I'm pleased to present the 228th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
This week we first discuss how broadband's penetration in the U.S. is closing in on that of pay-TV's. New research from Leichtman Research Group revealed the top providers added nearly 1.2 million broadband subscribers in Q1 '14 (the best quarter in 2 years), as compared with around 260K pay-TV subscribers. The biggest ISPs now have approximately 85.5 million broadband subscribers, whereas the top pay-TV operators have 95.8 million subscribers.
All of this is relevant because it demonstrates how broadband has become a de facto parallel video distribution platform - the fundamental underlying infrastructure for online video. Many of us take robust broadband almost for granted now, yet in reality it wasn't that long ago that broadband wasn't mainstream and high-quality online video quite scarce.
We then move on to talk about Netflix's big expansion into 6 new European countries. Colin lays out the case why to be bullish on the expansion, while also noting the new challenges Netflix will face.
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Click here to listen to the podcast (18 minutes, 57 seconds)
I'm pleased to present the 227th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
This week we dig into the Turner-Comcast deal from earlier this week, under which Turner is providing past seasons' and full current season's episodes to some of its most popular programs to Comcast for viewing on VOD and TV Everywhere. As I wrote earlier this week, a key enabler of the deal is Turner's ability to dynamically insert ads in the on-demand streams.
Colin and I agree that, to the extent the deal becomes a template for others, it could have a wide-ranging impact on the ecosystem. To date, Netflix and other OTT providers have been able to aggregate huge libraries of past seasons' episodes, which have fueled binge-viewing.
But as advertising in VOD/TVE grows and improves, it could become the financial foundation for operators to gain far greater content rights. That in turn could change the negotiating balance for content and perceptions of pay-TV operators. Colin and I explain what could be ahead.
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(Note also Colin is hosting a free webinar next Tuesday on Fox Sports Go TVE app. Sign up here.)
Click here to listen to the podcast (19 minutes, 49 seconds)
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.
Netflix will be integrated by 3 small U.S. cable TV operators via TiVo, per a joint announcement by the companies. Atlantic Broadband, Grande Communications and RCN will begin integrating Netflix in multiple ways: by assigning Netflix its own channel in their on-screen guides, exposing the Netflix app for quick access to sign-up or login and incorporating Netflix content in recommendations and search results alongside linear, VOD and the subscriber's DVR content.
For Netflix, the deals follow similar implementations in Europe with Virgin and Com Hem. Netflix has avidly pursued inclusion in the primary pay-TV experience, helping it become even more mainstream by eliminating the step of switching inputs to a connected device. Another benefit to Netflix is the cable operators will also integrate with Netflix's Open Connect content delivery platform.
There are many different ways to think about the deals; below are 5 of my key takeaways:
I'm pleased to present the 224th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. This was an unusually busy week with many industry announcements, so today's format is a roundup discussion of four items that seemed most significant to us.
First up is HBO's exclusive new licensing deal with Amazon, which is the latest evidence of the surging value of high-quality content libraries. Second is Apple's reveal that it has sold 20 million Apple TVs to date, making it more than just a "hobby." Next, we turn to Netflix, which reported stellar Q1 results earlier this week. Finally, we look at Comcast's Q1 and Time Warner Cable's Q1 results. Both companies reported healthier video subscriber numbers (though Verizon reported a much smaller quarter for FiOS video subscribers). The question still looms how meaningful cord-cutting is in reality.
(Note, we had major technical issues with Skype this week, so in the last one-third of the podcast I sound like I'm in a fish tank. Apologies in advance.)
Click here to listen to the podcast (17 minutes, 46 seconds)
Netflix announced strong financial performance for Q1 '14 late yesterday, continuing its momentum from 2013. The company reported a total of 48.35 million global subscribers, including 35.67 million in the U.S. and 12.68 million internationally. That was up a total of 6.25 million subscribers vs. the end of 2013, and just slightly behind the 6.4 million subscribers added in Q4 '13.
It's becoming harder and harder to remember the days when YouTube was principally known for its quirky user-generated videos featuring cats on skateboards and the like. The evidence of YouTube's transformation into a legitimate video distribution powerhouse seems to pop up on an almost daily basis. Here are a few of the disparate items that have hit my radar:
I'm pleased to present the 219th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia, who was at the TV Connect conference this week in London. First, up, Colin shares some of what he heard from Francisco Varela, YouTube's global director of platform partnerships. Francisco talked about YouTube taking back development of their apps from Smart TV manufacturers so users can have more immersive experiences.
