenty five years ago specifically the trump administration has spent the past two years blocking the WTO from appointing new members to a seven person board. That's supposed to hear these cases leaving it now with a minimum of three members embers but two of those three have their terms expired today meaning the WTO process is for all intents and purposes dead at trump's hand now for the president this means he can now impose whatever tariffs he likes when he likes on the other hand no more. US victories in the WTO. Like the recent record seven and a half a billion dollar ruling after the US sued Europe for granting illegal subsidies to Airbus actually this is Felix Salmond puts it thusly quote. WTO was negotiated before China dominated international national trade and before the Internet disrupted all global commerce. A new agreement is desperately needed. And while there's no way that trump or his US trade representative will negotiate such such a deal trump successor might be able to and we're done big. Thanks for listening to my producers. Tim Show Shaven Have Ingrate National Dewey Decimal System Day. And we'll be back tomorrow with another for our podcast.

Coming up next