Disney Using New AI-Backed Advertising Tool For Disney+, Hulu Ads

Walt Disney is harnessing artificial intelligence to power a new advertising tool that will help brands tailor their commercials to fit the mood of specific scenes within a movie or television series.

Dubbed “Disney’s Magic Words,” this tool introduces a new form of contextual advertising for the Disney+ and Hulu streaming services. It uses a combination of AI and machine learning to analyse and tag scenes across its library, identifying the contents, brands, images and mood.

Brands can use these descriptive tags, known as metadata, to identify a specific scene or mood and then personalise messaging to match.

“What that means is leaving broad demos (demographics) behind and buying specific audiences,” said Geoffrey Calabrese, Omnicom Media Group’s chief investment officer. “These magic words are literally going to be able to connect me to the emotions of the consumer, at an audience level. And for us, that’s really a game changer.”

Omnicom is one of six global advertising companies taking part in an early beta test of this advertising product, Disney told Reuters. The other beta partners are Dentsu, GroupM, Horizon Media, IPG Mediabrands and Publicis Media. The company announced the new ad features last month, at a showcase at the Consumer Electronics Show in Las Vegas.

Rita Ferro, Disney’s global head of ad sales, said the feature allows advertisers to maximise the impact of their messages “because it resonates with concepts that the viewers experience.”

Disney’s investment in streaming ad technology comes as advertisers are moving away from broadcast and cable TV, along with viewers. The company’s advertising revenue fell nearly 3 percent in its fiscal 2024 first quarter to $3.35 billion (roughly Rs. 29,100 crore), according to LSEG, reflecting declines in traditional TV viewership. Researcher eMarketer estimated Disney+ accounted for about $790 million (roughly Rs. 6,600 crore) in revenue last year.

Disney does not report its advertising revenue.

CEO Bob Iger told investors during the company’s quarterly investor call on Wednesday that the ad-supported version of the Disney+ service has attracted more than 1,000 advertisers in the first quarter, a tenfold increase from launch.

“Our revolutionary approach to technology ensures that our entire streaming portfolio will be the ultimate destination for brands in the years ahead,” Iger said in a statement to Reuters.

Half of consumers who sign up for Disney+ opt for the less-expensive version of the service, which includes advertising, said Joe Earley, president of Disney’s direct-to-consumer business. He said the company has spent years refining ad technology that has been designed specifically for streaming. Its Hulu service launched as a free, advertising-supported service in 2008.

“Disney+ didn’t have to ramp up,” Earley said. “It hit the ground running.”

© Thomson Reuters 2024


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Netflix Expected to Report 2 Million New Subscribers Following Price Cuts and Ad-Supported Plan: Details

Netflix is expected to report that it added some 2 million subscribers in the first quarter and investors will scrutinize whether recent price cuts and the launch of an ad-supported plan are tempting people to subscribe and stay on.

The company, which lost 200,000 subscribers in the year-ago quarter, returned to subscriber growth in the second half of 2022 but its pace of additions has slowed dramatically, forcing it to think of ways to squeeze out revenue from the 100 million people who use the service without paying for it.

To do that, the streaming giant has cracked down in some countries on password-sharing or streaming Netflix by non-members who don’t belong to the same household, which may prompt people to drop the service as a knee-jerk reaction but they are likely to come back to it, analysts said.

The crackdown will have a “more meaningful impact” in the June quarter and Netflix could gain more than 10 million new subscribers as it converts free users to paid ones, Rosenblatt Securities analyst Barton Crockett said.

Netflix is expected to add 3.43 million subscribers in the April-June period, according to 16 analysts polled by Refinitiv, compared with 970,000 subscriber losses in the year-ago quarter.

In the quarter that ended March 31, the company is expected to have added a net 2.07 million subscribers, versus a drop of 200,000 subscribers a year earlier. Netflix itself has stopped giving forecasts for the metric.

