• ABOUT
    • Contact
    • The Team
    • Editorial Calendar
    • Events
    • FAQ
    • Use & Privacy Policy
  • ADVERTISE
  • ROWFAX
  • THE SPORTS CREDENTIAL
  • JOB LISTINGS
MusicRow.com
  • CALENDARS
    • Album/EP Releases
    • Single/Track Releases
    • Industry Events
  • OBITS
  • CHARTS
    • Radio Chart (Current)
    • Radio Chart (Archives)
    • No. 1 Challenge Coin
    • Songwriter Chart (Current)
    • Songwriter Chart (Archives)
  • REVIEWS
  • MY STORY
  • NEWSLETTER
    • Newsletter (Current)
    • SIGN UP (FREE!)
    • Newsletter (Archives)
  • SUBSCRIBE
  • STORE
  • Search
  • Menu Menu

Weekly Register: Shared Streaming Challenges—Video And Music

April 24, 2013/by bossross

nflixThe video streaming business is experiencing similar challenges as the music industry as it struggles become profitable.
Earlier this week Netflix stock careened 24% (+$42.73) in after hours trading as the company announced robust first quarter gains in streaming subscriber growth. As of March 31, Netflix had about 29.2 million subscribers, revenue of $1.02 billion and profits of 5¢ a share. For comparison, HBO’s 2012 year end subscriber count was 28.7 million.
That’s a lot of numbers, but what is the underlying story? Netflix operates on a subscription model much like Pandora and Spotify. For $7.99 a month Netflix customers can stream unlimited content to a variety of screens—HD TV, mobile, tablet or desktop. Unlike Pandora and Spotify, there is no free (ad-supported) service. Another differentiator between the video and music streamers, Netflix is actually producing and creating its own exclusive content. Earlier this year the channel debuted “House Of Cards” which received critical acclaim and boosted subscriptions. Talking about the effect of the mini-series on subscriptions, Netflix CEO Reed Hastings told stock analysts “It’s a nice long-term tailwind.” The company plans to spend $5.63 billion over the next few years on original and exclusive content.
weeklygrid4-21-13Like the music industry, Netflix also has a piracy problem with its consumers and or multiple family members (over) sharing the same log-in. According to a Bloomberg article, Netflix is facing a crossroads where in order to remain profitable and add subscribers they must either raise prices or tighten up sharing rules. Currently two people can watch different programs at the same time using the same subscription. The article quotes former EMI Music Group exec John Rose, now managing director for media, technology at Boston Group Consulting who says, “In general consumers don’t see sharing accounts as theft.” Rose notes consumers have many choices and raising prices, for example creates a risk they will go elsewhere for content. In fact, despite the rosy quarter, stock analysts seem to be quite unsure whether Netflix can actually reach a scale where it can achieve long-term health. Current research shows Netflix customers enjoy 87 minutes of daily streaming per customer. Hastings hopes reaching his goal of 90 million U.S. customers (a 300 percent increase) over two years will help pay for all the content they are purchasing. Will he raise prices, tighten sharing, attract attention with great content or a combination of all three? Or will Netflix get into the music business and offer one subscription for music and video content?
weeklygrid4-14-13Grid Talk
The sales week ended 4-21-13 had little to distinguish itself. The big ACM bump happened last week, and country mustered just one Top Ten debut this week–Texas troubadors, the Casey Donahew Band who grabbed lucky No. 7 with over 13k (75 percent digital) in sales. I’m not familiar with the CDB, but a quick look at the band’s web site reveals a professionally run organization that any Music City manager would be proud to helm.
cdbMr. “Voice” Shelton reclaimed the No. 1 Top Country Album position with over 42k units and The Band Perry (37k) moved from No. 4 last week to No. 2. Sales for Brad Paisley’s No. 1 debut last week fell 66 percent to about 34k giving him a two week total of 135k.
Other notable debut releases included Steve Earle and the Dukes (No. 12; 11k); Granger Smith (No. 15; 10k) and Willie Nelson (No. 16; 10k).
Country track sales were off 21 percent w/w but remain ahead of last year by 6.6 percent. Florida Georgia Line continues to ignite the country tracks chart as its combined versions of “Cruise” continue to be the week’s screamin’ stream (No. 1; 129k) . The track is now at 2.85 million downloads and will soon pass three!
Readers may want to click over to MR’s Album Release calendar to take a look at what’s on the way. It looks like another light week and then I’d suggest you fasten your seat belt…

  • Author
  • Recent Posts
bossross
bossross
bossross
Latest posts by bossross (see all)
  • Exclusive: Meghan Trainor Entices Nashville On Untouchable Tour - August 8, 2016
  • Weekly Register: SoundScan Discounts Jay Z Promotion; 'The Voice' Reigns - June 26, 2013
  • Weekly Register: An Unstoppable Freight Train - June 19, 2013
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
  • Share by Mail
https://musicrow.com/wp-content/uploads/2013/04/nflix.jpg 260 389 bossross https://musicrow.com/wp-content/uploads/2019/03/MusicRow-header-logo-Mar19B.png bossross2013-04-24 10:25:032013-04-24 10:25:03Weekly Register: Shared Streaming Challenges—Video And Music
You might also like
Lady A Sets Release Date
Soul Queen Etta James Dies
Exclusive: Mark Abramowitz Joins Kobalt Music
DISClaimer: Elizabeth Cook, Paul Burch, Derik Hultquist Among Americana’s Top Offerings
DISClaimer: Enduring Stars and Charming Newcomers
Dwayne Johnson To Star In Charley Pride Biopic
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply Cancel reply

You must be logged in to post a comment.

RECENT NEWS

  • New IRS Rule Affects Concert Ticket Resellers September 29, 2023
  • Neil Medley Shares His Stories On Debut Project, ‘South End Kid’ September 29, 2023
  • Worldwide Stages Announces Investment Opportunity In Its Production Campus September 29, 2023
  • In Pictures: Coastal Country Jam Closes Summer With Star-Studded Lineup September 29, 2023
  • First-Ever ‘People’s Choice Country Awards’ Airs Live From Nashville [Recap] September 29, 2023
  • Fifth Annual Charlie Daniels Patriot Awards Raises $400K For U.S. Military Vets September 29, 2023
  • Morgan Wallen Adds Multiple Nights In Several Markets For 2024 Tour September 29, 2023
  • Brittney Spencer Slates Debut Album ‘My Stupid Life’ For January September 29, 2023
  • Dylan Scott Earns MusicRow No. 1 With ‘Can’t Have Mine’ September 29, 2023
  • Billy Strings, Molly Tuttle Among Winners At 34th Annual IBMA Bluegrass Music Awards September 29, 2023
  • 2023 People’s Choice Country Awards Winners – Complete List September 29, 2023
  • DISClaimer Single Reviews: The Late Jimmy Buffett ‘Encourages Optimism & Hope’ September 28, 2023
  • Industry Ink: Wasserman Music, Merle Travis, Equal Access, More September 28, 2023
  • Shania Twain’s Multi-Platinum ‘Greatest Hits’ Makes Vinyl Debut In November September 28, 2023
  • IBMA Honors 2023 Industry Awards Recipients September 28, 2023

Like Us on Facebook

Follow Us on Twitter

Tweets by MusicRow
© 2023 Music Row Enterprises, LLC – All rights reserved.
  • Facebook
  • Twitter
  • Instagram
Scroll to top