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CNBC Missing Out By Not Livestreaming Obama Town Hall
President Obama is in the middle of a town hall, hosted by CNBC, from the Newseum in Washington, DC. The town hall is on CNBC on TV, but oddly, it is not being livestreamed. That's a missed opportunity for CNBC, which could be attracting lots of online users who don't happen to have easy access to a TV. Live blogging something is just not the same! In fact, it was odd for me to have to swivel my chair to turn on the TV; that's how accustomed I've become to expecting big events like this to be livestreamed.Categories: Cable Networks, Live Streaming
Topics: CNBC
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Sezmi Snags Another $17.3M; Positioned for Shift to Affordable Pay-TV Service?
Late last week Sezmi, the startup pay-TV replacement provider raised another $17.3M, bringing its total raised to date to $92M. Sezmi has intrigued me from the start both because of its clever hybrid broadcast/broadband delivery
architecture and its ability to be a full substitute for existing pay-TV services. Now, as Sezmi is poised to begin expanding is rollout, its value-pricing approach could find its mark with recession-weary consumers.
As I described last week in "Are Pay-TV Providers Getting Hit By a Perfect Storm in Q3?" increasingly expensive incumbent pay-TV services are up against a belt-tightening process that households across America are going through. While cable and satellite now eat up 1.4% of discretionary spending, negative income growth, higher savings rates and chronic unemployment/under-employment are forcing many households to re-evaluate their entertainment spending. Forking over $80, $100 or even $200+ per month to their cable, telco or satellite provider is no doubt coming under closer scrutiny.
Categories: Aggregators, Cable Networks, Cable TV Operators, Devices
Topics: SezMi
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5 Items of Interest for the Week of Sept. 6th
Though it was a short week due to the Labor Day holiday, there was no shortage of online video industry happenings this week. As I've been doing each of the last few Fridays, following are 5-6 noteworthy industry stories for your weekend reading pleasure.
Ooyala Raises $22 Million to Accelerate Global Expansion
Online video platform Ooyala's new $22 million round is a bright spot in what's been a pretty slow quarter for online video industry private financings. Ooyala's new funds will help the company grow in the Asia-Pacific region. Ooyala said it is serving 550 customers, double the level of a year ago.
Google TV to Roll Out World-Wide Next Year
Even though the first Google TV-enabled devices have yet to be deployed, Google CEO Eric Schmidt said this week that he envisions a global rollout next year. The connected device landscape is becoming more competitive for Google TV given the growing number of inexpensive connected device options.
Business Groups Question Net Neutrality Rules
Three pro-business trade groups urged the FCC to drop its net neutrality initiative, citing the "flourishing" broadband market and concerns that regulations will curtail new investments and hurt the economy. It seems like everyone has a different opinion about net neutrality, so the consensus needed to move regulation forward is still down the road.
ESPN, YouTube Link Up for Promo Campaign
This week ESPN and YouTube kicked off their "Your Highlight" campaign, enticing ESPN viewers to upload their own sports clips, with the best ones to be shown on SportsCenter. Then the best of the best will win a trip to ESPN's studios to watch a SportsCenter taping. It's a great promotional concept, using online video to further invest ESPN viewers in the brand. Whoever thought it up deserves a shout-out.
Life Without a TV Set? Not impossible
Another interesting data point to tuck into your back pocket: according to a 2010 Pew study, just 42% of Americans feel a TV set is a "necessity," down from 64% in 2006. Pew interprets this as a loss of status for the TV, as other devices like computers and phones have become video capable. The perception of convergence is taking root.
Categories: Broadband ISPs, Cable Networks, Deals & Financings, Devices, Regulation, UGC
Topics: ESPN, FCC, Google TV, Net Neutrality, Ooyala, Pew, YouTube
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5 News Items of Interest for the Week of Aug 23rd
Following is the latest update to VideoNuze's new Friday feature, highlighting 5-6 of the most intriguing industry news items from the week that VideoNuze wasn't able to cover.
Ads skipped by 86% of TV viewers, but TV ads still most memorable
A new Deloitte survey unsurprisingly finds high rates of ad skipping among DVR users watching time-shifted programs, yet also notes that 52% of respondents say TV advertising is more memorable than any other type (only 2% cited online video advertising). Is there a love-hate relationship with good old TV advertising?
Endemol USA Plans Kobe Bryant Web Series
Online video continues attracting celebrities, with the latest being LA Laker star Kobe Bryant, who will be featured in 8 episodes teaching Filipino kids about hoops. The series is being produced and promoted by powerhouse Endemol. More evidence that independent online video is gaining.
NFL Sunday Ticket To-Go, Without DirecTV
DirecTV unbundles its popular NFL package, selling online access to non-subscribers for $350. It's not clear there will be many takers at this price point, but it does raise interesting possibilities about unbundled subscribers connecting to their TVs and also how sports will be impacted by online and mobile viewing.
TiVo Launches Remote with Slide-Out Keyboard
TiVo is enhancing navigation with a long-awaited keyboard that slides out of its standard-shaped remote control for $90. With TiVo's new Premiere box offering more video choices than ever, quicker navigation is required. As other connected devices hit the market, it will be interesting to see what clever solutions they come up with too.
