[HN Gopher] The Great Unbundling
       ___________________________________________________________________
        
       The Great Unbundling
        
       Author : notoriousarun
       Score  : 125 points
       Date   : 2021-01-30 16:56 UTC (6 hours ago)
        
 (HTM) web link (www.ben-evans.com)
 (TXT) w3m dump (www.ben-evans.com)
        
       | lesinski wrote:
       | So many "trend" type presentations like this one take for granted
       | that streaming will eat TV. Sure, cord-cutting is a trend. But
       | Covid-19 isn't necessarily accelerating it. A huge contingent of
       | the population, especially internationally and among US boomers
       | will keep their cable bundle. Smart marketers will figure out how
       | to leverage TV as digital advertising gets more competitive and
       | streamers go on without ads.
        
         | reaperducer wrote:
         | _A huge contingent of the population, especially
         | internationally and among US boomers will keep their cable
         | bundle._
         | 
         | Not just Boomers. I've seen numbers showing that Gen X is
         | getting tired of jumping through hoops to watch TV, so they're
         | going back to cable, or going * gasp * OTA.
         | 
         | The numbers also show that Gen Z seems to embrace "owned"
         | physical media a lot more than Millennials, and that they're
         | also more likely to go full OTA just because they see little
         | value in paying for multiple streams or a cable subscription.
         | 
         | It seems that Millennials love streams and subscriptions, and
         | everyone else is rethinking whether that's a good idea.
        
           | ghaff wrote:
           | Sports alone are a huge reason that keeps many people on
           | their cable bundle--and it tends to be something a lot of
           | people want to watch on their TV rather than a computer.
           | 
           | >It seems that Millennials love streams and subscriptions,
           | and everyone else is rethinking whether that's a good idea.
           | 
           | I'm a bit skeptical of a lot of generational stereotypes. I
           | think _many_ people are having some subscription fatigue
           | especially with video. But I can 't say that I've seen a lot
           | of evidence that Gen Z is particularly addicted to
           | accumulating "stuff" especially media in physical form.
           | 
           | e.g. https://www.rev.com/blog/how-gen-z-and-millennials-
           | consume-v...
        
             | martinald wrote:
             | I think sport is the next thing the streaming services will
             | look at. Amazon has started to do this, and now has some (a
             | small percentage) of the England premier league soccer
             | matches in the UK.
             | 
             | Amazon (and netflix, apple, etc) has way deeper pockets
             | than the current rightsholders (Sky, which was owned by
             | Murdoch until he sold to Comcast recently, and BT Sport,
             | which is also completely dwafered by Big Tech).
             | 
             | It's difficult to see them not going big for this next time
             | the rights are up for renegotiation. Amazon and Netflix
             | have extremely high household penetration already, with
             | their apps prebundled on so many TVs.
        
             | hong_kong wrote:
             | Cable operators already offer skinny bundles with only
             | news/sport for lower cost, so you'll get a new leg down
             | just from that + full cord cuts. But that's just delaying
             | the inevitable I think - they'll abandon cable TV when
             | margins turn negative (half a decade or so), and live off
             | their broadband businesses.
        
             | devmunchies wrote:
             | only a matter of time before all ESPN and Fox Sports are
             | bundled into Disney+, since Disney owns both.
        
               | ghaff wrote:
               | I would hope they keep it as an option. Sports make up a
               | _big_ chunk of an overall cable bill. So if Disney
               | bundles it in, expect that to put big upward pressure on
               | the price of a subscription.
        
           | rglullis wrote:
           | Those who are tired of paid streaming services can just go
           | torrenting.
           | 
           | Either Gen Z has become absolutely technologically inept or
           | these numbers are used to shape a narrative that pleases the
           | news conglomerates.
        
             | orthoxerox wrote:
             | Gen X and older Millenials are the most technologically
             | adept age cohorts if we're talking about computers. Younger
             | Millenials and Gen Z grew up with computers as appliances.
        
           | throwawayboise wrote:
           | I guess I'm Gen X. Or a very young Boomer. I've just stopped
           | watching TV altogether. "News" is a joke, and everything else
           | seems like a waste of time.
        
             | alea_iacta_est wrote:
             | Xer here. If by joke you mean it's brainwashing and
             | propaganda, I'm with you. A joke, randomly oriented, I
             | could take, the one sided preaching that news, TV and movie
             | broadcast 24x7 is just infuriating.
        
