What is The PARQOR Hypothesis framework?

The PARQOR Hypothesis argues that the streaming services most likely to succeed must meet a specific set of conditions (BEADS Acronym below). That said, not all media businesses are equally equipped to succeed in streaming.

The PARQOR Hypothesis was inspired by IAC’s letter to shareholders about its investment in MGM Resorts from August 2020:

  1. an Aspirational Brand
  2. Existing user base at scale
  3. Multiple Avenues to monetizing the same IP, and
  4. Daily value proposition (something new for fans to consume daily)
  5. Sales Channels: Online (digital) and offline (physical) commerce

Example

A streaming service from a legacy media company has not scaled past 10MM subscribers after six years, and does not offer a large enough library to offer a daily value proposition for users.

How does the PARQOR Hypothesis framework work?

It offers a set of attributes for evaluating a media company, as IAC’s letter to shareholders highlights “Disney’s advantages over pure-play streaming companies with an iconic brand and multiple avenues to monetize the same intellectual property between streaming, theatrical releases, merchandise, and theme parks…”

Real World Example

WarnerMedia currently licenses its DC and Looney Tunes IP to Six Flags Theme Parks, and Harry Potter IP to NBCUniversal’s Universal Theme Parks. WarnerMedia lacks Disney’s abilities to:

  1. market HBO Max on offline sales channels, and
  2. aggregate theme park visitor data for future marketing campaigns.

Learn more in this free piece:


CONNECTING THE DOTS TO UNLOCK YOUR COMPETITIVE EDGE

PARQOR focuses on the incentive structures & psychology of executives & businesses across the OTT streaming marketplace.