The L.A. tech and startup community was active as ever this week. dot.LA chief host and correspondent Kelly O'Grady takes you through the key points of the top five headlines:
- TikTok, Influencer Panic and the Transformation of the Celebrity Economy
- Analysis: What Mulan Could Mean for Disney+ and the Future of Movie Distribution
- As Uber and Lyft Battle California Law, Texas Ride-Hailing Startups See Opportunity in LA
- Eaze Adds LA-Based Cannabis Startups to Its Equity Program and Platform
- OK Play Says It's a Kids App Parents Won't Feel Guilty About
Weekly recap: Influencers discuss celebrity economy, Disney disrupts w/Mulan & new startups launch www.youtube.com
Watch to stay smart on what is happening, and follow us on Instagram for daily video content.
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Looking for something to do this holiday weekend? Grab the (microwaved) popcorn and 'let's get down to business.'
Disney is releasing its live-action remake "Mulan" on Disney+, with potentially groundbreaking implications for how tentpole films are usually released.
If you're a Disney+ subscriber, you can gain exclusive access — but you will have to pay $29.99 on top of the monthly subscription fee. To purchase, head to your Disney+ app on Apple, Roku and Google platforms or to Disney+'s website. You'll retain the film for as long as you remain a Disney+ subscriber. But if you're planning to catch "Mulan" when it's added to the general Disney+ library, you'll have to wait until December 4th.
I worked as a senior analyst at Disney when it was just beginning to devise how to bring its content direct-to-consumer. This is another shrewd business experiment for the media giant to test out a little disruptive distribution. Streaming has become a core part of its strategy as the pandemic wreaks havoc across traditional revenue streams. And as many users hop between streaming services, the "Mulan" release may give Disney+ a well-timed incentive to keep customers from cancelling subscriptions while they await the next season of "The Mandalorian." Giving its users sustained access to one of 2020's only films — and a key addition to its princess franchise at that— could give Disney+ a stickiness advantage over its competitors.
So how should you evaluate whether Mulan's release is a success?
<h2>The New Economics of the Release</h2><p>Let's consider the pure revenue economics of the film. From the outset, the potential audience pool is smaller compared to a wide theater release. By limiting purchases to Disney+ subscribers, you eliminate the prospect of reaching every individual that has access to a theater. And while not everyone frequents theaters regularly, the <a href="https://www.statista.com/statistics/264396/frequency-of-going-to-the-movies-in-the-us/" rel="noopener noreferrer" target="_blank"><u>number</u></a> is certainly higher than the service's subscriber base. </p><p><em>"</em>Mulan<em>"'s</em> debut may incentivize new Disney+ sign ups though, adding to an already hefty base of around 60 million subscribers. Now, "Mulan" is the first Disney live-action remake to receive a PG-13 rating for "sequences of violence" — something which may deter parents from picking it for family movie night — but that could be counterbalanced if the movie can draw in the young male demo, where strong female-led films tend to struggle. </p><p>These recent live-action films have grossed anywhere from around $400M to $1.7B worldwide. A key caveat to remember is that on Disney+ entire families will watch "Mulan" together, rather than purchasing a separate ticket for each viewer at the theater (families, this is actually a steal for you). So if we assume "Mulan" measures up against its peers creatively, roughly a quarter of those 60M subscribers would have to pay $29.99 to compete on the low-end performance of ~$400M. And to pass the coveted $1B mark? Over 50% of Disney+ users would need to purchase access. </p><p>Now, this back-of-the-envelope math solely considers Disney+ and does not take into account that "Mulan" will receive a traditional release in countries where cinemas are open and Disney+ is not available — like China. Regardless, the Disney+ release will have to convert a <em>significant</em> portion of its base to bring in as much as a traditional theatrical release — albeit a base of proclaimed Disney fans. </p><h2>Streaming Subscriptions</h2><p>The complicating factor is that a dollar spent with the streaming platform is more valuable to Disney than one spent at the theater. With a traditional