GRAPHIC – Netflix faces slowing subscriber growth

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Netflix is set to post first-quarter quarter revenue growth of nearly 4 percent, according to Refinitiv, marking its second-slowest growth ever after a nearly 2 percent rise in the December quarter.

The March quarter lacked major releases with non-English shows such as Korean revenge drama “The Glory” and the third season of Mexican drama “La Reina del Sur” doing well, according to Jefferies.

Netflix has faced strong competition from Walt Disney, Amazon.com and Warner Bros Discovery. Amazon knocked Netflix off the top spot in the United States last year, according to consulting firm Parks Associate.

GRAPHIC – Netflix stock trails peers this year

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Warner Bros said on Wednesday it will launch a new streaming service on May 23 called “Max”, combining HBO Max’s scripted entertainment with Discovery’s reality shows.

Netflix in November introduced a streaming plan with advertising for $6.99 (roughly Rs. 572) per month in 12 countries, after resisting commercials for years. Disney’s Hulu and Disney+, and HBO Max already have ad-supported options.

“The role of advertising continues to grow in importance to premium (streaming services) as a part of their profitable growth strategies,” social media analytics firm Antenna said in a note last month.

“In 2020, only one in five new sign-ups were to ad-supported plans; last year, it was nearly one in three.”

© Thomson Reuters 2023


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Mae Whitman gets candid about new show ‘Up Here’

Mae Whitman has had nearly every kind of role during her long career – but her new Hulu show “Up Here” gave her something new. 

“I can do anything on camera, I do not care. I don’t even notice that it’s there. I’m crying, I’m naked, I’m dying, whatever,” Whitman, 34, told The Post. 

“But when it comes to singing, it feels like I’m baring my soul and being completely vulnerable and terrified. So, it’s why I wanted to do this job. There’s not a lot left out there to do that terrifies me. If I don’t want to do something, there’s probably a reason – and I should figure out what it is and do it. There’s growth to be had, there.” 

Premiering Friday, March 24, “Up Here” is a musical rom com set in 1999 New York City. It follows aspiring writer  Lindsay as she moves to the city to follow her dreams, and crosses paths with businessman Miguel (Carlos Valdes, “The Flash.”). All the while, they belt out original songs, in the style of an old-fashioned Broadway production. 


Mae Whitman in “Up Here.”
HULU

Lindsay (Mae Whitman) and Miguel (Carlos Valdes) in “Up Here.”
HULU

Whitman is a former child star, having acted in a wide range of projects, including “Arrested Development,” “Parenthood,” “The Perks of Being a Wallflower,” “Independence Day,” and “Good Girls.” Because of that, the show’s world of Manhattan in the ‘90s was not new to her, she said. 

“I’m a California girl through and through, but I feel stimulated in New York in a way that I just can’t, here,” she said. 

“I did my first movie in New York when I was 6 years old. It was an incredible way to experience it, I was young but I registered for it. It was a movie with Goerge Clooney [“One Fine Day.”] We were running all around having fun, and I went there with my family. I got to have the full New York experience at a time when I was absorbing a lot of information. It was that exciting time when everyone was wearing trench coats and everything was tacky and slightly more analog.

“Because I’ve been working since I was a kid, the late ‘90s was my formative time I still have a lot of that nostalgia when I walk around. In LA, we rip everything down when it gets slightly old, and in New York, you build upon it. I love that feeling, there’s always something new to explore. It feels like a big character in the movie of my life.”


Carlos Valdes and Mae Whitman in “Up Here.”
HULU

Mae Whitman and John Reynolds in “Up Here.”
HULU

Mae Whitman and Carlos Valdes in “Up Here.”
HULU

The show isn’t Whitman’s first time singing in public, but “Up Here” marks her first time in a major starring musical role. 

“I would sing on ‘Parenthood’ occasionally, as my character– her journey was similar to mine, which was that singing was terrifying,” she said.


