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ABC HD Streaming Coming Soon
News today that ABC is continuing to push the quality envelope, by releasing HD-quality streams of its programs this summer. ABC has been progressively increasing quality for some time now and this is the next logical step for them.
For some time I had thought that a potential firewall for local broadcasters was HD broadcasting. But I’m revising my opinion. With new encoding from companies like Move Networks, not to mention ad-supported download options which are inevitable and will have HD-quality, I think it’s clear that HD streaming is going to be widely available. This means ever more pressure on local broadcasters to wean themselves off of dependency on network programming to drive their businesses. I wrote extensively about this in last month's newsletter.
Categories: Broadcasters
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Revisiting the Long Tail on My Cable Show Panel Next Week
Next week I’ll be in Vegas for the annual Cable Show. This is the cable TV industry’s annual gathering of operators, programmers and vendors. I’ve been attending this show for years and it’s great fun to reconnect with lots of old colleagues and friends.Last year I moderated a session with video executives from AOL, Google, MSN and Yahoo, which, based on feedback I received afterwards, helped a lot of attendees understand how significant these companies are going to be in the video distribution business (and therefore, why they need to be on cable executives’ radar screens).Once again I’ll be moderating a discussion session, this year entitled, “Video’s Online Adventure: New Ideas for a New Generation of Television.” The session features Doug Hurst, SVP, Scripps Networks, Joe Gillespie, EVP, CNET, Ian Blaine, CEO, thePlatform, Bob Leverone, VP Video, Dow Jones Online and Karl Quist, President, TotalVid.As a former “cable guy”, one of my main goals with these sessions is to continue helping the industry recognize that the world of video is changing dramatically. Cable executives have been remarkably adaptive to change over the years. But with broadband’s openness now allowing scores of new video providers and distributors into the market, many of cable’s fundamental operating assumptions are going to be severely tested.For example, if the concept of the Long Tail (originally an article, and now a book by Chris Anderson), is applied to the cable industry it suggests that cable’s “walled-garden” content paradigm is going to be undermined by broadband’s infinite choice and personalization. I wrote an extensive piece about this way back in March, 2005 and I think it’s truer now than ever.All of the panelists have a great vantage point to comment on the Long Tail’s impact on cable. Bob and Joe come from publishers (print and online respectively) that haven’t done a lot with video previously, but are now aggressively pursuing it. Karl has started a specialty video distribution business that is only possible due to broadband. Doug’s company is leveraging broadband to create many new broadband experiences. Finally Ian’s company is powering many broadband video initiatives from established and startups.All in all, this group will bring an invaluable perspective to attendees trying to figure out how the video proliferation that broadband is causing will impact their corner of the cable business!Categories: Aggregators, Cable Networks, Events, Indie Video, Newspapers
Topics: CNET, Dow Jones Online, Long Tail, Scripps Networks, thePlatform, TotalVid
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Paltalk's
I had a chance to catch up with an old buddy, Lewis Rothkopf today, who's now VP, Biz Dev at Paltalk. Lewis and I go back to his days at Lightningcast, prior to its sale to AOL. Paltalk is an online video chat community that has about 4M active members. I confessed to Lewis that Paltalk hasn't been on my radar - I'm not the biggest IM'er in the world.
On May 1st, the company is going to be hosting "LateNet with Ray Ellin" in conjunction with DailyComedy.com, a live event from Comix in NYC. If you haven't seen Paltalk in action, this will be a pretty cool opportunity. "Paltalkers", as they're called, will have an opportunity not only to watch the live broadcast alongside others in the chat room, but also to interact with the host/guest in real time. More details here. I'm going to tune in, it seem like a very intriguing way to combine broadband video, social networking and interactivity...
Categories: Aggregators
Topics: Paltalk
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Change is Afoot in the TV Business - April E-Newsletter
Change is afoot in the TV business. The traditional world of networks’ hit programs being distributed exclusively through local broadcast TV affiliates is being challenged broadband delivery.