release, cinema distributors take about 40-50% of box office revenue over a film's run, whereas an Apple or Google will only take 30%. And if a subscriber purchases directly via the Disney+ website, Disney keeps 100%… not to mention the increased revenue from potential new signups. It is an intriguing nuance that will certainly impact Disney's evaluation of future release strategies. </p><h2>Business Unit Monetization</h2><p>The other key aspect is the business unit halo effect. What makes Disney special is its franchise monetization engine. Although difficult to quantify, Disney evaluates how intellectual property can be leveraged beyond a film, into merchandise, experiences, and spin-offs. Social distancing has revealed where that engine is vulnerable. Disney won't be able to repeatedly engage fans on a theme park ride or at retail stores, which could make it difficult to build a strong franchise. The Disney+ release will not address those challenges. Further, downstream revenue from DVD and digital sales will suffer from this move. There is no need to buy another copy of "Mulan" when your purchase lives in your Disney+ app. </p><h2>Branding and Data</h2><p>There is significant upside to be captured, though. When subscribers can rewatch "Mulan" whenever they like, it makes it much easier and faster for Disney to create a legion of superfans and to build brand affinity. Further, the direct access to "Mulan" purchasers' data is invaluable — something impossible to capture for theatergoers. When the pandemic does pass, Disney will have a more sophisticated understanding of its fans and can use that to better engage consumers across its businesses. They will know you're not only a "Mulan" fan, but that your family also frequently watches "Frozen"; don't be surprised if you get a targeted invite to hang with Olaf at the parks.</p><p>With all these dynamics at play, how the "Mulan" experiment turns out will have important repercussions not just for Disney, but Hollywood in general. While I doubt the movie's success or lack thereof will completely overhaul the way movies are currently released, I think that we will see lasting changes, from the way studios experiment with a variety of distribution methods to a reduction of the length of time movies stay in theaters.</p><p>Different studios are likely to have different strategies for each of their films, but the belief that a tentpole movie needs to start with a theatrical release is about to be tested.</p><p>___</p><p><em>Kelly O'Grady heads up video for dot.LA and serves as chief host & correspondent. You can watch her speak about Disney <a href="https://finance.yahoo.com/video/expect-disney-reports-q3-earnings-175530507.html" target="_blank">here</a></em><em>. Find her on Instagram </em><a href="https://www.instagram.com/kfogrady" rel="noopener noreferrer" target="_blank"><em>@kfogrady</em></a><em> and email her at </em><em>kelly@dot.LA</em><em>.</em></p>
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LA Tech Updates: Disney Earnings Include Big Mulan News; Microsoft Backs Irvine Chipmaker
Aug 04 2020
Here are the latest updates on news affecting Los Angeles' startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for more.
Today:
- Disney Plus Surpasses 60 Million Subscribers
- Rocket Lab Boosts Payload Capacity
- Microsoft Backs Maker of Voice-Activated Chip, Syntiant, in $35M Round
<ul class="ee-ul"></ul><ul class="ee-ul"></ul><ul class="ee-ul"></ul><ul class="ee-ul"></ul>
Disney Plus Surpasses 60 Million Subscribers
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzUzNDk4NS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0NTY1OTM2NX0.fjV1GsNR7y3nIaXWAixTIZYF_e7Y1BAC4bed1V7yx5I/image.jpg?width=980" id="9e659" class="rm-shortcode" data-rm-shortcode-id="a41ec51e660a63473c0880ce0330e028" data-rm-shortcode-name="rebelmouse-image" />black smartphonePhoto by Kon Karampelas on Unsplash<p>Disney's earnings report Tuesday quantified the damage wrought by COVID-19 in the company's third quarter — which was entirely enveloped by the pandemic. </p><p>Each of Disney's four business segments suffered losses except for its direct-to-consumer and international operations, which includes the company's streaming app, Disney Plus.