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Tuesday, September 16, 2014

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Analysis for 'Broadcasters'

  • European Broadcast Giant RTL Group Buys 65% Stake in SpotXchange for $144 Million

    European broadcast and entertainment giant RTL Group has bought a 65% stake in online video ad platform SpotXchange for $144 million, plus an earnout based on performance and an option to buy the remaining 35%. SpotXchange will continue to operate as an independent company, with CEO Mike Shehan saying that funds will be used to accelerate growth, particularly in Europe.

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  • VideoNuze Podcast #234 - Yahoo, CBS, Seinfeld/Crackle and More

    I'm pleased to present the 234th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    This week we touch on a few different topics that caught our attention, including Yahoo's deal to pick up another season of "Community," after NBC dropped it (plus we discuss Yahoo's other video moves). Then we turn to CBS's research head's reveal that the network generates up to 20% more revenue per viewer online than on TV.

    We also review whether HBO premiering the first episode of its new series "The Leftovers" on Yahoo (plus similar efforts by other premium networks) will succeed. Finally, we're both impressed with Jerry Seinfeld's new Acura ads and how they blur the lines between content and advertising. Seinfeld is a huge online video enthusiast as I noted earlier this year.

    Listen in to learn more!

    Click here to listen to the podcast (18 minutes, 41 seconds)



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  • Millions of Americans are the Real Losers in Last Week's Aereo Decision

    Aereo lost big at the Supreme Court last week. But millions of Americans, in particular those who do not consider themselves sports fans, are also the real losers from the ruling. Why? Because, as retransmission consent fee payments in the U.S. soar from $3.3 billion in 2013 to a projected $7.6 billion in 2019 (according to SNL Kagan), these fees will be used to help fund broadcasts of increasingly expensive sporting events in which many of these viewers have no interest.

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  • VideoNuze Podcast #233: Implications of Aereo's Supreme Court Loss

    I'm pleased to present the 233rd edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    This week the Supreme Court ruled against Aereo, essentially ending the ambitious startup's dream of providing low-cost, flexible online access to broadcast TV. Colin and I have discussed Aereo many times on previous podcasts. Both of us are disappointed by the decision and we discuss some of its many implications.

    Listen in to learn more!

    Click here to listen to the podcast (20 minutes, 5 seconds)



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    The VideoNuze podcast is also available in iTunes...subscribe today!
     

     
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  • Sony is Still Planning to Launch an OTT Pay-TV Service That Has Little Chance of Success

    In an interview with Recode on Tuesday, Sony Computer Entertainment America President and CEO Shawn Layden said the company is still planning to launch a "revolutionary" OTT pay-TV service by the end of 2014.

    However, as Intel learned with its own misguided OnCue foray, the big cable network owners aren't enabling any revolutions to occur in the pay-TV industry. To the contrary, they're working hard to extend the status quo. This, plus other factors, means the odds of success for Sony's nascent OTT pay-TV service are extremely low.

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  • FreeWheel Integrates Adap.tv for Programmatic TV Ad Trial

    FreeWheel is integrating Adap.tv's programmatic reserved technology with its FourFronts solution, so advertisers can use their proprietary data to buy select online video ad inventory from premium content providers.The integration is meant to support a trial announced earlier this month under which ABC and ABC Family initially, will allow select ad buyers to access reserved inventory.

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  • ABC to Test Programmatic Video Advertising With FreeWheel This Summer

    Programmatic video advertising took a small step into the TV world today as Geri Wang, president of ABC Sales, announced a trial this summer involving online video from ABC and ABC Family. The trial is being conducted with FreeWheel's FourFronts Programmatic solution, which will connect a limited number of media buyers with select demand side platforms (DSPs) using buyers' first-party and other data.

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  • Study: 70% of TV Viewers Now Consider Themselves Binge-Viewers

    The latest evidence supporting the craze around binge-viewing was released by consultancy Miner & Co., finding that 70% of U.S. TV viewers now consider themselves binge-viewers. Miner defined binge-viewing as watching 3 or more episodes in a single session. For most, binge-viewing is still a monthly activity (90%), followed by weekly (63%) and daily (17%).

    The survey found that 55% of binge-viewers and 61% of frequent binge-viewers were millennials. It also defined three categories of binge-viewers: "Streamers" (35%) who use services like Netflix/Hulu Plus/Amazon; "Marathoners" (18%) who watch TV marathons and "DVRers" (16%) who mostly binge-view using their DVR.