The challenge began modestly about a year and half ago, but more recently it has picked up significant steam. Back in October 2005 Disney/ABC made headlines with a deal to have select programs available for paid download via iTunes. Next up was a trial in the spring of 2006 to test consumer and advertiser interest in streaming full episodes of select programs at ABC.com. When ABC launched this officially in the fall of 2006, the other major networks joined in the action. By my recent count there are now over 40 progams available for ad-supported, free streaming.
All of this activity surely left broadcast affiliates wondering how they fit into this new direct-to-consumer landscape. Of course ABC allows its owned and operated (O&O) stations to also stream its programs, and FOX has shown a willingness to open up distribution further to all affiliates. Meanwhile, the other networks have not made concrete announcements about how their affiliates fit in.If local broadcasters accepted any of these assuagements, news from the past few weeks should have doused any cheery feeling they may have maintained. Recently, NBC and News Corp announced that they were setting up a new joint venture to manage the online distribution of their programs, simultaneously inking deals with four of the Internet’s biggest sites, AOL, MSN, MySpace and Yahoo (adding Comcast shortly thereafter). Next, CBS announced its “CBS Interactive Audience Network”, together with deals to have CBS programs distributed through at least ten large web sites, with more surely to follow.
Broadband’s Long Arm Reaches into the Broadcast IndustryIf I were a broadcaster keeping score over the past year-and-a-half, I would say things have gone from bad to worse to (as my 5 year-old would say) worser.Consider: in less than two years, broadcasters’ competitive position has shifted from a world where all viewers had to tune into their local channels to watch original episodes of “Heroes”, “24”, “CSI” and other hit network programs to a new reality where these programs are going to be dispersed to all the nooks and crannies of the Internet, ready for on-demand consumption by audiences everywhere.What does this mean for the broadcasters? For starters it means steadily declining audiences as viewers get siphoned off to these new distribution outlets. It also means rising competition just to maintain a parity “user experience” as these other distributors wrap all kinds of interactive and engaging features around these programs (e.g. online contests, blogs, clips, mashups, etc.). And finally, it suggests falling advertising revenues as marketers recognize not only broadcasters’ shrinking audience size, but also that the most desirable demos have moved on and are consuming and interacting around these programs through other outlets.Based on Broadband Directions’ recent market intelligence report, “The Broadcast Industry and Broadband Video: Confronting New Challenges, Embracing New Opportunities”, my conclusion is that these deals all signal the networks’ clear realization that consumers (particularly the younger, most desirable ones) are changing their behaviors and that if the networks don’t keep pace, they will become dinosaurs themselves.The networks understand that a broadcast affiliate system established to overcome the geographic limitations of retransmitting analog signals is fast becoming anachronistic in a world of high-quality, boundary-less digital distribution. So, to my mind, their recent initiatives represent nothing short of an attempt by the networks to eventually create a “digital replica” of the analog broadcast model, ensuring that network TV programs reach into the far corners of the Internet, easily accessible to consumers who increasingly live their lives online. The networks’ emphasis on a forward-looking approach, rather than stubborn complacency around the status quo, seems like a smart game plan to me.How Broadcasters Can Stay in the Game – A Blueprint for Surviving and ThrivingAs many of you know, I believe strongly that broadband’s open delivery platform challenges all incumbent distributors’ business models. The Internet puts entities that stand between producers and viewers in an increasingly perilous position. Their ability to survive and thrive will rely not on their traditional capabilities, but rather on new ones that add new value to viewers’ and advertisers’ expectations.Therefore, I think there are at least 5 key elements in any plan for local broadcasters to prosper in the broadband era:
