Happy Friday! It’s hard to believe that this is the last Friday in April already, isn’t it? In this week’s Five on Friday, Marketing Land explains why they think content alone will not win the streaming video wars, Folio talks about magazine publishing trends we’re seeing so far in 2019, Disney Plus’s plans to put its new streaming service on gaming consoles, Apple attempts to reduce opportunities for subscription scams, and Proctor & Gamble appeals to advertisers to demand higher standards from media outlets.

Streaming Wars Heat Up with More Entrants to the Market 

Apple and Disney are both launching their own streaming video services this year, causing the streaming wars to heat up. Each has put on their own dog-and-pony show, sharing their unique content and original programs to build the buzz prior to their respective launches. Disney has been more forthcoming with details of its service, while Apple has been sharing content information but not pricing.

In an April 12 op-ed for Marketing Land, Dallas Lawrence says that content alone will not be enough for Apple, Disney, Netflix, Amazon, Hulu, YouTube or any other competitor to come out on top. Why? Streaming is more the norm that the exception, so there are multiple factors going into a consumer’s decision making. Content is, of course, a key factor, but price also matters. According to a recent study by OpenX, 52% of U.S. adults use at least one over-the-top service. Of those who stream content, 46% are willing to pay more for an ad-free experience, while 54% prefer an ad-supported service and would prefer a free or low-cost service.

Some services like Netflix, Disney, Amazon and, apparently, Apple are ad-free while others like Hulu and YouTube are ad-supported or offer tiers to give consumers options. A growing trend we’ve seen this year is free services like Viacom’s PlutoTV and Tubi that use an ad-supported model, so we may see a larger shift to this business model over time. It depends on how much consumers are willing to pay for the ad-free services and if those numbers decline dramatically as more ad-supported, free services try that model. Read more on Marketing Land.

It’s a Tough Time to be a Magazine 

This is not a good time to be a magazine. Publishers are continuing to make big changes including layoffs (e.g., New York Magazine), shuttering of magazines, consolidation of magazines (e.g., merger of Eating Well and Cooking Light), putting magazines behind paywalls (e.g., Conde Nast), mergers and acquisitions, and transforming publications (e.g., Money) into digital-only publications. Each publisher is doing what it has to survive, rightsizing where necessary and making tough and often unpopular business decisions.

In an article on 2019 publishing trends, Beth Braverman for Folio interviewed Bill Beuttler, a magazine journalism professor at Emerson College, “The industry is suffering right now, but there are things to be somewhat excited about. The strong magazines will survive, and the ones that remain are going to be good ones.”

That may be true, but how do magazines get to that point? David Abrahamson, a journalism and magazine editing professor at Northwestern’s Medill School, said it is about content. Magazines have to produce quality content that audiences are willing to pay for. Magazines without paywalls, or with only some content behind paywalls, must strike a balance behind creating unique and engaging content that a reader believes is valuable.

Other concerns in the 2019 publishing world remain unknowns like a possible recession and players like Apple News+. When this “new and improved” platform launched, shuttering Texture in the process, Apple made a 50/50 arrangement with publishers. Publishers only get a 50% revenue share from Apple, a significantly bigger split than their usual 30/70 deal.

In addition to producing quality content, how can publishers compete in the current climate? Leveraging consumer data – personalizing the user experience and marketing other products and services to their customers – is one big advantage magazines have. Read more in “Still on Shaky Ground, Publishers Seek More Stability in 2019” by Beth Braverman for Folio.

Disney+ Looks to Gaming Consoles as Part of Distribution Strategy 

As Disney readies new streaming service Disney+ for launch, it is exploring distribution opportunities and making deals with potential partners. One of those strategies is making itself available on gaming consoles like PlayStation 4, Nintendo Switch and Xbox One. Disney revealed this strategy during Disney’s Investor Day on April 11. Michael Paull, president of Disney streaming services, discussed distribution opportunities.

“We focused on making our services available not just in all households but across every connected screen within each household. Right now, we were securing distribution for Disney+ across mobile devices and connected TV devices, including game consoles, streaming media players and smart TVs,” Paull said.

“With these device partnerships, not only do we optimize our product for consumer experience, we ensure that our service will be prominently featured and merchandised on our partner platforms. We have already secured such deals with Roku TV and PlayStation 4, and we are confident by the time we launch, we will have a full array of device platform partnerships in place,” Paull added.

In related news, Disney has released additional details about the launch of Disney+:

• Disney+ will launch November 12, 2019.
• It will be 100% subscription based, not ad-supported.
• It will cost $6.99 per month, or $69.99 per year.
• In addition to a U.S. launch, Disney will offer Disney+ in other countries and will roll it out over the next two years.

Apple Adds ‘Confirm Subscription’ Step to iOS App Subscription Purchases to Curb Scams

Apple insider reports that Apple is trying to curb subscription scams in the App Store. Developer David Barnard first noticed the change which he tweeted on April 11. When a iOS user downloads a subscription app or opts in to buy a subscription in a free app, they will get a pop-up asking the user to confirm their subscription. The message says, “This subscription will continue unless canceled in Settings at least one day before the subscription period ends.” Before a user can proceed, they must click OK.

In a follow-up tweet, Barnard said he wished he worked for Apple. He is clearly impressed that Apple took the time to fix a problem that has been plaguing users who had accidently subscribed or who had been duped into subscribing.

When the scams were identified last fall, Apple removed offending apps from the App Store, but that may have been a temporary solution, says Apple Insider. This new alert seems to offer some extra protection for iOS users.

Procter & Gamble Executive Demands Higher Ad Standards from Media Outlets

Procter & Gamble, parent of household brands including Pampers, Tide, Puffs, Old Spice and Cascade, wants to see some advertising reform. In fact, the company’s chief brand officer Marc Pritchard is urging advertisers to demand better content quality and metrics data from media outlets, reports Variety. He is tired of offensive videos, inaccurate metrics, lack of transparency and fraud.

“Digital media continues to grow exponentially, and with it, a dark side persists, and in some cases, has gotten worse,” said Pritchard at a conference hosted by the Association of National Advertisers.

“Seven out of 10 consumers say ads are annoying, and ad blocking is accelerating. Privacy breaches and consumer data misuse keeps occurring. Unacceptable content continues to be available and is still being viewed along our brands,” Pritchard said.

One of the key problems, says Variety, is the lack of universal standards regarding content quality and measuring the audience that views ads. Pritchard is not alone in his concerns. Other companies and executives like Bob Iger, Disney CEO, have also spoken out. Pritchard hopes to draw attention to the issue, and he is asking that media outlets buy from known commercial inventory that has been controlled, vetted and is consistent with company values. He also recommends working with media outlets that contribute to constructive conversations rather than destructive ones. To read more of Pritchard’s concerns, ideas and suggestions, read the original article by Brian Steinberg on Variety.