Posts for 'Cable Networks'

  • Disney Has Religion on Digital, ESPN Is At the Core

    Disney held its annual investor day yesterday, and as usual, technology, and the opportunities it creates for the company, was at center stage. Disney introduced a new initiative called "Disney Studio All Access" providing a central location for consumers to securely access the company's range of content. Though details were sketchy, key to the plan is more flexible consumer ownership and multi-device playback. For paid, downloadable video, that remains the holy grail.

    Aside from the company's digital initiatives on the entertainment side of its house, the most important asset that Disney is trying to re-imagine digitally is ESPN. Just yesterday, the company announced a new distribution deal with Verizon, which emphasizes live online streaming of ESPN, ESPN2, ESPNU and ESPN Buzzer Beater. The deal is similar to one inked last September with Time Warner Cable, the country's 2nd-largest cable operator. No doubt others will follow.

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  • Time Warner Cable-LA Lakers Deal Is More Bad News For Pay-TV's Non-Sports Fans

    If you live in the Los Angeles area and are not a sports fan, or you are a casual one, Time Warner Cable's new 20-year deal with the LA Lakers is more bad news. That's because, as I explained last week in "Not a Sports Fan? Then You're Getting Sacked For At Least $2 Billion Per Year," virtually all digital pay-TV subscribers in the LA area - sports fans or not - are going to be footing the bill for this massive deal.

    The TWC-Lakers deal is just the latest example of how ever-higher monthly fees pay-TV distributors must fork over to carry sports networks help drive up subscription rates. In this case, TWC, the 2nd largest pay-TV operator, is positioning itself to also be a major sports network owner, just as Comcast has with Comcast SportsNet. TWC's deal will help create an even bigger inequity for non-sports fans and casual fans than already existed. For this group of subscribers, who are primarily entertainment-oriented, and likely more on-demand focused in their viewership than ever, higher subscription rates - tied to a small cluster of very expensive sports networks - are inevitably going to drive them to drop their pay-TV service.

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  • VideoNuze Report Podcast #87 - Feb. 11, 2011

    Daisy Whitney and I are pleased to present the 87th edition of the VideoNuze Report podcast, for February 11, 2011.

    In this podcast, Daisy and I do a deep dive into the role of sports in pay-TV packaging, based on my post from Monday, "Not A Sports Fan? Then You're Getting Sacked For At Least $2 Billion Per Year." I think this is a fascinating topic and something that has been under-reported even though it has huge implications for pay-TV subscription rates as over-the-top services gain awareness.

    The basic premise of my post was that since a relatively small cluster of sports-oriented channels (e.g. ESPN, TNT, Regional Sports Networks and others) collectively cost pay-TV operators $10 per month, then the charges being incurred by non-fans and casual who fans who rarely, if ever watch these channels, could amount to at least $2 billion per year. Since writing the post and gaining feedback from various sources, it's actually quite possible that the annual charges incurred in exchange for little-to-no value could exceed $3 billion. Whatever the number is, it's very large, and effectively represents a massive subsidy that non-fans and casual fans pay each year because of escalating sports TV rights deals and astronomical player compensation.

    Click here to listen to the podcast (17 minutes, 8 seconds)



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  • VideoNuze Report Podcast #86 - Feb. 4, 2011

    Daisy Whitney and I are pleased to present the 86th edition of the VideoNuze Report podcast, for February 4, 2011.

    In today's podcast we discuss the content deal announced this week between Comcast and Time Warner that allows delivery to VOD, Xfinity TV online and iOS/Android tablets and smartphones. As I wrote in "Comcast-Time Warner Deal Shows Promise and Challenges of TV Everywhere," while the deal should be a template for others between pay-TV operators and cable TV networks, it also highlights many challenges that remain in realizing the companies' TV Everywhere vision.

    Click here to listen to the podcast (12 minutes, 17 seconds)


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  • Comcast-Time Warner Deal Shows Promise and Challenges of TV Everywhere

    If you're looking for a template of how pay-TV operators and cable networks need to be working together if they want to successfully combat the rise of Netflix and other over-the-top entrants, yesterday's long-term agreement between Comcast and Time Warner is a great example. Under the agreement, Comcast digital subscribers will gain access to popular programs and movies from Turner Broadcasting networks like TNT, TBS, CNN, Cartoon Network and others, across multiple platforms, including Comcast's On Demand service, Xfinity TV online web site and companion iPad/iPhone and Android apps (which just last night began streaming full episodes). Importantly, Turner networks' viewers will also be able to view the same programs/movies on Turner web sites and online/mobile platforms.  No extra charges to the consumer are planned.