1. Become online distributors of networks’ programsFirst, broadcast TV affiliates must aggressively press the networks for equal access in distributing TV programs through their web sites. Access to these programs is “table stakes” for anyone who wants to have equal footing for audience’s attention in the broadband era. I’m not privy to the behind-the-scenes dealings between the affiliate boards and the networks, but for the broadcasters’ sake, I hope they are being relentless in their pursuit of these rights.2. Invest in creating distinctive local contentAs network programs migrate to other venues, it is imperative that local broadcasters invest in creating content that will appeal to their audiences in their own right. For too long news, weather and traffic have been the broadcasters’ mainstays. Broadband opens up endless possibilities for broadcasters to exercise their creative muscles and boost the appeal of their home-grown programming.3. Distribute programming around the InternetAs the saying goes, “what’s good for the goose is good for the gander.” As the networks pursue new Internet outlets, so too must broadcasters tap into new ways of distributing their original content. Broadcasters must realize that audiences outside their traditional transmitting range will also have an interest in some of their original content. By using new online syndication tools and partnerships, broadcasters can extend their reach, and their revenue potential. Witness the recent deal between Yahoo and CBS’s O&Os, which has extended these broadcasters’ reach across Yahoo’s vast network.4. Harness the enthusiasm of local citizens to contribute video and other contentSpeaking of content, the user-generated variety is no longer a fad monopolized by YouTube. Media companies of all stripes are recognizing that users represent untapped potential as contributors to the creative process. This is particularly true in the local community where broadcasters’ economics cannot allow them to give equal coverage to all local events. The rallying cry should be “go forth carrying your video cameras.” See what the Washington Post, for example, is doing to cultivate local bloggers. Given the right training, incentives and integration, local citizens can make a huge contribution to local broadcasters’ broadband efforts.5. Create new value propositions for local advertisersLast but not least, it is essential that broadcasters create new value propositions for local advertisers. National advertising is seriously at risk with the Internet’s rise. However, local advertising is somewhat insulated by the big online players’ inability to reach into each and every community with a robust content offering. Broadcasters must develop new video ad formats beyond simple pre-rolls, which should include geo-targeting, interactivity and performance-based rates. None of these are easy -- they will all require creativity, persistence and re-training of local sales teams.ConclusionI believe the networks’ march into broadband distribution will be relentless. Just wait until there’s mass availability of consumer devices or other technical approaches that bridge the PC/broadband world with the TV world. This will allow network programming to be carried all the way into the living room, instead of being limited to wherever the computer currently resides. When this unfettered broadband access to the TV occurs, broadband distribution will take another giant, disruptive step forward.Change is afoot in the TV business. Broadband threatens to re-order the industry’s traditional participants into new winners and losers. Broadcasters need to run fast to stay in the first group. Let’s keep an eye on how they do.
Categories: Broadcasters
Topics: ABC, AOL, Disney, FOX, MSN, MySpace, NBC, News Corp, Yahoo
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Boeing Using Broadband Video to Promote Dreamliner
Jane Levere (writing in Stuart Elliot's absence) in the NYT has an interesting piece on how Boeing is using webisodes to raise the profile of its new 787 Dreamliners. Boeing has retained the Sarkissian Mason agency to create these vignettes to showcase the Dreamliner's features and comforts. You can check the out at www.newairplane.com. I think this kind of initiative really highlights how powerful broadband video can be for companies to reach target audiences.Consider - it wouldn't have made economic sense in the traditional TV world for Boeing to pay for long spots with the same engagement that these webisodes have. So it would have needed to resort to 30 second spots, which would severely limit the message's appeal. Broadband allows Boeing and Sarkissian to use a whole new creative pallette to get the story across. As more companies recognize broadband's unique potential, I think we'll see a stampede of similar initiatives.Categories: Miscellaneous
Topics: Boeing
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Back from NAB - Super Session was Standing Room Only
I'm back in Boston after a short, but grueling (tip: don't fly through 2 East Coast airports during a Nor'easter!) trip out to NAB. Our Super Session ("The Revolutionizing Impact of Broadband Video") was SRO, overflowing the room that seated 700. David Eun led us off with a great keynote with my key takeaways:- "Market for content is much larger than anyone has every imagined"
- "We see ourselves as a conduit, connecting users, advertisers and content providers"
- "Broadband provides an infinite # of at-bats, the traditonal scarcity is gone"
- "Content identification isn't easy. If it were, we'd have it by now."
