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In Unprecedented Deal, Google and Apple Team Up to Privatize the FCC
VideoNuze has learned that Google and Apple have teamed up to privatize the FCC in a transaction preliminarily valued at $42.5 billion. Though the U.S. government is already widely believed to be controlled by corporate interests, this is the first time that a formal deal to transfer ownership of a government agency has been contemplated. The deal has far-ranging implications for the media and technology industries, not to mention for American democracy. VideoNuze has gained exclusive access to the details.
In an interview last night, Google's CEO Eric Schmidt provided background: "Larry, Sergey and I were recently working on this new algorithm to fix the pickle we've gotten ourselves into in China. The boys are still just so incredulous that this is happening; they keep on saying 'We're Google for chrissakes, we can't let mere countries boss us around!' But then we got to thinking, yikes, what if the U.S. government started treating us this way? That would really suck."
He continued, "And then it just hit us all at the exact same nanosecond (we're so wondrously simpatico that way) - what if, instead of being subject to the regulatory powers-that-be, we owned the regulatory powers-that-be?" But then, Larry's like 'Hmm, I'm not so sure about this guys - even though it would be wicked cool, would the public really let us pull it off?' Now, Larry can be a little bit of a Nervous Nellie, but in this case he had a good point. And then, boom, yet another brilliant idea hit us at the same nanosecond (I know it sounds freakish, but this really does happen with the three of us). We thought, 'What company can we partner with whose brand is walk-on-water loved and can do absolutely no wrong? And we all agreed - it's Apple of course!"
In a follow-up interview, Apple's CEO Steve Jobs added further detail, "I was sitting in my office micro-managing the legal weenies on this HTC lawsuit aimed at gumming up the Nexus One's rollout when my iPhone rings with Eric's caller ID. Ordinarily I wouldn't even answer that back-stabbing, lying sack of you-know-what's call but I wanted to rub his nose in our big legal plans. So I nonchalantly answer the phone, 'What's up dirtbag, looking for some more of Apple's product ideas to steal?' And he's like, 'yeah, whatever, look, here's why I'm calling.' And then he proceeds to tell me about this cockamamie scheme that he and those two Doogie Howser co-founder dorks of his have come up with, to privatize the FCC." Jobs went on:
Categories: Miscellaneous
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Encoding.com Offers Multi-Bit Rate Support to Meet Spec for iPhones/iPads
This morning Encoding.com is announcing support for multi-bit rate encoding and "stream segmenting," to let its customers comply with Apple's HTTP streaming spec for delivering video in iPhone and iPad apps. Last week, Encoding.com's president Jeff Malkin explained to me that several of its customers had reported that video apps they had submitted to Apple for approval in the App Store had been rejected because they didn't offer multiple bit rates. A post last week on TechCrunch provided more background on Apple's requirements.
Encoding.com now offers its customers 3 pre-set encoding rates with additional ones configurable on demand. Subsequent to encoding and splitting the video into multiple segments, Encoding.com packages up the files and
delivers them with XML to the specified CDN for HTTP streaming from standard web servers. The goal of multiple bit rates is to let the video adjust to varying available bandwidth, which in turn helps smooth the user's experience. Jeff reported that CarDomain, the largest auto enthusiast site, is now using Encoding.com's multi-bit rate. CarDomain had seen its app rejected by Apple repeatedly due to "bandwidth usage limitations."
The backdrop here is that with more and more apps incorporating video, when WiFi isn't available, AT&T's 3G network comes under ever-increasing pressure. Just last week I posted on the sub-par experience several iPhone users I've surveyed have been having when trying to access the premium iPhone March Madness app on AT&T's 3G network (though to be fair a few others commented that their access has been ok). I had been surprised that Apple and AT&T felt confident enough in the latter's 3G network to approve this app in the first place, given the likely concurrence of viewing.
AT&T is obviously feeling more confident in its network - or at least in the buffer that Apple is creating by enforcing the multi-bit rate requirement - that more video-intensive apps seem to be passing through the approval process. In addition to the MMOD app, other examples include the new SlingPlayer app, announced last month, and Justin.tv's video app, which was unveiled last week. AT&T is likely trying to be more aggressive with these video apps as news continues to filter out that its iPhone exclusive will expire this year, opening up competition from other carriers.
