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VideoNuze Report Podcast #54 - March 26, 2010
Daisy Whitney and I are pleased to present the 54th edition of the VideoNuze Report podcast, for March 26, 2010.
This week Daisy starts us off by reviewing new research on the iPad's appeal as an ebook reader. Daisy also reviews sobering forecasts suggesting that the iPad is unlikely to change people's willingness to pay for content (regarding video specifically, Daisy and I agreed a while back that for now its impact for video specifically is likely to negligible). I'm not convinced the iPad will trigger a wave of people willing to pay for content, but I do believe any iPad research is still very preliminary. It's only when users get their hands on the device that we'll really start to learn how impactful it is. The iPad is of already available for pre-order and is set to debut in stores late next week.
We then shift topics and discuss my post from earlier this week, "Here's How Google TV Will Work - And What It Might Mean," in which I described Google's new set-top box and the company's strategy for entering the market. Google's move is likely to set off a fascinating negotiating dynamic with incumbent video service providers, and Daisy and I get into some more of the details.
(Note, Daisy's mic isn't working that well on this podcast, so please be patient)
Click here to listen to the podcast (14 minutes, 13 seconds)
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Categories: Cable TV Operators, Devices, Podcasts
Topics: Amazon, Apple, Google, iPad, Podcast
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blip.tv Doubles Video Views, Scores with New Ad Formats
blip.tv, the online video network for independent producers, has shared with me that in Feb '10 it generated 85 million video views, double the amount from Feb '09, and that by its estimates, approximately 85% of those views
are sufficiently high-quality to accept ads from major brands. In addition, blip is getting strong results from several new ad formats it launched recently, another sign that online video advertising is delivering for both content providers and advertisers. In separate conversations over the last week, Mike Hudack, CEO and Evan Gotlib, VP of Ad Sales, brought me up to speed.
The new ad unit that's performing best is called an "interactive pre-roll," which allows viewers to select which product in an assortment they want to see video about. For example, in this ad for Chevy, which started running in December, viewers click on the Malibu, Equinox or Traverse. And in this new ad for Starbucks introducing its "Bold" line of coffees, users choose one of eight new blends to learn more about. The goal of these ads is to allow users to self-customize their experience (something Hulu has been doing as well), to drive higher engagement. Evan reported that the ads are driving a 6-14% click-through rate, and in the case of Chevy, a 22% subsequent click-through rate to the Chevy site.
Another new ad that's performing well is the "share unit." In this example for Samsung's Omni phone, about 2 minutes into the video's play, a bug appears in the upper right corner of the video window for 15-30 seconds, which when clicked, opens up an image of the Samsung Omni phone. There the user sees prompts to share the underlying video on Facebook or Twitter, or via email, text or embed. Evan said that this unit is driving a 4% click-through rate, and that 10% of people who click on the ad go on to share the video in one way or another.
Lastly, the "overlay with custom video creation" unit is a new way blip is differentiating itself through branded entertainment. In this example for the Samsung Behold II smartphone, the user is first exposed to an overlay ad, with a call to action to "watch how the Behold II can make you a super hero" (this is Samsung's hook for the phone). The user is then exposed to 3 videos of about 1 minute each, featuring "Behold II Man" and his 2 female sidekicks. The videos are campy but clever, weaving in promotion for the Behold II's specific features.
Evan said the videos were created by blip for about $15K, which is a fraction of what an agency would have charged. For blip, creating videos is a means to an end: throwing a few short videos into the mix is a way of gaining a higher fraction of the brand's media spend and standing apart from typical pre-rolls. This new campaign for Chili's is another great example - clearly low-cost production, but, especially for its target audience, catchy and impactful.
blip's success with these ads and brands are part of a far larger story that is playing out in the entertainment and advertising industries. As I wrote in January and numerous times before, there is a ton of innovation happening in online video advertising, which is driving up campaign ROIs and in turn enticing more brands to increase their spending on online video. A key part of the story here is that video advertising is getting both more targeted and more customizable by viewers, leading to better results and improved satisfaction. I've always been a believer that viewers don't hate ads so much as they hate irrelevant ads. That's what's so exciting about online video - it combines the relevance and targeting of Internet advertising with the emotional impact of TV advertising.
This is a really rich area which we'll be exploring both in the complimentary April 8th webinar, "Demystifying Free vs. Paid Online Video," and then at the April 26th VideoSchmooze in NYC, "Money Talks: Is Online Video Shifting to the Paid Model?" (early bird tickets now available). Please join us for both of these exciting events if you want to learn more about monetizing online video!
