VideoNuze Posts

Comcast reported strong 2nd quarter results this morning, adding another 156K broadband subscribers, while losing 176K video subscribers, an improvement over the 238K it lost in Q2 '11. It's the seventh straight quarter Comcast has improved its video subscriber losses, while driving the average monthly revenue per subscriber up another 8% to $148.57.

At the recent VideoNuze 2012 Online Video Advertising Summit, I did a fireside chat with Matt Strauss, Comcast's SVP, Digital and Emerging Platforms, who articulated Comcast's strategy for meeting consumers' ever-higher video expectations. Matt observed that "you have to envision a world where video will be everywhere." This seems to be the rallying theme for all of Comcast's recent video efforts. Matt describes how the company has reorganized itself to collapse traditional boundaries between linear, on-demand and online groups, including now having just one user experience team.

Watch the video

Fanhattan, the slick iOS video discovery app, has broken into the TV Everywhere world, adding content from HBO and Cinemax. Fanhattan users can now discover HBO programs and movies within Fanhattan and click through to view them if they are authenticated as HBO subscribers. Fanhattan is announcing the addition of HBO and Cinemax, plus NBC and CW programs this morning. Fanhattan now has 175K TV programs and movies from 14 premium entertainment apps discoverable, up from 4 apps at launch last year.

Fanhattan is also unveiling a new "WatchList" feature, which allows users to add a movie or TV show and be alerted when it becomes available on any of the 14 sources. For users, WatchList eliminates the confusion around where, how and when premium content is available, as it passes through multiple distribution windows and models.

continue reading

Independent online video production is flourishing, helped along by investments from major players like YouTube, Yahoo, AOL and others, and the enthusiasm of thousands of mom and pop creators looking to carve out a valuable niche audience. But unlike the pay-TV business, where content is supported by advertising and distributor fees, virtually all online video relies solely on advertising. Independents face the acute challenge of conveying the value of their content and audiences to media buyers who are increasingly overwhelmed by the choices in front of them.

To address this problem, this morning Outrigger Media is announcing the beta launch of OpenSlate, a marketplace for online video that uses a proprietary "SlateScore" to consistently measure the value of over 10,000 different video productions. SlateScore measures a video's reach, engagement, influence and consistency - attributes that buyers look for when assessing "premium content" - by ingesting and analyzing thousands of data points about the videos' viewer behavior.

Watch the video

Tremor Video announced earlier today that in June it served 98.3% of its in-stream video ads in players that were 400 pixels or bigger. Tremor has found that the bigger-sized players drive double the engagement rate and also boost completion rates for ads. Based on its own analytics, Tremor found that for ads appearing in 400-500 pixel players, 62% of viewers watched to completion and for ads appearing in a 500-700 pixel player, completion jumped to 75%.

Tremor believes that as player sizes get bigger the viewing experience becomes more TV-like, therefore inducing users to relax and be more prone to sit through ads. Looking ahead, this bodes well for ads on connected TVs, where the content and ads are seen in full screen. Tremor said that it is advising publishing partners to increase the size of their players in order to deliver improved ad performance.

Related, Hulu must also be finding similar results; back in March it increased the size of its video player by 55% to a beefy 900x500.

As exciting as Google Fiber's next-generation, gigabit per second broadband project in Kansas City is, last week's launch details underscore how out of synch its rollout plan is with the realities of typical consumer technology adoption. That's not a big surprise given Google's famously engineering-centric culture. However, it likely means that Google Fiber is going to fall well short of its objectives.

As it stands, Google Fiber is very much a classic early adopter service. It offers a discontinuous benefit of 100 times the average 10 megabit per second speed of incumbent ISPs, appealing to heavy users' appetite for the cutting edge. It is also unproven, therefore requiring early users to be guinea pigs, dealing with first-time installers and plenty of inevitable service bugs.

continue reading

I'm pleased to be joined once again by Colin Dixon, senior partner at The Diffusion Group, for the 141st edition of the VideoNuze-TDG Report podcast.

In this week's podcast Colin and I discuss Netflix's underwhelming Q2 '12 results. As I wrote on Wednesday, the company continues to be haunted by its decision a year ago to essentially abandon its DVD-by-mail business. Although in the very long-term, streaming will dominate, Netflix jumped the gun in de-emphasizing what was a lucrative business with substantial entry barriers. DVD subscribers, which are down by 34% in the last 3 quarters were a huge contributor of profits to the company which it could sorely use now as it pursues an expensive - and uncertain - international expansion.

On international, Colin notes that Netflix's performance wasn't that bad, but he still has concerns, particularly in the highly competitive U.K. market. While Netflix seems to have eclipsed LoveFilm there, Colin's sees the new NOW TV service launched by Sky as overwhelming Netflix in marketing and service quality, in turn suppressing subscriber growth there.

Nonetheless, Colin is still reasonably bullish on Netflix in the long-term, figuring that its size and well-known brand will help it get back on track. Absent shorter-term catalysts, I'm not so sure Netflix can return to its glory days. It will be fascinating to watch unfold.

Listen in to learn more.

Click here to listen to the podcast (27 minutes, 33 seconds)

Click here for previous podcasts

The VideoNuze-TDG Report podcast is available in iTunes...subscribe today!

Brightcove reported a solid Q2 '12, its second quarter as a publicly-traded company, with revenues rising 41% year-over-year to $21.6 million and its loss from operations narrowing to $3.9 million vs. $5.1 million in Q2 '11. Brightcove said it now has 4,697 customers of its Video Cloud and App Cloud platforms. For video specifically, during the quarter, Brightcove added 365 "Express" customers (which are $499/month and below) and 78 "Premium" customers, which run into the thousands of dollars/month.

Brightcove also announced its acquisition of Zencoder, a cloud video encoding service that counts 1,000 paying customers, for approximately $30 million. Brightcove views Zencoder as a product augment for its Video Cloud platform and also sees the company's Video.js free HTML video player as a lead generation driver for its Express services.

continue reading

There's a major breakthrough in the TV Everywhere landscape to report - Comcast is "auto-verifying" its Xfinity subscribers' access to NBC's online and mobile video streaming of the Summer Olympics. A Comcast spokesperson confirmed that this is the first time TV Everywhere content is being made available to its subscribers without them having to submit their user name and password credentials to gain access.

This is a real milestone as authentication has been widely viewed as a cumbersome process step for subscribers. That's because many people have not created user names and passwords with their pay-TV operator and/or can't remember them. In addition, authentication systems are not yet stable, often requiring repeated log-ins to the same app, and also across different apps (I've had to repeatedly log-in to every TV Everywhere app I've ever used). Exacerbating things, so much online video is freely available that the TV Everywhere login process feels intrusive for users accustomed to immediately being able to watch.

continue reading