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NHL GameCenter LIVE Subscriptions Up 31% for 2010-2011 Season
The National Hockey League and its technology partner NeuLion are reporting this morning that subscriptions to NHL GameCenter LIVE increased by 31% in the 2010-2011 season, with a 83% renewal rate. The service, which costs $169 for the season, includes live out-of-market game broadcasts, full-length and condensed replays and 500+ classic games in the NHL Vault.
Categories: Sports
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Sorting Through the 4 Tough Choices Most Netflix Subscribers Now Face
Netflix's decision yesterday to separate unlimited streaming and DVD-by-mail pricing means that a large majority of its nearly 23 million U.S. subscribers will be forced to choose from among four tough choices. As I described in my last post, Netflix subscribers to any of its DVD-by-mail plans now face the choice of either scaling back to DVDs-only, switching to streaming-only, absorbing a rate increase of somewhere between 33%-60%, depending on which plan they've had, or simply dropping Netflix altogether.
Following is an attempt to sort out how subscribers may think about their decision as well as my take on Netflix's viewpoint on each choice.
Categories: Aggregators
Topics: Netflix
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Netflix Makes a Surprising Left Turn With New Pricing Approach
For a company that has done just about everything right for the past several years, yesterday Netflix took a surprising left turn, unveiling an unusually
aggressive new pricing approach that raises its rates across the board. Though no rate increase will ever be welcomed by subscribers, this one has generated a massive amount of subscriber enmity, with scores of subscribers threatening to drop the service. The decision has wide-ranging competitive implications and could well mark another turning point in the evolution of online video.
First, to recap the new pricing. In a blog post yesterday, Netflix VP of Marketing Jessie Becker announced that DVD-by-mail plans and unlimited streaming plans would henceforth be charged separately. As a result everyone who had some type of DVD plan must now also pay an additional $8/mo in order to access streaming content. That marks a stark reversal of Netflix's strategy of including streaming as a free value-add to DVD subscribers.
Rewinding history a bit, Netflix's approach not to charge for streaming content was likely the most strategic decision Netflix ever made. It allowed the company to leverage its DVD library's breadth to introduce millions of subscribers to streaming with no barrier to trial (i.e. no need to make a new decision whether the streaming content was worth paying for). The value prop was breakthrough: get massive choice with DVDs, but a convenience bonus with streaming.
Topics: Netflix
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Cisco Divestiture Could Be Final Blow for Traditional Set-top Boxes
It's no secret that sales of traditional set-top boxes (STB) have been under huge pressure for a while now as IP delivery becomes more integral to pay-TV operators' technical architecture. But yesterday's news that Cisco, which is one of the biggest providers in the world of traditional STBs, is looking to divest its big STB plant in Juarez, Mexico, could be a final blow for the beleaguered devices, accelerating pay-TV operators' IP plans.
Cisco has been getting hammered from all sides recently and the divestiture would no doubt have much-needed short-term financial benefits (coupled with an imminent layoff). The larger context behind the move is more significant: pay-TV operators want to gain more flexibility in delivering services to subscribers while reducing their capex. As more pay-TV subscribers turn to their iPads, Rokus, smartphones and gaming consoles for their video entertainment, pay-TV operators need to run harder than ever to innovate.
Categories: Cable TV Operators, Technology
Topics: Cisco
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Claussen Pickles Is Latest Brand to Use Incentivized Video Views
Claussen Pickles, which is part of the Kraft Foods family, is the latest brand to successfully use incentivized video views in social games. For those not familiar with the concept (which I wrote about last April), those playing social games on sites like Facebook and others are offered the opportunity to earn virtual currency in exchange for watching a brand's video and/or engaging with it in a particular way (e.g. sharing, liking, etc.). The brand gets an uncluttered experience delivered to a highly-targeted audience.
Mitchell Reichgut, CEO of Jun Group, whose firm partnered with ad agency The Escape Pod, to execute the Claussen campaign, shared the 1-minute video that was created, called "Journey to the Claussen Pickles" (see video below). The offbeat video highlights the idea that Claussen pickles are found in the refrigerated section of the grocery store, and though they require extra effort to find, are worth it.
Mitchell said that video is targeted to moms playing social games on sites like Facebook. The completion rate is 75-80%, driven be the need to finish viewing in order to earn the reward. Of those that complete viewing, approximately 10% "Like" Claussen on Facebook, which means the brand now has a direct communications channel to send future offers and news.
Categories: Advertising, Games, Social Media
Topics: Claussen Pickles, Jun Group, Kraft Foods, The Escape Pod
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Break and Scripped.com Announce Screenwriting Contest Winner
Something fun to get this summer week started: Break Media and Scripped.com have announced the winner of their recent contest to identify an up-and-coming screenwriter, produce his/her script and feature it on Break.com. From 300+ submissions, the winner is Evan Kaufman, a Boston-based comedian for his script, "The Cutest Website" (see below for video and enjoy, it's pretty funny).
The Break/Scripped.com contest illustrates once again the larger point that online video is opening up new avenues for talented creators to be discovered and connect with their audiences. In the traditional TV world where there was finite shelf space, the odds against an aspiring writer breaking through were astronomical. The odds are still long though much better since with online video, there are many more outlets, more creative freedom, and many more ways to find an audience. Sites like Break, which has placed a huge emphasis on original content, are helping fuel this process.
Categories: Indie Video
Topics: Break Media, Scripped.com
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VideoNuze Report Podcast #103 - Q2 '11 Financings - July 8, 2011
Daisy Whitney and I are pleased to present the 103rd edition of the VideoNuze Report podcast, for July 8, 2011.
In this week's podcast, Daisy and I discuss private online and mobile video company financing in Q2 '11. Earlier this week I reported that $84 million was raised, which was the lowest quarterly amount in the last 2 years. Daisy and I consider what that means and also where things might be heading from here. Listen in to learn more.
Click here to listen to the podcast (11 minutes, 1 second)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!
Categories: Deals & Financings, Podcasts
Topics: Deals and Financings, Podcast
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HTML5 Playback Now Up to 69% of Online/Mobile Video
MeFeedia released its latest analysis of HTML5 playback adoption, finding that 69% of H.264 (the dominant video format) video is now available for HTML5 playback. As the chart below shows, that's roughly 7x the level it was in Jan. '10, although adoption appears to be slowing a bit since Feb. '11 (see chart below). Separately, MeFeedia found that WebM, Google's open source format accounts for less than 2% of video, though that will increase as YouTube converts its videos to WebM
Categories: Technology
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