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As DVD Sales Wane, Experiments With Movies' Digital Delivery Windows Rise
Yesterday brought more evidence of how digital distribution release windows and promotions are rising as DVD sales wane. First there was news that Disney had teamed up with Wal-mart to allow buyers of the Toy Story 3 DVD to get a bonus digital version of the film playable through the company's recently acquired Vudu digital outlet. That offer was quickly one-upped by Amazon which announced an increase from 300 to 10,000 movies in its "Disc+" program, which provides a digital copy to the user's Amazon VOD account when they purchase a qualifying DVD.
Meanwhile at the Blu-con conference in Beverly Hills, studio executives debated how to best calibrate digital, VOD and DVD distribution. Even emerging practices come with exceptions and debates about results. For example, while VOD has largely gained day-and-date release with DVD, exceptions are still made on a case-by-case basis, such as with Universal's "Despicable Me" which will have its DVD go on sale on Dec 14, but its VOD release not until after Christmas.
Topics: Amazon, Apple, Best Buy, Disney, EPIX, FOX, Netflix, Sony, Starz, Universal, VUDU, Wal-Mart, Warner Bros.
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Entone Introduces FusionTV To Help Telcos Blend OTT With Linear TV
IPTV vendor Entone jumped into the connected device fray today with a new managed service called "FusionTV" for telcos looking to offer a hybrid linear TV/broadband/online video package. Entone's CEO Steve McKay briefed me on the company's plans last week.
For consumers, FusionTV's appeal is that it brings together several value propositions into one user experience: linear HDTV, whole home DVR, online video and media sharing. As a result consumers don't need to buy and wire
together a DVR or connected device (or multiple of these for additional rooms), and also don't need to disrupt their existing video source, whether that be telco, satellite, over-the-air, etc. For the telcos (primarily tier 2), FusionTV is a new value added service to improve the competitiveness of their broadband service, while also helping bring online video under their roof, thus preempting over-the-top cord-cutting.
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Brightcove 5 Launches
Brightcove is launching the next version of its online video platform today, dubbed Brightcove 5. It is a free upgrade to existing customers and will be fully rolled out by mid-January 2011. Brightcove 5 expands on the themes of Brightcove 4 (released in Nov. '09): delivering video to more devices/places, enhancing the financial return of online video and improving publishing productivity. Brightcove's president and COO David Mendels walked me through the key highlights last week:
- YouTube distribution - publish video and metadata simultaneously to YouTube channels so that content on both owned properties and on YouTube remain in synch.
- Streaming support for Apple iOS devices - integrated multi-bit rate delivery for iPhone, iPad and iPod Touch.
- Updated mobile app SDKs for iPhone and Android - enhancements to those released in Brightcove 4, plus a new reference app for the iPad.
- Improved analytics - over a dozen new reports for tracking video playback.
- Integrated HTML5 and Flash analytics - in partnership with TubeMogul, reports now aggregate HTML5 and Flash video metrics into one view.
- High-quality live-streaming and DVR functionality - using Akamai's HD network, multi-bit rate HD live-streaming plus DVR rewind in live events and ad insertion.
- New "Smart Players" - single video player design for HTML5 and Flash video with browser auto-detection feature serving the right format to each user.
- Accelerated file upload - integration with Aspera for faster video uploads.
- Mobile video upload from iPhones - app that allows remote users to edit and upload video to their Brightcove accounts.
Brightcove separately announced that it will hold its first customer conference, Brightcove PLAY, May 23-25 in Boston.
Categories: Technology
Topics: Brightcove
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Sorenson Enters Cloud-Based Encoding Market for Enterprises
Sorenson Media is entering the cloud-based encoding market with the launch today of its new Sorenson Squeeze Server, targeted to enterprise users. The opportunity for cloud-based encoding has heated up recently as the number
of end-user devices and encoding requirements has exploded, dramatically increasing encoding complexity for content providers. Concurrent improvements in cloud infrastructure have made non-hosted solutions more attractive.
