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No Surprise, No Deal for Hulu. Here's What Changed.
Last evening, Hulu's owners announced in a short statement that the company will not be sold after all. The news came as no surprise to me. VideoNuze readers will recall that back on June 22, when the first rumors of Hulu potentially being up for sale surfaced, I posted, "Here's Why Any Deal for Hulu is Unlikely."
In that post I explained how Hulu's primary asset - next-day distribution rights to ABC/Fox/NBC programs - would be at the heart of its valuation. The
big challenge with selling Hulu was that its owners would have to pass these rights (albeit likely reformulated) to an unaffiliated and uncontrollable 3rd-party, at the same time as online video delivery has injected massive uncertainty into their businesses. This issue, rather than lower-than-expected bids as some have tritely suggested, is why Hulu's owners ultimately decided to pull Hulu off the block.
Though this was always the central issue in any Hulu deal, I believe 3 things happened in the past 4 months that crystallized the importance for Hulu's owners of maintaining full control of their distribution rights:
Categories: Aggregators, Deals & Financings
Topics: Comcast, Disney, Hulu, News Corp.
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RealGravity Seeks to Shake Up Video Platforms and Syndication With All-in-One Solution
Newcomer RealGravity is looking to shake up online video platform/publishing and syndication with a no-commitment, risk-free, all-in-one solution.
RealGravity hit my radar recently as it is powering CineSport, which has become one of the top online video sports properties this year (recently with more viewers than Yahoo Sports, ESPN and SI Digital) by focusing exclusively on syndicating its content to larger 3rd-party publishers.
As VideoNuze readers know, online video syndication has been a focus of mine for several years, as I'm a big believer that it's critical for generating audience and revenues, particularly for smaller content providers that lack well-trafficked destinations. RealGravity is providing important infrastructure for fueling syndication, and recently I caught up with Luke McDonough, co-founder and CEO to learn more about what makes RealGravity different.
Categories: Syndicated Video Economy
Topics: RealGravity
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Over $236 Million Raised in Q3 '11 By Private Online/Mobile Video Companies
Private online and mobile video companies raised at least $236.5 million in Q3 '11, the largest amount since Q2 '10 when $247 million was raised. It's also a huge rebound from Q2 '11's $84 million which was the lowest in the past 2 years. I've compiled the total from numerous sources I track and as always, it is possible that I missed some news during the quarter. If so, please let me know and I'll update the list.
As detailed below, the $236.5 million was raised by 20 companies, with 2 additional financings undisclosed (ClipSync and Ooyala). Of the $236.5 million, 62%, or $147 million, flowed to just 5 companies, Tango ($42M), Tremor Video ($37M), Thought Equity Motion ($25M), Vidyo ($22.5M) and Zenverge ($20.5M). All of these were later stage rounds in companies that had previously raised substantial sums.
As I always like to add in these roundups, too much shouldn't be read into one quarter's data as financings close when they do - a few days one way or the other and quarters can look very different.
Still, the number and breadth of the financings across the online and mobile video value chain - from chips to monetization - is solid evidence that investors remain bullish on video's potential. This should continue as video usage increases, devices proliferate and advertisers accelerate their spending.
In addition to the financings, there was also significant M&A activity and public financings in Q3, which are noted below.
Categories: Deals & Financings
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Early Bird Registration Now Open for VideoSchmooze:NYC on Nov. 30th
Early bird discounted registration for the next VideoSchmooze:NYC Online Video Leadership Forum, on Wednesday morning, Nov. 30th, is now available.
This will be the 8th VideoSchmooze that VideoNuze has hosted and it promises to be the best yet, packed with lots of learning and networking with industry leaders in an expanded morning format from 7:30am-11am at the Harvard Club of NYC.
Following breakfast, the program will begin with Eric Kessler, co-president of HBO, discussing HBO GO, the network's highly successful online/mobile TV Everywhere app. Eric will provide an update on key usage metrics and what's ahead. Then I'll do a fireside chat with Eric where we'll delve into larger industry issues including over-the-top challenges from Netflix, Hulu, Google/YouTube, Amazon and others, the changing landscape for premium video online and TV Everywhere's status.
Categories: Events
Topics: VideoSchmooze
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Netflix Stock Hits 52-Week Low Amid Fear of a Potential Q3 Subscriber Debacle
If Netflix investors were hoping that the company's decision to scrap its Qwikster spin-off might re-energize its beaten-down stock, then they're
sorely disappointed as it instead hit a new 52-week low today of $111.62, down nearly 5%, even as the Dow Jones rallied by 330 points. On the positive side, the DVD reversal shows Netflix management was willing to be flexible, but on the other hand, the quick change unnerves investors looking for a steady hand on the tiller.
Mostly though, the number 1 question now is why did management abruptly change course and dump Qwikster overboard?
Categories: Aggregators
Topics: Netflix
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Netflix (Partially) Comes to Its Senses, Drops Qwikster DVD Plan
Whew. Sanity has (partially) returned to Netflix as the company has announced that it won't pursue a colossally misguided plan to split off its DVDoperations as "Qwikster" after all. A blog post from CEO Reed Hastings begins "It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs."
While this is certainly true, what the post leaves unsaid - but which is even more fundamental to Netflix - is that DVDs remain absolutely essential to the company's success and will for some time to come. By not fully embracing this, the company seems to be ignoring reality. No doubt this led to the Qwikster move in the first place, and now also raises the risk of additional missteps down the road.
Categories: Aggregators
Topics: Netflix
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Cinemark Shouldn't Worry: Universal's "Tower Heist" $60 VOD Test Will Also Flop
Late yesterday, the LA Times reported that Cinemark, the 3rd-largest theater chain in the U.S., will boycott "Tower Heist," the new Eddie Murphy-Ben Stiller comedy, because of a test unveiled by its studio Universal Pictures to offer the movie just 3 weeks after its theatrical release for $60 on video-on-demand. Cinemark is concerned that the test would cannibalize box office sales. From my perspective, it needn't worry much as the test is likely to be yet another flop in what has become known as "Premium VOD."
Categories: FIlms, Studios, Video On Demand
Topics: Cinemark, Universal Pictures
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Music Choice Raises the Bar on TV Everywhere Distribution
Music Choice, which delivers dozens of channels of streaming music to over 50 million homes in the U.S. via digital set-top boxes, is raising the bar on TV Everywhere by offering its whole array of
services via the cloud to connected and mobile devices. In an initiative announced last week, Music Choice is partnering with content management provider Sitecore, digital media platform Unicorn Media and Microsoft's Windows Azure cloud service.
Categories: TV Everywhere
Topics: Azure, Microsoft, Music Choice, Sitecore, TV Everywhere, Unicorn Media
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