Podcast Summary
HBO Max, Qualcomm, and FCC updates, plus personal stories and pandemic news: HBO Max and Warner Bros. announced simultaneous streaming and theater releases for 2021 movies. Qualcomm unveiled new chips. The FCC discussed net neutrality. Personal stories included Neil's encounter with Carl Lentz. The US reached 13 million COVID cases and 264,000 deaths, with vaccine distribution and logistics posing challenges.
This week on The Verge Cast, there were several notable topics discussed including HBO Max and Warner Bros.' decision to release all of their 2021 movies simultaneously on streaming and in theaters, Qualcomm's new chips, and news from the FCC. Additionally, there were mentions of other podcasts like Canva's presentation tool and Capital Ideas Podcast. Neil jokingly shared a personal story about living next to international celebrity Carl Lentz before he became famous. The pandemic continued to dominate the news with the US reaching 13 million cases and 264,000 deaths. The Pfizer and Moderna vaccines are undergoing emergency authorization, but distribution and logistics remain a challenge. The second order effects of the pandemic were also discussed, including the priority of vaccine distribution to frontline healthcare workers. Overall, it was a week filled with various tech and news updates.
Warner Brothers shifts movies to HBO Max and theaters: Warner Brothers' decision to release movies on HBO Max and in theaters marks a significant shift towards streaming services gaining more power in the entertainment industry, allowing viewers to choose between home and theater viewing.
The distribution of content, particularly films, is undergoing a significant shift due to the ongoing pandemic. Warner Brothers announced that all its 2021 movies will be released simultaneously on HBO Max and in theaters for a month. This marks a major move towards streaming services gaining more power in the entertainment industry. The behind-the-scenes deals between streaming platforms and theater chains will soon come to light, providing clarity on how this new process will work. For viewers, this means they can choose to watch movies at home or in theaters, depending on their preference and safety concerns. International audiences, however, will likely continue to watch movies only in theaters as HBO Max is not available globally. The pandemic has forced studios to explore new revenue streams as movie theaters struggle to cope with closures and reduced capacity. The success of movies like Tenet internationally and Mulan on Disney Plus have set the precedent for this shift towards streaming.
Movie theaters need a consistent slate of movies to attract audiences: To survive, movie theaters need to secure a steady stream of new releases from studios, as fewer people are attending theaters and streaming services gain popularity
The movie industry is undergoing significant changes due to the rise of streaming services and the impact of the pandemic on theater attendance. Shelley Taylor, CEO of Alamo Drafthouse, a smaller movie theater chain, recently discussed on Decoder that for theaters to survive, studios need to release a slate of movies to attract audiences. According to data, only a few movies make up a large percentage of the US box office, and people saw fewer than four movies in theaters in 2019. Streaming services are built on the need for a consistent outpouring of big titles to keep subscribers engaged, making it an attractive option for studios to move theatrical titles to their streaming services as simultaneous releases or exclusives. Disney, Warner Brothers, and Marvel are expected to announce similar strategies at their upcoming investor days. Theaters, such as AMC, are looking to survive by striking deals for simultaneous releases and exclusive windows after the initial 30-day theatrical run. These changes are part of an accelerating trend in the industry, and it will be interesting to see how it all plays out in the coming months.
Theater chains and studios find compromise in simultaneous releases: AMC and Warner Brothers are reportedly working on revenue-sharing deals for simultaneous theater and streaming releases, following studios' attempts to release movies exclusively on streaming platforms and theater chains' backlash.
Despite the ongoing tension between theater chains and studios regarding the release of movies in theaters versus streaming platforms, it appears that deals are being made to satisfy both parties. For instance, AMC, a major theater chain, is reportedly working out revenue-sharing agreements with studios like Warner Brothers, allowing movies to have simultaneous releases in theaters and on HBO Max. This comes after studios' attempts to release movies exclusively on streaming platforms, such as Universal's Trolls World Tour, sparked backlash from theater chains. Meanwhile, AT&T, Warner Brothers' parent company, is under pressure to make its investments in HBO Max and other media properties successful, as it faces significant debt and the ongoing shift towards free streaming services. The situation remains fluid, but it seems that both sides are making efforts to find a compromise that benefits them.