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  • TiVo: 10 Broadcast TV Programs Missed Out On $88 Million in Ad Revenue Due to C3 Limitations

    TiVo Research has released data indicating that time-shifting by viewers of 10 broadcast TV primetime programs to between 4-7 days following their initial airing resulted in approximately $88 million in total lost ad revenue by their respective networks (see chart below).

    For these 10 programs, TiVo found that the 4-7 day period increased ratings between 4.1% ("American Idol") to 10.9% ("Modern Family"). Because "American Idol" had the highest average number of ads per episode (61), it had the highest level of lost ad revenue in the 4-7 day period for the full season ($14.4 million). Conversely, "The Good Wife," which had an average of 29 ads per episode, but had the second-lowest 4-7 day ratings increase, had the  lowest level of lost ad revenue ($3.6 million).

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  • Aereo Launches PR Blitz Ahead of April 22nd Supreme Court Hearing

    Aereo has launched a PR blitz ahead of its April 22nd Supreme Court hearing, the centerpiece of which is a new advocacy site called "Protect My Antenna," which includes all of the court briefs, decisions and documents related to the Aereo case. The site also invites visitors to sign up for email updates. Presumably additional media, such as interviews with Aereo's founder and CEO Chet Kanojia will be added as well.

    Chet has been interviewed by many media outlets in the past couple of years (including VideoNuze, here and here), but a new one appearing today as part of the PR campaign is with Yahoo News anchor Katie Couric (embedded below). As he has done in prior interviews, Chet adroitly positions the case as being about far more than Aereo itself, but rather about the legitimacy of cloud computing, the expense of today's pay-TV bundles, consumer choice and the importance of innovation.

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  • VideoNuze Podcast #220 - Apple-Comcast is a Head-Scratcher; Aereo Defends the Cloud

    I'm pleased to present the 220th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. First up, we discuss the WSJ report from earlier this week that Apple and Comcast may be collaborating in some way to deliver video through a "managed service" from Comcast. Neither Colin nor I can understand why Comcast would enable anything in its territory that would be remotely competitive with its own video services, but since the WSJ was thin on details, we don't know enough yet to fully judge.

    We're also dubious about the fit for Apple given the company's emphasis on global scale for its products and also its premium positioning. And we're both struck by the regulatory red flags a "managed service" would raise for Comcast, at the very time they're trying to gain approval for the TWC deal. More of my thoughts are here.

    We then turn quickly to Aereo's Supreme Court filing this week. As expected, it paints the case as being about cloud services in general, not just copyright specifically. We agree it's a clever strategy that positions Aereo as pro-innovation and pro-consumer, making it harder for the Supreme Court to rule against Aereo this summer.

    Click here to listen to the podcast (19 minutes, 58 seconds)



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    The VideoNuze podcast is also available in iTunes...subscribe today!

     
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  • CBS Local Digital Media Draws Record 56.8 Million Uniques in January; Video Viewing Surges

    CBS Local Digital Media announced yesterday that its web sites and mobile apps drew a record 56.8 million unique visitors in January, up 37% vs. January, 2013, and 12% higher than the previous best month of April, 2013. Mobile is now up to 48% of total visits, and accounted for 27.1 million uniques, up 109% vs. January, 2013. There were also 30 million video clips viewed in January.

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  • Extreme Reach Closes $485 Million DG Deal, Positioning Itself for Multi-Screen Advertising Era

    Extreme Reach has closed its $485 million acquisition of DG's TV ad business, approximately 6 months after announcing the deal. Extreme Reach's CEO and co-founder John Roland told me this morning that all DG customers are being transferred to Extreme Reach's cloud-based delivery platform. The combined company will have $270 million in revenues and 750+ employees.

    As John explained, while the short-term tactical benefit of the deal is to gain significant scale in the core business of delivering TV ads to over 7K different broadcast TV stations in North America, the  longer-term, more strategic play is to better position Extreme Reach for the fast-approaching era of multi-screen advertising.

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  • Videoplaza Launches Aunia Private Marketplace for Big Broadcasters in Spain

    European video ad tech provider Videoplaza announced this morning that it has launched Aunia, a private, invite-only video ad marketplace for Spain's largest broadcasters. Videoplaza Founder and CEO Sorosh Tavakoli told me yesterday that Spain's challenging economic environment and the broadcasters' desire to tap into programmatic revenue motivated the initiative.

