 Hi everybody, I am Stephanie Patrick executive editor of ad week and you are tuning in for our second episode of Ad week together We are broadcasting this live on ad week calm as well as LinkedIn and Afterward you'll be able to see it on IG TV as well I'm looking at LinkedIn and I can see we have people from Dubai, Los Angeles, UK Bolivia, Fort Worth, Texas, Chicago So Finland a lot of people in the house So thank you so much for joining us. Um, what is the show? Why are we doing this? So right now we have 50 journalists who are dispersed across the tri-state area and the country And we know that you are our readers and our viewers are dispersed all over the world many of us working in our homes right now and we wanted to create a space every day where we can come together and Talk about what's happening in the industry and how each of our each section of our industry is sort of responding to the Coronavirus crisis and sort of the the economic implications of that so super happy today to have Kelsey Sutton So she's our streaming editor at ad week and she's here with me today to talk all about streaming and TV No shortage of news there. I think she's been the busiest person in our newsroom Frankly the last couple of weeks So Kelsey, thank you so much for for joining us. Where where are you by the way? I am at my kitchen table in Astoria, New York, which I've been here. I guess for the last week and a half and will be for the foreseeable future I suppose but It's good to it's always good to have zoom calls and and things like this where I can see, you know My colleagues faces and remember what you all look like Working remote absolutely So and I'll say too to those of you watching on LinkedIn if you have a question for Kelsey Feel free to drop it in the comments and if I if I see it, I'll try to I'll try to put that question to her so because you just start I mean, this is a bit of a no-brainer for me to say this but a Lot of people are watching TV right now, right and a lot of people are tuning into streaming services Can you give us a sense of? How viewership has changed for the streaming services? How much more TV are people watching? Yeah, so We got some numbers yesterday actually provided by HBO which put out some they put out some some gains about some of the particular programming that that they've seen increases in In viewership but overall we're seeing about a 20% increase in TV viewing and that's on traditional linear platforms And it's on streaming So it's really I mean, it's like you said It's not really surprising that as people are sort of told to stay home Or are you know avoiding or or are making you know making the decision to stay home? Because of everything that's going on that they are are watching TV and it's particularly interesting because if people are not going to work You know, it's whether they have a laptop in front of them or not There's sort of an op, you know, there's there's the additional time of people watching TV during the day So daytime viewership is also up. So it's really just kind of growth across the board And and it's really just kind of an interesting time for for the industry because it's going to kind of amplify It's going to amplify opportunities for streaming services and video on demand but it's also kind of an immediate uptick for for linear television and We've sort of seen that downward trend for years of for viewership But even that is seeing a boost right now just because everyone is sort of stuck in their living rooms and looking for for something to do to entertain themselves and I know, you know before a coronavirus hit You were writing a lot just about the streaming wars. Those those were really heating up this year How is this impacting that? Do you think does this change the game in terms of? The projected winners and losers and the streaming the streaming world Yeah, that's a great question. And I think it's really it depends on the kind of streamer that These companies are trying to build something that I think is going to be really interesting that we see over time is sort of the value of The library of programming We've seen basically a complete halt in production in Hollywood and of course that's to be expected Right, you can't have groups of huge groups of people working on shows and that's already affecting some release dates for some finales on on broadcast and what that means is Where are you going to direct viewers if you can't put out a new episode? You want to direct them into your catalog of content? And so I think that this really this moment in particular and them in the months ahead as we see sort of the ripple effects of Ceasing production today and what that means, you know months in the future because these shows don't happen overnight as you know It's going to be really important for streamers I think to to point people to to the library and say here look here We have all of this content it might not be brand new but hey It's something to tie you over As we're kind of figuring out what the new normal is and people are trying to figure out, you know again how to entertain themselves in you know this this sort of Very strange time for for a lot of Americans Yeah, that's interesting what you're saying on the production side because I hadn't necessarily thought of that I think everyone is thinking. Oh, this is you know a real opportunity for streamers But many of them have been pushing original content And so are you saying that there are some shows where they're just not able to film the finale because people can't get together right now That's exactly right. So the fourth season of fargo which