Media analysts at Wells Fargo predict that by 2025 Netflix will have 272 million global subscribers, with 101 million of them subscribing to Netflix's ad-supported pricing tier.

That's 101 million customers paying Netflix less money each month. Surely, this isn't a great thing for Netflix... Wells Fargo disagree. The analysts believe that Netflix will make an additional $2.3 billion in profits each year thanks to the higher ARPU (average revenue per user) of the ad-tier customers.

It's worth noting that Hulu every year runs a $1 per month promotion to drive subscriber uptake of its ad-supported plan. They're still turning a profit with each of those subscribers thanks to the money generated through advertising.

Would You Accept Up to 6 Ads Per Hour on Netflix? To Pay Less, You Might Have to
Wells Fargo analysts predict advertising will makes billions for Netflix — after a two-year period of subscriber cannibalization.

Why are there so few new people in charge in Hollywood?

Back in the 80s and 90s there was a crop of young executives who very early in their careers became TV network and movie studio chiefs. Now in 2022, a lot of those same execs are still around and in charge. Note this week's announcement that Mike De Luca is back at Warner Bros after running WB's New Line back in the 90s.

The LA Times has a great deep dive into the how's and why's of the very static upper-management ruling Hollywood. The most interesting reason that struck me was this:

Young would-be studio heads would rather run tech companies. An ambitious and smart aspiring businessperson looking to make a name for oneself might think twice before going into an industry that so many people think is in a state of managed decline. They might want to get into a growth industry instead. And for those seeking the stable, yuppie suit-and-tie lifestyle, law school might be a better bet than the talent agencies and entertainment companies at this point.

A damning statement about the future of the movie industry, specifically. But, is the current crop of young talent viewing the TV/streaming biz in the same way? Something to consider as we look at a marketplace with gaming on the rise and AR/VR mainstream adoption on the horizon...

Hollywood is changing fast. The people running it are not
The more the film business changes, the more the people running it stay the same.

Why does every show now have a companion podcast?

The vindication I feel as one of the first content marketers to champion companion podcasts for TV shows increases every year as I see more and more shows doing it. Back in the days of yore I spent some time at SBS where I produced (and co-hosted some) podcasts around SBS acquisitions like The Good Fight, The Orville, Batman (1966), and The Handmaid's Tale.

In the time since, it seems like every show has a podcast and they're all doing it for much the same reason that I was so passionate about it. Here's Hot Pod's Ariel Shapiro on the subject:

Not only are companion podcasts cheap, but they don’t have to make money. The Wire at 20, HBO’s look-back podcast at the critically acclaimed show, sits at number 87 on Apple Podcasts. Unlike basically every other show in the top 100, it doesn’t have a single ad, because ad money is not the point. The goal is to get fans who love, or once loved, the show to rediscover it and sign up for HBO Max (or at least maintain their subscriptions). A survey conducted by HBO Max found that 85 percent of those who listened to a program’s official podcast felt more connected to the show.

They're a great way to convert casual fans into dedicated fans, who then become evangelical about the shows and help with word of mouth.

Why every new TV show has a podcast
Podcasts for Hacks, RuPaul’s Drag Race, and The Staircase debuted in just the past month
  • Sesame Street is launching an off-Broadway stage show. For families. Read: Deadline
  • Netflix founder Reed Hastings is blacklisted by Russia. There's worse lists to be on. Read: Variety
  • Tokyo Vice has been renewed for a second season by HBO Max. Read: The AV Club
  • Netflix is now 30%+ European content in all areas throughout the region. Read: C21
  • When Apple's iOS16 update is released later this year, iPhone users will be able to use Nintendo Switch controllers with it. Read: The Verge
  • Sam Waterston will return for another season of Law & Order. At 81, does that make him the oldest star of a US network drama? Read: Variety

A League of Their Own is now a TV series. It debuts on Amazon Prime Video Aug 12.

Prey is the new Predator movie. It is debuting on Hulu August 5.

1899 is a new Netflix drama from the team behind Dark. It debuts later this year.

The School For Good and Evil is a Paul Feig-directed fantasy film debuting on Netflix in Sept.

Norwegian comedy-sci fi film Blasted debuts June 28 on Netflix.

When an alien invasion interrupts a bachelor party, two childhood friends reunite as the kick-ass laser tag duo they once were to fight back.

Day Shift debuts Aug 12 on Netflix.

The guys who taught John Wick how to kick ass, are now teaching Jamie Foxx, Dave Franco, and Snoop Dogg how to hunt vampires.

Troll is coming soon to Netflix.

Deep inside the mountain of Dovre, something gigantic awakens after being trapped for a thousand years. Destroying everything in its path, the creature is fast approaching the capital of Norway. But how do you stop something you thought only existed in Norwegian folklore?

The Sea Beast debuts July 8 on Netflix.

Motherland: Fort Salem returns June 21 for its final season.

And with that, the newsletter is done for another day. It'll be back tomorrow.