</p><p>The company also released new details about its release plans for the blockbuster live-action film, <em>Mulan</em>. </p><p>First, the revenue figures by segment, compared to 2019's corresponding quarter: </p><ul><li>Media Networks fell 2% to $6.6 billion</li><li>Parks, Experiences and Products tumbled 85% to $2 billion</li><li>Studio Entertainment dropped 55% to $1.7 billion</li><li>Direct-to-Consumer and International climbed 2% to $4 billion </li></ul><p>Disney Plus now has over 60 million subscribers, the company reported, a milestone Disney had previously announced it hoped to surpass by 2024. Add in ESPN+ and Hulu, and the company's total subscriber count now tops 100 million. Disney chief executive Bob Chapek said these numbers give the company confidence to "pursue even more innovative and bold initiatives as we grow our business." </p><p>The day's headline-grabber: Disney will release <em>Mulan </em>on Disney Plus in most markets where the service is available, including the U.S., rather than premiere it on the big screen. That's a big shock to the movie industry, where the theatrical release window usually gives movie theaters an exclusive several-months period to show films before they reach home viewers. <em>Mulan</em>, which was originally meant to hit theaters in March, is perhaps the highest-profile and biggest-budget film to be released direct-to-consumer. It will be available on September 4th for a price of $29.99. </p><p>Chapek called the decision a "one-off event" rather than a new way of doing business. It was the first call of Chapek's without his predecessor Bob Iger on the line.</p>Rocket Lab Improves Payload Capacity
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzUzNTAyNy9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY2MjE4MjM4OH0.wPvdEk4h-5qAomCavrO9QFfsCKZU1WpReCNufhhT8AA/image.jpg?width=980" id="98c90" class="rm-shortcode" data-rm-shortcode-id="b2a0f707d2f85b15f0c5628e76db2aeb" data-rm-shortcode-name="rebelmouse-image" /><p>Rocket Lab increased the payload capacity for its Electron launch vehicle to 600 pounds, far above the 225 kg it could support when the Electron launch vehicle first appeared in 2017.</p><p>"When we created Electron, we set out to develop a launch vehicle that small satellite operators would turn to when they needed a dedicated ride to a unique orbit on their schedule," founder and CEO Peter Beck said in a statement.</p><p>"We're proud to be delivering that capability and continuing to evolve our launch and satellite services to meet the market's ever-changing needs."</p><p>The company attributes the improvement to advanced battery technology.</p><p>The Long Beach-based lab is known for its 3-D printed and electric pump engines, known as Rutherford Engines, which company says are 90% more efficient than traditional gas pump engines. Their printing time: 24 hours.</p><p>Rocket Lab is set to launch again later this month.</p>Microsoft Backs Maker of Voice-Activated Chip, Syntiant, in $35M Round
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzUzNDk2MC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1MjgyODk5N30.77xs4oSGU23C9wndb7xm6Hd4S-WFd4wL8aBuA9Q9-8c/image.jpg?width=2000&coordinates=0%2C38%2C0%2C33&height=1500" id="28093" class="rm-shortcode" data-rm-shortcode-id="cb00d72a37e756fb95f60912f2272c1a" data-rm-shortcode-name="rebelmouse-image" /><p>Microsoft's venture fund M12 led a $35 million investment round in Irvine-based <a href="http://www.syntiant.com/" target="_blank">Syntiant</a>, a semiconductor-making company that's produced tiny voice recognition chips — smaller than a flea — that are faster than many others on the market.</p><p>The company, which is also backed by Amazon's Alexa Fund, makes an "always-on voice interface" that reacts to speech. It has already shipped out a million of the units which are put into cellphones, smart speakers, earbuds and laptops. </p><p>The venture capital arm of chip maker Applied Materials, Inc. also joined in the lead for the Series C round, along with Atlantic Bridge Capital, Alpha Edison and Miramar Digital Ventures also joined the round. The company has raised a total of $65 million since it was founded by four veterans of the chip industry. </p><p>"It is a tremendous honor to know that some of the world's leading tech investors are supporting our growth stage, as we deliver our deep learning voice solution to customers across the globe," said Kurt Busch, co-founder and CEO of Syntiant. "We are especially thrilled that production volumes of applications using our neural decision processors are increasing and expect orders to ramp even higher throughout the remainder of 2020.<br></p><p>It's estimated that the speech and voice recognition market is expected to reach $26.8 billion by 2025, according to report by Meticulous Research.</p>From Your Site Articles
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