is on fx and now fx is on hulu So that's this the streaming hook there They are going to have to delay their the release of their fourth season because they didn't finish the last two episodes They hadn't finished producing them. So so that's you know, that's one effect But we also are seeing that with I believe the walking dead and with supernatural sort of this pause on the finales because they They just can't make it happen. Something that's kind of interesting is we look at the new streamers and so we have sort of a Three new streaming services that are kind of ramping up and getting ready to to launch and They all have said, you know So so the three are quibi, which is short form mobile video coming from jeffrey kapsenberg and meg wittman then we have hbo max which is coming from warner media And then we have peacock which is coming from mbc universal and I talked to uh, I talked to whistle which produces shows for quibi And they produce shows for a lot of places but they have several shows for quibi and what they said is it's really Because that launch is april 6th is sort of the planned launch a lot of their program A lot of their production has already been finalized. So that is kind of a You know a moment of relief for them because they're so close to launch but services like hbo max have already had to They had this big friends reunion special which they were going to bring the cast of friends the sitcom All back together and they had not gone into production. So they're having to delay That production they're hoping to still launch in may with that But that really remains to be seen because we don't know what the next few months are going to look like And is it going to be possible to bring a lot of people together to actually film something like that? So there are going to be effects kind of down the line It really just kind of depends on how this all Plays out and what sort of restrictions there are and how people are What people are comfortable with I think too In terms of getting back together and and filming things and putting these these sorts of shows Together Yeah, and the timeline is so unknown right now, which I'm sure makes it difficult on the marketing and Speaking about that side of it. I'm just wondering what you're seeing in terms of marketing tactics from the streamers We've talked about the fact that it's a there's there's an opportunity for them here But I'm guessing that they have to be careful and how they communicate that are you seeing any, you know blatant Marketing tactics people are saying, you know you're staying at home because of coronavirus by our service. Is it more subtle? Are they even mentioning it at all? Yeah, so I haven't seen anything to the sort of specific You're home because of coronavirus and I actually talked to two v's chief revenue officer Earlier today and he said that really there is this line to to walk You have to you want people to be aware of your service, but you don't want to have any messaging Different and they actually have not changed what they are doing in terms of marketing to two people they're they're You know ad supported and free so they want people to to know that it's an option But he said that they haven't really changed their trajectory, but you have seen on a This was some some data that brand total gave to me And they're their measurement firm and they look at sponsored impressions across various social platforms And they have seen a slight uptick In sponsored impressions from some of the streamers What the I guess whether that was planned or whether that's a more recent development Is you know remains to it kind of the streamers will have to confirm what that is Right, and maybe they had planned an uptick in you know for for months And it just happens to coincide with these these last couple of weeks, but uh, there's definitely I think an opportunity that people recognize When people are home when people are have much more free time in the home than they're used to having There is certainly an opportunity to get in front of the right people And so that's what brand total saw is is a little bit of an uptick On some some platforms like instagram and And youtube in particular for some streamers Whether they're ad supported whether they're subscription only A hybrid model So it's really it's it's interesting and it's something that's I I want to mention too is Transactional video on demand so that's if you are a service that provides pay per view. I'm going to pay For 48 hours. I can watch a movie Or maybe I'm going to pay 20 dollars and I can buy a movie and have it digitally to stream immediately They're seeing a big opportunity too because a lot of Film distributors are if they were putting out a movie in theaters right now Obviously no one can go Or very few people will go so so the the thinking from some of these studios including universal pictures Including disney is to make Some of these films available to buy or to rent much much sooner than they normally would In universal pictures that last week actually we're going to make it available the same day As the global theatrical release that you can rent it or buy or you can buy it in your in your home um And so there's an opportunity for for those companies too to sort of I guess pivot and focus on another way to to get their films in in front of In front of viewers no matter, you know, no matter if it's in theaters or if it's in a living room, you know, they they Are doing whatever they can Right. No, it's interesting and just anecdotally Uh Along the lines of marketing on on social and social impressions My uh, my preschool or school