Mobile video adoption is still well behind online, but the proliferation of mobile devices and apps that support video will no doubt accelerate usage. The next big device catalyst will of course be the iPad, coming this weekend. And as more ecosystem partners like Encoding.com provide the underlying tools to deliver seamless mobile video experiences, even more video-centric apps can be expected.
What do you think? Post a comment now (no sign-in required).Categories: Mobile Video, Technology
Topics: Apple, AT&T, CarDomain, Encoding.com, iPad, iPhone, Justin.tv, MMOD, Sling
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Join Me at VideoNuze's Next "VideoSchmooze" Event: April 26th, NYC
Please join me for VideoNuze's next "VideoSchmooze" Broadband Video Leadership Evening, on Monday evening, April 26th from 6-9pm in New York City.
We have a great panel lined up, which I'll moderate: "Money Talks: Is Online Video Shifting to the Paid Model?" Our group of executive panelists represents multiple perspectives:- Jeremy Legg - SVP, Business Development, Turner Broadcasting System, Inc.
- Damon Phillips - VP, ESPN 360 (soon to be ESPN 3)
- Avner Ronen - CEO and Co-founder, boxee
- Fred Santarpia - General Manager, Vevo
Click here to learn more and register for the early bird discount
With everything that's happening in the online video world, we'll have no shortage of topics to discuss. Monetization and distribution opportunities abound; for example, just in the last couple of weeks on VideoNuze I've
described the new ad formats that blip.tv has recently introduced, the escalating battle for movie rentals between different platforms, the new "Google TV" set-top box and its implications and the premium iPhone MMOD app's performance. Our executive panel will help us understand how these all fit together, and where things are headed in the all-important race to effectively monetize online video. As always, there will be plenty of time for audience Q&A.
I'm also really excited about our featured 15-minute presentation by Emily Nagle Green, President and CEO of Yankee Group, a leading industry market research and consulting firm. Emily is also the author of the recently published book, "Anywhere - How Global Connectivity is Revolutionizing the Way We Do Business." Among other things, Emily previously ran Forrester Research's North American business. She's been studying broadband for 15+ years and some of the key findings from her book are fascinating. Her presentation will be an ideal "stage-setter" for the panel to follow.
The networking period will be upfront, from 6-7:30pm, allowing ample time to mingle and meet industry colleagues. We'll have open bar (and hors d'oeuvres) during this period.
Past VideoSchmoozes have attracted 250+ attendees and I expect the same at this one. Whether you're pursuing business or personal opportunities in the industry, VideoSchmooze is a premier opportunity to expand your network and meet the panelists. As with past events, I expect a strong mix of established media and technology executives, along with plenty of early stage companies, entrepreneurs and investors.
The event will again be held at the gorgeous Hudson Theater, a historic gem on West 44th Street just off Times Square. I'm grateful to lead sponsor Akamai Technologies and supporting sponsors FreeWheel, Horn Group, Irdeto, NeuLion, Panvidea and ScanScout for making the evening possible. Once again VideoSchmooze is being held in association with NATPE. You can follow VideoSchmooze on Twitter at hashtag #vidooze
I've tried hard to keep VideoNuze affordable with early bird discounted individual tickets priced at $65. When compared with other events being held in NYC, this is an exceptional value. If you're planning to attend with colleagues, I've also created more deeply discounted "5-Pack" and "10-Pack" tickets. I hope to see you on April 26th!
Click here to learn more and register for the early bird discount
(Note: Yesterday, some of you received 2 versions of the VideoNuze email. My apologies for that, it was my error.)Categories: Events
Topics: VideoSchmooze
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New comScore Research Available: More Ads Tolerable in Online TV Programs
An article I read last week in Mediaweek about new comScore research which concluded more ads are tolerable in online-delivered TV programs really intrigued me. The research was presented by Tania Yuki, comScore's director of cross media and video products at an Advertising Research Foundation meeting. I called Tania to follow up and learn more about the data. Today I'm pleased to share her presentation with the research findings as a complimentary PDF download. Outside of the ARF meeting, this is the first time this data has been made available.