    The deal is a solid step forward in realizing the vision of TV Everywhere that both companies' CEOs laid out back in July, 2009 (see this video for more). And no doubt both companies want to make similar deals with others in the industry; Comcast with other cable TV network groups, and Time Warner with other pay-TV operators. Still, the fact that the two foremost proponents of TV Everywhere took a year-and-a-half to go from laying out their vision to actually announcing a deal underscores how arduous the full realization of the TV Everywhere model will be.

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  • WealthTV-Roku Deal Isn't a Predictor Of An A La Carte Future

    (Friday update #3) The was a flutter of excitement this week by some who interpreted a new deal by WealthTV to make its 24/7 linear feed available to Roku users as evidence of an a la carte future. But that hope would be misplaced; WealthTV, a network with minimal pay-TV carriage (though a litany of regulatory appeals), bears no resemblance to widely distributed cable networks like USA, MTV and Discovery whose lifeblood is monthly pay-TV carriage fees.

    Even though WealthTV's proposed $2.99/mo subscription fee is more than any of these networks receive, WealthTV's retail model means its subscriber penetration will be a tiny fraction of these cable nets, and that's after necessarily heavy marketing and promotion. Don't get me wrong, Roku and other connected devices are doing a fabulous job of bringing online content to TVs. But getting top-notch, current cable programs is nowhere on the horizon. This is doubly true given that this week's FCC approval of Comcast-NBCU was an explicit blessing of the cable model.

     
  • In Approving Comcast-NBCU, the FCC Blesses the Cable Model

    Reading yesterday's FCC press release approving the Comcast-NBCU transaction, my main reaction was that rather than using the opportunity to try to force fundamental changes in the core cable business model, the FCC, through its key conditions, instead essentially blessed it.

    Comcast - and by extension other pay-TV operators - must be delighted that their core packaging and pricing philosophies were basically untouched. Cable networks and studios should also be happy that their ability to monetize through the monthly affiliate model remained intact as was their flexibility to monetize online (mostly). As a result, the large ecosystem of participants in the video ecosystem (e.g. talent, production personnel, etc.) should also be happy that their economic well-being won't be disrupted. Lastly, investors in the pay-TV ecosystem should also be happy; it's always a good day when the government chooses not to meddle in markets that are working pretty nicely from investors' perspective.

    To get more specific, in the press release there are 7 key conditions under the heading, "Protecting the Development of Online Competition" that Comcast and/or Comcast/NBCU are required to follow. These relate to online video and I have listed them out below. After each one I have added my analysis/reactions.

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  • Online/Mobile Video's Top 10 of 2010

    2010 was another spectacular year of growth and innovation in online and mobile video, so it's no easy feat to choose the 10 most significant things that happened during the year. However, I've taken my best shot below, and offered explanations. No doubt I've forgotten a few things, but I think it's a pretty solid list. As much as happened in 2010 though, I expect even more next year, with plenty of surprises.

    My top 10 are as follows:

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  • Starz's 2-Year Results Defy Warnings of "Cord-Shaving"

    If you're looking for evidence that the pay-TV industry is imperiled by the rise of over-the-top services that are going to cause subscribers to cut the cord, a good early indicator of such behavior would be whether "cord-shaving," i.e. the reduction of services like premium channels, additional outlets and DVR services, is happening already. But a look at the premium channels Starz and Encore - whose content is fully available for streaming on Netflix - suggests no evidence of cord-shaving is yet occurring.

    As the graph below shows, since October, 2008, when Starz announced that Netflix had signed a distribution deal for "Starz Play," total U.S. subscribers to the Starz and Encore channels have actually increased slightly from 49 million to 49.4 million. During this time period there's been relatively little fluctuation, with only a temporary dip in the 2nd half of last year that was probably more related to the channels being temporarily out of their Comcast deal, and therefore losing some of their promotional backing. Further, for the first 9 months of 2010, Starz's revenue was $929 million and cash flow was $305 million, up from the same period in 2008, when revenue was $826 million and cash flow was $220 million.