             | TedDoesntTalk wrote:
             | This. And I refuse to watch serials anymore, just feature-
             | length films. Why? Because I'm tired of being strung along.
             | Here, watch this season now. But wait 12-18 months for the
             | next season. Repeat. By the time that next season rolls
             | around, I just don't care about the characters anymore.
             | 
             | Fiction writers love to play this trick with book trilogies
             | and book series. So I don't start a book series unless all
             | books are already in print.
        
               | ghaff wrote:
               | They're just different forms. Films, multi-film series
               | and connected series, miniseries, episodic TV, serialized
               | TV, blends of episodic and serialized, anthologies,
               | shorts, etc. are all different and have their own pluses
               | and minuses.
               | 
               | It's obviously fine to prefer some and not others.
               | 
               | You can equally see TV seasons as giving the opportunity
               | to take a break from something for a while.
        
           | PaulDavisThe1st wrote:
           | OTA? With ads every 15 mins? I don't think so.
           | 
           | Netflix (and later amzn video and to a slightly lesser extent
           | hulu) was the way out of that hellhole, and I don't see even
           | boomers like me "going back".
        
           | ghaff wrote:
           | It took me a long time to get over the hump of canceling
           | cable TV. But, then, I don't get any OTA. If I got good
           | broadcast TV signals, I'd probably have taken the leap much
           | sooner.
           | 
           | I'm also not sure it's useful to distinguish a cable bundle
           | from streaming if that streaming includes YouTube TV or
           | whatever. You're really just getting the bundle in a
           | different form at that point--and not really saving a lot of
           | money.
        
             | lotsofpulp wrote:
             | > I'm also not sure it's useful to distinguish a cable
             | bundle from streaming if that streaming includes YouTube TV
             | or whatever. You're really just getting the bundle in a
             | different form at that point--and not really saving a lot
             | of money.
             | 
             | Expect one you can cancel and purchase within seconds
             | whenever you want or need to, and can watch on any device
             | you want, and deal with fewer ad breaks.
             | 
             | Cable TV is on no way a comparable product to the streaming
             | services. People complaining about the horror of clicking a
             | few buttons to cancel and resubscribe on a website gave no
             | idea of the type of horror that awaits when dealing with a
             | cable company.
        
               | ghaff wrote:
               | Fair enough, although that only applies if you want to
               | dip in and out or watch on different devices. Had I
               | actually watched cable TV latterly sufficient to justify
               | what I was paying for it, I'd have had very little reason
               | to switch to YouTube TV or whatever. The content is
               | pretty comparable and the issue for me was that I just
               | wasn't watching it _nearly_ as much as other services
               | that cost a lot less. I still wish I had live TV now and
               | then but not enough to pay for it.
               | 
               | I was actually pleasantly surprised that when I canceled
               | cable TV and my landline from Comcast they didn't even
               | put up a mild fight. (I still have Internet from them.)
        
           | AlexandrB wrote:
           | As a millennial, there was a "golden age" for video streaming
           | that has now passed where Netflix was the biggest game in
           | town and had most of the desirable content. Now that there
           | are 6 or 7 streaming services each with their own exclusives
           | (and regional differences) streaming is becoming much less
           | appealing.
        
             | ghaff wrote:
             | Netflix was never that great for movies but you could
             | always subscribe to their DVDs. Unfortunately, more and
             | more titles are becoming unavailable. (I resubscribed for a
             | while during the pandemic but just canceled it again.) Of
             | course, you can often just rent a la carte as well.
             | 
             | It is a very fragmented landscape. On the other hand, I
             | find I can subscribe to a few services and get access to
             | far more good content than I have time to watch. There's
             | very little that I just _have_ to see and, if there is, I
             | can just spin up some service for a month.
        
               | tomjakubowski wrote:
               | Circa 2007-2011, before their deal with Starz expired,
               | Netflix streaming usually had any movie, new or old, I
               | ever wanted to see. The catalogue was massive. Now,
               | around 3/4 of the time (my estimate) I'd be forced to
               | rent or stream elsewhere.
               | 
               | https://latimesblogs.latimes.com/entertainmentnewsbuzz/20
               | 11/...
        
               | ghaff wrote:
               | I guess we have different tastes. I actually canceled
               | Netflix streaming when they started charging separately
               | for it and only picked it up again when House of Cards
               | came out. And I still remember telling a Netflix exec I
               | knew that their streaming movie catalog wasn't very good.
               | His response was that people come to Netflix for movies
               | and stay for the TV shows.
               | 
               | I read people saying what you did but it just doesn't
               | match my experience; I kept a DVD subscription the whole
               | time until fairly recently.
               | 
               | But I don't think any of the streaming services are great
               | for movies. I watch what they have and then either rent
               | from RedBox, buy a disc if it's something I think I may
               | want to rewatch, or pay for a streaming rental.
        