closed like 15 days ago It was one of the first schools to close in new york And I posted something on instagram stories about looking for ways to entertain my kid and Almost immediately was served a disney plus ad and it was the first time I'd ever been served a disney plus ad So I can see that too just with so many Kids being out of school This really being A bonus if you're a streaming service that has a lot of kids content And I've seen a lot of them offering their content for free or at reduced prices I think amazon just freed up all of its peppa pig episodes, which That's what I'm super happy about So it's interesting tactics there in terms of pricing as well Absolutely, and there's also an opportunity to Maybe not change your your marketing messaging but extend a free trial Uh, which we've already seen from quite a number of streamers and like you said putting some stuff in front of the paywall So amazon did that with a lot of kids content Which I think a lot of parents are probably breathing a sigh of relief That they can get daniel tiger peppa pig in front of their kids. Um, but uh apple tv Is putting out actually a series with oprah. Uh, they struck a deal with oprah. I think in 2018 And so it's oprah talks covet 19 and so she's put out two episodes so far one with idris elba And his wife talking about you know being In self isolation After getting tested positive for it. Uh, and then another one with a with a pastor To kind of talk about what this Sort of how this is kind of affecting the way people think about Their lives and faith and and everything like that and that's also free And apple tv plus does not put Their shows in front of the paywall you have to pay 499 a month to access their content But they made an exception for this Um, again, it's an interesting strategy. It's kind of, um, You don't want to be seen as I think the thinking is you don't want to be seen as sort of capitalizing in a way that feels You know And i'm You know just distasteful I guess so there are sort of opportunities here like how do you how do you strike that balance? How do you figure out how to give people what they want and uh build a little good will while you're while you're doing it? Absolutely. I you know while you're here. I want to ask you about Advertising spend and that's what you and your team are hearing from media buyers I know this isn't directly your beat, but you work very closely with jason lynch who is adweek's tv editor What are you guys here? What is the outlook right now for? um for ad spend Yeah, so I think that the last couple of weeks have been a lot of uh regrouping a lot of uncertainty a lot of trying to figure out day to day like what is actually happening What does this look like? Uh, not just in the next week, but in a couple months and that's really hard to tell um, but I think for the broadcasters and this is something that that jason has written about um at length and we'll continue to write about at length, but um A lot of broadcasters have these live sports Big tentpole events and clearly that has been really disrupted because the nba canceled Their their season. So march madness is off the table Some early mlb is off the table. So it's just it's no live sports means that Buyers are having to figure out new strategies and for them. That's either meant pushing buys later So gonna wait until those leagues return and we're just going to kind of kick the can down the road and wait for for that to come back Or shifting buys kind of immediately into other inventory that the broadcasters offer Nothing can really replace march madness in terms of impact or engagement. So it's really kind of a Figuring out where what's the best strategy here? What's the best use of of our money? So some of them are also saying just actually give us our money back We're gonna kind of regroup figure out what to do um, and several brands have also had to change their messaging, right like we we have already seen some of these psas from brands Kind of going out about social distancing and various things, but you can't run an ad about um, you know hugging people or You know licking your fingers after eating food because obviously that resonates in a very different way than when that creative was was made and So it's really I think that what we're seeing right now is in the short term travel and automotive are Really just like stepping back from from the advice theatrical as well like I said when you have when you can't drive people to go to a theater You're not going to run an ad for for the movie that you have in theaters And we've also seen some theatrical releases just being pushed for an entire year Which means whatever they were going to spend In terms of advertising on on television is is you know, there's they press pause on that And then retail as well, right? It's hard to There's sort of this pivot. I think uh, you have to how do you shift it to e-commerce messaging? Is advertising on television still the best way to direct people to e-commerce or is that Make more sense on digital, right? So these are all kind of questions that that uh, that companies are grappling with When I talked to toby Uh, chief revenue officer mark rap flat earlier today. He said that Uh, they've definitely seen their still interest and even a growing interest from delivery services Which of course, you know, when you hear that you go, of course, of course, that's happening Um, and so you're also seeing restaurants that have a delivery component Chipotle is a good example of that like that They're sort of pivoting their messaging to focus on delivery because again You don't want people coming