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  • 5 Items of Interest for the Week of Dec. 12th

    Happy Friday. Once again I'm pleased to offer VideoNuze's end-of-week feature analyzing 5-6 interesting online/mobile video industry news items from the week that we didn't have a chance to cover previously. This week I'm changing the format a little bit, creating an individual post for each item. I'm doing this in response to reader interest in being able to share individual items (not the whole group) more easily. Let me know what you think of the new format. Here they are:

    1. Potential YouTube-Next New Networks deal is a bit of a head-scratcher

    2. Here's a great example of why TV Everywhere matters so much to the pay-TV industry

    3. Hulu's Kilar: "Hulu Plus now a material portion" of revenues

    4. Google not ready to announce fiber winning communities

    5. Tiffany shows online video works for luxury retailers

    Read them now or check them out this weekend!
     
  • Here's A Great Example of Why TV Everywhere Matters So Much To the Pay-TV Industry

    Want a really tangible example of why TV Everywhere is so critical to the pay-TV industry? Then have a look at this post from industry banker Ken Sonenclar, who recounts his personal experience of trying to find an online version of the season finale of Showtime's "Dexter" on an evening when bad weather knocked out his satellite dish. Frustrated that he couldn't find the episode available anywhere, he ultimately stumbled upon a pirate site and happily watched the episode, albeit at somewhat lower quality.

    Experiences like these no doubt play out daily as pay-TV subscribers seek convenient, on-demand access to their favorite programs. The TV Everywhere model works because it still requires a valid paid subscription, so the current monetization model is unharmed. But the incremental value to viewers is substantial. With services like Netflix and Hulu Plus increasingly available on every conceivable online and mobile device, consumers' expectations are being raised. If the pay-TV industry (both operators and networks) can't meet or exceed the experiences that a sub $10/mo service can deliver, then they shouldn't be surprised when subscribers begin dropping their expensive pay-TV services.
     
  • The World According to Time Warner's Jeff Bewkes, Pay-TV's Staunchest Defender

    I finally got an hour over the weekend to listen to the replay of last week's UBS media conference keynote discussion with Time Warner's CEO Jeff Bewkes.  His comments strongly reinforced my perception of him as the pay-TV (cable/satellite/telco) industry's staunchest defender as well as the leading Netflix skeptic. Bewkes is worth paying attention to not just because Time Warner owns the Warner Bros. studio and several leading cable networks, but because his approach is a barometer for many other content providers as well.

    In Bewkes' world view, the majority of consumers are willing to pay a premium price to get the best, most comprehensive experience of the highest-quality, current content, and distributors are willing/able to pay content creators top dollar for it - in short, a snapshot of the way the pay-TV world has worked for a long while. To Bewkes, digital distribution represents "more opportunity than challenge" in its ability to drive new business models and windows, enhance existing distributor relationships and deliver more value to consumers. To be clear, Bewkes isn't a Luddite, he doesn't oppose digital innovation, he just wants to see the benefits of it accrue to incumbents, not upstarts.

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  • Is Microsoft Planning to Join the Pay-TV Party?

    Reuters is reporting this morning that Microsoft is exploring a range of options to get into the pay-TV business through a new over-the-top service. The article points to a potential "virtual cable provider" model whereby Microsoft would license multiple networks, which would be delivered to Xbox gaming consoles and other devices.  Also under consideration are creating "content silos" to sell specific premium channels.

    If Microsoft were to join the pay-TV business aggressively it would further alter industry dynamics. The number one issue in play right now is whether consumers are forsaking traditionally packaged pay-TV services and instead opting for some mix of free and paid online-delivered alternatives. Yet while Internet options are gaining in popularity (with Netflix's explosive growth to nearly 17 million subscribers at the end of Q3 the primary beneficiary), hard data supporting cord-cutting is still scarce.

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  • Are Live Sports Pay-TV's Firewall or Its Albatross?

    I've long assumed that live sports carried on cable TV networks (e.g. ESPN, Fox Sports, TNT, TBS, NFL Network, regional sports networks, etc.) would be a key firewall against cord-cutting since the games they air are unavailable online. In other words, if you're a sports fan, dropping your pay-TV subscription would be unthinkable. While I still believe that's mostly true, recently I've started wondering if it's possible that sports actually may also be an albatross for pay-TV operators, limiting their ability to effectively compete with online-only alternatives.

    I use the word albatross because pay-TV providers actually have very little flexibility to offer non-sports fans lower-priced packages that don't include sports-oriented channels. In fact, the most surprising aspect of last week's announcement by Time Warner Cable of a new lower-priced tier  called "TV Essentials" it's testing is that it will exclude ESPN, which is virtually unheard-of in pay-TV packaging. Because the underlying deals that cable networks have with sports leagues and rights-holders are so expensive, the networks try to get carried on the most popular pay-TV service tiers, thereby ensuring the highest number of subscriber homes (basic cable networks are paid by distributors on a per subscriber basis, so the more subscriber homes, the higher their revenue).