               | monoideism wrote:
               | No, Netflix had a massive catalogue at one point. It was
               | even much later than 2011. Probably up until 2015, was
               | when they really started losing content.
        
         | devmunchies wrote:
         | streaming in inferior in a lot of ways. It used to be I could
         | turn on the TV and it powered up instantly. Now it takes about
         | 30 seconds to turn on my TV, open streaming app, and click
         | play. There's a real benefit to some analog mediums.
        
         | benedictevans wrote:
         | See slide 53
        
       | sradman wrote:
       | Former a16z partner and now independent analyst, Benedict Evans
       | [1]:
       | 
       | > Every year, I produce a big presentation digging into macro and
       | strategic trends in the tech industry. This year, 'The great
       | Unbundling'.
       | 
       | This is a 134 slide presentation:
       | 
       | > Covid brought shock and a lot of broken habits to tech, but
       | mostly, it accelerates everything that was already changing. 20
       | trillion dollars of retail, brands, TV and advertising is being
       | overturned, and software is remaking everything from cars to
       | pharma. Meanwhile, China has more smartphone users than Europe
       | and the USA combined, and India is close behind - technology and
       | innovation will be much more widely spread. For that and lots of
       | other reasons, tech is becoming a regulated industry, but if we
       | step over the slogans, what does that actually mean? Tech is
       | entering its second 50 years.
       | 
       | [1] https://www.ben-evans.com/
        
       | devmunchies wrote:
       | The slides on vehicle emission regulations (slides 121-122) made
       | me think of needing to report how much energy your servers are
       | consuming.
       | 
       | But don't worry! AWS will automatically keep track for you and
       | add the tax to your monthly bill.
        
       | forrestthewoods wrote:
       | Is there a way to full screen the slides on iOS Safari! Text is
       | too small for me to read. I tried clicking all the widgets but
       | couldn't find a way to blow it up. :(
        
         | tchvil wrote:
         | Pinch/zoom it to go to an area you want bigger. Then it can be
         | scrolled, not every time but most of the time. Unzoom to go to
         | the next slide.
        
         | CharlesW wrote:
         | > _Is there a way to full screen the slides on iOS Safari!_
         | 
         | In the controls bar just under the slides themselves, click the
         | "Full screen" widget to the left of the "Options menu" widget
         | (looks like a gear).
        
           | forrestthewoods wrote:
           | I don't think I have that option? https://imgur.com/a/qx9f8XB
           | 
           | Turning off content blockers did not change anything.
        
             | CharlesW wrote:
             | > _I don't think I have that option?_
             | 
             | Apologies for my poor reading comprehension! I was using
             | Safari on macOS. I also don't have that option when using
             | my iPhone, and couldn't find any tricks for getting around
             | it.
             | 
             | I _was_ able to zoom in and out with gestures, in case that
             | 's helpful.
        
       | tasubotadas wrote:
       | Can somebody summarize this in 20 words or less?
        
       | robenkleene wrote:
       | Does anyone recognize which software is used to make these graphs
       | and diagrams? (I love how everything is aligned very precisely,
       | and the design is cohesive across slides with respect to colors
       | and fonts.)
        
         | benedictevans wrote:
         | Keynote. I used to use PowerPoint, producing identical slides.
        
           | robenkleene wrote:
           | Thanks!
           | 
           | (Note that this is from the creator of the presentation
           | himself. It sounds like Keynote or PowerPoint should be
           | viable for producing slides like this.)
        
         | high_priest wrote:
         | Looks like a normal PowerPoint to me
        
           | robenkleene wrote:
           | Could be, I'd love it if anyone else could confirm. For the
           | record, I've tried to create graphs like these in Excel, and
           | I've struggle getting them just right. So the question I have
           | is whether it's just because I don't know Excel well enough,
           | or whether I should be using other software.
        
             | pbronez wrote:
             | Both. PowerPoint + Excel can do some pretty good charts.
             | You need to put time & effort into custom themes to really
             | make it work. Using custom themes keeps colors and styles
             | consistent across charts and slides, with smarter defaults
             | so you don't have to make as many manual changes.
             | 
             | I've found it quickly breaks down when you push beyond the
             | canned styles or try to apply them to more complex data
             | (e.g. more than 5 categories). Then you have to move to
             | something like Plotly.
             | 
             | As always, your data graphics are only as good as your
             | data. Make sure you're working from clean tables to ensure
             | you don't start making errors.
        