What do you think? Post a comment now (no sign-in required). -
Here's How Google TV Will Work - And What It Might Mean
Last week, the NY Times shared some details of "Google TV," the new set-top box Google is developing in partnership with Intel and Sony. The article provided a good outline, and now, based on additional information I've gathered, I'm able to provide new details on the box and also explain what it might mean.
The first and most important thing to know about Google TV is that it is not being positioned to induce users to "cut the cord" on their subscriptions to
existing multichannel video programming distributors' ("MVPDs" like cable, satellite or telco) services. Or at least that's Google's initial positioning; whether it's genuine or really just a Trojan Horse game plan is another whole matter. For now anyway, Google is taking a "friend of the industry" approach, telling MVPDs that it's briefing that it is looking to complement their businesses by bringing the full Internet to the TV (this follows the same convergence theme as the new Kylo browser).
Google is contemplating an entirely novel strategy for its set-top box, seeking to insert it alongside the existing MVPD's set-top box by daisy chaining them together via HDMI connections. In other words, the MVPD's set-top's HDMI output would be connected to the Google TV set-top's HDMI input, and then its HDMI output would be connected to the TV. The authorized TV channels would still be delivered, but Google TV would collect data from the MVPD's set-top and introduce an entirely new UI for users to control their TV experience, to include searching and browsing channels. It would also add a host of new interactive web-type capabilities around the content.
Since the Google TV box would have a full browser and connect to the Internet via the user's WiFi or wired access, it would also bring all of the rest of the Internet to the TV as well, including the full breadth of online video (yes, that would mean one more thing for Hulu to block). My understanding is that on the whole, the Google TV experience is extremely impressive and well conceived. In short, it will get the attention of any MVPD executive who has a look at it and will certainly get them to thinking about how able - or unable - they are to deliver a similar experience themselves to their subscribers.
A key reason that Google is planning to insert its box this way is because it believes that in order to deliver a compelling Internet experience on TV requires a new web-based, and open platform. For Google that of course means Android, which it is vigorously proliferating on smartphones as well. Throw in Google's Chrome browser that it is promoting for online usage and you get a glimpse of how Google's multi-platform strategy comes together. While Sony would be making the box, you have to believe it will have Google branding on it, a first for the company in the living room too.
Categories: Cable TV Operators, Devices, Satellite, Telcos
Topics: Comcast, DISH Network, Google, Google TV, Intel, Sony
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Complimentary Webinar on Monday, April 8th: "Demystifying Free vs. Paid Online Video"
Please join Colin Dixon, senior partner at The Diffusion Group and me for a complimentary webinar on Thursday, April 8th at 11 am PT/2pm ET titled "Demystifying Free vs. Paid Online Video." We will be joined by two special guests, Chris Wagner, EVP, Marketplace Strategy of NeuLion, a leading provider of technology and services to content owners and aggregators, and Jason Krebs, EVP of ScanScout, a leading video ad network.
Learn more and register now for this complimentary webinar
In this webinar we will examine all sides of the debate including the effectiveness of online subscription models, how well online video advertising is taking advantage of the Internet's unique interactivity/engagement, the pending influence of "TV Everywhere" rollouts and much more. Chris and Jason will share best practices and insights based on their companies' experiences. Colin and I will ask them questions and then open up the webinar for plenty of audience Q&A. If you're trying to get your head around online video business models, then this webinar will be a high-impact educational opportunity.
The webinar will also be a terrific lead-in session for many of the issues we will drill into 2 1/2 weeks later at the "VideoSchmooze" Broadband Video Leadership Evening in NYC on Monday, April 26th. The title for the panel at VideoSchmooze is "Money Talks: Is Online Video Shifting to a Paid Model?" Early bird discounted tickets are now available and I hope you'll be able to join us for both the webinar and VideoSchmooze.
This webinar is the 2nd of 6 in the "Demystifying" series that TDG and VideoNuze are presenting in 2010, sponsored exclusively by ActiveVideo Networks.
Categories: Events
Topics: NeuLion, ScanScout, TDG, VideoSchmooze, Webinar
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Is Hulu Now Blocking Access for Kylo Users? Yes, It Is.
