2024 Entertainment and Sports

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Advertising racing back to TV, yes even streaming apps

There have been two eras when TV viewers were living in the best of all possible worlds.

One was the latter part of the 20th century when top-tier shows were broadcast on what is nostagically called Free TV. You know, all you needed was a pair of rabbit ears and enough patience to sit through a constant cavalcade of commercials interrupting those top-flight shows. 

The other was arguably the first decade or so of the 21st century, when HBO and similar cable channels were running top-flight programming without commercials. Yes, you had to pay a little bit per month but there were no ads.

So that brings us to yesterday. Cable has faded and is being replaced by streaming. No rabbit ears needed, instead it just takes $50 a month or so for internet service and the streaming channels that run endless movies and original shows, mostly without commercials. 

Of course, things change quickly and soon, just a few days ago in TV time, the streaming channels began charging monthly memberships -- $30 or so at the beginning. 

No rabbit ears needed, just dollars

And now, it's today. Major streaming channels like Paramount+ and Max are running pretty good shows with commercials. You still don't need the rabbit ears but instead, you need $50 a month or so for the Internet connection, then $30 or so for each of the many streaming channels, which may also charge $3 or more for a single episode or viewing of a movie.

So, in essence, consumers are paying more -- a lot more -- to watch an hour or two of TV in the evening. 

This has been happening in the periphery of human consciousness and many of us haven't noticed it yet. I became aware of it a night or two when I plopped down next to the dog and flipped over to Max/Paramount+ to watch the second episode of Landman, a pretty good soap opera set in the Texas Oil Patch.

I had watched the first one free of charge a few nights earlier. But this time around, it cost "$xx.xx" for the first episode and "$xx.xx" for subsequent viewings. (Yes, $xx.xx is correct. Someone at Paramount+ was too busy to type in the price so just left the x's there as a reminder to do it later. )

I hadn't seen a commercial crammed into a TV drama in years and it took me a minute to realize what had happened. I wasn't happy when I figured it out but soon found that it wasn't a surprise to people who keep track of this stuff.

Not only cheap but targetable

A little research produced the news that ads on streaming channels are now not only cheap but also targetable; you don't have to buy 20 million households if you're pushing a specialized product, like nipple covers.

Yep, I learned that Cakes Body, a nipple cover brand, is airing its first-ever streaming ads on more than 15 apps, including Max and Paramount+, according to Modern Retailing. 

More brands are streaming into the race and the streaming channels are rushing to accommodate them.  Paramount+ introduced ad-supported plans in 2021 while Disney+ and Netflix did the same in 2022.

In 2023, Amazon began selling ads for Thursday Night Football, and in January, it announced that Prime Video watchers would start seeing ads by default when watching content. Now, Amazon is offering more ad spots for 2025. It’s likely Amazon’s competitors will soon follow, Modern Retailing tells us.

This is great news for advertisers, since the streamers are offering lower ad rates as they "supply more inventory" (adspeak for jamming in more spots).  

For instance, Disney+ introduced its ad-supported tier in late 2022, and during the 2023 upfronts, the average cost per thousand impressions (CPM) for Disney+ ads decreased by 25%, from $38.68 to $29.04.

Of course, it's not all bad news for viewers. Some channels -- Pluto TV, Tubi and The Roku Channel -- are offering free content supported entirely by advertising. No subscription required. No per-show charges. This is fine if you're just dying to see old episodes of The Carol Burnett Show but you won't find Landman. 

Advertising "innovations"

Wherever you have ads, of course, you have the characters portrayed in Mad Men, talented but frustrated people whose lives are spent figuring out how to make ads more ubiquitous, intrusive and interactive. 

Thus, we will soon be seeing such innovations as "shoppable ads," commercials that let you buy stuff directly from the advertisements, sort of like a truncated shopping channel.

"This approach aims to create more engaging and interactive advertising experiences," one ad biz journal informs us.

Continuing in adspeak, we're told, "​These trends indicate a significant shift in the streaming industry, with advertisements becoming a common component of the viewing experience."

Those of a certain age can remember when this was a common though not necessarily beloved, component of the viewing experience. It's only fair that new generations should get to experience it.  

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Peacock raises its rates

Peacock, NBC’s streaming service, sent out emails to its subscribers this week, announcing a price hike.

“Thank you for being a Peacock subscriber. We want to let you know about an upcoming price increase to your subscription. We are changing the price of Peacock subscription plans as follows:

“If you're a current subscriber on a monthly plan, you'll receive one additional month at the current price. The new pricing will be effective for current subscribers on your next billing date on or after August 17, 2024.”

Want a way around this?

There’s almost always a way around these price increases and no sooner did Peacock announce its price increase but Verizon announced a deal that includes Peacock.

Combined Netflix Premium Plan and Peacock Premium access will be available for $79.99 to Verizon customers for the first time - a considerable $275 savings off the standalone subscription pricing.

MediaPlayNews’ Erik Gruenwedel said this is the first time Netflix and Peacock have been bundled together for an annual offer in which Verizon customers buy one year of Peacock Premium and get one year of Netflix’s Premium plan for free.