               | robenkleene wrote:
               | Great tips here thanks. I haven't looked at custom themes
               | before that sounds like a promising direction.
        
             | sogen wrote:
             | Can confirm Excel can do very clean graphs
        
       | lifeisstillgood wrote:
       | Can I recommend the "Another podcast" Ben Evans has recently
       | started up with a friend of his. They have a pretty good dynamic
       | and you get a sense of the nuance that slides just don't convey.
       | 
       | Also second the whole "you can do this in powerpoint / keynote"
       | amazement :-)
       | 
       | link: https://podcasts.apple.com/gb/podcast/another-
       | podcast/id1535...
        
       | ghaff wrote:
       | I don't know about China but, yeah, in the late 80s or so there
       | was this incredible panic about Japan buying everything up. And
       | various Nobel Prize-winning economists telling anyone who would
       | listen that we had to institute government-industry partnerships
       | like MITI or the US was doomed. And we did create organizations
       | like SEMATECH to counter a perceived gap in semiconductors.
       | 
       | Some of it was probably a useful kick in the pants, especially in
       | manufacturing processes. But a lot of it was panic emulation of
       | Japan that was neither needed nor especially useful.
        
       | bijant wrote:
       | I do like his blog. But I'm not going to click through a
       | presentation without him even teasing his core thesis. A tldr
       | would be much appreciated otherwise I would prefer if he packaged
       | his (without a doubt) great presentation into an article (he
       | already has all the illustrations)
        
         | ffhggyh wrote:
         | I don't understand how you're too lazy to click through a
         | 100-slide slideshow--and yet have the energy write a full
         | paragraph complaining about it here.
        
           | dEnigma wrote:
           | I can't tell if this sarcasm or not. Clicking through 100
           | slides takes quite the effort, even if you're just skimming.
        
             | saurik wrote:
             | Yeah. So, I _did_ click through it; it took forever, and
             | was _exceedingly_ annoying. I found myself wanting to go
             | back a few times, and that just not being worth the
             | effort... since I am not the one giving this presentation--
             | which is already a problem... slides exist to support a
             | speaker, and I am not the speaker! either this should be a
             | video or an article, not some disconnected set of slides
             | (from which I can 't imagine I am actually getting the
             | connections between the content)--I have absolutely no use
             | for a "one slide at a time" UI: either all 100+ slides of
             | this should be rendered one after another so I can quickly
             | scroll down through it, or (preferably) this shouldn't be a
             | PDF file so I can decide how I scroll.
        
               | ghaff wrote:
               | >slides exist to support a speaker
               | 
               | In principle I agree with you and, for most of the
               | presentations I give, I make the slides available but
               | they're pretty useless.
               | 
               | That said, a lot of people find information presented in
               | the form of a slide deck more approachable than a multi-
               | thousand word written report.
        
         | ridruejo wrote:
         | I'd agree in general, but there are a few people that are worth
         | going though whatever presentation they put together. Ben is
         | one of them
        
       | whb07 wrote:
       | Unless China solves for the skewed demographics in the next ten
       | years, seems like sheep-behavior to include them in projections
       | for the future. Has anyone seen these types of presentations but
       | say 1980, except it says Japan instead?
       | 
       | I'd like to see some original thinking that stands away from the
       | crowd for once.
        
         | eloff wrote:
         | Those demographics don't matter nearly as much over the next 10
         | years as they do over the next 40. But I agree with you that
         | most predictions of China taking over the world seem to
         | completely ignore demographics - which is dumb because it's one
         | of the most predictable parts of a country's future.
        
           | jonathannat wrote:
           | Exactly.
           | 
           | 700M Chinese citizens who live on $140/month income.
           | 
           | 500M 65 year olds by 2050 (money flows up in Chinese society.
           | One grandkid pays 2 parents who pays 4 grandparents, since
           | it's a one child society) Oh and no social safety net. you
           | think CCP members care about the plebs?
        
         | baybal2 wrote:
         | > Unless China solves for the skewed demographics in the next
         | ten years, seems like sheep-behavior to include them in
         | projections for the future.
         | 
         | True, long term, China has sealed its future, but even if you
         | half China's population, it will still be no. 1 in pretty much
         | everything it is no. 1 today.
         | 
         | Pretty much nothing aside of war, civil war, or a second
         | cultural revolution scale political crisis can stop it
         | overtaking USA economically in coming 1-2 decades.
        
