With the launch of Max in Australia, Binge is pretty well f**ked
Yesterday as I followed conversation about the Max launch on various message boards and comments sections, I found a pretty common complaint that people aren’t interested in signing up to yet another streaming service (or YASS, as I have playfully termed that for a few years now).
Of course, Australian sales resistance around this is shifting. 2024’s Telsyte’s annual Subscription Entertainment Study found that while 1.5m Australians are shifting to less expensive, ad-supported plans, there is an expectation that Australians will begin paying for more streaming services than they pay for now. In 2024, the average number of subscriptions per household was 3.4 – but Telsyte forecast that to grow to 3.7 by 2028.
But the launch of Max isn’t the delivery of a brand new streaming service. For Max to launch, it is going to gutter what makes Binge a valued subscription.
Australian subscribers won’t be signing up for a new streaming service - they will be replacing one service with another.
Once Max launches, any new HBO/Warner Bros Discovery shows running will see out their seasons, then have an additional 30 day period. Then after that, the shows will move over to Max. So, if you are streaming The Pitt or The White Lotus, you will likely continue their seasons through on Binge.
What does the Binge experience look like without HBO / WBD content? Here’s a screencap I took of their homepage just a few moments ago:
And look - it isn’t like Binge will be without programming. Some of it quite good and compelling. But the titles that really sell the service… the titles that viewers really value… they are not going to be there. Already Binge looked a bit bare without the first run BBC content that it lost in Q3 last year, but without the HBO / WBD shows, it is pretty much dead in the water.
The drawcard that will cause some issues for subscribers looking to make the move will be Last Week Tonight. My understanding is that the deal surrounding non-scripted HBO content like that show is different to the standard agreement. But Foxtel has confirmed to me that Last Week Tonight will continue to be available on Binge through the rest of the year.
And while Last Week Tonight is available once again on YouTube the day after broadcast, that seems to be restricted to the US. On YouTube in Australia you can only find episodes from three weeks ago.
Is Last Week Tonight worth continuing to pay a monthly subscription for? Well, I guess you also get Colin From Accounts…
It should be noted that any Foxtel subscriber with an internet-connected iQ box (that’s the iQ3 and above) will keep continuity with that HBO / WBD content as a deal has been struck to continue giving access to rusted-on Foxtel subscribers. The Max service will be given free of charge to Foxtel users. That doesn’t extend to Foxtel’s digital platforms Binge and Foxtel Now.
The deal isn’t going to last forever, but I’d be surprised if it doesn’t run for at least 1-2 years. Max is still reporting global subscription numbers (competitor Netflix has ended that practice, now only reporting revenue) and an extra 1.2 million (that’s how many old-school Foxtel subscribers there still are) is a good number to be able to report for as long as they can.
But how long will that be? New Foxtel owners DAZN are expected to take over mid-year. Will they want to keep the arrangement going once the time comes for a renewal? Will Binge retain enough subscribers to continue operations?
I don’t delight in dancing on the grave of Binge. Sure, the app had a few frustrating UX issues. But, it has always had a great general-audience movie library and made some smart and unexpected programming choices that delighted me. Also, I liked that 4k video streaming was available on the standard plan - 4k should be available as a default nowadays, but most services charge an upsell for it.
The team behind the scenes at Binge (and Foxtel) have always been accessible and friendly. That sort of thing really matters when trying to report on an industry.
But, from a consumer standpoint, it is difficult to see what the value is left in Binge as a product.
Now, speaking of Max…
In the US, Max today announced that as of March 30, its US-only streaming B/R Sports and CNN live streams will continue to be available at no extra charge, but only for Standard and Premium tier subscribers.
The timing of this is interesting to me. A coincidence, maybe, but March 30 is four months after Max’s Black Friday deal which saw a slew of new customers onboarded at the discounted price of $2.99 per month for six months. B/R Sports and CNN may prove good levers for both retention and to upsell customers to a higher priced tier.
Of course, I again caution streamers that the message they send with only implementing ads on the lower-priced tiers is that they are sending a message to media buyers that the only customers they can advertise to are the price sensitive customers. Hardly appealing.
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Video crickets heard at IAB audio summit
Yesterday I attended the IAB Australia’s annual Sydney audio summit. IAB is the Interactive Advertising Bureau - an association that supports the online advertising industry. And the audio summit is focused on the radio and podcast companies servicing the Australian market.
Obviously an audio summit is a little bit outside of what I cover here on Always Be Watching, but regular ABW readers will note that I have been talking about podcasting’s embrace of video quite heavily in recent months.
