VideoNuze Posts

  • Why Virtual Pay-TV Operators Have Very Low Odds of Succeeding

    Lately there's been a lot of talk about so-called "virtual pay-TV operators," (vPops as my partner Colin Dixon at nScreenMedia likes to call them), which are also called "virtual MVPDs" (multichannel video programming distributors). These are companies that will deliver linear and on-demand broadcast/cable TV network bundles from the cloud, over broadband to connected/mobile devices, offering an alternative to traditional pay-TV services.

    Sony, Verizon and Dish Network have all publicly stated their interest in launching vPop services in either 2014 or 2015. Though it's still early and much is yet to be known about their actual offerings, there are already many reasons to be skeptical that they'll achieve any material success.

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  • Big Ten Network Broadens OTT Sports Packaging With NeuLion Assist

    Big Ten Network (BTN) is the latest example of how sports fans are benefiting from online video's rise - gaining more convenient access, more content choices and additional packaging options.

    BTN rolled out BTN2Go, its TV Everywhere service, four years ago, which is currently available to over 90% of its 60 million+ subscribers. Now, it is using BTN2Go as its platform brand and has introduced BTN Plus, a "hybrid TV Everywhere" service, which includes non-televised games and events from Big Ten schools and is available exclusively online and on connected devices. BTN Plus takes the place of previously fragmented efforts by individual schools under the CBSSports.com brand.

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  • The Future of TV: 4 Reasons Why It Will Keep Getting Better

    A new wave of viewers has emerged: they're connected, they know what they want to watch, when they want to watch it, and most importantly, how they want to watch it. They are chomping at the bit for premium content that is both accessible and affordable. At the same time, the advent of OTT and connected TV devices has made way for a whole new viewing experience where "television" simply refers to the largest screen in the house.

    We all know the TV ecosystem of tomorrow will look vastly different than today's current landscape, but what changes can we expect? Here are four predictions for what trends will emerge over the next few months and years:

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  • Data is the Real King, As Netflix Keeps Proving

    "Content is King." No, wait, "Distribution is King." No, wait, "Content and distribution are equals and need to work together." And on the debate has raged for years about what's at the core of the media and entertainment industry's success. Meanwhile, Netflix keeps proving that data is fast becoming the real king, with profound implications for all players in the industry.

    The latest evidence of data's ascendance and Netflix's ability to harness it is the company's new 4 movie deal with Adam Sandler. Opinions about Sandler are all over the board, but in a must-read interview with The Hollywood Reporter, Netflix's content head Ted Sarandos neatly summed up why Netflix made such a big commitment to him:

    "The more global we become, the more access we have to global behavior data so we can see what people are watching all around the world. Very uniquely, he (Sandler) stands out for his global appeal to Netflix subscribers. Even movies that were soft in the U.S. outperformed dramatically on Netflix in the U.S. and around the world."

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  • VideoNuze Podcast #244 - Will Netflix Disrupt Movies' Windowing Practices With "Crouching Tiger" Sequel?

    I'm pleased to present the 244th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    Netflix kicked up a lot of dust earlier this week, when it announced the sequel of "Crouching Tiger, Hidden Dragon," produced by The Weinstein Company, will be available simultaneously as part of Netflix monthly subscriptions and in IMAX theaters when it premieres in August, 2015. The so-called "day-and-date" strategy prompted two of the three big U.S. IMAX chains, Regal and Cinemark, to declare they won't show "Crouching Tiger" on their screens.

    The core issue here is whether a meaningful percentage of Netflix subscribers will opt to watch the movie as part of their subscription, thereby cannibalizing potential theater sales. Colin and I agree this risk is high, mainly because a family of four would pay at least $60-$80 just for tickets to see the movie in IMAX, a stark premium over their $8 Netflix subscription.

    Admittedly, IMAX is a very unique experience, but with the quality of today's HDTVs and home theater, for many, watching at home is quite stellar. As such, theater owners seem well justified in boycotting the movie to preserve their long-term value proposition.

    The "Crouching Tiger" move raises a host of other questions Colin and I also dig into: Will it have a positive impact on piracy? Is Netflix signaling a serious push beyond TV into movies (see also its 4-movie Adam Sandler deal this week)? And, is Netflix shifting toward a more exclusive content strategy?

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  • OTT Never Had a Real Chance of Getting NFL Sunday Ticket Deal

    Late yesterday, the NFL announced it renewed its "Sunday Ticket" deal with DirecTV for a reported 8 years at $1.5 billion per year, a 50% increase over their prior deal. Going back about a year, there were rampant rumors that the Sunday Ticket package could go to an OTT player, with Google being the name most often mentioned.

    In reality, though, there was virtually no chance Sunday Ticket was going to go to OTT, and so the DirecTV renewal comes as no surprise. As I wrote over a year ago, there were at least 5 big challenges to a Google-NFL deal in particular. These essentially boil down to a combination of online video not being mature enough yet to exclusively handle marquee sports broadcasts and the incumbent TV ecosystem desperately needing to retain marquee sports broadcasts like Sunday Ticket.

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  • Study: Mobile Video Provides Cost-Effective Incremental Reach to TV Ads

    BrightRoll has released a new study, conducted by Nielsen, which concludes that mobile video advertising provides cost-effective incremental reach to TV advertising. Nielsen found the following incremental reach with mobile video ads in 4 verticals it studied: CPG (12.7%), Auto (11.9%), Telecom (9.5%) and Financial Services (9.9%).

    Underlying the incremental reach benefit of mobile video is Nielsen's estimate that once a brand hits 60% or more of its target audience with TV advertising, there's a point of diminishing returns, making incremental reach very expensive.

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  • Save the Date: Next VideoSchmooze Is On Thursday, Dec. 4th in NYC

    Please save the date for the next VideoSchmooze: Online Video Leadership Forum, on Thursday, December 4th, at the Scholastic Auditorium in NYC. This will be the 11th VideoSchmooze and as with all of the previous ones, it will be a top-notch morning of learning and networking with video industry leaders. Continental breakfast will begin at 7:45am and we'll conclude by 12:30pm before lunch.

    2014 has been another incredible year of growth for online and mobile video. Viewers continue to dramatically change their behaviors, with content choices exploding and connected devices for video proliferating. Incumbents are scrambling to adapt while startups continue to innovate. All are positioning themselves for billions of dollars of video-related spending by consumers and advertisers that are up for grabs.

    As with prior VideoSchmoozes, we'll have an impressive array of sessions and speakers, which I'll announce soon, along with special early-bird registration. Last year we had 250+ attendees and I'm confident we'll have a similarly strong turnout this year too. For industry executives who need to cut through the noise and understand what's really happening in video, VideoSchmooze is a must-attend event.

    I'm delighted to have Brightcove, FreeWheel and Tremor Video on board so far as sponsors for this VideoSchmooze. Additional opportunities are available, please contact me if interested.