Stronger together
The streaming wars have been going on for years, but things are changing with the formation of new alliances. Walt Disney (DIS) and Warner Bros. Discovery (WBD) just unveiled a new streaming bundle that includes Disney+, Hulu and Max. The subscription will feature both the Marvel and DC universes, as well as Star Wars and HBO, and will be available in the U.S. starting this summer.
Backdrop: Netflix (NFLX) was once the all-dominant force of the streaming world, with studios happy to license their legacy content as they focused on core markets of traditional television and the box office. As the barriers to entry of launching an online platform came down, and consumer viewing habits changed, many companies decided to go at it alone when their distribution deals came to an end. Original content and original streaming platforms soon became the name of the game, with studios (like the ones mentioned above) investing significant resources to gain market share, as well as Prime Video (AMZN), Apple TV+ (AAPL), Paramount+ (PARA) and Peacock (CMCSA).
In recent years, companies have unveiled ad-supported streaming plans and password crackdowns in an effort to attract subscribers, but it is becoming as much of a quality game as it is in the numbers. Customers are also looking to downsize their subscriptions, especially as the amount of streaming apps and packages has exploded. Many have already ditched their large-bundled cable packages, but there are also risks here that the move into bundled streaming could eventually produce the same effects that led to cord-cutting.
What’s next? This new direction towards “choice and value” was heard immediately after the latest streaming bundle announcement and suggests more consolidation might be in store for the industry. “This new offering delivers for consumers the greatest collection of entertainment for the best value in streaming,” said JB Perrette, CEO of global streaming at Warner Bros. Discovery. Don’t forget that Disney and WBD, along with Fox (FOX), are scheduled to launch a joint sports-streaming service as soon as the fall. (15 comments)
Retail theft
Theft has become a big problem for retailers in recent years, especially as margins come under pressure in the current economic environment. Many locations in big cities have added plexiglass cases in vulnerable locations, while locking up or partitioning off high-price items like health and beauty products. In the latest bust, Manhattan authorities indicted a local cosmetics retailer for allegedly running a retail theft fencing operation, which housed $1M in stolen goods from shoplifters, of which $212K were stolen from Macy’s (M). NYC has proactively taken steps to combat rising retail theft, allocating $40M for dedicated law enforcement teams. (6 comments)
Off the road
After a 60-year run, General Motors (GM) is saying goodbye to the Chevy Malibu to make room for more electric vehicles and hybrids. The company will end production of the vehicle in November, and invest $390M to retool its Kansas City plant to build the next generation of the Chevy Bolt EV and resume manufacturing of the Cadillac XT4. With the Malibu and Camaro gone, the Corvette will be the last remaining Chevy ICE left. Despite the Malibu’s former glory as a NASCAR darling and 10M car sales worldwide since 1964, sales have tapered off in recent years, dropping 12.5% in Q1 2024. (3 comments)
Getting repaid
Nearly all customers of the collapsed crypto exchange FTX will get their money back, plus interest, according to a new reorganization plan. FTX owes some $11.2B to its creditors, but has $14.5B-$16.3B to distribute to them, meaning there is more funds than needed to pay back bankruptcy victims. Customer money had been locked up with the platform since a bankruptcy filing in November 2022. A year after collapsing, disgraced FTX founder Sam Bankman-Fried was convicted of seven criminal counts tied to the meltdown and was later sentenced to 25 years in prison. (1 comment)
