Should marketers bother with legacy networks + streaming?

Welcome to the first full week in March. Let’s talk about the streaming war and legacy television networks’ uphill battle to win it.

In the Streaming War, Network Platforms are Faring Poorly

Streaming has usurped linear television, but is it sustainable for legacy companies trying to transition? Disney, Paramount, Comcast, and Warner Bros. Discovery have all reported quarterly losses trying to do so. Meanwhile, streaming-native Netflix “reported $55 million in net profit” and “$7.85 billion in quarterly revenue.”

It’s telling that as these legacy companies are raising their prices to combat losses, Netflix is dropping prices in international markets and leaning into advertising—taking a leaf out of YouTube’s playbook. Would the legacy networks fare better if they simply licensed content to streaming-native platforms and instead focused on creating compelling shows?

Last year, Peacock doubled their audience when they began airing the World Cup, but live sports events may not be the saving grace they once were. Since the NFL signed a deal with Google at the end of last year, YouTube TV and YouTube Primetime Channels have exclusive distribution rights for the NFL Sunday Ticket.

Legacy giants are cannibalizing themselves to make a profit streaming. And although about 32% of Gen Z sports fans watch games via “authorized streaming services” (as opposed to the 28% who watch on cable), 95% of Gen Z watches YouTube. Even if they paid for legacy network platforms in the past, this new generation would most likely stay on YouTube, if given the option, than shell out extra cash for another subscription.

Although marketers shouldn’t write legacy platforms off quite yet, streaming-native platforms seem like they’ll win the ultimate streaming war.

Around the Web

• Hershey’s is facing a transphobic backlash for its International Women's Day ad featuring a trans woman.

• This March, Guinness is hosting a contest to find the best St. Patrick’s Day Toast.

• Meanwhile, UFC-fighter Conor McGregor’s Proper No. Twelve Irish Whiskey is hosting its own social media contest.

• Many companies are introducing a new role: chief AI officer.

• Toblerone takes the Matterhorn off its packaging to signify some of its production has left Switzerland.

Just Can’t Get Enough

The gender pay gap persists. According to an October 2022 Pew Research Center survey, half of U.S. adults believe a big reason for the gap is the different treatment of women by employers.

• And it’s only changed 2% in 20 years.

• Parenthood plays a significant factor, too.

How many legacy network platforms do you subscribe to? Are there specific shows or sports events that affect your subscription choices? Reply and let us know! Personally, we only have Peacock for Poker Face.

Thanks for joining us, and we’ll see you Wednesday!