No sooner did I post "With New Kylo Browser Convergence is Another Step Closer" this morning, than I've come to understand that Hulu programs are now not accessible through the Kylo browser. Hulu worked completely fine for me yesterday, but now when I go to watch a program on Hulu, I'm getting the text message, "Unfortunately this video is not available on your platform. We apologize for any inconvenience." Huh, what's going on here? Is Hulu blocking Kylo users' access to its programs? I've asked Hulu for a comment.
If Hulu is indeed doing this, it's a PR fiasco in the making for the site. Blocking access to its content would mean that Hulu is putting itself on the wrong side of convergence and risking turning off its users (not to mention censoring as if this were China). The episode recalls February, 2009, when Hulu demanded that boxee turn off access to Hulu at the request of its content partners. That tempest highlighted the artificially made quagmire that Hulu's owners find themselves in - eager to have Hulu boost their programs' viewership, so long as it remains on the computer and not on the TV.
With Kylo, Hulu will once again be called upon to justify how it's making decisions. For example, if I'm using Kylo on my computer, how is watching Hulu content any different than if I were using IE, Firefox, Safari, etc? And if I choose to connect my computer to a TV screen, how is that any different than if I connected it to a large monitor? In short, this is a hairball for Hulu.
Update: Hillcrest Labs, the company behind the new Kylo browser, has confirmed that Hulu is indeed preventing its content from being shown. The statement from Hillcrest's CEO Dan Simpkins:
"We have confirmed with Hulu that they are preventing the Kylo browser from playing Hulu videos. Prior to our formal launch, Hulu videos would play within the Kylo browser. Like Internet Explorer, Firefox or Safari, the Kylo browser is simply a Web browser that enables consumers to visit any site on the Web. We have tremendous respect for Hulu, and we hope that a continued dialog might influence their thinking."
Meanwhile Hulu seems to be in a bunker. I haven't heard back from them, nor has anyone else it appears. I have confirmed from ABC (one of Hulu's owners) that it found out about Hulu's action when everyone else did, which means that ABC is not the instigator here. Much more on this story as it unfolds.
Update 2: Now Tuesday morning and still no word back from Hulu. Nobody else seems to have heard from them either. It looks like their PR strategy is avoidance. That's a bad move because going mum just means that story continues to live (just ask Tiger).
Hulu's decision to block Kylo users is all about preventing Hulu viewership from migrating to TVs, which would undermine broadcast network economics. That's because Hulu, with its light ad load, still hasn't been able to prove its business model. The problem for Hulu - and the networks - is bigger than Kylo though as the push toward convergence between online video delivery and TV is going to be relentless (lots more on this tomorrow). Hulu is facing an escalating "Whac-a-mole" problem which will only lead to huge user frustration and increasingly tortured justifications.
What do you think? Post a comment now (no sign-in required).Categories: Aggregators, Technology
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With New Kylo Browser Convergence is Another Step Closer
This morning Hillcrest Labs is announcing its new "Kylo" browser, providing people who connect their computers to their TVs with an optimized and complete on-TV Internet browsing experience. Kylo is being offered as a free download by Hillcrest, the maker of the "Loop pointer," a clever "in-air" mouse. After downloading Kylo and connecting my Mac to my TV over the weekend, I was quickly navigating Kylo with a Loop. Taken together, Kylo and the Loop deliver an inexpensive, yet high-impact online video/TV convergence experience.
As Dan Simpkins, Hillcrest's CEO and founder told me last week, Kylo strives to deliver the simplicity required for a satisfying on-TV experience with enough of the most-often used features of computer-based browsing. As such, the first thing you notice about Kylo is that all of the buttons and text are a lot bigger than with standard browsers like IE, Firefox, Safari, Chrome, etc. The layout is also a lot cleaner, with all extraneous text and navigation found in these other browsers stripped away.
With Kylo you can navigate to any web site, either by clicking on any one of the 125 or so pre-set, scrollable logo buttons Kylo conveniently includes, or by using the on-screen keyboard. The keyboard takes a little getting used to, mainly because the Loop requires only minimal wrist gestures to move the pointer around. To be sure, typing on a virtual keyboard like this will never be as easy typing on a full keyboard, but then again the idea here is to eliminate the need for keyboard on your coffee table. My bigger issue (and really the only Kylo drawback I could find) is that the text box used for searching is relatively small and hard to read, at least on our 23-inch office TV. Kylo also allows standard browsing features like bookmarking, zooming and full screen viewing modes.
