Online video services had an up and down week. New GfK data confirms more millennials have cut-the-cord. Netflix gets a dose of reality, and it will help the company in two important ways. YouTube is leveraging Google search data to target ads. And new FCC chairman Pai has a tough challenging handling operators.
Chapter 1: 30% of millennials now “Cordless”(1:20)
A new GfK study shows that 30% of millennials have either never had pay TV or have cut-the-cord. The company calls this group “cordless”. Cordless millennials spend nearly two-thirds of their time using online pay TV alternatives. Boomers said they spent 36% of their time with online video services.
Chapter 2: Netflix gets into reality TV (5:50)
Netflix announced its first reality TV originals this week. One is a competition of strength and fitness called Beastmaster. The other is revival of the aughts hit Queer Eye for the Straight Guy. This move into reality should help keep subscribers, and reduce the over cost of content for Netflix.
Chapter 3: YouTube using Google data to target ads (11:30)
Last week, Google announced that advertisers will be able to target ads to YouTube viewers based on their past Google searches. YouTube is already targeting based on its own data, which is plentiful considering it is the second largest search site. The addition of the Google data should greatly enhance this capability.
Chapter 4: Can the new FCC chairman protect online video? (16:30)
Ajit Pai, the new FCC chairman, has stated he wants to continue to foster growth in online video. One of the ways he wants to do that is by promoting faster and broader reach for broadband. He will need the help of wireless and fixed broadband providers to improve broadband. However, operators are beginning to use data caps to favor their own online video efforts on their networks. This will restrain the use of competitor online video service. Can Mr. Pai grow online video and broadband networks while minimizing regulations?