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  • 5 Items of Interest for the Week of Nov. 15th

    After a short break, VideoNuze's Friday feature of curating 5-6 interesting online/mobile video industry news items that we weren't able to cover this week, returns today. Read them now or take them with you this weekend!

    Time Warner Cable Experiments With Lower Tier Video Package
    It's a rare day when a cable operator announces a lower-priced offering, but that's what Time Warner Cable did yesterday, unveiling a test of what it's calling "TV Essentials." The new tier, priced between $30-$40, will most notably exclude ESPN, the most expensive channel in the cable universe, meaning right away TV Essentials isn't targeted to sports fans. I've argued for a while now that pay-TV operators have ceded the low-priced/value-oriented end of the video market to Netflix (and others), which given the ongoing recession is a mistake. It will be interesting to see how the new bargain service fares; 2 things that will limit its appeal though are that no channels will be offered in HD, and that it appears those with broadband Internet and telephone services won't benefit from typical package discounts.

    Nielsen study: We're still a nation of couch pumpkins

    More evidence this week that despite all the deserved enthusiasm over online and mobile delivery, good old-fashioned TV viewing still rules in terms of hours of consumption. Nielsen said that the average person watched 143 hours of TV per month in Q2, essentially flat vs. a year ago. For homes with DVRs, hours of time watched on them nudged up a bit to about 24 1/2 hours. On a related note, this week comScore released its online video viewing data for October, which showed average viewing of 15.1 hours per person. While online video has made huge progress in the last few years, it still has a ton of room to grow to catch up with TV.

    More Videos Ads, More User Acceptance
    Speaking of the comparison between online video and TV, this week brought some interesting new data on monetization patterns for premium online video. Online video ad manager FreeWheel released data that showed mid-roll ads are the fastest-growing category of ads (up 693% since Q1), and now represent 8% of its ad volume. Completion rates have increased for pre, mid and post-roll ads this year, but notably mid-rolls have the highest completion rate, at 90%. FreeWheel's conclusion is that monetization of premium online video is starting to look a lot like TV, with ad pods inserted throughout. Going a step further, if viewer acceptance of mid-rolls stays high, then this represents a valuable opportunity for TV networks in particular to combat DVR-based ad-skipping.

    Startup Claims To Have Set-Top Hulu Can't Block
    It was inevitable that Hulu's decision to block access to its programs would set off a game of whack-a-mole, with various devices springing up to do end-arounds. Sure enough, the $99 Orb TV debuted this week, prominently positioning itself as the device that can bring Hulu (among other content) to your TV. One catch is that Orb streams video from your computer and only does so in standard definition. It addresses the "keyboard in the living room" challenge by also including a smartphone app to control the device. It's not a perfect solution, but it does provide a glimpse into the PR-unfriendly dynamic that Hulu, and the broadcast networks, have created for themselves by blocking access to their content by Google TV and others. No doubt there will be plenty more Orb-like devices to come to market in the months ahead, all positioning themselves as solving the blocking problem.

    Comcast's Top Digital Exec Amy Banse to Open New Silicon Valley Equity Fund for Cable Giant and NBC
    As Comcast enters the final stages of approval for its NBCU deal, the company this week announced a new NBCU management structure. One item that wasn't formally announced yet, but was reported by AllThingsD earlier this week was that Amy Banse, formerly head of Comcast Interactive Media (now headed by Matt Strauss), will be heading to Silicon Valley to run the combined operations of Comcast's current Comcast Interactive Capital venture arm, and NBCU's current Peacock Equity (a JV with GE). With all the distribution, technology and content assets that will be under the Comcast roof, the fund will be at the top of any online/mobile video startup's list of strategic investors. I've known Amy for a while and have enjoyed having her on industry panels; she'll be a huge asset to Comcast in the Valley venture world.
     
  • 6 Items of Interest for the Week of Oct. 18th

    It was another busy week for online/mobile video, and so VideoNuze is continuing its Friday practice of curating 5-6 interesting industry news items that we weren't able to cover this week. Read them now or take them with you this weekend!

    Networks block Google TV to protect themselves
    Yesterday news started breaking that ABC, CBS and NBC are blocking access by Google TV. There are numerous concerns being cited - potential disruption of advertising, encouraging cord-cutting, incenting piracy, diminished branding, unsatisfactory ad splits with Google, and general worry about Google invading the living room. Each item on its own is probably not enough to motivate the blocking action, but taken together they are. Still, doesn't it feel a little foolish that broadcasters would differentiate between a computer screen and a TV screen like this? For Google, it's more evidence that nothing comes easy when trying to work with Hollywood. I'm trying to find out more about what's happening behind the scenes.

