Category Archives: Trends

Why Netflix and Amazon (probably) don’t mind users sharing passwords

It’s been an interesting week at Netflix, with US subscribers falling by 120,000.

Another interesting piece of Netflix news has been about password sharing. According to analysts MoffettNathanson, 14% of Netflix subscribers share their password, and only 6% share their Amazon password to access Prime video.

The reason why password sharing on Amazon Prime is much lower than Netflix is probably because it’s easy for a friend to purchase an Amazon product once you give them your password. Possibly just as undesirable – it’s straightforward for people to review purchases on your account once you have given them your password!

I’ve been asked a few times this week, why Netflix and Amazon don’t clamp down on password sharing. I think the answer lies with a comment from Spotify.

Think of those Netflix users who are using someone else’s password as ‘freemium’ subscribers. Spotify encourages freemium (non-paying, or trial) accounts to learn “that music is an important part of their life worth paying for”. And consider the data from those listeners, how Spotify can “learn from the biggest possible group of music fans in the world.”

Freemium places a user on the path to a sales conversion. It’s a far better path than traditional or digital marketing channels. When people share a password, it shares the value of the product, that might want to make them ultimately go and buy the product.

Netflix has a vastly different strategy to Spotify though. Netflix is testing the maximum price that users are willing to pay for the service. It recently increased the monthly subscription cost in the US from $11 to $13. Continue reading Why Netflix and Amazon (probably) don’t mind users sharing passwords

Mary Meeker’s 2019 Internet Trends Report

Mary Meeker’s latest annual Internet trends report has been released, and it’s as insightful as always.

New sections for this year include:

  • A new section on the ethics of data usage and regulation
  • Interesting sections on healthcare (expenditure by country, and their focus on preventable deaths); and China (the move from manufacturing, and the totally different user experiences, such as live streaming for ecommerce)
  • New section on education – US university enrolments falling, with online increasing

Here are my highlights (aka abbreviated research notes):

  • Slide 25: [USA-based] advertising purchasing is moving to Amazon/ Twitter/ Pinterest (basically, moving from Facebook or Google at a quicker amount than they are growing)
  • Slide 28 & 29: Balancing Customer acquisition cost with Life Time Value!!
  • Slide 32: Drive conversion from freemium (Spotify & Zoom), rather than seeking new customers
  • #51: Echo devices doubled last year to 47M. There are now 90,000+ skills for Alexa. Why? How are they promoted?

Continue reading Mary Meeker’s 2019 Internet Trends Report

Remarkable! How Facebook will reduce its reliance on advertising revenue

Facebook investors are going to like this announcement

Facebook has announced the most exciting new product of all the recent FAANG press releases. From “Sign In With Apple” to Uber’s IPO, this one beats them all.

Until now, Facebook has been reliant on advertising spend. In Q4 2018, Facebook’s advertising revenue was $16.6bn, of a total revenue $16.9bn.

Facebook has always received poor press coverage over its collection, harvesting and commercialisation of our data. What’s the best way to avoid this type of brand coverage?

Rebrand.

Enter Calibra. Or at least, Calibra will enter next year.

Continue reading Remarkable! How Facebook will reduce its reliance on advertising revenue

UK media usage 2019 – still fascinated with TV

The latest Ofcom media report has been released, and here are some of the highlights:

  • On the BBC revenue: 20% of people don’t know how BBC TV is funded, over a third of people don’t know how the BBC website is funded, and almost half don’t know how BBC iPlayer is funded.
  • Almost a half of people don’t know how search engines make money, and 56% of people don’t know how YouTube is funded. (Answer: it’s owned by Google and has lots of video ads).
  • Incredibly, 31% of people don’t know how commercial TV is funded. (Answer: Adverts and sometimes subscriptions)
  • The social network unknowns: In socio-economic terms, why do 74% of the AB group have a social media profile, and for DE it’s only 56%? Yet C1 has the highest percentage of social media profiles. Also, “One in seven adults of working age in DE households do not use the internet, and when they do, one in five only go online via a smartphone.

