Future of TV Briefing: Q&A with Telemundo Streaming Studios’ Juan Ponce on the ‘upside-down’ streaming market

This week’s Way forward for TV Briefing options an interview with Telemundo Streaming Studios’ Juan Ponce on how the marketplace for streaming exhibits has shifted with providers altering their threat profiles and funding methods.

‘The whole lot is upside-down’

Telemundo Streaming Studios solely launched in Might 2021. However already, the NBCUniversal Telemundo Enterprises-owned studio has seen the streaming marketplace for exhibits change fairly dramatically, with streaming providers altering their threat profiles and funding methods.

“The whole lot is upside-down to what we thought final yr,” mentioned Juan Ponce, svp and normal supervisor of Telemundo Streaming Studios, which produces English- and Spanish-language exhibits aimed toward Hispanic audiences within the U.S., Latin America and Spain. 

Many of those modifications are in response to the financial circumstances dealing with the foremost streaming providers. Because the variety of streaming providers available on the market has swelled, particular person streamers’ subscriber development has slowed. In the meantime, the broader financial downturn has firms searching for to chop prices, together with programming budgets, whereas manufacturing prices have elevated. Amid these challenges, there are alternatives for producers to chop extra favorable offers, particularly when pitching non-English-language programming that may journey internationally because the streaming wars go international.

In an interview, Ponce outlined how the streaming programming market has flipped upside-down and to what extent TSS is recalibrating its compass. 

The interview has been edited for size and readability.

You talked about that all the things is upside-down proper now. What particularly are you seeing as upside-down that you simply’ve wanted to prioritize adjusting or adapting to?

By way of quantity, what we see utterly totally different for the worldwide Hispanic viewers is fairly aggressive shift that we’re noticing, a contraction within the variety of exhibits. We see it out there. We all know it from our companions that there’s a discount. I believe there may be extra curation by most of our companions. We had been very dreamy about seeing the hockey stick about studio quantity for the worldwide Hispanic viewers. However that’s not the case. What we see now’s a normalized degree of quantity. 

The second half is investments. The final consensus is that there’s going to be fewer exhibits however most likely extra funding and extra curation to every present that’s produced. And what’s necessary is the advertising and marketing and the danger to it. Which means, as necessary as content material is, now promotion and the programming schedule goes to be as necessary because the content material itself. Ensuring that individuals can see via the massive quantities of content material within the platform goes to be essential going ahead.

And lastly, given the modifications for all of the platforms and modifications within the macroeconomic circumstances, there’s much more risk-aversion. There’s a normal seek for extra established [intellectual property]. So we see greater developments in e book IP and identified or established tales that may be taken and tailored. There’s slightly little bit of a extra conservative method to new and unique content material.

Given the shift in quantity and the danger urge for food among the many streaming providers, how have you ever tailored the way you bundle your exhibits?

We’re making an attempt to be extraordinarily acute on the regional parameters. That’s one of many largest worth propositions that we now have. We now have a historical past of manufacturing for 50-plus years, and we now have produced in each single area. So there’s the power or infrastructure and provide chain to supply successfully, effectively and with the requirements that almost all, if not each, platform requires. That entails [environmental, health and safety guidelines], labor reforms, compliance, et cetera. 

What we’re seeing is that extra general-market productions are trying exterior the U.S. for alternatives to be extra environment friendly with the infrastructure, with manufacturing capabilities and in tax credit, like regional tax credit score alternatives. There’s an internationalization when it comes to bodily manufacturing that’s taking place.

To what extent did these issues determine into the recent opening of the Mexico City production unit?

We’re very considerate and strategic about the place we now have bodily manufacturing versus having a co-producer accomplice or strategic companions. And so we actually suppose that principally comes all the way down to the amount and timelines that we count on. In Mexico, it’s a core space for our enterprise, for our productions. And so having a presence there was essential.

For no less than just a few years now, there’s been a development of non-English-language exhibits accruing audiences internationally, no matter their nationwide languages. That may make the exhibits extra priceless for streaming providers that both are already worldwide or need to broaden internationally. Are you seeing that the streaming providers are primarily trying to purchase up full worldwide rights on an unique foundation?

That’s one other component in issues which have modified. Till lately, that was the most important precedence, the most important push to attempt to principally get all of the worldwide rights and distribution rights. Principally the entire possession. Now what you’re seeing in some instances is a extra openness to share home windows or share territories or share when it comes to the economics. It’s nonetheless very nascent. We don’t see it but as a large dynamic. 

In a few of our pitches final yr, [the situation] was both you’re okay with promoting the entire IP or we are able to finish the assembly now. Now [the situation is] as a substitute of paying for the entire manufacturing finances for cost-plus, extra platforms are open to share the home windows, significantly if it’s with linear [TV] and the funding that goes into it. They’re seeing that the audiences usually are not essentially cannibalized.

I think about that’s useful from the producer standpoint and offers you extra choices on the subject of signing offers. When you may have a present that you simply’re taking out to market proper now, are you prioritizing distributors in sure territories or sure kinds of home windows?

Being a part of such an unimaginable and enormous firm similar to NBCUniversal, we now have the infrastructure to put money into the tales we like but in addition we’re powered by a worldwide distribution arm, which can assist us on the push of a button with unimaginable relationships around the globe. And so our capability to search out the required funding on the totally different home windows, distribution channels, et cetera, is a part of our DNA. That distribution is mostly a moat and priceless proposition for any such situation.