- "We are in a clip-driven culture. YouTube now delivering well over 100M clips per day."
After Dave's talk, our panel (George Kliavkoff from NBCU, Dan Scheinman from Cisco, Blake Krikorian from Sling, Shawn Gold from MySpace and Gary Gannaway from WorldNow) got down to business. George, who's the acting head of the JV with NBCU and News Corp, filled in some details for how the venture will work, and that affiliates will be a key part of it going forward.The panelists all agreed that community is going to be a big part of the equation moving forward and that broadcasters will be embracing in a big way. Gary articulated well that local broadcasters have a huge opportunity to excel in local content in a way that big portals will never be able to match, and that if they sell their inventory the right way, they'll be able to avoid being commoditized.I tried to get Dan to take the bait on whether the era of broadband-delivered TV programming spells concern for cable TV operators. But given Cisco's ownership of Scientific Atlanta, he deftly deflected my attempt to stir the pot....Lastly, Blake encouraged broadcasters to see his Slingbox as an opportunity for them to build loyalty with their viewers, both for viewership while on the road, and also for deepening viewership, through non-TV displays. All-in-all, despite the fact that the first attendee question during a brief Q&A session labeled us as "dying dinosaurs", it was a spirited and lively session!Categories: Broadcasters, Devices, Events, Video Sharing
Topics: Cisco, MySpace, NBCU, Sling, WorldNow
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CBS Announcement is More Great Fodder for Upcoming NAB Super Session
Yesterday’s announcement from CBS that it has formed the CBS Interactive Audience Network, and partnered with AOL, Microsoft, CNET, Comcast, Joost, Bebo, Brightcove, Netvibes, Sling Media and Veoh provides even more discussion material for the Super Session panel I’m moderating, which is coming up on Tuesday, April 17th at NAB 2007 (“The Revolutionizing Impact of Broadband Video”).
I’m always a little reluctant to use a word like “revolutionizing”, as it just feels a bit hyperbolic. Yet, what CBS announced yesterday, in combination with the NBC-News Corp JV announcement a few weeks ago sure does seem to signal that these networks themselves are willing to take new risks and be much more opportunistic with how their prized programs get to audiences’ homes. I give these companies all a lot of credit – they are demonstrating a willingness to challenge their existing (and longstanding) business models though the economics and potential of these new models are not yet clear.We’ll be getting into all of this and more at NAB – come join us!Categories: Broadcasters, Partnerships
Topics: AOL, Bebo, Brightcove, CBS, CBS Interactive Audience Network, CNET, Comcast, Joost, Microsoft, Netvibes, Sling Media, Veoh
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Quick Take: 2 Thumbs Up for Comcast-Fandango Deal
Comcast’s acquisition of Fandango is just off the wire, and my quick take is that it’s a winner for both companies.
From Comcast’s perspective, it looks like Fandango is going to anchor a new site named Fancast, which the company announced today as well, which will launch this summer. Comcast has been the sleeping the giant of the broadband video space. Though its Comcast.net traffic has grown strongly, the company has stood by while YouTube, MySpace, Apple, Amazon and others have pioneered new and important ground in delivering video over the open broadband Internet.
This paragraph from the press release was key:
“Fancast, which will launch this summer, will be a national entertainment site where people can search and discover television and movie content, while managing their viewing experience across multiple devices. With Fancast, consumers will be able to search for their favorite shows, movies, actors and actresses, or simply enjoy the video content on the site. Fancast will provide consumers with a place to discover when their favorite shows or movies are "on," and where they can view them via television, video-on-demand, online or on other device.”
My bet is that Fancast is a going to be a video-rich site that will also incorporate assets from E!, which is also a Comcast property. Everyone I speak to at the portals says that entertainment/celebrity-oriented material is their best-viewed video. Comcast has a great shot at defining a new entertainment portal that can also serve content to disparate devices. With Comcast (and other MSOs) now moving in the quad-play direction, thinking about video on screens other than just the TV, is critical. It’s great to see Comcast joining the action.
Categories: Cable TV Operators, Deals & Financings
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