VideoNuze Posts

I’m pleased to present the 409th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.

On this week’s podcast we dig into NBCUniversal’s decision to reduce the number of ads in commercial pods by 20% and ad time by 10% across all its networks in prime time. Colin and I agree that it’s a clear recognition that the traditional TV ad experience isn’t sustainable for viewers or advertisers.

But how the move will ultimately work out for NBCUniversal isn’t clear. Colin is skeptical that the math is going to add up, citing larger industry headwinds, such as Netflix’s massive content investments, that will keep depleting TV audiences. While the challenges are steep, TV does have certain inherent advantages and the move is a start in the right direction. It will be fascinating to see how things unfold.

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Yesterday, NBCUniversal announced plans to reduce the number of ads in commercial pods by 20% and reduce ad time by 10% across all its networks in prime time. The move will almost certainly meet its goals of creating a better viewer and advertiser experience. But an overarching question is whether it will ultimately benefit NBCUniversal and the broader TV industry? The answer to these questions lie in whether NBCUniversal can make the math work on fewer ads and less ad time.

Obviously it’s a risky move for any business to reduce the quantity of what it sells, betting that customers will be willing to pay more for a scarcer resource. But basic laws of supply and demand are in NBCUniversal’s favor: when supply is reduced, then even at constant demand, prices should rise.

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Pixability has launched a self-service platform for buying video ads across YouTube, Facebook and Instagram. As Pixability’s CTO Andreas Goeldi and Chief Product Officer Alan Beiagi told me in a briefing, the move means that all of the company’s buying tools which have been available only as a managed service to date, will now be available for self-service.

Pixability believes this is the first time ad buyers have had self-service access to buying tools across these major social networks. The initiative comes in response to major agencies being under pressure to provide more value for clients and take more control over the video ad buying process. Pixability unifies buying and reporting across social networks that have their own disparate ways of targeting users.

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JW Player and SpotX recently announced a new header bidding solution to drive improved video ad monetization across JW’s huge base of content publishers. Dubbed “Video Player Bidding,” the solution is meant to radically simplify and accelerate JW publishers’ implementation of header bidding, while exposing their inventory to SpotX’s deep pool of demand sources. I caught up with JW’s co-founder and SVP, Strategic Partnerships Brian Rifkin and SpotX’s CRO Sean Buckley, to learn more.

For those not familiar, header bidding is a way for publishers to increase yield on their ad inventory, by simultaneously accepting bids from various demand sources, with the highest bid winning. The approach contrasts with the traditional “waterfall” model, whereby bids are sequentially evaluated. As programmatic buying has gained in display ads, header bidding has become widely used.

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YouTube TV, which launched less than a year ago and ended 2017 with around 300K subscribers, looks poised for strong growth in 2018. YouTube TV entered the crowded vMVPD or “skinny bundle” space with competitors Sling TV, DIrecTV Now, PS Vue, Hulu With Live TV and fuboTV. YouTube TV expanded from 5 initial markets to over 80 by the end of 2017, with plans to expand to over 100 soon, which it believes will cover 85% of the U.S. households.

It’s always hard to tell just how serious Google is about any new initiative given its massive resources and willingness to experiment and quickly shut something down. But YouTube TV is showing signs of being a serious initiative, not only because of its rapid expansion. Last fall, YouTube TV really hit my radar when it served as the presenting sponsor of the World Series, a deal which must have easily run into the 7 figures or more, raising huge new awareness and starting the redefinition of what the YouTube brand stands for.

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Virtual Multichannel Video Programming Distributors (“vMVPDs”) or “skinny bundles” have become a very hot topic in the video industry. Offering fewer TV networks and at a lower monthly price they’re seen as a way of keeping cord-cutters in the ecosystem while attracting cord-nevers. To learn more about the dynamics of vMVPDs, industry research firm (and long-time VideoNuze partner) The Diffusion Group recently completed a comprehensive study of vMVPD subscribers. I interviewed Michael Greeson, TDG’s president and director of research, to learn more.

VideoNuze: From a top-line perspective, what are the most important takeaways from your research?

Michael Greeson: First and foremost, while these services are successfully connecting with cord-cutters, they are entirely missing out with cord-nevers. Cord-cutters account for 54% of total vMVPD subs. The consumers were largely driven from legacy services by high service costs and paying having to pay for channels they don’t watch, and vMVPD services appear to better address these needs.

Cord-nevers, on the other hand, account for only 9% of vMVPD subs—clear evidence that these offerings are failing to resonate with younger buyers. And for good reason: cord-nevers are largely driven by a genuine lack of interest in multi-channel pay-TV services. They prefer a ‘build it yourself’ service that allows them to select and pay for only the channels they want, versus signing up for a bundle of channels.

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I’m pleased to present the 408th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.

Roku reported a strong Q4 ’17 holiday quarter this week as it continues to transition to an ad-based business model driven off its 19 million+ active users. Roku is in the middle of all of the industry key trends and Colin and I discuss the company’s results and how we see the business going forward.

We then turn to how HBO and Showtime have been revitalized by OTT delivery. 2017 results show how both traditional networks are using direct-to-consumer and new online distribution models to make their programming more easily accessible to viewers and achieve record subscribership. Their success is a textbook example of how OTT is shaking up longstanding industry norms.

Listen in to learn more!

 
Click here to listen to the podcast (24 minutes, 2 seconds)

Click here for previous podcasts

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

A couple of weeks ago, RhythmOne closed its acquisition of YuMe, one of the original leaders in video advertising. The deal was announced last September and was valued at approximately $185 million. The deal is the latest in a series of mergers and acquisitions consolidating the fragmented video ad tech landscape. To learn more about the deal and RhythmOne’s plans, I interviewed Dan Slivjanovski, ‎Chief Operating Officer.

VideoNuze: Explain what RhythmOne does and why it acquired YuMe

Dan Slivjanovski: RhythmOne connects advertisers to audiences through a combination of differentiated supply, innovative technology and data-driven insights. Our end-to-end platform, called RhythmMax, offers direct, efficient and effective connections, driving ROI for advertisers and publishers. We were founded in 2004, focused primarily on internet video search. In 2007, we became a public company, and are traded on the AIM exchange, or the LSE, in London.

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