Shifting focus to retail: AT&T Warner Media's new strategy: AT&T Warner Media aims to boost subscribers and recurring revenue through HBO Max, becoming a retailer instead of a wholesaler, with potential changes like divesting, binge releases, and simultaneous theater-streaming.
AT&T Warner Media is focusing on increasing subscribers and generating recurring revenue through their streaming service, HBO Max, instead of relying on theaters. The company, under new leadership, is shifting from being a wholesaler of content to a retailer, selling directly to consumers. This year and the next few years, we can expect significant changes from AT&T Warner Media, including potentially divesting from parts of the company, releasing content in binge mode, and moving big titles to HBO Max for simultaneous release. The company's debt load is a significant factor driving these changes. Another notable development is the release of Wonder Woman 1984 on Christmas Day in both theaters and on HBO Max, marking the first movie to be available in 4K HDR, Adobe Vision, and Atmos on the streaming platform.
HBO Max enhances its platform with 4K HDR content and Roku availability: HBO Max is upgrading its platform with 4K HDR content and Roku compatibility to provide a better viewing experience and stay competitive in the streaming market.
HBO Max is making significant improvements to its platform, including the addition of 4K HDR content and the anticipated arrival on Roku. These upgrades are in response to the changing streaming landscape and the importance of providing a high-quality viewing experience for their subscribers. Despite some technical glitches and interface issues, the content offered by HBO Max is generally well-regarded. The upcoming release of major movies on the platform, such as Wonder Woman, further underscores the significance of these improvements. Ultimately, the decision to invest in enhancing the HBO Max experience reflects the company's commitment to staying competitive in the streaming market.
The Convenience and Safety of Streaming Services: Many viewers prefer streaming services for convenience, affordability, and safety during the pandemic. However, studios face challenges in generating revenue from streaming, including potential piracy and password sharing.
The shift to streaming services like HBO Max is a game-changer for movie consumption, with many viewers preferring the convenience, affordability, and safety of watching movies at home. The speaker shares their personal experience of choosing to watch movies on TV instead of going to the theater due to safety concerns and cost savings. They also discuss the potential challenges for studios like Warner Brothers in reversing this trend and generating revenue from streaming services. The speaker suggests a potential solution in the form of a communal movie-watching experience on Zoom, where they could yell and react to exciting scenes together. They also touch upon the economic implications of streaming, including the potential rise of piracy and password sharing, and the loss of various revenue streams that used to exist when movies were released in theaters and later syndicated to TV channels and streaming services. The speaker raises important questions about how studios can adapt to this new reality and continue to make a profit from their content.
Understanding Media Streaming Windowing: Media streaming landscape is complex due to windowing, where same content is sold to multiple services at different times, making it hard for consumers to keep track of favorite shows and movies, and the cost of subscribing to multiple services continues to rise.
The media streaming landscape is becoming increasingly complex due to the practice of windowing, where content is licensed and sold to multiple streaming services at different times. This results in a borrowing system where the same movies and shows are being sold over and over again. The importance of windowing has become more noticeable to consumers, who want to know exactly what's available on the services they subscribe to. This is making it harder for viewers to keep track of their favorite shows and movies, leading to frustration and the need for constant updates. Additionally, the cost of subscribing to multiple services continues to rise, adding to the challenge of accessing content. Overall, the media streaming ecosystem is becoming more intricate, and understanding windowing and the licensing deals behind it is essential for consumers looking to navigate this new landscape.
Streaming services fragment media landscape: Streaming services are losing their monopoly as consumers face a complex media landscape with content spread across multiple platforms. Aggregators like Roku and Amazon are gaining influence, and smart TV manufacturers are also playing a role in determining which services are prominently featured.
As more streaming services emerge, consumers are facing a fragmented media landscape, making it increasingly difficult to access their favorite content. The convenience of having all content in one place, as was the case with Netflix, is fading away. Shows like Friends and The Office, which were once popular on Netflix, are now spread across various platforms like HBO Max and Peacock. This complexity leads viewers to opt for aggregators like Roku or Amazon, which offer a more streamlined experience. The power is shifting towards these aggregators, and smart TV manufacturers are also gaining influence over which streaming services are featured prominently on their devices. Ultimately, streaming services must find a way to stand out and secure a spot on these aggregators to remain competitive.