Mae Whitman as Lindsay in “Up Here.”
HULU

“I was vulnerable and scared, and that show was mirroring real life. I have a scene where I did open mic night and everybody comes. And it really was like that – the whole ‘Parenthood’ family was there, the crew, some of my family and friends came [to set]. So it wasn’t like ‘Go act.’ It really felt like a big moment for me and my support system. I felt so much love and support and kindness, it was a good way for me to break into the idea of singing on camera.

“Usually after auditions, you heard straight to the bar and drink, because you’re depressed, but for this audition [for ‘Up Here’], I felt proud of myself, like, ‘This level is unlocked.’”

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Snap Plans to Cut Over 20 Percent Staff, Netflix Hires Two Former Snap Executives: Reports

Snap is reportedly laying off over 20 percent of its workforce in the company’s latest move after losing shares. While the Snapchat parent has not revealed any details on the job cut, the company has reportedly confirmed on Tuesday that two of its senior advertising executives have exited. Meanwhile, Netflix has gave its nod to reports citing that the two former Snap executives will be joining the streaming major for the worldwide advertising roles. It was reported earlier this month that Snap is in early stages of planning layoffs.

According to Reuters, Snap confirmed the employee departure of two of its top executives after a report revealed company’s plan to lay off over 20 percent of its staff. The social messaging service has not commented on the Verge report detailing the staff cut plans, citing the people close to the development.

The layoffs have been under plans for several weeks now, the report mentioned. It also mentioned that a few departments will see more job cuts than others starting today. Two of the major departments reported to be hit severely will be Snap’s team working on ways for developers to build mini apps and games, and Zenly.

Meanwhile, top executives Jeremi Gorman, Chief Business Officer, and Peter Naylor, Vice President of Ad Sales, have also served their resignations. The two officers will now join Netflix starting September, the streaming major confirmed, in its statement to Deadline.

In his statement to Deadline, Netflix COO Greg Peters said, “I am excited to welcome Jeremi Gorman as our President, Worldwide Advertising, and Peter Naylor as our Vice President, Advertising Sales, to Netflix.”

While Gorman, a former Amazon executive, joined Snap in 2018, Naylor, a former Hulu‘s Senior Vice President of ad sales, became a part of Snap in 2020.


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Prey Teaser Trailer Out: Predator Prequel Movie to Premiere August 5 on Hulu

Prey teaser and release date are out. Production house 20th Century Studios has released a 45-second-long teaser trailer for the sci-fi thriller — the fifth installment of the Predator franchise and a prequel to the previous entries, to confirm that the feature film will premiere in the US on the streaming service Hulu on August 5. Select regions outside the US are expected to be able to watch it on Disney+. In the Prey teaser, we see a woman running for her life. While the video doesn’t spell out what the danger is, those familiar with the franchise would know that she is being hunted by an alien species. As the video progresses, we are introduced to a fearless female hunter, who saves the first character and tries to eliminate the danger facing them. We also get a glimpse of the advanced weaponry that has over the years become synonymous with the Predator franchise.

The teaser does not reveal much about the Prey story. The official synopsis, however, states that the film is set three centuries ago in the Comanche Nation where Naru, a braveheart, protects her community from a blood-thirsty alien called Yautja.

Headlined by Amber Midthunder, who is part of the Fort Peck Sioux Tribe and is best known for her work on the FX series Legion and the science-fiction show Roswell, New Mexico, the Prey cast includes Dane DiLiegro, Dakota Beavers, and Michelle Thrush.

Dan Trachtenberg directs Prey, his second feature after the 2016 science fiction psychological thriller 10 Cloverfield Lane, off a script by Patrick Aison. The movie is produced by John Davis, who served as one of the three producers for the Arnold Schwarzenegger-led 1987 Predator film, and Jhane Myers.

In a statement, the filmmakers say they have tried to depict the Comanche community, a Native American tribe, as authentically as possible through Prey. The filmmaker’s team said in a statement: “The filmmakers were committed to creating a film that provides an accurate portrayal of the Comanche and brings a level of authenticity that rings true to its Indigenous peoples. Myers, an acclaimed filmmaker, Sundance Fellow and member of the Comanche nation herself, is known for her attention and dedication to films surrounding the Comanche and Blackfeet nations and her passion for honoring the legacies of the Native communities. As a result, the film features a cast comprised almost entirely of Native and First Nation’s talent, including Amber Midthunder, newcomer Dakota Beavers, Stormee Kipp, Michelle Thrush, Julian Black Antelope.”

