QUIBI AND VC-SUBSIDIZED MEDIA

It takes either audacious self-confidence or reckless hubris to build a completely asocial video app in 2020. You can decide which best describes Quibi, Hollywood’s $1.75 billion-funded attempt at a mobile-only Netflix of six to 10-minute micro-TV show episodes. Quibi manages to miss every trend and tactic that could help make its app popular. The ... See more

And so that certainly helped a little bit with demand, but it didn't solve this more monetization issue that consumers seem to have, which was why do I need to pay every new piece of content I want to consume? ... The consumer proposition wasn't fully resolved. It was just a step by the industry in the direction. It also wasn't great for the indust... See more

The first wave of media was fueled by cheap audience acquisition from social media companies like Facebook which created BuzzFeed and UpWorth. The second wave is the subscription wave. Consumers want curation, contextualization, and recommendations

So, you’ve got a business that is starting to reach saturation on the subscription product, but since everything has to grow forever, it needs to find new revenue sources. And thus, the pivot to advertising has begun.

With the above dynamics in mind, we believe that there is going to be tremendous near-term innovation in the pay TV distribution business. The internet has made it possible for new entrants to innovate quickly and materially. Consumers will have more choice and convenience going forward. This competition will drive prices and margins down in pay TV... See more

Silicon Valley accelerates its investment in products and services for individual creators. Platforms explore new ways to let creators monetize their audiences directly, while taking a cut for themselves. Still, a gulf begins to appear between those who pay for content and those who do not. Subscription fatigue will turn out to be real. And perhaps... See more

Subscription businesses allow you to distribute portions of your revenue to people who add value. This isn't rocket science this has been the business model for cable businesses for decades.