VideoNuze Posts

Yesterday, FCC Chairman Tom Wheeler wrote in a blog post that he intends to start a rule making proceeding to broaden the definition of what a multichannel video programming distributor (an "MVPD," or more simply, a cable, satellite, telco operator that distributes bundles of cable and broadcast TV networks) is, to include companies that don't actually own their own delivery infrastructure. My weekly podcast partner Colin Dixon and I call these non-infrastructure companies virtual pay-TV operators, or "vPops" for short.

This "technology-neutral" change would mean vPops using the Internet/broadband to deliver linear TV networks would also be considered MVPDs, therefore entitled to the same regulatory-mandated benefits. Wheeler characterized the move as being pro-consumer and pro-innovation and on the face of it, it definitely appears to be. But, digging deeper, it's not clear that this type of regulatory change would overcome actual market forces that will still determine the average viewer's video choices.

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YouTube, the 800-pound gorilla of free, ad-supported online video, is considering launching a new ad-free subscription-based service, according to YouTube's CEO, Susan Wojcicki. The disclosure came during an interview at Re/code's Code/Mobile event.

While short on details, Wojcicki emphasized flexibility in providing different viewing options to different viewers. She said, "We've been thinking about other ways it might make sense for us. We're early in that process, but if you look at media over time, most of them have both ads and subscription services."

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Multiscreen video ad campaigns running on Videology's platform in the U.S. in Q3 '14 surged to 35% of total campaigns, up 59% from the 22% share multiscreen campaigns had in Q2 '14. Multiscreen includes campaigns running either on PC/mobile or PC/mobile/connected TV. Video ad campaigns running solely on PC dropped from 74% in Q2 '14 to 60% in Q3 '14.

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I'm pleased to present the 247th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

This week we talk about so-called "hybrid set-top boxes" and why we believe they're poised to play a critical role in the video ecosystem, especially for pay-TV operators. A hybrid STB can handle both traditional linear TV feeds and also broadband/IP/apps. Comcast's X1 is a great example, as are TiVo's boxes. Another technology approach which creates the same capability is from ActiveVideo Networks.

Colin and I both like hybrid STBs because they give the operator the ability to blend pay-TV/VOD/DVR with OTT. One prime opportunity of this that I see is for Netflix to be included in Comcast's X1, as I explained earlier this week. Just to give one example of how compelling these integrations can be, Colin cites the example of UPC Hungary, which integrated the YouTube app. Within a few months, 72% of its subscribers have used YouTube, averaging 45 minutes per session.

Colin notes the big win for subscribers here is convenience - it's just easier for people to use one device to access everything. We share additional thoughts on why we think hybrid STBs are beneficial and will become a big trend going forward.

Listen in to learn more!

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Following HBO's announcement of HBO OTT last week, a lot of the media coverage has focused on how disruptive it will be to the pay-TV ecosystem. But on today's Comcast Q3 '14 earnings conference call, company executives threw cold water on these prospects, highlighting the challenges and risks that HBO faces in going direct to consumer.

Responding to analysts' questions, NBCU CEO Steve Burke said:

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The next VideoSchmooze: Online Video Leadership Forum is coming up on Thursday morning, Dec. 4th in NYC and the program is continuing to get stronger, with 2 new sessions added: "TV, Disrupted: Online Originals Hit Their Stride" and "The Connected TV Audience: Not Who You Might Think."

Viewership of online original programming has been surging and there's now a massive ecosystem creating great high-quality originals well beyond marquee shows from Netflix, Amazon, Hulu, etc. For many millennials in particular, online programming is now more appealing than traditional TV. This session brings together executives at 3 of the biggest players in online originals - Fullscreen, DEFY Media and Vimeo, to discuss what drives originals' success, why fans are so engaged, how originals are being monetized and what it all means for traditional TV.

Helping enable online originals is the fact that connected TVs are now in more than half of all U.S. homes. But you might be surprised about who's driving this adoption. In a special research session, Tremor Video's head of market research Doron Wesly will present brand-new data about who owns connected TVs, how their behavior differs from traditional TV viewers and how this is changing the video ecosystem.

I'll be unveiling the final pieces of VideoSchmooze's exciting morning-only program in the next couple of weeks. As always, it's shaping up to be an amazing morning of learning and networking for 250+ industry executives who need to be in the know.

Early bird tickets are available now for $95, with 5-packs for $430 and 10-packs for $760. As an extra incentive, all early bird registrants will be entered to win a TiVo Roamio Plus DVR with Lifetime service - $1,000 value, generously provided by TiVo. I've owned one for a while and in my opinion it's the BEST connected device around.

I look forward to seeing you on Dec. 4th!

REGISTER NOW!

Adobe's Q2 '14 U.S. Digital Video Benchmark report has found that global online video starts hit 38.2 billion, a 43% increase vs. Q2 '13 and a new record among Adobe customers. Q2 was fueled in part by the heavily streamed World Cup matches in June. Mobile continued to experience strong growth too, with 26% of starts occurring on mobile devices, up from 19% a year earlier. Smartphones notched 13.6% of starts vs. 13% for tablets, the first time smartphones have pulled ahead. However, just 16.6% of mobile videos reached 75% completion.

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