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Time Warner's "Premium Video-on-Demand" Experiment is a Blind Alley
Talk about an initiative that flies in the face of all prevailing sentiment: Time Warner is moving forward on testing a new window for early-release movies on VOD priced at $20-30 apiece in 2011, according to comments its CFO John Martin made yesterday at the Goldman Sachs conference. Never mind the
wrath the idea will stir up among movie theater owners whose traditional windows get cannibalized as a consequence (Disney learned about that with its "Alice in Wonderland" early DVD release experiment last February), the real issue is that pay-TV operators should deem the idea a non-starter.
Typical VOD rental rates of $4-5 already look expensive to consumers compared to Netflix's $9 all-you-can-eat monthly plans and Redbox's $1 DVD rentals. And while there are scenarios where getting a group or family together to watch a movie makes sense, it's getting harder than ever to do so. The reality is that families are atomizing to their individual activities; perusing or playing on Facebook, watching YouTube/Hulu/Netflix/etc., playing with the Wii or Farmville, chatting on Skype, shopping on Amazon, etc. Corralling this crowd and getting them to agree on any one movie is already a challenge; the prospect of paying $20-30 for the pleasure just sets the bar that much higher.
Categories: Cable TV Operators, FIlms, Satellite, Studios, Telcos
Topics: Disney, Netflix, Redbox, Time Warner, Time Warner Cable
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Netflix's Expanded NBCU Deal Further Marginalizes Hulu Plus
This morning Netflix announced its latest content licensing deal to bulk up the its streaming catalog, adding a range of programs from NBCU. It's a long list which includes next day access to Saturday Night Live (plus the full back
catalog), last season episodes for 30 Rock, The Office and Law&Order: SVU (in addition to renewing back episodes already available), plus past seasons of Friday Night Lights, Psych, Monk, Battlestar Galactica, Destination Truth and Eureka. Netflix didn't identify exactly how many total episodes the deal adds to streaming, but it's very substantial.
On the losing end of this deal is Hulu, and more specifically, its budding subscription service Hulu Plus (note the irony that one of Hulu's parent companies is NBCU). As I explained in late August, in "88% of Hulu Plus Content is Already Available for Free on Hulu.com," when it comes to content, Hulu Plus is getting squeezed from all sides, seriously limiting its ability to be much more than an outlet for delayed-release current season and past seasons' episodes of broadcast programs. This is an extremely narrow value proposition which is unlikely to gain widespread adoption.
Categories: Aggregators, Cable Networks
Topics: Hulu, Hulu Plus, NBCU, Netflix
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6 Things Pay-TV Operators Can Learn From Blockbuster's Fall
Blockbuster's bankruptcy filing was a long time in coming, but is still daunting when you think back to how omnipresent and powerful the company used to be. To be sure, there has been a lot of distracting M&A and corporate drama surrounding Blockbuster over the years which no doubt contributed to its decline. Still, there have been fundamental shifts in its business that Blockbuster missed.
Specifically, Netflix has been both a catalyst of Blockbuster's demise and also a big beneficiary. Now, with Netflix aggressively pursuing over-the-top streaming, it is inevitably going to put pressure on traditional pay-TV operators. So what might pay-TV operators learn from Blockbuster's bankruptcy? Here are 6 things. No doubt there are more.
Categories: Aggregators
Topics: Blockbuster, Netflix
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BrightRoll Unifies Mobile and Online Video Ads in New Offering
Online video ad network BrightRoll is announcing this morning that clients can now buy pre-roll ads in mobile streams using the same BrightRoll buying
platform as they use for online video. The move is further evidence that as the universe of mobile devices that play video continues to proliferate, the infrastructure that allows unified media planning and buying will follow.
Categories: Advertising, Mobile Video
Topics: BrightRoll
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Roku Refreshes Product Line to Offer 1080p HD Streaming
Roku is once again refreshing its product line, introducing 3 new players, including two that will offer 1080p HD streaming for the first time for Roku. As the chart below shows, the most notable features of the new top-of-the line XDS model ($99.99) are the upgraded HD capability, and a new "Instant Replay" feature on the remote control that allows users to jump back in the stream by 10 seconds without any buffering. The XDS also includes extended-range, dual-band Wireless N connectivity to home networks and a USB drive for portable media (note the existing HDXR model also has USB and will receive a firmware upgrade in the Fall to activate it).
Categories: Devices
Topics: Roku
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Netflix Makes Canadian Streaming Service Official
As expected, this morning Netflix officially announced its first non-U.S. offering, a streaming-only service in Canada, priced at CDN $7.99, including a 1-month trial. Netflix also announced Canadian content licensing deals with U.S. studios Lionsgate, MGM, Paramount, Sony, 20th Century Fox and Universal, plus Canadian distributors Alliance Films, Maple Pictures, eOne and Mongrel. In particular, Netflix called out the availability of movies like "Superbad," "A Beautiful Mind" and "Slumdog Millionaire" plus back episodes of AMC's "Mad Men" which are not available in the U.S. Conversely, some content available in the U.S. for streaming won't yet be available in Canada.
Categories: Aggregators, International
Topics: Netflix
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Cisco's "LOL" Ad Campaign Showcases Video's Potential
Cisco is further personalizing its "Human Network" tag line with new "LOL" online ads (that's "Laugh Out Loud" for those of you not attuned to texting/tweeting/IM'ing shorthand), that demonstrate the power of video in our lives. I've seen the Cisco LOL banner ad in a number of web sites recently.
The ad links to a video wall that features 10 videos ranging from 15 seconds to a few minutes, with all showcasing new ways that video enriches people's lives and makes work more productive. Specific Cisco products/services highlighted include distance learning, telepresence, Webex, digital signage, Flip videocameras and Show and Share. The only celebrities featured are Magic Johnson and Ellen Page, with the latter's video a replay of her TV ad. While it's tempting to think of online video as being all about media, the Cisco wall shows there are many other uses.
Categories: Advertising
Topics: Cisco, ExtendMedia
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Intel's CEO is Bullish on Google TV, Less So on Apple TV
Intel CEO Paul Otellini is plenty bullish on Google TV. In a short video interview with CNNMoney.com's Poppy Harlow, he praises Google TV's vision, saying that "we're just at the beginning of the smart TV revolution" and that "the holy grail here is a seamless proactive integration of this content." Of course, Otellini has a vested stake in Google TV's success as Intel is supplying its Atom chip to power Google TV.
Otellini is decidedly more bullish on Google TV than he is on Apple TV, though he's cautious in noting that Apple is an Intel customer too. He says that Apple TV is "a streaming device for protected content, and there's a market for that," but quickly adds, "I think there's a bigger market for a deeper integration of the Internet into content." I think he's right on both accounts. It depends on what the user values - an open Internet experience on their TV, or a closed, but easy-to-use way of accessing a high-quality library (not to mention the price for each). There isn't one right answer, yet anyway. See "For Connected Devices, To Browse or Not to Browse - That is the Question" for a deeper discussion.
Categories: Devices, People, Technology
Topics: Apple TV, Google TV, Intel
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