We then turn our attention to the settlement of the Google-Viacom litigation, over alleged copyright infringement by YouTube, dating to 2007. It's legitimate to ask if there was ultimately any point to the litigation. As I explain though, I agree that at a minimum the litigation accelerated the development of YouTube's Content ID system which has been very valuable to the entire ecosystem.
Last, we also discuss new research from Vubiquity which found that 58% of respondents said they're interested in downloading TV shows and movies included in their pay-TV subscription. This echoes my bullishness on TiVo Stream's download feature which I've found extremely useful.
Click here to listen to the podcast (19 minutes, 24 seconds)
I'm pleased to present the 216th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. In today's podcast, we first discuss Disney Movies Anywhere, which launched this week. Both of us like it a lot (more of my take here). Colin believes it could also become a huge threat to UltraViolet if one other major studio were to adopt Disney's KeyChest technology.
Then we turn our attention to the Netflix-Comcast interconnection agreement, which has taken on a life of its own this week. It's rare when Colin and I see the world completely differently, but in this case, we do. Colin believes the deal sets a dangerous precedent because Netflix is being provided "extraordinary access" to Comcast's network and also that, going forward, if a content provider wants to get good performance on Comcast's network, it would have to do a deal with Comcast.
I don't see it this way. As I wrote earlier this week, the deal strikes me as business as usual, with the joint press release specifically saying "Netflix receives no preferential network treatment." Netflix made a business decision to negotiate directly with Comcast and manage/deliver their content themselves rather than work through a CDN which is what the vast majority of content providers do. This path obviously made sense for Netflix, but remember, it's in a somewhat unique situation because it accounts for 1/3 of all Internet traffic at certain times.
Because Netflix and Comcast said so little about the deal themselves, and because there is so much suspicion of Comcast (and other broadband ISPs) regarding net neutrality, market power, etc., a lot more has been read into this deal than I believe is warranted.
Colin and I have a very vigorous debate on these issues and ultimately agree to disagree :-)
Click here to listen to the podcast (30 minutes, 27 seconds)
There's lots of ink being spilled about yesterday's Netflix-Comcast interconnection agreement with some saying this is basically just "business as usual," while others are proclaiming that this is the "end of the Internet as we know it" and "evidence that net neutrality is required."
I'm not a network engineer, but since I've worked in the space long enough, I know enough to be dangerous. And from my vantage point, it seems like this is an appropriate, market-driven solution to a problem that is somewhat unique to Netflix, which now drives around 30% of the Internet's traffic during primetime hours.
I'm pleased to present the 213th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. Today we focus on Amazon, which is already an important player in video, and is poised to become more so. Among the topics we discuss:
- plans to increase the price of its Prime service (and the role of expensive video licensing in driving this)
- the possibility video could be split off from Prime and become a more pure competitor to Netflix and others
- the many roles that video advertising could play as part of a new deal with FreeWheel
- why an Amazon connected TV device (widely rumored) would be highly strategic
- whether Amazon will enter the pay-TV business (as has also been widely rumored)
- the role of Amazon's original online productions
All in all, Amazon is circling the video space in many different ways, with potential to be quite disruptive. It's still very early in the game for Amazon and 2014 could be a big year. We'll see how it plays out.
Listen in to learn more!
Click here to listen to the podcast (22 minutes, 32 seconds)
Yesterday, FreeWheel quietly announced that it's powering video ads for Amazon. Though the announcement was light on details, anytime Amazon moves into a new space, as it's doing with video ads, it's noteworthy. I spoke to Doug Knopper, co-CEO of FreeWheel, who noted this is the company's first customer that isn't a pure media company, underscoring for him how ubiquitous video and video advertising are becoming.
Though under tight constraints from Amazon about what he could say, Doug emphasized that, as with all Amazon initiatives, the focus is on creating a better customer experience. In FreeWheel's release, Lisa Utzschneider, Amazon's VP of Global Ad Sales positioned video ads as a discovery vehicle, helping customers learn about related products.
