NewTV, a fledgling streaming platform, has been announced to start its operations in 2019. The startup in mobile and video service is reported to be a response to the rising phenomenon of video streaming.
Jeffrey Katzenberg, the ex-CEO of DreamWorks Animation, is responsible for the NewTV proposal. With its formal launching expected by the end of next year, the streaming venture is a product of $1 billion-worth of seed capital funding.
What differentiates NewTV from the other streaming services at this point is its high-profile supporters from huge media companies.
With still a tentative name, it is supported by Hollywood studios and TV luminaries like Fox, Disney, Viacom, ITV, and Sony.
Its CEO, Meg Whitman, was the former head of Hewlett-Packard. Mindful of the modern audience’s hectic and on-the-go lifestyles, she described the new streaming venture as “the first entertainment platform built for easy, on-the-go mobile viewing.”
NewTV administrators believe that there is a huge opportunity for premium video service as it is integrated into mobile devices.
In this era, when media conglomerates are engaged in mergers and acquisitions to accumulate massive content libraries and to compete with their rivals, the norm is “Content is King.”
Thus, a considerable amount of NewTV’s budget will proceed with licensing. WndrCo, the holding firm in which Katzenberg is a co-pioneer, will outsource content from established movie and TV production companies.
NewTV’s business strategy is to serve its upcoming customers in a reverse manner to Netflix. It will initially stream a selection of short-form original content.
Ten minutes is the estimated running time for a majority of the episodes. Moreover, the streaming service will be composed of two levels: advertising-light like Hulu and advertising-free.
The startup’s creators are targeting tech-savvy millennials who normally consumes shows through their digital devices.
NewTV is aware of the fact that millennials seem to prefer “snackable” content which can be viewed or consumed easily and briefly.
When probed if NewTV is an attempt to outshine mainstream video streaming services like Netflix, Hulu, or HBO, Katzenberg remarked that competition is not on their agenda. NewTV, according to him, is “a completely different use case.”