Lab Weekly - 08/26/2022
Decoding the brewing backlash against streaming services; New podcast episode on Microsoft’s growing ad business; Plus, the latest news and must-know stats roundup
Editor’s note: Hello! Welcome to the latest edition of Lab Weekly. This week, we dissect the rising churn rates of streaming services and analyze the various market forces behind a brewing backlash against streaming. We also have a very special new Floor 9 episode where we chat with Jennifer Solomon-Baum, North America Marketing at Microsoft Advertising. One more program note before we dive in — Next week is UM Employee Appreciation Week for us, so we’ll be skipping next week and come back with a new edition after the Labor Day weekend. Hope you’re enjoying the tail-end of summer!
The Backlash to OTT Streaming is Here
As streaming officially surpassed linear TV as the primary content distribution for at-home viewing, the market is also hitting a saturation point, some recent developments, such as the rising subscription prices, the incoming flux of ads, and the studios second-guessing their release strategy, are turning some consumers against streaming, leading to high churn rates and a wider industry discussion around the viability of the OTT streaming model.
In case you missed it…
The Rise of Conscientious Consumption
From alternative meat to non-alcoholic beverages, value-driven consumers are pushing forward food and beverage innovations
The Future of Play: Emerging Toys & Play Trends of 2022
From the comeback of physical toys to the continuing popularity of digital playgrounds, the future of play is hybrid and educational
Episode 142: The Glow-Up of Microsoft Ads (Ft. Jennifer Solomon-Baum)
This week on Floor 9, we’re delighted to chat with Jennifer Solomon-Baum, North America Marketing at Microsoft Advertising and Innovation Lab Lead, to learn more about how the maker of Windows has emerged as the latest heavy-hitting player to join the digital advertising arena. In this episode, we talked about Microsoft’s growing advertising capabilities (many of which were announced at the Microsoft Build 2022 event), the unique ecosystem of services that Microsoft has at its disposal to reach the “Workday Consumer”, and the myriad of ways that brands can take advantage of their ad offers.
You can follow Jennifer on LinkedIn, or watch her in The Download, a video series that she produces (highly recommend the special episode from Cannes!) In addition, you can also read more about the Workday Consumer, a new commissioned research conducted by Forrester Consulting on behalf of Microsoft Advertising, and read more about the future of work on WorkLab.
As always, you can find Adam on Twitter @adamjsimon, and Ryan on LinkedIn. Follow the Lab on Twitter @ipglab and on Medium for our latest insights.
Click here to listen and subscribe! If you enjoyed the episode, please consider giving us a five-star review on Apple Podcast. Thanks for listening!
Twitch Will Now Let Partners Stream On Youtube And Facebook [The Verge]
Exactly as the title states, the days of Twitch partner exclusivity are over. Twitch Partners are now allowed to stream on other platforms, although multicasting will be limited to mobile platforms such as TikTok and Instagram Live. This move not only increases the potential audience reach for the streamers, which should please the advertisers working with them as well, it also serves as a pre-emptive talent retention tactic for Twitch to avoid losing high-profile streamers to rival platforms.
Related: New TikTok feature lets creators share TikTok Stories to Facebook and Instagram [TechCrunch]; Shopify adds collaboration tool to connect brands with content creators [Shopify]
Amazon Adds Alexa-Powered Voice Command To Video Games [TechCrunch]
Amazon announced at the Gamescom event a natural language voice tool for gamers to perform in-game actions, launching in early 2023 on Xbox and PC with Dead Island 2. This new tool, dubbed Alexa Game Control, will grant users an accessible, hands-free option that allows for easier gaming. Plus, game developers also gain a new tool they can use for a more interactive gaming experience. Users don’t need an Echo device to use Alexa Game Control either: It works with any microphone or headset connected to their PC or console. Overall, this is an interesting strategy to push Alexa into a new territory and acquire new users. Brands with Alexa skills may be able to activate them in video games one day soon.
Related: Alexa will soon be able to read stories as your dead grandma [TechCrunch]; AppLovin wants to buy video game maker Unity for $20 billion [TechCrunch]
Cameo App Adds Live Session For Fans To Video Chat With Celebrities [Gizmodo]
It is no secret that consumer expectations travel across categories. Cameo has built a neat little business out of connecting consumers with C-list celebrities and influencers, allowing fans to pay for a pre-recorded video featuring the famous people of their choice to feed their parasocial relationships. Yet, with the increasing usage of live video, it perhaps should come as no surprise that users may be willing to pay more for live interactions. A virtual meet-and-greet, if you will. Cameo certainly recognized this emerging demand and added this new option to their app, and I think that’s a smart example of keeping up with the customer expectations as the predominant media format evolves.
Related: YouTube TV update could let viewers watch up to four live streams at once [TechCrunch]; Live broadcasting is not live streaming—and digital leaders need to understand why [Forbes]
Apple Pay is now activated on 75% of iPhones in use in the U.S., a new report from Loup Ventures found, WSJ reports. This is up from 50% in 2020 and 10% in 2016; Apple also says 90% of U.S. retailers now take Apple Pay.
Just over 60% of social media users say they regret making at least one impulse purchase of a product they saw on social media, according to a recent Bankrate survey. Younger generations also tend to be more influenced by digital ads than their older counterparts, according to an August Ipsos poll.
USPS is moving to electrify its delivery fleet, as the company recently told Reuters that it plans to buy at least 25,000 EVs out of its initial order of 50,000 from Oshkosh. In total, USPS revealed that at least 40% of the 84,500 vehicles it plans to buy will be EVs.
If you find our insights valuable and would like to have a deeper conversation on technology and media innovations, or need to sound smarter in a client meeting or a pitch, please feel free to reach out to our Group Director Josh Mallalieu!
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