To get the Netflix and Peacock bundle, you have to do it through +play, Verizon’s hub for content subscriptions, something Verizon makes available to its mobile and home internet customers.

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Disney+ officially takes a shot at password-sharing customers

Here we go again. Disney+ has announced an update to its policies where it – like Netflix – intends to start charting an account-sharing fee to anyone who shares their account with someone outside their household.

During the company’s latest earning call, CFO Hugh Johnston said Disney's password crackdown will start in a matter of months. 

"Beginning this summer, Disney+  accounts suspected of improper sharing will be presented with new capabilities to allow their borrowers to start their own subscriptions," Johnston said.

"Later this calendar year, account holders who want to allow access to individuals from outside their household will be able to add them to their accounts for an additional fee."

Not a surprise

Surprised by this? You shouldn’t be. “Following Netflix’s implementation of its account-sharing clampdown, which has seen over 20 million new subscribers come on board, it’s not a huge surprise to see Disney following suit,” Roger Palmer from WhatsOnDisneyPlus.com, said. 

“Netflix charges $8 for each “extra member” subaccount, which is slightly more expensive than its ad-supported tier, which many account sharers might have moved over to.”

Where is this all going?

Disney+ probably didn’t come to this decision quickly. The Mouse recently raised its monthly subscription price by 27% to $13.99, which resulted in a loss of 1.3 million subscribers. Hulu, on the other hand, increased its subscriber count after raising its prices, indicating that the impact of price hikes can vary across different services.

Nor has raising rates hurt Netflix. After it lost more than a million subscribers in 2022, it came back with a roar in 2023, adding those 20 million Palmer referenced.

Then, it played its hand with a big price hike. According to The Streamable, anyone who wants to get all of Netflix’s best features on its top tier currently has to pay $22.99 per month – an increase of $15 per month (188%) in nearly 17 years. So, consumers must think it's worth paying for.

However, with the cloud of price hikes, a little programming sunshine might soon make an appearance, particularly for sports fans.

Just last month, Prime Video raised the price of ad-free streaming by $3 per month, bringing regional sports channels to its platform through an investment in Diamond Sports Group.

Major League Soccer moved its games primarily to streaming in 2023, as well. The NBA wants to sell its next rights deal to a streaming service, and HBO wants a piece of the sports action, too.

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Here are the most talked about Super Bowl ads of 2024

Super Bowl games always attract a lot of celebrities, but for Super Bowl LVIII there may be more celebrities in the commercials than in the stands. Every brand, it seems, found one or more celebrities to help sell its products.

“Friends” stars Jennifer Aniston and David Schwimmer reunited in an Uber Eats ad while David and Victoria Beckham also appear in a spot for the food delivery service. Aubrey Plaza and Nick Offerman, co-stars from “Parks and Recreation,” teamed up to praise Mountain Dew.

M&M had plenty of star power with Scarlett Johanssen, backed up by former NFL stars Dan Marino, Terrell Owens and Bruce Smith. Marino also appears in a Michelob Ultra ad with soccer sensation Leo Messi.

BMW tapped Christopher Walken to extoll the virtues of its luxury cars while Skechers brought back 1980s celebrity Mr. T to help CBS broadcaster Tony Romo sell slip-on sneakers.

History lesson

Oreo cookies take viewers on a trip through history, showing how the course of world events might have been altered through the use of a decision-making aid called “twist on it.” By twisting the cookie apart, a decision is influenced by whichever side of the cookie has the cream.

Star power

People love to hate Tom Brady but he takes it so good-naturedly. Seven Super Bowl rings and a mountain of money probably make him less sensitive to criticism. 

BetMGM plays on that with this spot, teaming Brady with hockey great Wayne Gretzky and comedian Vince Vaugh, in which Brady has already won more than his fair share and is excluded from the blackjack table.

State Farm also harnesses star power by enlisting Arnold Schwarzenegger for a new action movie, starring as Agent State Farm. The company released the first of the two-parter before the game but is keeping the finale under wraps. Here’s part one.

Funniest

Okay, humor is subjective. That said, Paramount+’s commercial featuring Buffalo Bills quarterback Josh Allen, Peppa Pig, the CBS Sports broadcast crew and a transformer was just weird enough to strike our funny bone. But you be the judge.

The ETrade babies are back for another Super Bowl appearance but their 2024 commercial seemed to have lost a step when compared to earlier spots. Tina Fay’s commercial for Booking.com shows her many sides, but she’s ultimately upstaged by Glenn Close.

The NFL is expecting a record audience for Super Bowl LVIII, especially since the Kansas City Chiefs and Taylor Swift’s boyfriend are in the game. With a 30-second ad going for around $7 million pop, it could also be a record haul for CBS, the network airing the game.

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Watch the Super Bowl for free? You’ve got options!

This Sunday, if you don’t have an antenna or a cable package and you want to watch the Super Bowl for free, you do have options.

CBS has the broadcast rights this year – its 21st Super Bowl if anyone is counting – and that gives most everyone in a Top 100 TV market easy access to the broadcast, either at home or at a local bar.

If you live outside a major metro, though, you should first try Paramount Plus. It's CBS’ parent company and it’s offering a free, one-week trial.