Click here to download the research presentation
As VideoNuze readers know, I've been a proponent of increasing the number of ads in online TV shows, in order to improve their economics. Note, I'm not advocating a jump to 18-20 minutes of ads typically found in on-air distribution that would likely turn users off. But I do believe that the current
model of 3-4 minutes of ads in premium network programs is way too light, and that viewers will tolerate more without any drop-off in usage, particularly if the ads are well-targeted and engaging. ABC has told me in the past that research it conducted when it experimented with doubling its ad load corroborated this point, just as the comScore research now does as well. Just last week the CW announced it would double the number of ads in its online-delivered programs.
Increasing the number of ads - and thereby strengthening the economic model for online-delivered TV - is critical for the industry to succeed long-term. The current lack of economic parity between online and on-air is gaining urgency; just last week when Hulu blocked access to its content via the new Kylo browser (meant for on-TV browsing), we were reminded of the absurd lengths to which the popular site will go to prevent its viewership from migrating to TVs. This is because Hulu was conceived as an online-only augment. Given its lack of economic parity with on-air (or with DVR viewing, as ABC.com is now achieving), Hulu on TV would undermine its owners' P&Ls.
The new comScore research concludes that viewers will tolerate 6-7 minutes of "total advertising time" during online-delivered TV programs. And note that this response reflects expectations of conventional advertising. I think it's quite possible that if respondents had been shown the kinds of targeted, entertaining and interactive video ads that blip.TV and others are now offering, they would have said their tolerance would be even higher. Providing further comfort that more ads are reasonable, when asked about the most important reasons for watching TV online, the answers were first, "Missed an episode on TV" (71%) and second, "Convenience" (57%). A distant third was "Less ads" (38%). Ad avoidance is important to online viewers, but it isn't their sole motivator.
The comScore research further underscores the growing importance of online, particularly in terms of raising programs' visibility and sampling. For example, for people who watch both on TV and online, an "online video site" (28%) is already the third most-cited way of discovering new TV shows, following "TV advertising" (59%) and "Friend/family member recommendation" (44%). Related, 28% said that they believed that if they hadn't been made aware of their favorite program online first, they probably wouldn't have discovered it on TV, and therefore would have missed the show entirely. Across all respondents, 20% of shows watched regularly had been watched first online.
As Tania reminded me, TV is still by far the dominant platform for viewing TV programs and that it's important to remember that online-only viewing is nascent. ComScore's research found that only 6% of respondents tune-in online only, though another 29% view both online and on-air. The key for me is looking toward the future. When the 6% of online-only viewers is broken down by age groups, about 75% are between 18-34. And if my 8 and 10-year old kids are any example, no doubt that those under 18 are only going to be even more avid online video viewers. In order for the TV industry to succeed in the future, it is essential that the business models to sustain online viewing be figured out pronto.
For this research, comScore which surveyed 1,825 people from its U.S.-only panel, weighted to match the total online population in age, income and gender. The research was conducted between Dec. 30, 2009 and Jan. 22, 2010. It was not sponsored by any third-party.
A reminder that if you're keen on this topic, join us for the complimentary April 8th webinar, "Demystifying Free vs. Paid Online Video" and then at the April 26th VideoSchmooze in NYC, where our panel topic is "Money Talks: Is Online Video Shifting toe the Paid Model?" (early bird tickets now available).
What do you think? Post a comment now (no sign-in required).
Categories: Advertising, Broadcasters
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AT&T's 3G Network is Falling Short for Premium MMOD iPhone App
Two weeks ago I noted that the premium "March Madness on Demand" iPhone app, which allows live streaming of all MMOD games would be a big test for AT&T's 3G network, which has been repeatedly criticized for lack of capacity. Based on reports I've received from several friends who have been using the app both on AT&T's 3G network and on WiFi, it appears that AT&T is indeed falling short, with video quality highly inconsistent or video just plain unavailable (see iPhone screen grab below). Granted it's a small sample size, but they've tried it repeatedly and the pattern is pretty clear.
