Brands moving into media
Why are brands partnering with streaming services?
We're regular readers of Ted Gioia's work, who this week pondered about why it is that so many brands are moving their focus into the media space.
Most amusingly, a US-based chicken fast food chain called Chick-fil-A is presumably in the late stages of planning to launch its own video-streaming service - perhaps complete with original chicken-themed programming.
This news is part of a growing trend.
According to Gioia: 'Almost every big food company is pursuing—or at least considering—an entry into the media business.
- Earlier this month, Kroger announced that members of the grocery chain’s loyalty program will now get Disney streaming options as part of their benefits.
- Walmart is already offering Paramount streaming to members of its loyalty program.
- Instacart is now working with the Peacock streaming platform
- Uber is partnering with Disney.
- DoorDash is partnering with HBO/Max.
- GrubHub is partnering with Amazon Prime.
- Etc. etc. etc.
Why?
Part of the appeal of owning your own streaming service or granting access to one that is in high-demand would be that you are then in control of attention. With the radical fragmentation of the media landscape over the past decade it is far more difficult these days to build a brand by buying media space on traditional mass media channels. But if you are able to control audience access to a popular channel, it gives a brand the leverage to maintain top-of-mind awareness by an alternative means.
Loyalty schemes that give streaming service access to members (like Walmart) also significantly heighten the value of a premium programme membership because the benefits outweigh the costs.
If for example Discovery Vitality had to give members DSTV Premium for free - it would be a total no-brainer to sign up and members would no doubt retain membership for much longer.
Sign of the times.
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Ted Gioia
Peter White