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Pay-TV Industry Ekes Out Q1 Gain. Netflix Softens Its Tone. What's It All Mean?
Trying to get one's head around the true competitive dynamic between pay-TV operators and new "over-the-top" entrants is surely one of the most vexing exercises video industry executives face these days. The media's coverage only exacerbates things: when the pay-TV industry contracts for a quarter, the headlines imply cord-cutting is sweeping the nation, then when the pay-TV industry reverses and makes a small gain, the headlines suggest all is fine again in pay-TV land, and that Netflix is just a nice little complimentary service.
So it was again this week, as industry analysts released their Q1 pay-TV subscriber estimates showing that pay-TV operators as a whole eked out an increase of around 450K-500K subscribers. While that was a better showing than the past 2-3 quarters when the industry shed subscribers, it was also slightly worse than Q1 '10. Regardless, the first quarter is a seasonally-strong quarter for pay-TV, and so the gains must be tempered by what follows in subsequent quarters. The good news is that the economy is improving which can only help budget-minded households better afford expensive pay-TV services.
Categories: Aggregators, Cable TV Operators, Satellite, Telcos
Topics: Netflix
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VideoNuze Report Podcast #98 - May 5, 2011
I'm pleased to present the 98th edition of the VideoNuze Report podcast, for May 5, 2011.
In this week's podcast, Daisy Whitney and I discuss YouTube's forecast that by 2015, 50% of video ads will include cost-per-view video, which I wrote about earlier this week. If the forecast pans out, it would cause a huge transformation in the way the online video ad market works, since virtually all of today's in-stream video ads don't have any performance aspect.
As we discuss, the move isn't that surprising, as it attempts to re-shape the video ad market to look more like the search advertising market, which Google dominates. By aligning engagement with advertiser payments, there's clearly more efficiency. But it would be a radical departure from the way TV advertising has traditionally been bought, so it would take a concerted effort by brands and agencies to adapt to the model. Listen in to learn more.
Click here to listen to the podcast (13 minutes, 18 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!Categories: Advertising, Podcasts
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ELEVATE Conference Gains Momentum With New Speakers, Sessions and Partners
Our ELEVATE: Online Video Advertising Summit, coming up on Tuesday, June
7th in NYC, is continuing to gain significant momentum and I'm pleased to share new speakers, sessions and partners today.
We've added a new morning session, "Content Publishers Crack the Code on Video Success," in which we'll hear from leading publishers and technologists about how their video initiatives are becoming increasingly sophisticated, particularly with regard to discovery, recommendations and advanced monetization. The panel includes:
- Kevin Krim - Global Head of Bloomberg Web Properties
- Doug Knopper - Co-Founder and Co-CEO, FreeWheel
- Adam Singolda - CEO and Founder, Taboola
- David Eun - Former President of AOL Media and Studios (moderator)
We've also added an afternoon session, "Making Ad-Supported, Independently-Produced Video Profitable" in which we'll focus on how a new breed of video content producers are mastering the art of creating video specifically for the web - and making it profitable. This session includes:
- Raj Amin - CEO and Co-Founder, HealthiNation
- Ron Bloom - Chairman and Co-Founder, MEVIO
- Joanne Bradford - Chief Revenue Officer, Demand Media
(and a moderator TBD)
Categories: Events
Topics: ELEVATE, VideoSchmooze
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YouTube: By 2015, 50% of Video Ads Will Include Cost-Per-View Video
At WPP Group's Global Video Summit yesterday afternoon, hosted by Kantar Video, GroupM and WPP Digital, Baljeet Singh, YouTube's product manager for video monetization reiterated a bold assertion YouTube has made periodically
over the past 6 months: by 2015, 50% of video ads will include cost-per-view video.
Baljeet defines "cost-per-view" as an engaged view of a video ad where "engaged" means the user chose to watch that video in some way. The vast majority of today's in-stream pre-rolls, mid-rolls and post-rolls that auto-play during the content experience wouldn't qualify under the definition. If YouTube is right, then massive change is coming in how online video ads are created, purchased, valued and measured.
Categories: Advertising
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5 Lessons AOL CEO Tim Armstrong Has Learned About Online Video Success
At WPP Group's Global Video Summit yesterday afternoon, (hosted by Kantar Video, GroupM and WPP Digital), AOL CEO Tim Armstrong shared 5 lessons he's learned for online video success:
1. Dedicated teams for video are required; it's too important to share resources
2. Video assets must be organized and catalogued; most companies don't even know how much or what they own as he found when he arrived at AOL 2 years ago
3. A great video player is needed; it's at the center of the user experience
4. Video should be put everywhere; distribution is crucial
5. Collecting data on video performance is essential; data is particularly useful in determining the optimal ad formats and user experience
Categories: Indie Video, Portals
Topics: AOL
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Survey: 65% of Media Buyers Plan to Shift Spending from TV to Online Video
Online video ad network BrightRoll has released results of its Q1 '11 survey of media buyers' attitudes towards online video, and no surprise, they are yet again quite bullish. Several data points highlight online video's growing appeal; in particular the survey found 65% of respondents said they plan to shift campaign dollars from TV to online video. Beyond TV, as the chart below shows, display advertising is actually the spending bucket likely to see the biggest shift to online video, with 86% of buyers planning to move some of their display budget to online video.
Importantly, 28% of media buyers forecast online video will see the largest increase in spending in 2011, with mobile video right behind at 27%. Online video is also becoming a more common component of all ad campaigns, with 27% of media buyers saying that over half of their request for proposals included an online video component. 41% of buyers reported targeting as the most valuable aspect of online video advertising to their clients. Within targeting, the most beneficial form is behavioral, followed closely by contextual and demographic.
Categories: Advertising
Topics: BrightRoll
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PBS Enhances Video Search for Thousands of Its Videos
PBS is announcing this morning that users of PBS.org can now search transcripts of 7,000 free videos available on the site using filters such as program title, producer, local PBS station, airdate and content format across a range of programs including Nova, Frontline, American Experience, PBS Newshour and others. Users will be able sort and share their search results with others. The search feature is enabled by RAMP, which is creating and managing the videos' metadata.
Categories: Broadcasters
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HBO GO Launches on iOS and Android Devices: A Necessary But Insufficient Step
Today marks the "official" launch of HBO GO - the premium cable network's authenticated TV Everywhere service - on mobile devices running iOS (iPad, iPhone, iPod) and the Android OS, although it has been technically available since late last week in the iTunes App Store and Android Market. HBO signaled May 2nd as the date of availability in a teaser video posted last month on YouTube, and I'm guessing a press release will be forthcoming.
With the iOS/Android rollout, HBO has taken a necessary, but insufficient step toward improving its standing in a world that has grown dramatically more competitive in a very short time. HBO GO, which is only available to HBO subscribers, and even then, only to those whose pay-TV operator has a deal to authenticate HBO GO, is narrowly focused on delivering more value to those who have already chosen to subscribe to HBO. As HBO co-president Eric Kessler told the NY Times in February, "It's about enhancing the satisfaction and continuing the life cycle of the subscriber."
Categories: Cable Networks, Devices
Topics: Android, HBO, iOS, Netflix
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