The eastern United States, from South Carolina to Maine, and parts of the Midwest, are dealing with heat advisories and excessive heat warnings this weekend as heat indexes rise over 100 degrees. While this isn’t the most pleasant weather, I for one am not hating the heat. Thanks to my Raynaud’s phenomenon, I’m cold around 90% of the time, and right now walking outside feels like a dream.
Heck, I’ve even considered wearing shorts. Outside. To a location other than a pool.
That’s a wild concept for someone who hasn’t worn shorts for reasons other than sleeping or cutting grass (and only because I wore them the night before while sleeping) in years. Yes, the humidity still sucks, but the warmth of the sun feels stupendous.
I do realize that I’m outside of the norm on this one. Thankfully it looks like the heatwave will break by Tuesday.
My love of the heat does come with some guilt. I love the heat, and extreme heat is becoming more common. The problem is that these things are true because of the damage we’ve done to our planet.
My wife and I used to say that when the kids graduate from high school we’re moving south so I can be warm. But, as the average temperatures continue to climb, the next 20 years in the area we live in now will look more like the areas we would have considered moving to when we graduated college (almost) 20 years ago.
At some point the leaders of our country will have to put aside their petty differences and start to legislate serious change. Our nation has a history of coming together and doing what’s right when pushed to the brink, hopefully history repeats itself.
The sky is falling! (for Netflix)
After its most recent price increase, and the impending end to several content streaming deals, for the first time in eight years Netflix had a quarterly loss in U.S. subscribers. Predictably media pundits have declared this the end for Netflix and streaming.
Just as they did eight years ago.
I remember because I made the argument wrote on my now-defunct former blog that, despite the loss in subscribers and some negative press, the price increase was good for the company. At the time, the increase injected much needed cash that would allow Netflix to produce more original content.
I’ll make the same argument now. Or at least a similar one.
Note that I recognize that my argument doesn’t consider Netflix’s own projections for the quarter of 5 million new subscribers worldwide. A projection that they missed.
Netflix has just over 60 million U.S. subscribers. During the quarter they lost less than 0.5% of these subscribers, about 160,000. It’s safe to assume that they still have around 60 million U.S. subscribers.
If we assume that the price increase lead to a monthly yield of $2 per subscriber, that’s an additional $120 million dollars a month, $1.44 billion annually. What’s more is that this new revenue comes with little to no expense. It all drops straight to the bottom-line.
The price of Netflix’s standard package is now $13 a month. Which puts it above Disney+ ($7), Starz ($8), and Showtime ($11). It’s still below HBO ($15), and will offer a large, more diverse, lineup than any of those.
I’m certain that during this next quarter Netflix will again see U.S. subscriptions grow. It will continue to invest more money into creating or buying original content, and will be just fine. They’ve proven again and again that they know how to navigate these waters.
The worst kept secret in local media
Ken Doctor, who writes for and runs Newsonomics.org, and writes on niemanlab.org, has been writing about a possible GateHouse/Gannett merger since reports about Alden Global Capital’s bid to take over Gannett. Now, as Ken wrote this week, and has been reported by several sources, it appears as though the merger is going to happen. It sounds like it’s a matter of when, not if.
Unfortunately for the employees and their respective local communities, this is not a merger meant to spur innovation, creativity, or increase local news. This is a merger of financial necessity. All it merger does is buy the new company a few years to try and figure it out.
As Ken notes:
Simply put, these companies’ leaders think a megamerger buys two or three years — “until we figure it out.” The “it” is that long-hoped-for chimera of successful digital transformation. Gannett and GateHouse, like all their industry brethren, look at ever-bleaker numbers every quarter; the biggest motivation here is really survival, which in business terms means the ability to maintain some degree of profitability somewhere into the early 2020s.Source: Newsonomics: It’s looking like Gannett will be acquired by GateHouse — creating a newspaper megachain like the U.S. has never seen
For those in the industry tough times and end-of-days projections are nothing new – people have been talking about the end since at least the mid-90s – I get the feeling this could be different. This merger will represent 1 in 6 newspapers in the country. Putting a lot at risk if they don’t figure it out. On the bright side here, as I noted above, Americans tend to come up with the best solutions when pushed to the brink.
The appetite for local news and professionally sourced content has not dissipated, it’s increased. It’s the means of distribution that have changed, thus decimating the methods through which newspapers could monetize content and pay workers.
I’m not sure what the solution is (although I’m certain the megamerger will not find it), but I’m sure those involved with local journalism left in the wake of this merger will. It won’t come with 30% profit margins and 75% market penetration, and it probably won’t gain national prominence, but many will (and probably already have) figure it out on the local level.