I'm pleased to present the 332nd edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
Earlier this week Netflix released its Q2 ’16 results, showing abysmal subscriber growth both domestically and internationally. Netflix largely blamed the downturns on rate increases that kicked in for longer-term subscribers and the media coverage of them.
In today’s podcast, Colin and I dig into what we believe is happening. As we both wrote earlier this week (here and here), competition and market saturation are playing a big role, resulting in much more fragile subscriber retention. Meanwhile Netflix may have miscalculated just how big the international opportunity really is, especially in newer markets. In particular, we’re both mystified how Netflix could have launched in 130 countries in January, and yet seen international subscriber additions decline by 36% year-over-year.
Overall, it’s an incredibly murky picture and the next few quarters will be pivotal in understanding how much growth still lies ahead for Netflix.
Listen now to learn more!
Click here to listen to the podcast (24 minutes, 20 seconds)
Looking to capitalize on the growing interest in virtual reality, outstream video ad specialist Teads has introduced inRead 360, a new outstream video ad format offering 360-degree viewing and engagement.
The 360-degree format is meant to give advertisers a more immersive format that also complements premium content. Teads said that users can interact with the inRead 360 ads, viewing the creative from different angles, by moving their mobile device or clicking and dragging when online. 360-degree video, which doesn’t require a special headset, is often characterized as a step toward full virtual reality.
Everyone knows that video viewing is exploding, but for content publishers and creators, figuring out how to monetize all that usage is an ever-present challenge. This question was the focus of our Video Ad Summit session, “Unlocking Video’s Value in the OTT Era,” which included Jarrod Dicker (Head of Ad Product and Technology, Washington Post), Nathan Guetta (VP, Product and Technology, Conde Nast Entertainment), Shaun Koiner (Chief Product Officer, Perform Media), Brian Rifkin (Co-founder and SVP, Video Sales, JW Player) and Mark Yackanich (CEO, Genesis Media), with Tom Herman (CEO, DashBid) moderating.
The panelists addressed a number of critical issues including how to deliver world-class user experiences that combine both content and advertising, why it’s critical to distribute content to as many places as possible, how to help advertisers capitalize on emerging opportunities like vertical video and other new formats, the role that data is playing in their monetization strategies and what important trends are going to play out over the next year, among other things.
It’s a dynamic discussion with lots of insights for anyone involved with content creation and monetization.
Watch the video now (34 minutes, 52 seconds).
As I wrote last week and previously, the TV industry is in a race to data enable its ad inventory to retain its value relative to online video alternatives and platforms like Facebook and Google that provide audience data at huge scale. Many technology providers are innovating to provide the software tools necessary for the TV industry to make this transition and the latest example is from clypd, which yesterday introduced Optimize Private Marketplace (PMP), which adds to existing features in clypd’s linear TV PMP offering.
Mobile video is growing fast, but monetizing it fully is a work in progress. At the recent Video Ad Summit, participants on the “Capitalizing on Mobile as the First Screen” session included Justin Fadgen (VP, Business Development, Beachfront Media), Kevin Hein (U.S. Industry Lead, Technology and Telecom Vertical, Facebook), Manny Puentes (Chief Technology Officer, Altitude Digital) and Blake Sabatinelli (GM, Newsy) with Anna Bager (SVP, Mobile and Video, IAB), moderating.
Particular challenges for mobile video that the panelists raised included ad/video load times, a limited window to gain the viewer’s attention, standardized measurement, consistent user experiences and the growing role of data. The panelists also discussed the opportunities and challenges around distributed video models on social platforms and how much effort is required to optimize each, among other topics.
The conversation balanced perspectives from the advertiser, publisher, platform and technology perspectives really well. Mobile video has gained a lot of usage, but it’s clear that it’s still early days in fully monetizing it.
Watch the video now (41 minutes, 23 seconds).
Netflix reported disappointing domestic and international results for Q2 ’16, extending the company’s bumpy and unpredictable growth. Netflix added just 160K subscribers domestically (down from 900K in Q2 ’15, a quarter which now looks like it was an anomaly after all) and below its own 500K forecast. Meanwhile international subscribers increased by 1.52 million (vs. 2.37 million in Q2 ’15) and below the company’s forecast of 2 million additions.
In both cases, Netflix blamed price increases that were felt as “un-grandfathering” of older subscribers kicked in, which in turn led to higher churn. In the U.S. Netflix went one step further, blaming press coverage of the un-grandfathering process, which it believes led some subscribers to believe a new price increase was coming.
Akamai’s network investments are paying off as the company keeps delivering ever-greater levels of concurrent live sports streams. The latest example occurred with last weekend's Euro 2016 Portugal-France championship match where Akamai delivered a peak of 7.3 Tbps during overtime. That level beat the 2014 Argentina-Netherlands World Cup final which achieved a 7.0 Tbps peak.
Akamai said that over 3.3 million concurrent streams were delivered at peak across 35 rights-holders globally. Akamai’s VP, Product Management Corey Halverson told me in a briefing that a number of network investments in quality and reliability have been instrumental in supporting the record streaming activity.
I'm pleased to present the 331st edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
Broadcast TV networks are taking different approaches to online video and this week saw updated online initiatives from Fox and ABC with the former announcing live-streaming of its primetime lineup in all 210 U.S. markets and the latter launching updates to its online service including classic shows, original digital series and more.
Meanwhile NBC is gearing up for the Olympics in 3 weeks, which promises to be the most ambitious online sports event to date. And CBS is continuing to aggressively pursue its own independent path online, even as recent rumors have the network participating in YouTube’s forthcoming online subscription service.
In this week’s discussion Colin and I review the Fox and ABC moves, comparing and contrasting them as well as NBC’s and CBS’s approaches.
Listen now to learn more!
Click here to listen to the podcast (23 minutes, 11 seconds)