Continue reading UK media usage 2019 – still fascinated with TV

Why the 20% of UK homes that own a voice assistant don’t read the terms and conditions

Alexa prank to set an alarm at 3am
Alexa practical jokes were invented in 2014

Highlights from Richard Watson’s latest Brainmail:

  • In the UK, 5.5 million homes (around 20% of all homes) now possess a voice activated assistant.
  • 20 per cent of 3-5-year-olds now own their own iPad.
  • Google and Facebook have more than a fifth of the world’s advertising spending (they have 50-60 per cent of digital advertising spend).
  • The terms and conditions for Amazon’s Kindle are 73,198 words long and would take around 9 hours to read. I checked this out (link) and the terms are made up from 20 documents, plus the privacy notice.
  • Compared to the 400 deaths per year from terrorism, more Europeans drown in their own bathtubs, and ten times more die from falling down the stairs.

Continue reading Why the 20% of UK homes that own a voice assistant don’t read the terms and conditions

2019 Digital Trends and Predictions

Here are my predictions for the digital and online industry for the coming year.

Every year I score my own previous year’s predictions– see how I fared for digital predictions for 2018 and work backwards.

1. Foldable/ rollable and other-able screens

Having been teased with foldable, rollable and extendible screens for several years, I think we’ll finally start to see them next year.

I hope the phones look nicer than the Royole. And I hope the televisions looks as nice as the LG rollable, especially in that low but wide position.

And if you’re thinking that TVs might disappear soon, it looks unlikely, because 70% of Netflix binging still happens on a TV. Continue reading 2019 Digital Trends and Predictions

Review of 2018 predictions

Time to look back on the 2018 predictions from 12 months ago…. how many of the predictions came true?

1. Tesla share price to drop significantly

Tesla stock was $312 on New Years Day 2018 and finished the year at $333, so on the face of it, the prediction was incorrect.

However, on 7 August, Elon Musk made the headlines by tweeting that “funding secured” at $420. The share price jumped 10% to $379. He was personally fined $20 million, and the company was fined the same amount.

Two months later, the stock was $250. The stock has been relatively volatile since then, climbing back to $376 and back down to $333.

Amazingly, the offending tweet is still live.

I also mentioned how “2017 was generally a good financial year, and if consumer confidence drops in 2018, people will buy fewer cars.” Ford stock started 2018 at $12 and is now under $8. General motors started at $41 and is now $33. Jaguar Land Rover (which is a private company) made a pre-tax loss of £90m for the three months to end of September, compared to a profit for the same quarter in 2017. The firm’s Solihull plant, where it makes Range Rover and Jaguar models, was closed for a two-week shutdown due to “fluctuating demand”. That followed a move to a three-day week at JLR’s Castle Bromwich plant.

Prediction rating: 5/10 – Tesla stock has been a volatile stock in 2018 but has actually finished higher Continue reading Review of 2018 predictions

How crowdfunding is competing with insurers

Lovely image courtesy of Wikipedia

Almost half of the projects on GoFundMe, the fundraising website, are to pay for medical bills. That’s $930m out of $2bn (Source: Business Insider).

That’s over 250,000 campaigns a year, raising $450m per year (Source: GoFundMe).

Another way to look at this, is that consumers now prefer to have cheaper, or no insurance, and raise funds after a claim would have arisen.

Note: this applies to the UK, not just the US.

Privacy: the update

Personally I’d rather see a bike advert

Since the early days of Internet services such as Google and Facebook, we’ve accepted that in return for these amazing services, we have to give some of our data away. It’s a value-exchange. We get to perform a search about anything, or store and share photos for free in return for the website having some data about us and selling that to advertisers. It’s a fair value-exchange.

It’s value because our advertising tends to be personalised toward us. I’d rather see relevant adverts, for example new bicycles products from my favourite brands, rather than tampons. Continue reading Privacy: the update