    TWC Lines Up For ESPN Online Kick
    An important milestone for TV Everywhere may come as early as next Monday, as #2 cable operator Time Warner is planning to make ESPN viewing available online to paying subscribers. Remote access is part of the recent and larger retransmission consent deal between Disney and TWC. TV Everywhere initiatives have been slow to roll out, amid cable programmers' reluctance.  Further proving that remote authenticated access works and that it's attractive with a big name like ESPN would increase TV Everywhere's momentum.

    Hulu Plus, Take Two: How's $4.95 a Month?
    Rumors are swirling that Hulu may cut the price of its nascent Hulu Plus subscription service in half, to $4.95/mo. That would be a tacit recognition of Hulu Plus's minimal value proposition, largely due to its skimpy content offering. As I initially reported in August, over 88% of Hulu Plus content is available for free on Hulu.com. More important, Netflix's streaming gains have really marginalized Hulu Plus. Netflix's far greater resources and subscriber base have enabled it to spend far bigger on content acquisition. Even at $4.95, I continue to see Hulu Plus as an underwhelming proposition in an increasingly noisy landscape.

    Viacom Hires Superstar Lawyer to Handle YouTube Appeal
    Viacom is showing no signs of giving up on its years-long copyright infringement litigation against Google and YouTube. This week the company retained Theodore Olson, a high-profile appellate and Supreme Court specialist to handle its appeal. While most of the world has moved on and is trying to figure out how to benefit from YouTube's massive scale, Viacom charges on in court.

    Verizon to sell Galaxy Tab starting November 11th for $599.99
    Verizon is determined to play its part in the tablet computer craze, this week announcing with Samsung that it will sell the latter's new "Tab" tablet for $600 beginning on November 11th. The move follows last week's announcement by Verizon that it will begin selling the iPad on Oct. 28th, which was widely interpreted as the first step toward Verizon offering the iPhone early next year. Apple currently owns the tablet market, and it remains to be seen whether newcomers like the Tab can break through. For his part, Apple CEO Steve Jobs said on Apple's earnings call this week that all other tablets are "dead on arrival." Note, if you want to see the "Tab" and learn more about how connected and mobile devices are transforming the video landscape, come to the VideoSchmooze breakfast at the Samsung Experience on Wed., Dec. 1st.

    One-Third of US Adults Skip Live TV: Report
    A fascinating new study from Say Media (the entity formed from the recent merger of VideoEgg and Six Apart), suggesting that 56 million, or one-third of adult Internet users, have reduced their live TV viewership. The research identified 2 categories: "Opt Outs" (22 million) who don't own a TV or haven't watched TV in the last week and stream more than 4 hours/week, and "On Demanders" (34 million) who also stream more than 4 hours/week and report watching less live TV than they did a year ago. Not surprisingly, relative to Internet users as a whole, both Opt Outs and On Demanders skew younger and higher educated, though only the latter had higher income than the average Internet user. This type of research is important because the size of both the ad-supported and paid markets for live, first-run TV is far larger than catalog viewing. To the extent its appeal is diminishing as this study suggests poses big problems for everyone in the video ecosystem.


     
  • Cable's Original Programs Should Be A Bulwark Against Cord-Cutting

    A WSJ article today, "TV's Alternate Universe," about the proliferation and inventiveness of basic cable programs, provides an unintentional reminder of the value these shows have as a bulwark against cord-cutting. The article points out that basic networks will spend $23 billion this year on 1,462 originals, up from $14 billion on 863 shows just 5 years ago. The fact that these shows are both finding an audience and that they are virtually unavailable for free online makes them highly strategic assets as the pay-TV industry is increasingly buffeted by over-the-top video competition.

    Two years ago, in "Cutting the Cord on Cable: For Most of Us It's Not Happening Any Time Soon," I argued that there are 2 key reasons mass-scale cord-cutting was unlikely, at least in the short term: first, the difficulty of watching online-delivered video on TVs (instead of on computers) limited its appeal as a substitute for pay-TV service for mainstream consumers,  and second, the loss of numerous popular cable entertainment programs resulting from cord-cutting would give many people pause.

