VideoNuze Posts

Netflix released new research on binge-viewing among its subscribers today, revealing that 61% of them binge-view at least 2-3 episodes every few weeks. The data adds yet more weight to the binge-viewing story line: in September Nielsen found that 88% of Netflix subscribers have watched 3 or more episodes in the same day (70% for Hulu Plus) while research from Piksel found 94% of viewers binging in one way or another. (caveat, there's some apples vs. oranges in comparing the data)

No other company has done more to promote binge-viewing than Netflix. Whereas the phenomenon started with viewers binging past seasons of shows like "Mad Men" or "Breaking Bad," Netflix has shrewdly capitalized by releasing all of its own original episodes at once, making binge-viewing a current season behavior as well. As a result, TV network executives must now ask whether their traditional approach of scheduling new episodes should be revamped.

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I'm pleased to present the 207th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

This week we first discuss the prospects of a nationwide "virtual pay-TV operator" launching in 2014, as Viacom's CEO Philippe Dauman asserted will happen, in his remarks at the UBS conference earlier this week. Colin and I agree that if this were to happen, Verizon is the most likely candidate. Of note, the company has recently made 2 acquisitions (of upLynk and EdgeCast), through its Verizon Digital Media Services group, that could be very strategic in a virtual pay-TV operator play.

Colin is reasonably bullish that this this type of operator will emerge, but I still remain skeptical. Intel Media's flameout this year with its OnCue service underscores the challenges. We dive into further detail on the challenges and opportunities for virtual operators. (And note, Colin has a free white paper on 5 reasons why virtual operators will ultimately succeed)

Next we turn our attention to how fragmentation among connected TV devices is causing headaches for content providers and consumers, which I wrote about yesterday. Colin contrasts today's devices with buying a TV, noting how ridiculous it would be if some brands could access certain TV networks, and other brands accessing different ones. The TV industry would never have scaled in that case.

Listen in to learn more!

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Yesterday Aereo announced that it will not oppose the petition by the major broadcast TV networks (formally a "petition for a writ of certiorari") for a U.S. Supreme Court review of a ruling last May in Aereo’s favor. In that instance, the broadcasters were thrown for a pretty significant loss by Aereo when the U.S. Circuit Court of Appeals for the Second Circuit ruled preliminarily that Aereo’s business should not be halted due to alleged violations of the copyrights of broadcasters.  

Normally it is big news when two sides so diametrically opposed like Aereo and the broadcasters seek (or at least willingly accept) review from the Supremes. But in this case there may be less than meets the eye (at least from a litigation perspective - see below).

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This holiday season, connected TV devices are among the hottest items on consumers' wish lists. For content providers eager for a foothold in the "digital living room," surging demand is very good news. The bad news, however, is that due to fragmentation and proprietary approaches among devices, content providers are forced to allocate their scarce resources in a one-by-one development model.

This is highly inefficient for content providers and sharply contrasts with how the web's standards helped to drive massive scale years ago. Beyond the inefficiency for content providers, the resulting fragmentation of content availability undermines the scale required for successful video advertising and also creates confusion among consumers about which device to buy. Unlike the web where you can bring home a computer and get access to ALL content, when you get a device you only get a narrower subsection.

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ESPN has reported a slew of viewership data for the 2013 college football season across both traditional TV and digital platforms. Of note, WatchESPN recorded a 20% increase in average live game usage vs. 2012, to 32,000 live unique viewers. Though that's a healthy increase, the incremental viewership WatchESPN represents is still quite small compared to TV viewing. ESPN said that its networks averaged nearly 1.9 million viewers for the 254 regular-season games that were broadcast. Across all of its networks, a total of 189 million people watched games.

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Samsung has announced that it has licensed the Reference Design Kit (RDK) from RDK Management to accelerate delivery of next-generation IP video onto new devices. RDK Management is a joint venture between Comcast and Time Warner Cable, with the aim of developing a standardized set of software bundles for set-top boxes.

The RDK is a pre-integrated software bundle, initially developed and licensed by Comcast to create a common framework for powering tru2way, IP or hybrid set-top boxes and gateway devices. The RDK’s software bundle can also power gateway devices, and other devices like connected TVs and other CE devices.

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There is no doubt the TV industry is changing dramatically, largely due to the rise of online and mobile video viewing. But is it "dying," "imploding" or being "nuked" as some recent tech media headlines assert? No, not yet anyway. As a close observer of all things video, it's just mind-boggling sometimes to see how data is conflated to support distorted conclusions. If your company's product strategy were guided by today's headlines alone, you'd be on a course to disaster.

To help set things straight, Piksel's Alan Wolk has put together a really good slide deck with data debunking 7 of the bigger myths floating around these days (1) cord-cutting is a mass movement, (2) kids ignore mainstream TV, (3) your pay-TV provider is the one forcing you to pay for 800 channels, (4) cutting the cord lets you stick it to the cable company, (5) second screen is all about social TV, (6) TV viewing has decreased and (7) in the future we'll be able to watch TV wherever, whenever and however we want.

See slide deck

Newsy, which creates short-form video news segments that are syndicated to major third-party online publishers, has been acquired by E.W. Scripps for $35 million in cash. According to the announcement, Scripps was attracted to Newsy for its approach to curating news, its national brand, potential to enhance content from Scripps' 17 local TV stations and the growth potential of online video. Newsy will operate as a wholly owned subsidiary in Columbia, MO.

I've been a big Newsy fan and recently met up with its CEO and founder Jim Spencer and VP of Marketing Alexandra Wharton. Newsy has a very interesting approach to creating original content, but not doing original reporting. That means it doesn't send reporters out to the field, but rather curates the best video and text news from multiple sources, writes its own scripts and creates its own graphics, capturing the essence of stories in under 2 minutes. All underlying sources are clearly identified and have links back to them.

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