Hillcrest is looking to leverage the growing number of U.S. homes (estimates vary, but certainly in the millions already) that have connected their computers to their TVs. Some of these people are "cord-cutters" who have dropped their subscription TV service, but many more are just trying to enjoy Hulu, Netflix, YouTube or other online video sources on their TVs instead of solely on their computers. When I connected the 2 devices a while ago, one of the first things I realized is that because the computer is next to the TV, not to me, there's a new need created for a remote control to control the computer. Though I have the Apple remote, it offers only limited functionality.
Dan explained that while Kylo is free, Hillcrest's real objective here is to create stimulant for Loop sales. While you can navigate Kylo using any mouse, it's a whole lot easier (and cooler) with the Loop. Plus having the $99 Loop means you don't have to have a mouse and a mousepad on your coffee table. My kids and I got the knack of the Loop pretty quickly and we were able to watch Netflix and YouTube content right away. The Loop offers an inexpensive functionality upgrade especially in college dorms where the computer is now often the de facto TV.
The Kylo/Loop set-up is further evidence of the inexorable convergence of online video and TV. However, the underlying need to connect the computer to the TV shows that there are still inconveniences to be resolved. The ideal solution here is an all-in-one box that seamlessly blends online and on-air programming with all the Internet functionality users expect. For a variety of technology and business model-related reasons we are still years away from that solution. However as consumers adopt solutions like Kylo/Loop, pressure will build on service providers to deliver the all-in-one solution. That means that eventually (by end of this decade?) the distinctions between online and on-air will become meaningless.
What do you think? Post a comment now (no sign-in required).
Categories: Technology
Topics: Hillcrest Labs, Kylo
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Wrapping Up the YouTube-Viacom Court Documents Coverage
Wow, based on the extensive coverage of the newly disclosed court documents in the Viacom-YouTube copyright lawsuit, you'd almost think the business press hit the pause button on everything else going on yesterday to spend time reading the details. The combination of 2 heavyweight companies slugging it out, billions of dollars at stake and juicy, behind-the-scenes details finally revealed (like how the $1.6 YouTube acquisition largesse was shared) makes this an irresistible story with lots of legs.
I've only spent a little time reviewing the documents, but for those interested in the 360 degree immersion, following is some of the best coverage I've been reading, in no particular order. No doubt there's plenty more to come. And if you're a real glutton for punishment, just google "Viacom YouTube court documents" and you can spend your entire weekend reading everything!
Viacom Says YouTube Ignored Copyrights - NY Times
YouTube Accuses Viacom of Secretly Uploading Clips - Mediapost
Viacom, YouTube Trade Barbs in Copyright Feud - Multichannel News
Viacom and Google Trade Accusations - WSJ
YouTube Says Viacom Agents Secretly Uploaded Video, Then Lawyers Sued - AdAge
The Numbers Behind the World's Fastest Growing Web Site: YouTube's Finances Revealed - AllThingsD.com
Viacom, Google Air Dirty Laundry in Court Docs - CNET
Did YouTube Jilt Viacom for Google - NewTeeVee
Revealing Docs Emerge in Viacom, YouTube Spat - Variety
What do you think? Post a comment now (no sign-in required)Categories: Aggregators, Cable Networks
Topics: Google, Viacom, YouTube
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Google's 1 Gigabit Fiber Experiment is a PR Bonanza
I was deeply skeptical of Google's recently announced 1 gigabit/second fiber-to-the home experiment, but I will concede this: it appears to be influencing
the broadband Internet access discussion and is turning into a PR bonanza for the company. Consider 2 of the latest examples: Comcast, America's largest broadband ISP, announced this week that it would make 100 megabit/second speeds available to all customers within 12-18 months and the FCC's new broadband plan set a goal of 100 million U.S. homes having 100 mbps within 10 years and that all schools, hospitals and government building should have 1 gbps access - goals that seem influenced by Google's experiment.
Meanwhile, as my former colleague and astute industry watcher Bruce Leichtman pointed out to me this week, the press continues to lavish attention on Google's plan, giving it all kinds of free PR. Bloomberg BusinessWeek ran a long article praising the company's fiber plan as providing the impetus to other broadband ISPs to increase their speeds. And my hometown paper the Boston Globe ran a feature this week about the lengths to which towns across Massachusetts are going to be selected as one of the coveted few areas to have Google deploy its network. Though Google hasn't wired a single one of the 71.8 million U.S. homes that subscribed to broadband at the end of '09, you'd think from the goings-on that they were the dominant player driving the market. You gotta love how well the Google PR machine works.
What do you think? Post a comment now (no sign-in required)Categories: Broadband ISPs
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