TV industry's gatekeeping challenges: Companies underestimate consumer laziness, need for convenience, and control content access. Separating gatekept ecosystems from open platforms may help, but unique, compelling programming is key to keeping viewers engaged.
The TV industry is more gatekept than the app store or computer world, with streaming services like Discovery facing challenges as entertainment companies underestimate consumers' laziness and preference for convenience. The lack of open TV devices and ecosystems allows executives to control content access and distribution. A potential solution could be separating the gatekept ecosystems from open platforms, but even then, companies like Netflix have shown they can produce popular content and reduce the need for third-party services. Ultimately, consumers want seamless access to their favorite content without the hassle of multiple sign-ups and subscriptions. The success of Disney, with its exclusive content, highlights the importance of offering unique and compelling programming to keep viewers engaged.
HBO Max exempt from AT&T data caps, while Netflix counts towards them: Customers using non-AT&T services to access HBO Max face no data charges, while those streaming Netflix may incur additional costs due to data caps
HBO Max, which is part of AT&T, does not count towards data caps for AT&T customers, while Netflix does. This difference in data usage could lead to additional costs for those using a Verizon phone or other non-AT&T service providers to stream content from these services. This situation arises from the ongoing net neutrality debate and the current FCC chairman, Ajit Pai, who has been focused on deregulating internet service providers, is stepping down and being replaced by Nathan Simington, who is known for his advocacy for regulating social media and speech on social media platforms. This shift in focus from network infrastructure to content regulation could have significant implications for the digital landscape.
New FCC Commissioners and Net Neutrality Debate: Two new FCC commissioners could lead to a deadlock, delaying decisions on net neutrality. Social media regulation may be a new focus, while ISPs impose data caps and raise prices.
The regulatory landscape of the internet is poised for significant changes, with the potential for a deadlocked Federal Communications Commission (FCC) and a shift in focus from network regulation to content regulation. This comes as the FCC is set to welcome two new commissioners, one of whom has advocated for regulating social media platforms like Twitter and Facebook. With the end of the Trump administration, the FCC may be deadlocked, unable to make decisions on key issues like net neutrality. Meanwhile, internet service providers like Comcast are imposing data caps and raising prices, sparking controversy and debate. The net neutrality conversation is expected to be loud and contentious, with potential implications for how the FCC regulates the internet and social media platforms.
Republicans push for Section 230 repeal, Qualcomm releases new processor: Republicans aim to repeal Section 230, potentially impacting tech companies' immunity from user-generated content. Qualcomm introduces new Snapdragon 888 processor with integrated 5G modem, enhancing Android flagships' capabilities
The debate around repealing Section 230 of the Communications Decency Act continues to gain momentum within the Republican Party, with both Trump and Biden expressing their support for its elimination. However, it's uncertain if this will materialize into legislative action. Meanwhile, in tech news, Qualcomm has released its new Snapdragon 888 processor, which includes an integrated 5G modem for the first time since 2019. This could lead to improved battery life and more seamless integration of 5G technology into Android flagships. The Republican push for Section 230 repeal and Qualcomm's new Snapdragon 888 processor are two distinct issues, but they both represent significant developments in their respective domains.
New Snapdragon 888 chip brings improvements to 5G and performance: The Snapdragon 888 chip introduces carrier aggregation for faster 5G data, a new efficient Cortex-X1 core, a faster GPU, and a new ISP for multi-lens cameras, promising up to 35% performance increase.
Qualcomm's new Snapdragon 888 chip, which powers many high-end Android smartphones, brings significant improvements to 5G connectivity and overall performance. The key feature is carrier aggregation, which allows for faster data per user by connecting more chunks of sub-6GHz spectrum at the same time. The chip also includes a new, more efficient Cortex-X1 core and a significantly faster GPU, promising up to 35% jump in performance. Additionally, the new Spectra 850 ISP can capture three simultaneous still images or video streams at once, which could be useful for multi-lens cameras. However, it's important to note that the maximum theoretical download speeds of 7.5 Gbps will not be achievable on any smartphone in 2020. Instead, these improvements help raise the ceiling for 5G, making it potentially faster than LTE in the future. As always, it's up to device manufacturers and carriers to fully utilize these capabilities.
