I'm pleased to present the 266th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
Colin starts this week's podcast by sharing his positive reactions to Vessel, the startup from former Hulu CEO Jason Kilar, which went live this week. Colin likes the mobile app a lot and thinks Vessel's promotion of a free year of service is a smart approach. In particular, Colin is bullish on Vessel's non-intrusive ad model.
However, Colin is less certain about Vessel's odds of success, noting that YouTube's response is a major wildcard. I agree and observe that while Vessel is very impressive, it's also a big test case for users' willingness-to-pay for first window access to content. There's a lot to like about Vessel, and ample reason to believe millennials will like the model, but only time will tell.
Speaking of YouTube, it's becoming increasingly apparent that Facebook is poised to become YouTube's main competitor in the long-run. As I wrote yesterday, this week at Facebook's F8 developer conference, the company unveiled key updates, geared especially for premium publishers, that will bring a lot more high-quality content onto the platform. Colin and I dig into each of these and also discuss a big remaining missing piece - pre-roll ads against videos posted on Facebook.
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At Facebook's F8 developer conference yesterday, the company announced a series of initiatives that, taken together, demonstrate it is positioned to be a very big player in video and YouTube's biggest competitor long-term. Following are the most important announcements and my take on their implications. I also note the key missing pieces that are almost certainly on Facebook's video roadmap.
So-called "skinny bundles" of TV networks face long odds of success given the dispersion of actual TV viewership, cross-ownership of broadcast-cable TV networks by media conglomerates and underlying economic realities, according to a new analysis by MoffettNathanson.
The conclusions align with points I made in last Friday's podcast and previously, as I've asserted that the "Swiss cheese" channel lineups found in skinny bundles will lack broad appeal. This was a central finding from recent Bernstein research as well. Conversely, bulking up channel lineups with more TV networks (as Sony has done with its new PlayStation Vue service) eliminates the opportunity for a cost-savings value proposition that would resonate most with would-be cord-cutters or cord-nevers.
Over the past year, a strong wind has blown in the sails of the TV Everywhere market. More content owners are making programming available on this increasingly popular platform and the content is finding an audience on programmer and operator apps across platforms. Adobe reports TV Everywhere and online video consumption is up 146% in the last year. Ad server company FreeWheel noted that 38% of all ad views on long-form and live content came from behind authentication walls. NBCU made a push for TV Everywhere education with its Super Stream Sunday that offered open access to its Super Bowl-related programming.
Riding high on this growth, the industry should now focus on how to make the opportunity even bigger. Based on our ongoing work with programmers and MVPDs on authenticated video, as well as our data analysis of sources such as watch app reviews, below is a sample of the strategies we think will help take watch apps to the next level:
Topics: TV Everywhere