The relationship between what is happening in the video podcasting space and television (broadcast and streaming) is significant. A few things to keep front of mind while considering that relationship:
Video podcasting is skyrocketing. YouTube yesterday reported that podcasts now draw 1 billion monthly active viewers. It also claims to be the most-used podcast platform in the US.
YouTube commands a greater share of the streaming video market than any of its competitors (10.8% in the latest Nielsen Gauge report vs Netflix at 8.6%).
Spotify is focusing all of its podcasting efforts on video.
Earlier this month Fox Corp bought conservative podcast network Red Seat Ventures (purchased through Tubi Media Group).
On that last point, you can see the impact that podcasting is having on the cable news opinion channels. It is especially evident on MSNBC where all of the major on-air talent are regularly heard promoting their own podcasts, with new show formats echoing podcast formats. Meanwhile viewers are watching video podcasts in huge numbers. Check out anti-Trumpers The Bulwark, for example, where every week they are publishing podcast conversations that are racking up viewership between 120k and 800k. And that’s just the usual, daily content. There’s also videos going viral and recording views in the millions. Not bad for a glorified Zoom chat without the tremendous expense of a cable news channel infrastructure.
But getting back to the IAB audio summit… Throughout the two-hour event, which comprised of a series of 20-ish minute presentations and panel conversations with industry representatives, it was interesting how little video factored into any of the conversations. It was mentioned occasionally, and at one-point dismissively as being irrelevant to clients, but it wasn’t much of a concern.
I suspect just a few months from now, video would be far more integrated into the conversation - right now, it is still early days for it and there isn’t a proven commercial imperative to play in that space.
The most interesting panel conversation was from a marketer at ANZ talking up their ANZ 5 in 5 podcast and the strategy going into it - they’re not after a mass audience, but rather the right audience of industry influencers who can be counted on for lucrative conversion activity.
The ANZ 5 in 5 audience, however, probably aren’t at all interested in video (it is audio for gym or commuting activity). And that shows in the metrics. Yesterday’s video upload, for example, yielded just 29 viewers. It doesn’t help that the 5 in 5 video product isn’t hugely compelling from a visual standpoint.
But despite low viewership at the moment, it doesn’t mean ANZ should give up on video podcasting. Audiences are clearly moving in that direction. Yeah, they probably need to create a better video experience, but there is benefit in sticking with video until it clicks into place. Behaviours change and evolve very quickly in digital media. Right now that heat is around entertainment and opinion fuelled by YouTube viewership on the rise on connected TVs, but those behaviours will flow on to other podcast genres.
Those finance bros listening to the 5 in 5 podcast are soon going to be using YouTube for all their podcasting and will expect to find it there along with everything else they are consuming.
News Desk
Buffy: The Vampire Slayer cast member Michelle Trachtenberg has been found dead at the age of 39. No cause of death has been revealed, however Trachtenberg had undergone a liver transplant in recent weeks. Read: Deadline
Alias and Fringe screenwriter Robert Orci died on Tuesday following a battle with kidney disease. Read: THR
I haven’t counted how many sleeps it is exactly, kids, but Doctor Who returns to Disney+ and the BBC April 12. Read: thefutoncritic
The UK’s ITV, Virgin Media Television in Ireland, and Australian public broadcaster SBS have picked up Safe Harbor, the latest show from Ozark co-creator Mark Williams. This isn’t to be confused with the SBS original show Safe Harbour - for starters, that show title has a u in it. Read: C21
The $1m prize offered by Survivor in 2025 dollars isn’t all that impressive anymore. Read: THR
A must-listen to podcast this week is, once again, Ted Danson’s Where Everybody Knows Your Name. He speaks with Cheers co-creators Glen and Les Charles. It is a rare interview with these guys and they’re both in their early 80s nowadays, so take the opportunity...
Trailer Park
Season 2 of Ten Pound Poms debuts on Stan March 10.
Law & Order: Organized Crime returns April 17 on Peacock.
Welcome To The Family debuts on Netflix March 12.
A struggling single mom rallies her quirky family to outsmart a mafia boss after her estranged, wealthy father dies, leaving them with his debt.
Gareth Evans (The Raid) new film Havoc debuts on Netflix April 25.
After a drug deal gone wrong, a bruised detective must fight his way through a criminal underworld to rescue a politician's estranged son, while unravelling a deep web of corruption and conspiracy that ensnares his entire city.
Another Simple Favor debuts on Prime Video May 1.
Stephanie Smothers (Anna Kendrick) and Emily Nelson (Blake Lively) reunite on the beautiful island of Capri, Italy, for Emily's extravagant wedding to a rich Italian businessman.
That’s the newsletter for today.
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