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  • VideoNuze Podcast #210 - Top 2014 Video Trends to Watch

    I'm pleased to present the 210th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    2014 is shaping up to be another very busy year for all things video. In this week's podcast, Colin and I share our top trends to look for in 2014 and why. And in the spirit of accountability, we also review our 2013 predictions from a year ago - what we got right and what we got wrong.

    Listen in to learn more!

    Click here to listen to the podcast (23 minutes, 26 seconds - sorry, for running long, lots of content this week.)



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    The VideoNuze podcast is also available in iTunes...subscribe today!

     
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  • Free, Short-Form Mobile Video News is Becoming a Hot Area for Established Media Companies

    Free, short-form mobile video news is becoming a hot area of focus for established media companies. The latest evidence is this morning's announcement by NBCUniversal News Group of a minority investment in NowThis News as part of a broader content development collaboration involving all of NBC's news brands.

    The investment follows the December acquisition of leading short-form mobile video news creator Newsy by E.W. Scripps for $35 million. That deal followed the launch by the New York Times, in late November, of the "New York Times Minute," a 3 times per day 1 minute video compilation of 3 top news stories of the moment which itself came on top of many other new video offerings from the Times. Meanwhile, in late December News Corp. acquired Storyful for $25 million to accelerate the use of short user-generated video in its and others' reporting.

    And all of these follow numerous clip-oriented video news initiatives by a wide range of established and earlier-stage news organizations across both general and vertical subject areas (e.g. sports, entertainment, travel, etc.).

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  • Akamai to Power NBC Olympics Video Streaming, TV Everywhere Again in Spotlight

    Akamai and NBC Sports announced this morning that Akamai will be powering video streaming, site performance and security services for the 2014 Winter Olympics on NBCOlympics.com and the NBC Sports Live Extra app. The Winter Olympics in Sochi, Russia will run from February 6-23.

    NBC Sports plans to stream over 1,000 hours of Olympics content, double what it did 4 years ago from Vancouver. Streaming will include all 15 sports across 98 different events, plus lots of exclusive content such as interviews, athlete profiles and backstories that have become standard Olympics fare.

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  • Aereo Raises Another $34 Million to Drive Expansion

    Aereo announced late yesterday that it has raised  $34 million in Series C financing. Adding to the $20.5 million in its Series A and $38 million in its Series B, Aereo has now raised a total of $92.5 million. The new funding will support Aereo's ongoing regional rollouts, plus new hiring and technology. Of note, the new financing includes Gordon Crawford, a well-known media investor, whose involvement certainly gives Aereo further credibility.

    Aereo is currently live in 10 markets, and said yesterday it plans to be live in 15 by the end of Q1. That's a downward revision from its expansion plan announced a year ago, which was to be in 22 cities by the end of 2013. Last September Aereo announced technical issues delayed its Chicago launch and hasn't updated when that area will go live.

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  • Top Video Analysts Debunk Myths of TV's Implosion and Mass Cord-Cutting [VIDEO]

    There are a lot of wild headlines these days proclaiming the death of TV and the prevalence of cord-cutting. But in a session I moderated at the recent VideoSchmooze event in NYC, Bruce Leichtman and Craig Moffett, two of the top video analysts around, shared their current data, which systematically debunks these mythologies. For anyone interested in what's really happening in the video business today, the session's video is a must-watch.

    Bruce and Craig believe that both technology and mainstream media are ginning up these mythologies because they make great headlines. In fact, both cited instances where their data said "x" but the media coverage ended up being "y." All of this underscores how important it is to read media coverage of the industry with a very critical eye.

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  • Aereo Asks for Supreme Court Review, Saying Cloud Computing Is At Risk

    Yesterday Aereo announced that it will not oppose the petition by the major broadcast TV networks (formally a "petition for a writ of certiorari") for a U.S. Supreme Court review of a ruling last May in Aereo’s favor. In that instance, the broadcasters were thrown for a pretty significant loss by Aereo when the U.S. Circuit Court of Appeals for the Second Circuit ruled preliminarily that Aereo’s business should not be halted due to alleged violations of the copyrights of broadcasters.  

    Normally it is big news when two sides so diametrically opposed like Aereo and the broadcasters seek (or at least willingly accept) review from the Supremes. But in this case there may be less than meets the eye (at least from a litigation perspective - see below).

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