There’s no promo code required, and you can stream on various devices. Just remember to cancel before the trial ends if you do not wish to continue the service.

There’s also FuboTV’s free week-long trial that includes access to sports channels including the Super Bowl. Sign up now and remember to cancel after the game to avoid charges.

If you live right outside a major city, you could hurry over to Amazon and buy an Over-The-Air (OTA) Antenna for $25 or so. That way, if the nearest CBS station is within spittin’ distance, you’ll be able to watch it for free, the old-fashioned way. 

The last two options are DirecTV and Hulu+ Live TV. Both offer free trials that include access to the Super Bowl. Again, just cancel it after the game or a monthly subscription will show up on your credit card for sure.

One other word of warning

Make sure to take advantage of these offers promptly, as they may not be available on the day of the Super Bowl itself. 

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Disney+ now available for free for millions

Disney+ for free? Yes, but only in an ad-supported version and only for Charter Communications’ Spectrum TV Select customers.

Still, that's a lot of folks since Spectrum counts 32 million consumers in its customer database.

As part of the two companies’ coming to terms on a new distribution agreement, Charter video customers can now turn on their TVs and stream entertainment from Disney, Pixar, Marvel, Star Wars, and National Geographic, including movies, TV shows and original programs.

The only thing they need is a Xumo Stream Box or any type of Disney+ supported device (Roku, XBox, Chromecast, etc.)

“The inclusion of Disney+ alongside a curated lineup of our TV channels brings the best of both worlds from Disney’s unrivaled entertainment portfolio to Charter’s video customers,” said Justin Connolly, president of Platform Distribution, at The Walt Disney Company.

“Our goal has always been to meet consumers where they are, and these collective offerings will maximize value for Spectrum TV Select customers while simultaneously broadening the audience of our advertiser-supported streaming services.”

Move over, Netflix?

Is Disney trying to angle its way to king of the streaming mountain? It may be.

According to data presented by Statista, Disney+ is expected to count over 205 million hybrid subscribers of its ad-supported or subscription-based tiers by 2028, or three times more than its biggest rival, Netflix.

If you're someone who keeps up with the Joneses, the OnlyAccounts researchers pointed out that you may have to get used to ads. It found that over 85% of Disney+ subscribers will use the ad-supported plan by 2028.

You can expect even more bundling

Streaming subscription bundles spiked during the 2023 holiday season, but this latest move from The Mouse could signal even more.

Guess who's to blame -- or is it bless? It's you, the consumer. According to data from subscription analytics provider Antenna, about one-fourth of subscribers to major streaming services have canceled at least three of them over the past two years — nearly double the cancellations two years ago.

Dan Goman, CEO and founder of Ateliere Creative Technologies, a digital media supply chain solution that supports some of the largest digital streaming platforms in the world, told ConsumerAffairs that while this sounds like a victory for streaming subscribers, it could turn out to be the just the opposite.

“In my opinion, the overall impact on consumers is likely to be mixed, but perhaps mostly negative in the long run," Gorman said. "On the upside, bundling services will make things more affordable, offering a plethora of content at a better value, with more innovative package options than traditional cable bundles, including valuable third-party services – a trend we're already observing.

“However, there are significant drawbacks. While these large bundles often include a vast array of content, much of it may not align with consumer preferences."

Goman says where streaming users will feel the pinch is in not being able to choose all the content they want, coupled with the absence of à la carte options.

"Consumers will be forced to completely change their content access approach - and this will happen very rapidly.”

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NY Attorney General alleges SiriusXM traps customers in contracts

Have you tried to cancel your subscription with SiriusXM, only to be met with increasing difficulties and a long, complicated process? You’re likely not the only one. 

New York Attorney General Letitia James recently filed a lawsuit alleging that SiriusXM traps consumers in their contracts, making it intentionally difficult to cancel their plans. 

“Having to endure a lengthy and frustrating process to cancel a subscription is a stressful burden no one looks forward to, and when companies make it hard to cancel subscriptions, it’s illegal,” said James. “Consumers should be able to cancel a subscription they know longer use or need without any issues, and companies have a legal duty to make their cancellation process easy.” 

Employees are encouraged to make things harder

Currently, in order for consumers to cancel their accounts, they need to either call SiriusXM’s customer service line, or chat with a representative online. According to SiriusXM’s own data, that process takes on average 30 minutes online and around 12 minutes over the phone. 

However, the suit claims SiriusXM employees are encouraged and trained to make the canceling process extra difficult for consumers, so these interactions often take far longer than those estimates. 

“The company trains its agents to keep customers on the phone or in the chat for a lengthy six-part conversation that includes asking a series of questions and then pitching the subscriber as many as five retention offers, all to delay cancellation,” the attorney general’s alleges. “When customers decline the offers, agents are trained not to take ‘no’ for an answer and to keep bombarding customers with questions or offers until they either relent or become frustrated.” 

Based on the Attorney General’s report, SiriusXM has approximately 35 million subscribers. The goal of the lawsuit is to not only have SiriusXM revamp its cancellation process to make it easier, smoother, and simpler for customers, but to also recoup the money subscribers have lost.