Prey comes to Hulu in the US on August 5.


 Why are they still making more Harry Potter? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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Disney+ Grows to Nearly 138 Million Subscribers, Even as Profit Slips Despite Return to Parks

Disney on Wednesday said its profit slipped in the recently ended quarter but its theme parks and streaming service Disney+ were booming.

The entertainment giant reported net income of $470 million (about Rs. 3,645 crore), just over half of the $912 million (about Rs. 7,075 crore) profit it made in the same period a year earlier.

But park attendance that had fallen due to the ongoing COVID-19 pandemic rebounded and Disney+ gained 7.9 million subscribers to hit 137.7 million.

When adding in subscriptions to Disney’s streaming services Hulu and ESPN+, the overall number tops 205 million.

“Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services once again proved that we are in a league of our own,” said Walt Disney CEO Bob Chapek.

Chapek told analysts Disney is open to raising its streaming service subscription price in the future, but has no specific plans. Disney+ is pursuing a version of the service that would be supported by advertising, set to launch later in 2022.

Disney+ gained more subscribers than analysts had expected, in stark contrast to a dive in subscriber numbers reported by rival Netflix in the first quarter of this year.

A drop of just 200,000 users — less than 0.1 percent of the total Netflix customer base — caused shares in the Silicon Valley firm to plunge and prompted a shareholder to file a lawsuit accusing the streaming television titan of not making it clear that subscriber numbers were in peril.

“Disney+ has been taking Netflix out at the knees [in the US],” tech analyst Rob Enderle of Enderle Group told AFP.

“Kids have always chased their content, and for parents it has been a no-brainer to get their service.”

About half of Disney+ subscribers are families with children, executives said on the earnings call.

Disney stopped licensing its coveted content to Netflix to make it exclusive to its own streaming service, and said it planned to stick with the tactic when it comes to rivals in the market.

Parks and politics

Disney said that as its streaming television service continues to grow strongly, its resorts and parks are generally operating without any of the significant COVID-19 related restrictions on capacity that were in place last year.

The pandemic does continue to vex film and television show production, Disney said, but it has been able to release films in theatres so far this year.

“Our slate for the remainder of this year is incredibly strong,” Chapek told analysts while discussing the company’s line-up of shows for streaming and theatres.

Chapek acknowledged challenges getting Disney films released in China, saying the situation there is “very complicated” from political and business standpoints.

He said he was encouraged by the fact that a freshly released Doctor Strange film based on a Marvel comics character took in more than $500 million (about Rs. 3,877 crore) in its first week, even without being shown in China.

Disney has run into political turbulence closer to home, with the Florida governor recently signing a law that eliminates a statute that has for decades allowed the entertainment giant to act as a local government in Orlando, where it has a theme park.

The move was the latest episode in a dispute between the state’s Republican administration and Disney, after the company criticised the passage in March of a law banning school lessons on sexual orientation.

“From a financial standpoint, Disney will come out ahead with the plug pulled,” analyst Enderle said.

“It’s almost like Florida gave them a monetary favour; Disney was covering all the costs of the municipality they are in.”

The Reedy Creek Improvement District was an area created by Florida’s congress in 1967 to facilitate the construction of Disney World in Orlando.

Under that agreement, Disney runs the district as if the entertainment juggernaut were a local government, including collecting taxes and guaranteeing essential public services such as garbage collection and water treatment.

Under Florida law, if the special district is dissolved, its assets and debts would be transferred to local governments that surround the area.

“Removing district could transfer $2 billion (about Rs. 15,515 crore) debt from Disney to taxpayers,” state Democratic senator Linda Stewart warned after the bill was signed.


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