A new report from research firm GfK has found that 56% of U.S. pay-TV subscribers now use VOD or a TV Everywhere offering from their provider, with 41% saying they use OTT subscription streaming services like Netflix, Hulu Plus, and Amazon Prime. However, of those that use both, 44% rated streaming services “better” than VOD, while 27% said they preferred VOD, and 29% said the two are equal. The good news for VOD is that this preference flips for those that use VOD more than once a week, with 43% preferring VOD, 30% OTT streaming and 27% equal.
In addition, for these regular VOD users, 57% said VOD has "excellent" or "very good" content variety compared to 55% for streaming. But those who use VOD less than once a week thought that streaming services were highly superior in content choice - 67% vs. 28%.
I'm pleased to present the 211th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
In today's podcast we review Netflix's stellar 2013 results, particularly focusing on international. Then we discuss how Verizon will use OnCue, part of the Intel Media assets it acquired earlier this week. Colin sees them as key to upgrading the current FiOS service. I think that's right short-term, but longer-term I see Verizon using the assets to launch a nationwide virtual pay-TV services delivered over both wired and wireless networks. If Verizon does, it could really shake up the industry.
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Click here to listen to the podcast (21 minutes, 23 seconds)
A year ago, following Netflix's Q4 '12 earning report, I wrote "Netflix Q4 Earnings Improve, But It's Not Time to Pop the Champagne Just Yet." Well, now, following yesterday's strong Q4 '13 earnings report, I think it is that time as Netflix capped off a bona fide champagne year. Below are my key observations, broken into the same buckets as my analysis a year ago.
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.
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Click here to listen to the podcast (23 minutes, 26 seconds - sorry, for running long, lots of content this week.)
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.
Netflix released new research on binge-viewing among its subscribers today, revealing that 61% of them binge-view at least 2-3 episodes every few weeks. The data adds yet more weight to the binge-viewing story line: in September Nielsen found that 88% of Netflix subscribers have watched 3 or more episodes in the same day (70% for Hulu Plus) while research from Piksel found 94% of viewers binging in one way or another. (caveat, there's some apples vs. oranges in comparing the data)
No other company has done more to promote binge-viewing than Netflix. Whereas the phenomenon started with viewers binging past seasons of shows like "Mad Men" or "Breaking Bad," Netflix has shrewdly capitalized by releasing all of its own original episodes at once, making binge-viewing a current season behavior as well. As a result, TV network executives must now ask whether their traditional approach of scheduling new episodes should be revamped.
I'm pleased to present the 206th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
This week we discuss 3 of our key takeaways from this past Tuesday's VideoSchmooze, which over 230 industry executives attended. The morning was jam-packed with learning and insights, which I'll continue to share in the coming weeks, along with the session videos.
First, Colin shares the observation of Craig Moffett, who was on the opening session, that many content providers are assuming Netflix/other OTT providers are not a substitute for pay-TV over time. Craig believes this is an incorrect assumption and that if content providers come to depend too heavily on digital licensing revenues from Netflix and others, they run the risk of addicting themselves, even if/when their core businesses suffer due to audiences shifting.
Next, on the mobile video session I moderated, Silvia Lovato from PBSKids Digital shared the stunning data point that 75% of its viewership from its 2-5 year-old audience now occurs on mobile devices. I believe this has incredibly profound societal implications 10, 20 and 30 years down the road, as kids learn from the earliest age to expect programming fully on-demand.
Last, we turn to Smart TVs. On the online video advertising session, John Nitti from ZenithOptimedia (who oversees $10 billion of client spending) Eric Franchi from Undertone said Smart TVs are too fragmented to be an appealing environment for advertisers for now. As more online viewing shifts to the big screen, it's imperative that advertising follow, but the separate ecosystems of each Smart TV manufacturer makes it difficult for both developers and advertisers for now. Some form of aggregation/streamlining must occur to create the scale advertising requires.
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Click here to listen to the podcast (19 minutes, 16 seconds)
Digitalsmiths has released its quarterly survey on consumer behavior around pay-TV and VOD, finding that consumers are continuing to “cord cheat,” with 48% supplementing their pay-TV subscriptions with OTT services, up from 35% reported in Q2 '13. Most popular for these consumers was Netflix (42%), while for individual movie rentals Redbox kiosks took the lead at 17%.
Digitalsmiths believes cord cheating is a big threat to pay-TV providers and said they must adapt and better support consumer expectations. According to the survey, the top reasons consumers are choosing OTT services like Netflix, Hulu or iTunes are because they are more convenient (53%), cheaper (48%) and allow full season TV viewing (31%).