to your restaurants when your doors are closed Due to a, you know, a local government decree. So It's really I think a lot of it is waiting and see trying to figure out this short term plan But because the future is so sort of up in the air right now. I think that the The long-term plans are are much much harder To to plan out and so it's really going to be a wait and see as as we see these shifts And and we figure out what the new normal is Kelsey um before we close I want to take one question from linkedin. So this is from kimberley kody waterhouse She said she would love some input On the growth of ott and how traditional broadcasts still has value Um any thoughts from you on, you know, uh the value of ott versus traditional broadcasts at a time like this Yeah, I mean, I think that broadcast has always done a very good job of drawing really I guess big big engagement numbers, right? Like there's nothing like a march madness or something like to that You know these big tentpole events that drive live viewership um, and that's really valuable For for broadcasters I think the challenge right now is when you don't have those sort of live tentpole events or you can't do Maybe some broadcasters have done live sitcoms the conners have done a live episode You know how you can't do that right now in this exact moment But I think that's sort of the always the thinking about the strength There is just that the sort of size of of audience and the the ability for impact there. I think that As we move as people continue to watch on demand the the value for a lot of the ott space is a little bit more Uh a little bit more targeted capabilities. Um, and that's kind of again this big industry question of advanced tv and figuring out how to sort of Meet in the middle and figure out a way that that kind of traditional linear can can kind of work in in A space where where marketers have that appetite. Um, I think that it's it's As you see kind of growth in viewership right now in this moment and you see it particularly on connected devices and that's something that HBO said said yesterday they're seeing a lot of growth on connected devices in terms of viewership The opportunities there are how do I how do we reach the right people? You know, what sort of platform what's what is available? in terms of inventory, but as we know so much of viewing In the streaming space is not as supported. So it's figuring out the right places to do it And how do you shift your strategy in terms of messaging in terms of the ad formats all that? so that that's a it's a question that I'm that everybody's thinking about but I think that this moment sort of only Accelerates that challenge of figuring out the balance because these consumer habits are shifting so fast In such an you know unusual time. So is it a short term shift? Is it a long term shift like when will things Will things go back to normal or what is sort of the new the new normal after this sort of accelerated? I think move into into the on-demand space Yeah, and I think that's one of the biggest stories that we are covering across our beats and will be really interesting In the weeks and months ahead is which of these shifts that we're experiencing right now Are going to be lasting because I think some will some will some will flip back to normal but but others won't And and in some cases that's for the better. It's because you know innovation is happening During a time of crisis. So kimberley. Thank you for weighing in with that question Kelsey thanks for answering it Final thing a note. I want to end on since you're from our tv team As we are all doing more live video and video conferencing. Do you have a tip? For people on how to improve Their own video that they're recording, you know from their homes or makeshift offices Oh, that's a great question. I'm still trying to figure it out. But my setup right now is One I'm as far away from my radiator as possible so that if it goes off I am no hopefully does not disrupt the sound and I actually have a light it's a The light therapy box that my mom sent me for it's usually used for light therapy for seasonal effective disorder Which actually makes a great light. So I have that right behind my computer to sort of Light it up. We who knows if it's a good move, but I'm trying my best. I think we're all trying our best Dual purpose. I think I think we could use some happiness and some good lighting. Yeah, exactly Especially on a dreary day like this. I'm doing everything I can of it I love it. I uh, I'm not a video expert, but my tip would be I actually attended a webinar about working from home last week and the host recommended You know putting on like earrings or putting gel in your hair or doing like those personal grooming things that signal to your brain I'm giving a presentation or I'm going to work or I'm going into an important meeting I'm doing those even though you're from home. So I put a necklace on for you today. Kelsey Oh, there you go. I'm wearing nice shoes. You wouldn't see them, but I know they're there Ah, that's a smart frame of mind. Um, so anyway, those are our tips for you today Kelsey again, thanks. Thanks for being here. I appreciate your your deep insights on the streaming world Be sure to you know to all of our viewers be sure to check out. Um, Kelsey stories on adweek.com She is writing a ton every day and thank you so much for joining us for this episode of adweek together We will be back here tomorrow at about one o'clock both on adweek.com and linkedin talking about retail So looking forward to seeing you then. Thanks so much everybody. Have a great afternoon. Thanks