         | contingencies wrote:
         | Here's an original thought. The presentation asserts that Tesla
         | has eaten the entire auto industry, and this is because of
         | slipping battery costs. It does not, however, correctly credit
         | China for this change.
         | 
         | What other changes has China recently led? Video conferencing,
         | mass-adoption of mobile payment, death of the desktop, home
         | food delivery (pre-COVID), online grocery, e-Health passports.
        
           | jonathannat wrote:
           | Wow, way to twist the history to your own narrative. Also,
           | no, Tesla has not eaten the entire auto industry, stock
           | market cap doesn't equal to product market share
           | 
           | > Video conferencing
           | 
           | Zoom (American company) launched in 2011. DingTalk started
           | way late in 2014 and wasn't even that popular until 2017. and
           | still playing catchup to Zoom.
           | 
           | > mass-adoption of mobile payment
           | 
           | Japan in the 90s. I believe Chinese citizens were still
           | mostly riding bikes then.
           | 
           | > death of the desktop
           | 
           | Japan in the 90s
           | 
           | > home food delivery (pre-COVID)
           | 
           | Grubhub was founded in 2004. IPOed in 2014.
           | 
           | > online grocery
           | 
           | Tesco direct started in UK in 1997.
        
         | tpush wrote:
         | > Unless China solves for the skewed demographics in the next
         | ten years, seems like sheep-behavior to include them in
         | projections for the future. Has anyone seen these types of
         | presentations but say 1980, except it says Japan instead?
         | 
         | The presentation directly addresses this in slide 86.
        
           | hong_kong wrote:
           | Only superficially. Just because China's population is larger
           | doesn't mean it won't get hit by the same forces as Japan
           | back in the 80s. China had a demographic tailwind in the past
           | few decades, which is reversing now as the population ages
           | while birth rate remains low - its dependency ratio will
           | spike and a huge amount of resources will have to be diverted
           | to elderly care.
        
         | baybal2 wrote:
         | > Has anyone seen these types of presentations but say 1980,
         | except it says Japan instead?
         | 
         | I did read a lot of books which "Bright Heads" of US political
         | scene wrote in nineties-eighties.
         | 
         | US royally f..king up its _ally_ Japan is the biggest reason
         | why Japan did not become a counterweight to China.
         | 
         | Basically, US assured China's victory when it both alienated,
         | and weakened the Japan.
         | 
         | That both lead to Japan putting big money into China (Japan is
         | China's biggest foreign investor,) and it becoming rather
         | passive to US calls to do anything as about China after
         | Washington finally got hit with understanding of its blunder.
        
           | spideymans wrote:
           | >US royally f..king up its ally Japan is the biggest reason
           | why Japan did not become a counterweight to China.
           | 
           | Can you elaborate on what the United States did?
        
             | baybal2 wrote:
             | If you did not read the books, Japan was for America a
             | bigger boogeyman than the Union, and Ben Ladin combined by
             | late eighties.
             | 
             | It lead to an incredible economic, and political pressure
             | US put on Japan, which culminated in US forcing Japan into
             | Plaza accords, and the three Japanese lost decades which
             | followed.
        
           | jonathannat wrote:
           | If I had to guess, American investments took over as #1 in
           | FDI in 1992. Japan was still 4th in 1991. You can thank wall
           | street, republican congress, and bill clinton for that.
           | 
           | https://www.nytimes.com/1992/06/15/business/foreign-
           | investor... "Last year (1991), the United States dropped to
           | fifth, with less than a 5 percent share of foreign investment
           | in China, behind Hong Kong, Germany, Taiwan and Japan." then
           | the article talks about massive US investments.
           | 
           | https://en.wikipedia.org/wiki/Foreign_direct_investment_in_C.
           | .. FDI spiked in 1992
        
         | jonathannat wrote:
         | These analysts who tout China live in 2008 China. And they
         | ignore Xi Jing Ping + demographics + middle income trap + total
         | debt as if they doesn't exist.
        
       | treis wrote:
       | I'm not sure I quite get the retail unbundling argument. Chinese
       | sellers selling through Amazon is not direct to the buyer. It's
       | through Amazon.
        
         | dash2 wrote:
         | But then he points out the growth of Shopify.
        
           | sjg007 wrote:
           | Shopify needs a satisfaction guarantee like PayPal. I mean
           | you can use PayPal but the biggest risk here is fraud.
        
           | treis wrote:
           | Right so you don't really have a bundling or unbundling. You
           | have the same trend that happened in brick and mortar
           | happening online. Speciality retailers are doing fine.
           | Massive scale retailers are doing fine. And everyone in the
           | middle gets squeezed.
        
       ___________________________________________________________________
       (page generated 2021-01-30 23:00 UTC)