The streaming wars are no longer just about who is the biggest

Good morning. One of the key accusers in the Sean “Diddy” Combs trial testified Tuesday in court. R&B singer Cassie Ventura, who dated Combs for over a decade, spoke about joining in on the drug-fueled sex marathons that he called “freak offs.”

In today’s big story, ESPN finally unveiled the streaming-only version of its channel, and it comes as streamers reevaluate how they judge success.

Tech Memo, a weekly BI newsletter from Alistair Barr, is launching soon. Sign up here!

What’s on deck

Markets: Brevan Howard taps a longtime JPMorgan dealmaker for a new senior role.

Tech: Job cuts are officially underway at Microsoft.

Business: The hidden intention behind some companies’ RTO plans isn’t about getting back to the office.

But first, what channel stream is it on?

If this was forwarded to you, sign up here.

The big story

The new streaming wars

One of the last holdouts of the streaming era is finally making a move.

ESPN unveiled plans — and a price — for its long-awaited streaming version of the sports channel. Business Insider’s Peter Kafka has the rundown on Tuesday’s launch event for ESPN’s new service, which will cost $30 a month.

(Not to be confused with ESPN+, which has been around for over seven years. While ESPN+ streams live games, the biggest sporting events can’t be watched there without a cable TV subscription. Unlike ESPN+, this new streamer will include everything you’d get if you were watching ESPN on cable TV.)

ESPN’s willingness to finally cut the cord shows how much the TV landscape has changed. But it’s not just streamers fighting for subscribers. From engagement to subscriber growth to profitability, streamers have different priorities, writes BI’s James Faris.

So what are the different strategies, and who is running them?

James does a great job of breaking it all down, but here’s a quick rundown.

The engagement approach: Netflix, Amazon

When you’re at the top, you sometimes have to find new ways to define success. After clearing the 300 million subscriber milestone, Netflix is now focusing on keeping users engaged rather than just growing.

The reason? Engaged users are good for ads, which is the next big opportunity the streamer sees.

It’s not alone, as Amazon went all in on ads last year when it automatically turned them on for Prime Video users who weren’t willing to cough up $3 a month to remove them.

The subscriber approach: Disney, Paramount+, Peacock

For those not lucky enough to have a massive subscriber base, growing the number of users is still a priority.

One challenge has been keeping the momentum from big events like the Olympics or NFL playoff games.

Of course, sometimes you might have even more viewers than you realize. That’s why password-sharing crackdowns are all the rage.

The profitability approach: Max

Subscribers. Engagement. Let’s be honest, the end goal is the same: making money.

Warner Bros. Discovery already conceded that Max won’t rule the streaming roost. But it is in the black, something some of its peers can’t claim.

3 things in markets

1. Inflation surprisingly cooled in April. The inflation rate slowed to 2.3% last month from March’s 2.4% year-over-year bump, making it the smallest increase since 2021. Still, forecasters said the effects of the trade war could show up as soon as next month. On the plus side, eggs are back on the menu for breakfast.

2. Brevan Howard hires Carlos Hernandez. The longtime JPMorgan dealmaker will be Brevan Howard’s first-ever executive chair. A person close to the manager told BI that Hernandez’s role will focus on high-level corporate strategy and client development.

3. Getting a job in secondaries. The investment strategy of buying stakes in private funds from investors who want to sell early used to be niche. Secondaries are now fundraising at record levels, and a lucrative career path is emerging. Here’s how to land a job in the booming industry.

3 things in tech

1. Microsoft’s job cuts are here. The software giant has started culling managers and noncoders as part of its plan to shed about 6,000 jobs. It wants fewer managers with more reports, consistent with an industrywide push to flatten management layers.

2. AI companies stand to win in Trump’s “Big Beautiful Bill” — for now. The bill includes a provision preventing states from regulating AI for 10 years, a godsend for companies like OpenAI and Meta. However, there’s a good reason they shouldn’t start celebrating yet.

3. The CEOs behind your favorite YouTube stars. Content creators from MrBeast to Smosh are hiring leaders from Hollywood, talent management firms, and creator economy startups to level up their businesses. These executives allow creators to focus on content — and avoid burnout.

3 things in business

1. Employers have found a sneaky substitute for layoffs. Rather than conducting layoffs, some employers are using RTO mandates to get workers to quit. But companies adopting this take-it-or-leave-it approach to RTO can end up with the worst of both worlds, BI’s Aki Ito writes.

2. You can now book private chefs and personal trainers on Airbnb. The company rolled out Airbnb Services, which lets users hire professionals like hairstylists or photographers to come to their Airbnb or home. An exec told BI it’s one way the company is trying to win customers back from hotels.

3. Trump is asking Americans to do the one thing they hate most. Buying things is a national pastime, and Trump is the king of conspicuous consumption. But after issuing tariffs, the president is preaching austerity — a misread of both America’s economy and culture.

In other news

• Apple spent many years and billions of dollars investing in China. Now it’s stuck there.
• Amazon is doubling down on MrBeast and it shows the growing power of creators in Hollywood.
• You shouldn’t delete this email if you want a slice of Apple’s $95 million Siri settlement.
• Trump takes another swipe at the Fed after April inflation comes in light.

What’s happening today

• Sony reports earnings.

The Business Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago.

The post The streaming wars are no longer just about who is the biggest appeared first on Business Insider.