AT&T's network should come under further pressure as the field narrows and audience sizes surge. On a positive note, one friend took note of how incredibly cool it was to be eating lunch at Panera Bread watching live hoops on his iPhone (note, he was on their WiFi at the time). Mobile video is definitely here. On the flip side, I've watched a fair amount of various games online and I have to say I've been somewhat unimpressed by the quality of the streams. Last night's Cornell game (my alma mater) was a perfect example - full screen was highly pixilated and plain unwatchable. Even in standard size there were many stalls and the stream couldn't keep up with camera switches during fast-break coverage.
What have your experiences been like? Post a comment now (no sign-in required).Categories: Mobile Video, Sports
Topics: AT&T, CBS, iPhone, MMOD
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Review of FCC's National Broadband Plan Begins; Questions on Set-Top Box Language Should be Asked
The FCC's new "National Broadband Plan" is now beginning the process of congressional review, which may result in a number of changes. According to this B&C article, Republicans have concerns with proposed revisions to the
Universal Service Fund and the FCC's proposed mechanism for reclaiming up to 500 megahertz of broadcasters' spectrum over the next 10 years. Separately, Republicans also object to the FCC's net neutrality proposals.
In my "first look" analysis of the Broadband Plan a couple of weeks ago, one thing I didn't take note of was a small provision in the plan to "change rules to ensure a competitive and innovative video set-top box market" Several VideoNuze readers brought that provision to my attention, wondering what it really means. I'm not 100% sure myself, but it would seem to benefit Google's new "Google TV" Android-based set-top box, which I wrote about earlier this week. Congress should be sure to question the FCC closely about its set-top goals.
What do you think? Post a comment now (no sign-in required).Categories: Broadband ISPs, Broadcasters, Regulation
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Avaak Lands $10 Million Series B Round, Provides Another Example of Video's Value
While my focus at VideoNuze is strongly on media/entertainment and consumer apps, I'm always on the lookout for other interesting broadband video applications. A perfect example is Avaak, which makes the Vue Personal Video Network, a system for remote video monitoring of your home or business. This week Avaak announced a new $10 million series B round, led by Qualcomm.
Vue is a dead simple system which includes a gateway and 2 tiny wireless
video cameras. The gateway connects to your router and you mount the camera wherever you want, adjusting them with an ingenious peel-and-stick magnetic mounts. You then monitor the video feeds through a personal dashboard. You can record the video, share it with others, add more cameras and even see the video through a new iPhone app. The system costs $299, with additional cameras running $99 each. Vue is a very clever and simple system that addresses a widespread security issue.
What do you think? Post a comment now (no sign-in required).Categories: Miscellaneous
Topics: Avaak, InterWest Partners, Leapfrog Ventures, Qualcomm, Trinity Ventures
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NY Times' New "TimesCast" is a Home Run for Its Audience
I continue to believe that among newspapers pursuing online video initiatives, the New York Times and the Wall Street Journal are the clear leaders. Both totally get how strategic video is to evolving their brands, engaging their audiences and generating new ad revenue.
Just last month I wrote about the Journal's newly unveiled companion video series to its "Digits" blog; now this week the Times announced its daily "TimesCast" program which is a 1-hour daily insiders' view of what and how the Times chooses to cover what it covers that runs from 1-2pm each day. In the episodes I watched - exclusively sponsored by FedEx - the cameras visited the daily "Page One" editorial meeting and featured Times journalists interviewing each other to gain more color on selected stories of the day. The pace of the videos was fast and engaging, with snappy sequencing music in the background.
I'll readily admit this type of content isn't for everyone. However if you're a news junkie and regular Times reader like me, it's a home run - and that's what really matters. TimesCast makes viewers feel like they're "in the know," strengthening their bond with the Times brand and deepening their understanding of the news. Plus, it lets the Times showcase their journalists in a way that goes far beyond their bylined articles. A larger point: in print space is finite, on the web its infinite. Brands that learn to "super-serve" their audiences with these kinds of behind-the-scenes initiatives will win.
What do you think? Post a comment now (no sign-in required).Categories: Newspapers
Topics: NY Times, Wall Street Journal
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