illustration of the number five, representing the five subscription business topics for this column, Five-on-Friday

Five on Friday: Cable TV, Cord Cutting and Comparisons

Featuring Sensor Tower, Amazon Music and Social Media Today

Five on Friday: Cable TV

Source: Bigstock Photo

We are just days away from the Super Bowl, and many of us have our minds on the big game and, if we’re honest, the Super Bowl ads, including the sad demise of Mr. Peanut. Before you settle in for the weekend, check out what’s happening in the subscription world. Sensor Tower reports that subscription apps in the U.S. grew 21% last year to $4.6 billion, Comcast predicts cord cutting will accelerate in 2020 and cable TV prices will go up, and Amazon Music now has 55 million subscribers. Also, Social Media Today shares three ways to grow your social media audience, and the NAB Show will compare 50+ streaming platforms and devices in April.

 

 

U.S. Subscription Apps Made $4.6 Billion in 2019, a 21% Increase 

Americans cannot get enough of subscription apps and they are willing to spend big bucks on them, according to a new report by Sensor Tower. In 2019, subscription app revenue in the U.S. grew to $4.6 billion from the top 100 non-game mobile apps. Yes, we said billion with a “b.” This is a 21% increase over 2018’s total of $3.8 billion. Here are some other fascinating facts from that report that illustrate just how addicted we are to mobile apps:

  • The $4.6 billion represents 19% of the total $24 billion in user spending for the entire U.S. mobile market, including purchases from the App Store and Google Play.
  • Out of the 100 highest-earning non-game apps, 96 of them offered a subscription component.
  • Tinder was the top subscription-based app, representing 10% of the spending in the top 100 non-game apps. This revenue includes in-app purchases and monthly subscriptions.
  • Annual spending in the top 100 U.S. subscription apps for the App Store was $3.6 billion, significantly higher than the $1.1 billion spent in the Google Play store.
  • In the App Store, YouTube was the top grossing mobile app, followed by Tinder and Pandora.
  • In Google Play, Pandora earned the most revenue, followed by Google One and Tinder.

For more statistics from the Sensor Tower report, visit Sensor Tower’s blog.

 Cord Cutting and Comparisons

Source: Sensor Tower

Comcast Predicts Cord Cutting Will Accelerate and Cable TV Will Cost More in 2020

Five on Friday: Cable TV

Source: Comcast NBCUniversal

During its fourth quarter earnings call last week, Comcast said it is expecting an acceleration in cord cutting this year, reports Cord Cutters News. The company lost 732,000 subscribers in 2019, and it expects to see losses over 1 million this year, or about 5% of total subscribers. Comcast also said that it will be raising its prices in 2020. Raise your hand if either of these announcements surprises you. Anyone?

“With the rate adjustments that we are implementing in 2020, as well as the ongoing changes in consumer behavior, we expect higher video subscriber losses this year. Within this environment, our X1 platform enables us to compete well for customers who want the most content and a premium experience, including their favorite streaming apps. And now with Flex, we’re able to better serve the customer segment that prefers to stream over-the-top and we are prioritizing Flex as a key initiative in 2020,” said Mike Cavanaugh, senior executive vice president and CFO, on the earnings call.

In response to a reporter’s question, Cavanaugh added, “…so if you include Dave’s broadband business plus Flex and Peacock, I think our company is better positioned as the world moves to streaming than any other company in the world. And I think you could argue in the next 10 or 20 years, if you look at all those three businesses combined, we could make more money in streaming than anyone else by a lot.”

This seems like a pretty bold statement coming from a cable company that is experiencing growing subscriber losses. To read the full earnings call transcript, visit Seeking Alpha.

Amazon Music Boasts 55 Million Subscribers

In a surprising announcement, Amazon revealed that Amazon Music now has 55 million subscribers around the world. Amazon is usually pretty quiet on subscriber numbers. The company also announced that Amazon Music Unlimited has grown by 50% in the last year. In the U.S., U.K., Germany and Japan, subscribers by nearly 50%. It has more than doubled in countries including France, Italy, Spain, Mexico and other countries. By comparison, Apple Music has 60 million subscribers, and Spotify has about 113 million paying subscribers, reports Forbes.

