Overview
The Shift from Linear TV to Streaming Entertainment
Streaming entertainment is revolutionizing how people consume content, replacing the traditional linear TV experience. Unlike linear TV, which forces viewers to watch scheduled programming on non-portable screens with complex controls, streaming offers on-demand, personalized content accessible on any device. This shift is monumental. Just as radio was the dominant medium for nearly 50 years before TV took over in the 1950s and 1960s, streaming, which emerged in the mid-2000s, is poised to be a lasting force due to the internet’s global reach and flexibility. Our goal is to remain at the forefront of this transformative era in entertainment creation and delivery.
The Power of Streaming Apps
Leading linear TV networks now offer their content via streaming apps, such as HBO Max, Paramount+, and BBC iPlayer. These apps allow viewers to enjoy on-demand programming, binge-watch shows, and catch up on missed episodes. Networks that successfully develop high-quality apps will gain more viewership and become more valuable, while those that don’t will struggle to maintain relevance and revenue.
Why Streaming is Growing Rapidly
• Ecosystem Growth: The internet is becoming faster and more reliable, with more connected devices like smartphones and smart TVs in use.
• Freedom & Flexibility: Consumers can watch what they want, when they want, on any screen, with content personalized to their tastes.
• Innovation: Streaming apps are constantly updated, and streaming is the primary source for UHD 4K content.
Creating Content People Love
People’s entertainment preferences are diverse, and the internet enables us to cater to a wide variety of tastes. As we scale, we can economically produce original content, continually improving our offerings. Each new show or film teaches us more about our audience, allowing us to refine our production and promotional strategies.
We have a significant advantage over linear networks. While they are constrained by prime-time slots and limited movie theater screens, we have the flexibility to keep nurturing content until it finds its audience. This freedom allows us to greenlight entire seasons rather than just pilots and gives creative storytellers more space to experiment with episode length and formats. Our personalized promotional strategies allow us to keep promoting original content long after its initial release.
A Focused Passion Brand
We are a global media entertainment service focused on movies, TV series, and games. Our platform offers unlimited, on-demand content across any internet-connected screen for a low, no-commitment monthly fee. We are not a generic video company that streams news, user-generated content, live sports, or music videos. Instead, we are a specialized entertainment brand focused on delivering high-quality storytelling and providing a straightforward, hassle-free experience. Our members have the freedom to cancel anytime, with no strings attached.
Competing for Viewers’ Time
While we don’t compete directly with any one company, we vie for viewers’ time and spending against a wide range of entertainment options, including linear TV, pay-per-view, DVDs, other streaming services, video games, web browsing, and more. As the entertainment market evolves, many forms of entertainment will continue to improve. Our strategy is to win more of the key decision moments when viewers choose how to spend their leisure time. The entertainment market is vast, and just as linear networks like ABC and NBC have coexisted and thrived for decades, we believe multiple streaming services can succeed in the future.
Margin Structure
Our operating margin is driven by top-down decisions. For each period, we estimate revenue and determine how much to spend and the desired margin. In the face of competitive pressures, we prioritize maintaining financial discipline, whether it’s through careful content bidding or marketing budget management. We amortize content as quickly as appropriate, based on industry standards and viewing history.
A Global Entertainment Provider
We are available nearly everywhere, except in China, Russia, and Ukraine. Our international growth is a long-term process, and as we expand, we continuously enhance our service by adding more content, languages, and improved user experiences. We recognize the cultural differences and infrastructure challenges in various markets but believe in the universal appeal of high-quality storytelling. This is why we’re increasingly licensing and producing non-English language originals from countries like Mexico, France, Italy, Japan, and Brazil. Our global distribution allows us to share these stories with audiences around the world.
As our global presence grows, so too do the expectations of consumers and governments. We are committed to meeting these expectations and working with policymakers to ensure that outdated regulations designed for linear TV do not stifle the future of streaming entertainment.
Respectfully,
William D. Armijo
Willafter LLC
Media Solutions
Newport Beach, CA