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Justice Dept Considering Online Restrictions For Comcast-NBCU
An article in today's WSJ, "Comcast Gets Static on Net TV" describes how the Justice Department is scrutinizing the online video implications of Comcast's deal to acquire control of NBCU. According to the article, the Justice Department is digging in to try to understand what, if any, implications the deal could have on online-delivered TV shows and movies from NBCU.
The article points out that nothing is likely to come out of the investigation that could derail the deal. However, the results could provide the foundation for the Justice Department to impose restrictions on Comcast's flexibility to decide where and how NBCU's premium programming could be distributed online. The purpose would be to head off Comcast somehow gaining preferred and/or exclusive access.
The investigation is merited given the size of the deal and yet the yellow caution flags should be up regarding the government making too many assumptions about how the online video market will unfold. As I've written a number of times, we are continuing to see surprising deals, technologies and products which challenge popular assertions that online video and incumbent pay-TV models are on a collision course with one another, with one winning at the other's expense. Just in the last few weeks, the Netflix-Epix deal, the Cox-TiVo partnership, and possibly this week 99-cent broadcast TV rentals from Apple all show that the market is incredibly dynamic, with a blending of online and traditional distribution becoming more common.
That said, Comcast already has huge market power, and control of NBCU's top-notch assets mustn't deprive others of access from which consumers gain. Finding the delicate balance between just enough safeguards, but without limiting innovation, is the key.
What do you think? Post a comment now (no sign-in required).Categories: Broadcasters, Cable TV Operators, Deals & Financings, Regulation
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5 News Items of Interest for the Week of Aug 23rd
Following is the latest update to VideoNuze's new Friday feature, highlighting 5-6 of the most intriguing industry news items from the week that VideoNuze wasn't able to cover.
Ads skipped by 86% of TV viewers, but TV ads still most memorable
A new Deloitte survey unsurprisingly finds high rates of ad skipping among DVR users watching time-shifted programs, yet also notes that 52% of respondents say TV advertising is more memorable than any other type (only 2% cited online video advertising). Is there a love-hate relationship with good old TV advertising?
Endemol USA Plans Kobe Bryant Web Series
Online video continues attracting celebrities, with the latest being LA Laker star Kobe Bryant, who will be featured in 8 episodes teaching Filipino kids about hoops. The series is being produced and promoted by powerhouse Endemol. More evidence that independent online video is gaining.
NFL Sunday Ticket To-Go, Without DirecTV
DirecTV unbundles its popular NFL package, selling online access to non-subscribers for $350. It's not clear there will be many takers at this price point, but it does raise interesting possibilities about unbundled subscribers connecting to their TVs and also how sports will be impacted by online and mobile viewing.
TiVo Launches Remote with Slide-Out Keyboard
TiVo is enhancing navigation with a long-awaited keyboard that slides out of its standard-shaped remote control for $90. With TiVo's new Premiere box offering more video choices than ever, quicker navigation is required. As other connected devices hit the market, it will be interesting to see what clever solutions they come up with too.
MTVN's Greg Clayman Heads to News Corp to Lead iPad Newspaper
Amid the ongoing shuffle of digital media executives, MTV Networks lost a key leader in Greg Clayman, who's moving to News Corp to head up their new iPad newspaper. Greg's been on VideoSchmooze panels and we've done webinars together; he always brings great insights as well as a terrific sense of humor.Categories: Advertising, Cable Networks, Devices, Indie Video, People, Satellite, Sports
Topics: Deloitte, DirecTV, Endemol USA, MTV, News Corp, NFL, TiVo
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VideoNuze Report Podcast #73 - Aug. 27, 2010
Daisy Whitney and I are pleased to present the 73rd edition of the VideoNuze Report podcast, for August 27, 2010. We're back after skipping last week due to Daisy being on her exciting first book promotion tour.
In this week's podcast, Daisy and I dig into the speculation surrounding Apple's plan to offer 99-cent TV program rentals from ABC, Fox and NBC and a $99 "iTV" device. I think the pairing could be quite tempting. Daisy, on the other hand, isn't as enthusiastic. She's a current Apple TV owner and aside from the potentially reduced price of the iTV, doesn't see what the excitement is about. Meanwhile, Apple has invited media to an event in San Francisco next Wed, Sept 1st, where we all may find out what Steve Jobs has in store. Listen in for more.
Click here to listen to the podcast (12 minutes, 56 seconds)
Click here for previous podcasts
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Cisco's Kip Compton Explains ExtendMedia Acquisition
This morning Cisco announced it intends to acquire ExtendMedia, whose OpenCASE software is used by multiple pay-TV operators and content providers for video content management and three screen delivery. I've been following Extend for years, and it was a portfolio company of Atlas Venture, where my former consulting partner Ahmet Ozalp (who's now the CEO of Telenity, a mobile services provider) led its investment. For more on Extend, see this VideoNuze interview with Extend's CEO Tom MacIsaac, who was brought in 18 months ago and was previously CEO of Lightningcast, an early online video ad network that was acquired by AOL.