For the precise concepts, we attempt to discover what I name our anchor shoppers or our anchor lead. Which means, if there’s a present that certainly one of our Spain shoppers actually likes, we carry to the desk the chance to say, “Look, that is the funding you can also make to your platform. Allow us to discover the remainder of the home windows.” And we are able to maximize that chance to search out the opposite areas. 

We’re not prioritizing any particular winner. The character of Telemundo Streaming Studios is to go first with streamers. In order that’s step one; we want a streaming consumer first. However when it comes to the second home windows or linear home windows or paid channels, et cetera, we don’t have prioritization. We strive to make sure the content material will match the distribution channel it wants.

Manufacturing prices have gone up between the Covid-19-related prices and costs going up for solid and crew members, areas and set supplies. After which rates of interest have additionally gone up. How have you ever tailored to those rising prices of manufacturing?

Sure, there’s a rise in prices and Covid. However for us in Latin America, it’s nonetheless a backlog from the final couple years when there was a quantity glut. Which means, there was saturation when it comes to the availability chain making an attempt to ship all of the content material requested by the platforms. 

There’s extra quantity within the area, and that’s thrilling for us. However the hostile impact is there was problem discovering crews or ready crews to have the ability to execute on this mission. So there’s been vital labor inflation in most areas that we’re working in, significantly Latin America and that’s the case in Spain. So proper now there was an enormous push to coach and put together extra technical and artistic people in order that we are able to deal with this over-saturation. 

We now have secured our personal gifted people to attempt to keep away from having to be topic to discovering the educated professionals. However then we’re additionally working with the precise companions who’ve the precise employees and the precise groups. There’s definitely an inflation issue. However that’s how we now have been capable of shield ourselves as a lot because the atmosphere permits us to.

What we’ve heard

“They’re not permitting QR code or another approach for advertisers to determine if [an ad is] having any influence. It looks like they’re going out of their approach to shield their view. They don’t wish to upset their person base and are keen to forego satisfying advertisers.”

Company government on Netflix’s promoting parameters

Streaming holds watch time lead as YouTube matches Netflix

After surpassing cable TV’s share of TV watch time in July, streaming maintained the most important viewership share in August, in line with Nielsen’s latest The Gauge report.

The caveat to the July numbers additionally apply to the August figures: This isn’t precisely a peak TV watching interval. Persons are touring and/or spending time exterior the home in the course of the summer season, most main sports activities are on hiatus and TV networks and streaming providers don’t air as many high-profile exhibits.

“Complete TV utilization was down barely in August, which is typical as summer season winds down. Actually, broadcast was the one class that had a quantity improve, up 1.6%,” Nielsen wrote in an organization weblog put up asserting the August outcomes.

Not that streaming’s watch time decreased in August from July. As an alternative, it flattened month over month.

Nevertheless, inside that flattening, the share of watch time amongst streaming providers did shift. Of the streaming providers damaged out by Nielsen, Netflix misplaced probably the most share, whereas YouTube gained the most important chunk. In consequence, YouTube matched Netflix’s share for the primary time.

Numbers to know

45%: Share share of advert income for YouTube Shorts movies that YouTube pays to eligible creators.

$750,000: How a lot cash TikTok’s prime star Khaby Lame has been paid for a single sponsored video.

99.4%: The ratio of Disney’s feminine staff pay in comparison with their male counterparts.

10: Variety of unskippable adverts that YouTube had been testing displaying viewers throughout a single advert break.

70%: Share share of grownup Gen Z viewers who mentioned they primarily watch movies, exhibits and flicks with captions enabled.

WTF are frequency caps?

Advert-supported streaming audiences complain about being besieged by the same ads over and over. This streaming advert overexposure situation has additionally aggravated advertisers that need their campaigns to draw clients, not annoy them.

Nevertheless, frequency administration for streaming promoting isn’t so easy, as lined within the explainer video skit embedded above.

What we’ve lined

Why Fb, Instagram and TikTok have stepped again from social commerce:

  • Apple’s anti-tracking modifications harm Fb’s capability to show efficiency.
  • The social commerce expertise for customers is clunky throughout platforms.

Learn extra about social commerce right here.

DTC skincare model Actually turns to TikTok to succeed in Gen Z and millennials via short-form movies:

  • Actually’s in-house advertising and marketing staff produces all of its TikTok movies.
  • As an alternative of counting on influencers, the model makes use of actual folks in its movies.

Learn extra about Actually’s TikTok technique right here.

What we’re studying

YouTube’s creator monetization move:
YouTube will decrease its necessities for creators to be eligible to take part in its advert revenue-sharing program and begin sharing advert income for YouTube Shorts, in line with The New York Instances.

YouTube’s female creator harassment issue:
Feminine YouTube creators proceed to be besieged by misogynistic feedback and harassment on the Google-owned video platform, in line with The Washington Put up.

Instagram’s standing with creators:
Instagram has admitted internally that it trails TikTok and YouTube on the subject of creator satisfaction, together with in enabling creators to become profitable on the Meta-owned platform, in line with The Info.

Disney+’s advertising pitch:
Disney’s advert gross sales pitch deck for Disney+ exhibits the streamer will run pre-roll and mid-roll adverts with strict frequency caps and stock sorted by audiences’ age teams, in line with Insider.

Netflix’s ad-supported expectations:
Netflix expects to have 4.4 million folks utilizing its ad-supported tier by the tip of this yr and greater than 40 million by the third quarter of 2023, in line with The Wall Road Journal.

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