Advanced camera features integrated at chip level in Snapdragon 888: Qualcomm's Snapdragon 888 chip brings advanced camera capabilities to Android phones, including night photography, 10-bit color, and high frame rate shooting, but manufacturers and software must support these features.
Qualcomm's latest chip, the Snapdragon 888, is bringing advanced camera features to a wider range of Android phones by integrating them at the chip level. This includes capabilities like night photography, 10-bit color, and high frame rate shooting. However, manufacturers still need to support these features in their phones and software. While Qualcomm's chips may not match the performance of Apple's A-series chips in terms of raw power, Apple's control over the entire ecosystem allows for better optimization and faster performance. The comparison between Qualcomm and Apple chips will become more significant as Qualcomm enters the ARM laptop market. The Snapdragon 888 also promises improvements in battery life and graphics performance, but its impact on battery life remains to be seen. The debate over which chip is superior will continue, with benchmarks providing insight into the specific advantages of each.
Alignment of Android, Qualcomm, and ARM for better chip performance: Collaboration between Android, Qualcomm, and ARM for improved chip performance is more complex than theory due to multiple parties involved, Android's dominance in smartphone market, and Qualcomm's reliance on ARM cores. Microsoft also seeks to maintain laptop market position with optimal Android performance on Qualcomm chips.
The alignment and optimization between Android, Qualcomm, and ARM for improving chip performance is more complex than it seems in theory. While it makes sense that these companies could collaborate to make Android run better on Qualcomm chips, the reality is more complicated. There isn't a significant competitor to Android in the smartphone market, and Qualcomm isn't the one designing the chips. Instead, Qualcomm builds its chips around the cores made by ARM, and Google builds Android on top of Qualcomm. This process involves multiple parties, making it a more involved and complex negotiation than a simple fix. Additionally, Qualcomm's recent chip announcement came in the shadow of Apple's M1 chip, which has garnered significant attention and is seen as a game-changer for the computing industry. Microsoft, as a major player in the Windows laptop market, also has an interest in ensuring that Windows laptops can compete with Apple's offerings in terms of performance. Overall, the optimization of Android on Qualcomm chips is a pressing issue for both Qualcomm and Intel, as the market for Android phones is significant, and Microsoft wants to maintain its position in the laptop market.
A new wave of competition for Qualcomm in the chip market: Apple's M1 chip and Google's potential White Chapel chip could challenge Qualcomm's dominance in the smartphone chip market, while Samsung's new earbuds could disrupt the earbud market
The smartphone chip market has been dominated by Qualcomm for a long time, with no significant competition in sight. However, with Apple's M1 chip being compared to ARM Windows laptops and Google's potential White Chapel chip, there might be a shift in the market, leading to a more direct comparison between chipmakers. Samsung, a major smartphone manufacturer, has been quietly releasing great phones this year, but has been overshadowed by other brands. The upcoming Galaxy Buds with noise cancellation and a new shape could be a game-changer for Samsung in the earbud market. In the meantime, Qualcomm continues to dominate the chip market without much competition, leading to a lack of innovation and improvement.
The importance of cultural events and experiences for brand relevance: Cultural relevance goes beyond just producing great products, engaging with audiences through virtual events and social media is crucial for staying relevant during the pandemic.
Cultural relevance goes beyond just producing great products. Samsung's lack of cultural events and spectacles, such as Broadway plays and Super Bowl commercials, has contributed to a decrease in their cultural relevance. The pandemic has further limited opportunities for in-person interactions and sales, making expensive, flashy phones less appealing. Engaging with audiences through virtual interviews and social media is a new way to connect and build a community. Canva, for instance, offers a time-saving solution for creating presentations, which can help professionals connect and engage with their audiences effectively. The documentary "Art Beats in Lyrics" showcases the power of cultural events and individual stories in shaping communities and phenomena. While the pandemic has disrupted traditional methods of engagement, finding new ways to connect and create cultural experiences is essential for staying relevant.
