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Published Nov 19, 2020

The $160 Billion Video Game Industry Explained

Scott Galloway and Joost van Dreunen delve into the $160 billion video game industry, analyzing the impact of live streaming, user-generated content, and Big Tech's influence on the global market. They also address the challenges posed by new console releases and digitalization while highlighting the antitrust issues surrounding tech giants and education disparities related to the pandemic.
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Episode Highlights

  • Revenue Models

    examines the evolving revenue models in the media industry, highlighting the challenges traditional companies face against tech giants. He suggests that companies like AT&T and Time Warner need to innovate by creating compelling bundles, or "rundles," to compete with content-rich tech firms. This shift requires significant investment and a willingness to endure short-term financial setbacks.

    They should either double down and make this literally a bundle that no one can resist a rundle.

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    also discusses Disney's strategic move to pause its dividend payments to focus on streaming, a decision that has already positively impacted its stock price 1 2.

       

    Streaming Innovation

    The podcast explores the strategic innovations in streaming services, with noting Netflix's experiment with a linear channel in France. This move caters to traditional TV viewers who prefer scheduled programming, despite Netflix's overall subscriber growth slowing.

    Netflix is testing out a linear channel. That's right, you heard me. A linear channel in France.

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    Meanwhile, Disney's focus on streaming has led to a significant increase in Disney+ subscribers, surpassing expectations and demonstrating the pandemic's role as an accelerant in the streaming wars 3 2.

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