Sorenson Media's COO Eric Quanstrom explained to me last week that a key differentiator of the Squeeze Server is dedicated server instances, thereby avoiding potential slowdowns associated with shared servers and also offering unlimited scalability. Squeeze Server uses Amazon's web services infrastructure and guarantees 99.9% uptime.
Categories: Encoding
Topics: Sorenson Media
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Amazon is Now Selling Samsung's Connected Blu-ray Players For Lowest Prices Yet
Amazon is now selling two of Samsung's most popular connected Blu-ray DVD players, the BD-C5500 and the BD-C6500 for $109 and $132, respectively, which I believe are the lowest prices yet for these two products (note these
are new, not refurbished). The main difference between the two is that the 6500 has built-in wireless and 1GB of local storage, whereas the 5500 supports wired Ethernet access only. I've been tracking the prices on these two units for a while now and actually picked up the 6500 almost a month ago for what was then the lowest price I had seen of $190. The new prices put the Blu-ray players in close proximity to Apple TV and Roku in particular.
Just yesterday, Best Buy was advertising the 6500 for $160, which itself was probably the best price I'd seen to date (by comparison, Crutchfield and Walmart.com are both still asking $250). The move toward $100 brings both products well into the comfort zone for many millions of buyers this holiday season, helping drive Blu-ray penetration to new highs. This in turn creates many more connected homes accessing content from providers like Netflix, Vudu, Pandora, etc.
Categories: Devices
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Netflix's Revenue Per Subscriber is Steadily Declining While Free Subscribers Are Soaring
It isn't news that Netflix has been on a huge growth spurt; over the last 5 quarters the company has added an astounding 6.3 million subscribers, increasing its total subscribers by 60% from 10.6 million at the end of Q2 '09 to over 16.9 million at the end of Q3 '10. What's less well understood though is that as the company has shifted its focus to streaming and to adding subscribers at its entry level $8.99/mo tier, several of the company's key metrics have changed substantially. I sensed this was happening with each passing quarter, but I finally got some time to crunch the numbers and see how things have actually been playing out.
No surprise, Netflix's emphasis on the $8.99/mo entry tier is resulting in a steady quarterly decrease in its average revenue per paying subscriber, which has declined 8.9% from $13.30 in Q3 '09 to $12.12 in Q3 '10 (Note I calculated this by excluding average quarterly free subscribers, and by assuming a straight average monthly revenue per quarter. Since Netflix doesn't release monthly information, this is as close an approximation as possible). Netflix management has been candid in explaining that as $8.99/mo subscribers dominate growth (and even lower priced streaming-only Canadian subs are now added), average revenue per subscriber will trend down. At $12.12 in Q3 '10 though, and millions of $8.99/mo subs being added, further decreases should be expected.
Categories: Aggregators
Topics: Netflix
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5 Items of Interest for the Week of Oct. 25th
Lots more happened this week in online/mobile video, and so to make your lives easier, VideoNuze is once again curating 5-6 interesting industry news items that we weren't able to cover this week. Read them now or take them with you this weekend!
No Longer 'Must-See TV'
The WSJ reported this week that Thursday night TV viewership (live or recorded) among 18-49 year-olds is down 4.3% this season to 48.5 million, a drop of 2.2 million viewers. For this age group, the drop across all nights (live or recorded) is 2.7%. While the decreases have immediate implications on networks' ad revenue, the bigger issue of course is what the drops say about shifting consumer preferences. For example, I continue to hear anecdotes about users with connected devices now tuning in first to their Instant Watch queues instead of channel surfing or visiting their DVR libraries or VOD. The Nielsen data corroborates other data (here, here) about the decline of TV viewing, especially among young people, and is another reason why broadcast networks in particular should be embracing connected devices like Google TV, not blocking them.