 Cord Cutting and Comparisons

Source: Amazon Music

“We’re proud to reach this incredible milestone and are overwhelmed by our customers’ response to Amazon Music,” said Steve Boom, VP of Amazon Music.

“Our strategy is unique and, like everything we do at Amazon, starts with our customers. We’ve always been focused on expanding the marketplace for music streaming by offering music listener’s unparalleled choice because we know that different listeners have different needs. As we continue to lead in our investment in voice with Alexa, and in high-quality audio with Amazon Music HD, we’re excited to bring our customers and the music industry even more innovation in 2020 and beyond,” Boom added.

Amazon offers a variety of plans.

–        Customers in the U.S., U.K., Germany and Japan can get the highest quality audio with Amazon Music Unlimited HD. Prime members can get the service for $12.99 a month. Non-Prime members pay $14.99 a month, following a 90-day free trial. Family plans are also available.

–        Prime members get access to 2 million songs, free with their membership. For an additional $7.99 a month, or $79 per year, Prime members can enroll in Amazon Music Unlimited. Family plans are available for $14.99 a month, or $149 per year.

–        Ad-supported versions of Amazon Music are available to non-Prime members.

Three Ways to Grow Your Social Media Audience Now 

Five on Friday: Cable TV

Source: Bigstock Photo

No matter what social media platform your brand uses, it is important to continue growing your audience. Why? Having followers and likes isn’t enough anymore. To gain a true, loyal following, you want to engage your audience. In a recent article, Social Media Today offered 11 simple ways to grow and engage with your social media audience. Here are three ways to try right now:

  1. Host a contest. This can be something simple like asking a follower to comment on your Instagram post, or asking fans to provide a creative caption for an image on Facebook. To be successful, you’ll want to promote the campaign across other channels (e.g., your website, email newsletter, other social platforms), and you will need to follow any contest rules established by the platform.
  2. Update your profile and cover photos often. After a while, seeing the same profile photo – for example, your company logo – and cover photo gets boring, and followers will tune them out. Change them out periodically to give followers something new and fresh to look forward to. You might even ask them to submit ideas images for consideration.
  3. #Hashtag it. Let’s say you are new to the social media team, and you see your Twitter account only has 1,000 followers (gasp!). One way to get discovered is to hop on the #hashtag bandwagon. Follow the trending topics to see what the hot topic is for the day – #MondayMotivation, #WednesdayWisdom, #TBT (Throwback Thursday) and #FunFactFriday are popular hashtags that are easy to try. Choose some great quotes from testimonials, industry experts, or subscribers and use hashtags to improve their discoverability. These can be scheduled in advance or done live. [Bonus tip: If scheduled, be sure you are following along online, particularly if breaking news will make your post seem, at best, ill timed or, at worst, callous and inappropriate.]

For the other eight tips, read the original article by Julia Campbell on Social Media Today.

NAB Show to Offer “The Streaming Experience” with 50+ OTT Options, April 19-22

 Cord Cutting and Comparisons

Source: NAB Show

At the 2020 NAB Show in Washington, D.C., conference participants will get the opportunity to test drive more than 50 streaming video platforms and devices through The Streaming Experience. Curated by streaming and online video expert Dan Rayburn, The Streaming Experience will feature the hottest streaming video services and the latest technology, conference attendees can compare content, quality and cost from the services side-by-side.

Attendees can check out the latest hardware from Amazon, Apple, Roku, Xbox, PlayStation, LG, TCL and Samsung. They can also experience Apple TV+, Amazon Prime Video, CBS All Access, Disney+, Hulu, NBC Sports, Netflix, WWE, Sling TV and YouTube TV, along with other services.

“Streaming is a major focus of the 2020 NAB Show, and the new Streaming Experience is the largest showcase of its kind in the industry,” said NAB Executive Vice President of Conventions and Business Operations Chris Brown. “We are excited for attendees to join their industry peers in this living room environment and experience nearly every live and on-demand streaming service on the market today.”

The Streaming Experience will be located in the central hall of the Las Vegas Convention Center, April 19 through April 22. Learn more at NAB Show online.

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