VideoNuze Posts

Yesterday YouTube got a lot of coverage of its new licensing deal for hundreds of movies from Paramount because separately, the studio's parent company, Viacom, has been involved in a bitter copyright litigation with YouTube for years. While it's noteworthy that the parties are able to do business despite suing each other, the bigger questions here are whether YouTube's initiative to rent Hollywood movies makes sense and can succeed?

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The VideoNuze 2012 Online Video Advertising Summit on June 19th is continuing to gain momentum, with eight leading industry organizations on board as media partners: CTAM, NATPE, OPA, REELSEO, Beet.TV, The Diffusion Group, The Ad Club of New York and Jack Myers Media Business Report.

All the media partners are offering special discounted early bird registration to the Video Ad Summit which they will promote through their various communications channels. I'm delighted to have these partners working with VideoNuze, helping ensure the Video Ad Summit's success (note this event takes the place of last year's ELEVATE conference which drew 400+ attendees).

In addition, MWW Group, one of the ten largest independent global agencies, will be the public relations partner for the Video Ad Summit. MWW and The Fortex Group, which it acquired last year, have been long-time partners with VideoNuze for its events.

The Video Ad Summit has an amazing group of industry executives speaking, and I'll be adding them to the web site shortly - so keep an eye out!

The Video Ad Summit is generously supported by sponsors Auditude (Adobe), YuMe, Adap.tv, Collective, Conviva, Mixpo, TubeMogul and Videology.

Click here for early-bird registration

Today, I'm pleased to share a guest post from Alan Wolk, Global Lead Analyst at KIT Digital. As Alan points out, the Xbox Kinect technology has helped open up a new world of possibilities for navigating video content on TVs (I was recently in KIT's offices and played with their Kinect Sky TV app, which I thought was amazing). Beyond Kinect however, further technology improvements are coming, all of which means the remote control is poised to move far beyond its humble roots. Read on to learn more.

Building the Next Remote Control: Kinect is Just the First Step

by Alan Wolk

In the pre-cable TV world, the remote control was a truly amazing device. It allowed viewers to raise and lower the volume without getting out of their chair, while jumping seamlessly between the handful of channels that were available.

The advent of cable TV made the remote a little more complicated: with 20 or 30 channels in the line-up, the remote now needed a keypad to enter the actual channel number. The more channels cable systems added, the more critical the remote became. But around the time we moved from dozens of channels to hundreds of them, it become evident that a better system was needed: scrolling through so many channels ten at a time was not particularly time efficient, especially since viewers knew the names of channels they wanted to watch, not their constantly shifting numbers.

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Video ad technology provider FreeWheel added another big content provider to its customer roster yesterday, announcing that it will be powering video ads for a group of NBCU's broadcast and cable networks' properties.

In particular, the deal also covers NBCOlympics.com, the network's destination for the London games this summer. FreeWheel noted that as a result advertisers will be able to make specific digital ad buys and combined broadcast/digital packages, which NBC will be able to deliver. This opens up potential targeting at a more granular level than has been available with traditional TV.

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The age-old question of whether viewers will pay to skip ads will be put to the test in the online video industry with "SkipIt," a clever new service SpotXchange is launching today. For participating publishers, a SkipIt "chicklet" appears when a video ad starts playing; if the viewer clicks on it, the ad closes and the content continues. Each ad skipped costs the viewer $.10, which is automatically deducted from their pre-funded account. When an ad is skipped, the advertiser receives a credit from the publisher who is paid a percentage of the viewer's fee by SkipIt. (see SkipIt's video at bottom for more)

Initial publishers testing SkipIt include CineSport, Film Annex, IDG TechNetwork, OneScreen, Tech Media Network and Tetris Online. Combined, SkipIt estimates this will represent 20 million video ads presented each day to over 100 million viewers.

Michael Shehan, SpotXchange's CEO, explained a couple of weeks ago when he previewed SkipIt for me that the service is intended to empower viewers with more choice about which ads they watch, reduce wasteful spending by advertisers and deliver a more satisfying experience by the content publisher.

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I'm pleased to be joined once again by Colin Dixon, senior partner at The Diffusion Group, for the 127th edition of the VideoNuze Report podcast, for Mar. 30, 2012. First up this week we discuss Comcast's controversial assertion that streams from its Xfinity app running on Xbox won't count against subscribers' 250 gb/month data cap because they're running on Comcast's "private network" (note: Comcast has deleted "private network" references in its Xbox FAQ).

Colin argues strongly that this is an inappropriate policy in that it essentially creates a "fast lane" for Comcast's own traffic, while disadvantaging other video streams - basically the same concern raised by net neutrality advocates. Colin makes compelling points about the shared nature of broadband access and the longer-term implications of a "private network" model. For my part, I'm still curious the use case for the Xfinity Xbox app; unless it's used for TVs where a set-top box isn't present, it feels somewhat redundant to what's already available via Comcast's VOD.

Next we turn our attention to this week's mega-deal for the Dodgers. As I wrote yesterday, I think the deal will lead to even higher Regional Sports Network licensing fees, which in turn means even higher subsidies by non-sports fans to make the deal work. This is a problem throughout the pay-TV world, and the new Dodgers owners are betting non-fans will continue to pay ever-higher rates for sports they don't watch. Colin and I discuss the implications for over-the-top services and the pay-TV multichannel bundle.

Listen in to learn more!

Click here to listen to the podcast (21 minutes, 45 seconds)

Click here for previous podcasts

The VideoNuze Report is available in iTunes...subscribe today!

This week's eye-popping $2.15 billion acquisition of the Dodgers officially makes Los Angeles ground zero for the most egregiously anti-consumer aspect of today's pay-TV multichannel bundle: the massive annual subsidization by non-sports fans of hyper-expensive sports programming.

This is a topic I have written about previously in "Not a Sports Fan? Then You're Getting Sacked For At Least $2 Billion Per Year" and "Why Albert Pujols is Over-the-Top's New Best Friend." A confluence of factors, some particular to L.A.'s sports market, is bringing this little-understood issue into the spotlight, in turn raising the question of whether non-sports fans will revolt, seeking out less expensive over-the-top alternatives.

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Here's a great example of how online video advertising is opening up a new world of opportunities for savvy marketers: office supply giant Office Depot is dynamically creating customized video ads that are retargeted to visitors of OfficeDepot.com for specific products they browsed or purchased. Office Depot is leveraging SundaySky's "SmartVideo" and other technologies in order to re-engage visitors and drive new purchasing. Office Depot's Nicole Fraley explains how this works in the video interview embedded below, and SundaySky's president and CRO Jim Dicso recently provided me with some additional details.

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