CW Says Study 'Dispels Myth' About Aversion to Ads in Online Video
Speaking of networks and their online distribution, this week CW released some interesting new data that detailed extremely low abandonment rates for its shows consumed online, even with ad loads almost equal to those on-air. While it is too early to generalize, the data provides a very encouraging sign that networks may be able to achieve parity economics with on-air, even when they window their online releases for delayed availability. It's also an important sign that online video may be a firewall against DVR-based ad-skipping.
Comcast Launches Free Streaming Video Service Xfinity for All Digital Subs
In addition to releasing stellar Q3 earnings this week (albeit with a bigger-than-expected subscriber loss), Comcast also pulled the "beta" label off its Xfinity TV service this week, and relaxed its rules about who can gain access. Now any video subscriber, regardless of who they take their broadband Internet service from, can access XFTV.
Some began to speculate that it could be a precursor for Comcast allowing non-video subs to also gain access to XFTV. This is the concept I wrote about in over a year ago, in "How TV Everywhere Could Turn Cable Operators and Telcos Into Over-the-Top's Biggest Players." The idea is that TV Everywhere services like XFTV could be offered outside of Comcast's franchise areas to allow them to poach video subscribers from other pay-TV operators. It's still a fascinating concept, but nothing about Comcast's move this week suggests it's coming soon.
Insight To Bow 50-Mbps Internet In Two Markets
If you think all that Netflix and other long-form streaming is going to strain users' bandwidth, think again, as yet another cable operator/broadband ISP, 9th-largest Insight Communications unveiled plans for a speedy 50 megabit per second broadband tier. Big players like Comcast and Time Warner Cable have been offering this for a while already. It's still very pricey, but as some viewers shift more of their consumption to online and away from conventional TV viewing (see above), more bandwidth will be worth the price. Update - I missed this item, that over in the U.K. Virgin Media began taking sign-ups for a 100 Mbps broadband service. Net, net, last-mile bandwidth will keep expanding to meet increasing demand.
Promoted Videos hit half a billion views
Fresh evidence this week that YouTube is finding innovative ways to monetize its massive audience: the company's performance-based "Promoted videos" format achieved its 500 millionth view, just 2 years after being introduced. With Promoted videos, anyone uploading a video to YouTube (brand, content provider, amateur), can buy opportunities to have that video appear alongside relevant keyword-based searches in YouTube. It's a similar format to AdWords, and of course the video provider only pays when their video is actually clicked on. As I said recently, YouTube is becoming a much more important part of Google's overall advertising mix, while for many brands, YouTube's home page is fast-becoming the most desirable piece of online real estate.
Categories: Advertising, Aggregators, Broadband ISPs, Broadcasters, Cable TV Operators
Topics: Comcast, CW, Insight, Nielsen, YouTube
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VideoNuze Report Podcast #79 - Oct. 29, 2010
I'm pleased to present the 79th edition of the VideoNuze Report podcast, for October 29, 2010. This week Daisy Whitney is taking a break and stepping into her big shoes is long-time listener Harold Geller. Harold is the SVP of Cross-Industry Workflow at the 4A's (American Association of Ad Agencies) and Managing Director of Ad-ID LLC, a joint venture between the 4A's and the ANA (Association of National Advertisers). He's also a 1-man roving researcher on connected devices and consumers' viewing preferences.
Harold first walks us through how the online video advertising supply change is being streamlined, with processes being put in place to provide improved asset tracking and scaleability. Ad-ID itself has already attracted 700 advertisers to work with it to exchange data more effectively. Though I haven't tracked this closely, Harold does an excellent job of explaining it and comparing it to UPC codes as a integral tool for helping scale online video advertising.
Then we segue to discuss some of Harold's informal research about connected devices and consumers' reactions. His research at Best Buy is by no means statistically significant, but it does provide some interesting insight into how consumers may be thinking about over-the-top content and devices.
Click here to listen to the podcast (19 minutes, 40 seconds)
Click here for previous podcasts
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