August 2019 Cover

AUGUST 2019. ISSUE 4

Content providers have started retracting their licensed material and moving them to their own platforms in hopes of increasing the number of consumers that interact with their products.  This shift has left FAANG with no other choice but to further develop their own platform while introducing original content to retain their place in the streaming market. Just this year, Apple launched Apple TV+ to stake their claim in the market while Netflix is expecting to invest $15B in original content, which is up 25% from last year. But sure, decentralizing the content has fostered creativity within several of the FAANG companies, but the real differentiation lies in how the user experiences the content itself. To remain competitive, FAANG and AT&T will need to identify creative ways to make lasting impressions on their customers in a way that is relevant and engaging. Leveraging new technologies such as augmented reality (AR) and virtual reality (VR) may help. Targeted Advertisement: What’s going on? How can we remain competitive in this market? Attracting consumers to the individualized platforms is just half the battle. To keep up with the shift and increase the return on investment, companies are continuously looking to place more resources into targeted advertisements.

According to eMarketing, the total digital ad spend in the US is expected to grow by 19% to $129.3B this year which is 54.2% of the estimated total US ad spend.  FAANG and AT&T must find a balance between targeted advertisement and user experience, as there is nothing worse than having your favorite shows interrupted by series of irrelevant commercials. Although the market is complex, AT&T has not left any stones unturned as we continue to capitalize on existing and newly acquired assets to remain competitive.  From a streaming perspective, AT&T is planning to launch HBO Max which consists of original programming and previously-released TV shows and movies from WarnerMedia’s extensive library.  Once released, HBO Max will be positioned to rival platforms like Netflix, Apple TV+, YouTube TV, Facebook Watch, Prime Video, and Hulu. Regarding targeted advertisement, Xandr undoubtably has AT&T covered on all fronts.  Just in the last quarter, Xandr reported an increase in revenue by upwards of 24% to $485M. They are continuously evaluating how consumers interact with the suite of AT&T products to identify unique touch points that seemingly integrate advertisements throughout,, optimizing the overall user experience. In such a dynamic market, creativity and innovation is at the center of it all. It is exactly what is needed to differentiate AT&T from the competition. What is AT&T doing to compete in these areas?