Surprise! This Fast Food Giant Is Getting Into Streaming TV
In a somewhat surprising move, television's streaming wars are getting a new player from the fast-food industry, and it's probably not the fast-food giant you're thinking of.
If any fast food giant were going to get into the streaming wars with content, you'd think it would be McDonald's, right? Well, wrong. Chick-fil-A is the fast food giant that's decided to join the streaming wars.
According to Deadline, the king of the chicken sandwich is moving "aggressively" into the entertainment space, planning to launch a slate of originals for its streaming platform.
They say Chick-fil-A has been working with several major production companies, including some studios, to create family-friendly shows, particularly in the unscripted space. Deadline mentions a family-friendly gameshow from Glassman Media and Michael Sugar's Sugar 23. Glassman Media is behind NBC's "The Wall," and Sugar 23 is behind Netflix's "13 Reasons Why."
Additionally, it is believed the upstart streamer is talking about scripted projects, animation, and licensing other streamable shows. Chick-fil-A has previously produced content for its site, including "Stories of Evergreen Hills," a series of short animated films. The fast food giant has diversified into other areas, such as making children's puzzles and games under the Pennycake brand.
The Deadline article did not discuss whether Chick-fil-A will launch the streaming service as a free app co-branded with the restaurant to remind people to eat more chicken and skip the burger boys or as a stand-alone family streaming service not connected to the restaurant brand. One thing is for sure: They're doing it because they believe it will add to the company's profits.
While it may seem like an odd way to diversify their business portfolio, they're not the first company to do something like this. Lucidity has an article devoted to weird diversification strategies that failed.
Like Bic, the maker of pens and lighters, Bic invented disposable underwear and tried to market cheap perfume. Cosmopolitan magazine launched a yogurt, and Coors tried to sell Rocky Mountain Spring Water.
Not all ideas were this bad. Ralston Purina, the pet food company, bought Jack In The Box in 1968. While there were some bumps during Purina's ownership, the company owned the fast food company for 18 years. They also owned Eveready Batteries, Continental Baking Company, which made Hostess snack cakes and Wonder Bread, and the St. Louis Blues hockey team.
General Cinema, the pioneer of shopping mall multi-plex theaters, started diversifying its business in the 1960s. At various times, it owned large market radio stations, was Pepsi's largest bottler, and distributed 7-Up, Dr. Pepper, and other soft drinks. It doesn't stop there; they also owned publisher Harcourt Brace and licensed the Sunkist name for an orange soda they would develop and franchise to various Coca-Cola and Pepsi bottlers.
While a fast food giant diversifying into streaming seems odd, it isn't when the object is profit. Chick-fil-A's strategy of creating family-friendly, wholesome (I would assume) entertainment that is enjoyable for everyone aligns with their Southern Christian background and could be a good fit.
The Deadline article says it's a positive for the reality TV industry, which has been struggling recently. Of course, that's a risk for Chick-fil-A if reality TV is struggling because people aren't watching. The streaming business is also risky because of how crowded the space is and how many services are vying for the same chunk of viewership and consumers' streaming dollars.
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