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  • 5 Items of Interest for the Week of Oct. 4th

    It's Friday and that means that once again VideoNuze is featuring 5-6 interesting online/mobile video industry stories that we weren't able to cover this week. Have a look at them now, or take them with you for weekend reading!

    Verizon to Launch 4G LTE Networks in 38 Markets
    Verizon will enable 5-12 megabit/second mobile data speeds in 38 markets, reaching 110 million Americans by the end of the year. The 4G technology, known as "LTE" promises a major new growth opportunity for HD mobile video, making smartphones and tablets even more appealing as video viewing devices.

    Time Warner Sees Ally in Web
    Time Warner's CEO Jeff Bewkes understands the Google TV value proposition, explaining that it will help program discovery and provide another option for paying subscribers to view. Those sentiments echo what I said in my initial thoughts on Google TV, that incumbent TV networks should be enthusiastic about Google TV because it doesn't disrupt their business models, but - by fully tying in the Internet - creates all kinds of new on-screen engagement opportunities. I expect other TV networks will follow soon.

    Sony's Crackle movie and TV streaming service debuts on Android phone app
    In a sea of new Android app releases, the new app from Crackle stands out because it offers streaming of full-length TV shows and movies on all Android devices. I sampled it this week on my Droid X and the video quality was outstanding. With the launch of LTE from Verizon later this year (see above), the quality bar will be raised further. Given Android's momentum, all premium quality video providers (e.g. TV networks, Hulu, Netflix, Amazon, etc.) should be optimizing their content for it.

    Rupert Murdoch: Simultaneous Theater-VOD Release 'a Big Mistake'
    A word of caution from News Corp head Rupert Murdoch: so-called "premium VOD" - where theatrical release windows shorten to allow for a new high-priced home VOD option - is a mistake. Murdoch didn't give further details, though he does see some window compression happening. I continue to argue premium VOD would be a wrongheaded move by pay-TV operators who should be focusing on new ways to deliver more programming for lower prices (to compete better with Netflix, etc.) than less programming for higher prices.

    Ford revs up Web series
    The latest branded entertainment entry is from Ford, which has partnered with the producers of "The Amazing Race" to create "Focus Rally: America" a new series serving as pre-launch marketing for Ford's new Focus cars that will be featured on Hulu. Ford will use the series to highlight the SYNC and MyFord Touch entertainment/navigation options. Branded entertainment continues to gain steam as an augment to traditional TV advertising as the format allows brands to tell a fuller story in a more immersive context than 30-second TV spots allow.

    What do you think? Post a comment now (no sign-in required).
     
  • For Pay-TV Operators, Will TV Everywhere Be TV Nowhere?

    I continue to be confounded by the fact that the pay-TV industry - both operators and cable TV networks - have not made more progress on TV Everywhere, their most important competitive initiative in the online era. Yesterday I got yet another dose of this sobering reality watching a panel discussion at ScreenPlays magazine's Media Innovations Summit in LA. The panel included Synacor's Ted May, Starz's John Penney, EPIX's Emil Rensing, thePlatform's Marty Roberts and AT&T's Dan York and was moderated by Marketing/PR executive Bob Gold.

    It's not that industry executives can't articulate the value to both operators and networks. For pay-TV operators, it's providing increased value to paying subscribers, which helps both acquisition and retention efforts. For cable networks, its expanded audience reach and advertising, while maintaining their hybrid model of paid distribution and advertising. For both it's staying competitive by providing access to premium content for consumers when, how and where they want it.

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  • Netflix's Expanded NBCU Deal Further Marginalizes Hulu Plus

    This morning Netflix announced its latest content licensing deal to bulk up the its streaming catalog, adding a range of programs from NBCU. It's a long list which includes next day access to Saturday Night Live (plus the full back catalog), last season episodes for 30 Rock, The Office and Law&Order: SVU (in addition to renewing back episodes already available), plus past seasons of Friday Night Lights, Psych, Monk, Battlestar Galactica, Destination Truth and Eureka. Netflix didn't identify exactly how many total episodes the deal adds to streaming, but it's very substantial.

    On the losing end of this deal is Hulu, and more specifically, its budding subscription service Hulu Plus (note the irony that one of Hulu's parent companies is NBCU). As I explained in late August, in "88% of Hulu Plus Content is Already Available for Free on Hulu.com," when it comes to content, Hulu Plus is getting squeezed from all sides, seriously limiting its ability to be much more than an outlet for delayed-release current season and past seasons' episodes of broadcast programs. This is an extremely narrow value proposition which is unlikely to gain widespread adoption.

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