This morning I asked Kip Compton, Cisco's GM, Video and Content Platform about the deal and its implications, and Extend's founder Keith Kocho what it means for the company. Following is an edited transcript.
VideoNuze: Why is Cisco acquiring ExtendMedia?
Kip Compton: We're seeing a market transition to IP video with our service provider customers which is driven by their desire to reach consumers on all different devices and wherever consumers are. We believe Extend's technology and team are one of the leaders in the industry and will fit well with our efforts to deliver IP architectures to our customers.
Categories: Deals & Financings, Technology
Topics: Cisco, ExtendMedia
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Over 88% of Hulu Plus Content is Already Available for Free on Hulu.com
A new analysis of all the content available on Hulu Plus reveals that over 88% of all the full-length TV program episodes available in the $10/mo subscription service are already freely accessible on Hulu.com. For clips, it's almost 98%. Research firm One Touch Intelligence found that out of 28K+ episodes on Hulu Plus, just 3,345 of them can't also found on Hulu.com. Two-thirds of these incremental program episodes are sourced from Hulu's broadcast TV network partners/owners, ABC, Fox and NBC.
In fairness, Hulu Plus has been live for less than 60 days and will no doubt will be adding more content down the road. But for now the high proportion of free availability diminishes the Hulu Plus value proposition for Hulu.com
users considering an upgrade. In addition, the relatively small amount of incremental episodes risks inducing churn, particularly for heavy users most familiar with the service, as they come to realize much of what they've paid to watch is actually available for free. Compounding the problem, Hulu Plus viewers see the same quantity of ads as do free Hulu.com users, so there's no ad-avoidance benefit to subscribing either.
Categories: Aggregators, Broadcasters
Topics: ABC, FOX, Hulu, Hulu Plus, NBC, Netflix
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Webinar Highlights - Indie Online Video, Syndication and Brand Integration
On Tuesday, VideoNuze and The Diffusion Group hosted their fourth webinar in a 2010 series of six sponsored by ActiveVideo Networks, with this one focusing on "Demystifying Independent Online Video and Syndication Models."
The webinar featured informative and timely discussion/Q&A with Richard Bloom, SVP, Business Development for 5min, and Jim Louderback, CEO of Revision3. The focus of the discussion was on business models for success in independent online video with a specific lean towards syndication. Both Jim and Rich honed in on how syndication helps solve the difficulties with finding eyeballs and building audience in the fragmented broadband video landscape.
Categories: Advertising, Events
Topics: 5Min, ActiveVideo Networks, Revision3, TDG, Webinar
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Samsung Snags Wozniak, Others for First "Free the TV" Developer Day
Samsung is putting some celebrity technology muscle behind its recently announced $500,000 "Free the TV Challenge," snagging Apple co-founder
Steve Wozniak to participate in a fireside chat at its first developer day in San Jose next Tues, Aug. 31st. Joining Woz at the event will be Pandora founder Tim Westergren, Geek Squad founder Robert Stephens, ESPN CTO Chuck Pagano, CNET editor at large Brian Cooley and high-level Samsung executives. Attendees will see demos and gain training on Samsung's SDK.
Samsung is making an aggressive play for new apps suited specifically for connected devices and TVs. Two weeks ago, Samsung director of content Olivier Manuel told me in an interview that Samsung believes it already has a 60% share of connected TVs which it sees having huge growth ahead. Samsung also recently began a high-profile ad campaign with the slogan, "Now there's an app for that."
The battle for TV apps is just getting underway and this fall we'll see more announcements, from Apple, with its rumored "iTV" device, Google, with its Google TV device and plenty of others. As a dominant CE provider, Samsung will be in the middle of the action.
What do you think? Post a comment now (no sign-in required).
Categories: Devices
Topics: Free the TV, Samsung
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Is Apple Planning to Pair 99-Cent TV Show Rentals With Its $99 iTV?
Bloomberg is reporting that Apple is in "advanced talks" with CBS, Disney and Fox about making available TV programs for 99-cent rental. The programs would be offered within 24 hours of when they aired and once rented, the viewing window would be just 48 hours. It's not clear whether the iTunes rental model would be targeted only to Apple's "i" devices, or if it would be more widely available. If the program deals happen, could it be that Apple is planning to pair availability of 99-cent rentals with the unveiling of its $99 iTV device at its rumored Sept. 7th keynote event?
In my earlier post, "Pondering the (Potential) Impact of Apple's New iTV Device," I speculated that the iTV device would have little impact on the pay-TV ecosystem, since major cable TV networks and pay-TV providers will resist Apple's attempts to reinvent their business models. However, I suggested that Steve Jobs could have a trick or two up his sleeve for the iTV's launch. Sure enough, 99-cent broadcast TV rentals, announced just weeks prior to the Fall TV season kickoff, would be a very good trick indeed.
Categories: Broadcasters, Devices
Topics: Apple, CBS, Disney, FOX
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