MTVN's Greg Clayman Heads to News Corp to Lead iPad Newspaper
Amid the ongoing shuffle of digital media executives, MTV Networks lost a key leader in Greg Clayman, who's moving to News Corp to head up their new iPad newspaper. Greg's been on VideoSchmooze panels and we've done webinars together; he always brings great insights as well as a terrific sense of humor.Categories: Advertising, Cable Networks, Devices, Indie Video, People, Satellite, Sports
Topics: Deloitte, DirecTV, Endemol USA, MTV, News Corp, NFL, TiVo
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TV Everywhere On Track for 30-50 Million Homes By End of 2010: Turner Exec
TV Everywhere services will be available to 30-50 million U.S. homes by the end of this year, according to Jeremy Legg, SVP of Business Development and Multi-Platform Distribution at Turner Broadcasting whom I spoke to last week. Jeremy characterized the 30 million number as "realistic" and 50 million as "plausible." Turner is part of Time Warner, which has been the most significant proponent among content providers of TV Everywhere services; Jeremy is the point person at Turner for its efforts.
I've thought TV Everywhere was a smart concept since it was unveiled last summer, in a high-profile news conference with Time Warner's CEO Jeff Bewkes and Comcast's CEO Brian Roberts. Since then though, pay-TV distributors in the U.S. have been relatively quiet about their TV Everywhere rollout milestones, leading me to grow skeptical about whether they're putting enough muscle behind their efforts. As I argued recently, the stakes for TV Everywhere success have grown considerably as Netflix in particular has ramped up its online offerings, getting closer and closer to pay-TV players' traditional turf.
Categories: Cable Networks, Cable TV Operators, Satellite, Telcos
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5 News Items of Interest for the Week of Aug 16th
I've received positive feedback on the Friday feature I introduced 2 weeks ago, highlighting 5-6 of the most intriguing online and mobile video industry news items that I noticed during the week. As a result, I'm continuing on today and look forward to your further reactions.
As a reminder, each day in the right column of both the VideoNuze web site and email you'll find the "Exclusive News Roundup" which includes the most relevant online and mobile video industry articles that I've curated from numerous sources around the web. Typically there are 35-40 links rounded up each week, which means VideoNuze now has thousands of links available, all fully searchable. This is an invaluable resource when doing research and I encourage you to take a look next time you're hunting for a specific piece of online/mobile video information.
Now on to this week's most intriguing news:
Hulu is Said to Be Ready for an I.P.O.
The big news leading off the week was that Hulu is testing the waters for a public offering valuing the company at $2 billion. Investors beware: while ad sales are up, exclusive deals with key TV networks are short-term, subscription service Hulu Plus is still unproven and competition from Netflix and others is intensifying. If the deal works, it will be a huge milestone for the company.
Rumored $99 iTV Could Pave Way for $2,000 Apple-Connected Television
A Wall Street analyst conjectures that Apple is well-positioned to offer a high-end, connected TV. Apple has been on the sidelines as online video makes its way to the TV, surely this won't remain the case forever.
Netflix Lust for "True Blood" Is Unrequited As HBO Blocks Path
Though Netflix just landed Epix, it is unlikely to get a deal with HBO any time soon, as the big premium network is committed to its current distribution partners, and to its own online extension, HBO Go. Netflix will still find plenty of other willing partners given its strong motivation to acquire streaming content rights.
In Battle of Smartphones, Google Has the Right Answer
With Google's Android phones proliferating, the iPhone's market share is slipping. And with Android tablets coming, the iPad will soon be in the crosshairs from competitors. For mobile video this means more choices and flexibility.
Net Profits for BermanBraun
Big ad agency Starcom MediaVest commits up to a $100 million to upstart Hollywood producer for deeper brand integrations. More evidence that ad spending is moving online and in more creative ways.Categories: Advertising, Aggregators, Cable Networks, Deals & Financings, Devices, Mobile Video
Topics: Apple, BermanBraun, Google, HBO, Hulu, Netflix, Starcom MediaVest
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VideoNuze Report Podcast #72 - Aug. 13, 2010
Daisy Whitney and I are pleased to present the 72nd edition of the VideoNuze Report podcast, for August 13, 2010.
In this week's podcast, Daisy and I dig further into this week's Netflix-Epix deal. In particular, we discuss the deal's possible implications, including what it might be mean to the pay-TV industry (cable/satellite/telco).
As I argued in my post this week, "Netflix-Epix Deal Ratchets Up Importance of TV Everywhere," the cable industry should be taking note of how much closer Netflix is continuing to come to its traditional turf, and use TV Everywhere to aggressively counter it. However, my perception is that TV Everywhere rollouts are lagging, which is to the detriment of the industry. Listen in to learn more.
(Note that in the podcast I say it's not clear whether Netflix is actually getting access to all movies that are available on Epix. I've since clarified that with a Netflix spokesman who told me Netflix will get everything Epix has rights to.)
Click here to listen to the podcast (15 minutes, 42 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!Categories: Aggregators, Cable Networks, Podcasts
Topics: EPIX, Netflix, Podcast
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With Its Epix Deal, Netflix Once Again Shows Data is King
Among the many speculations surrounding this week's Netflix-Epix deal is how much Netflix is actually paying. While there have been rumors
suggesting the tab could run as high as $1 billion, nobody except the principals really knows. However, after talking with a Netflix spokesman yesterday, it is likely that whatever Netflix's is paying, it is virtually guaranteed to receive a satisfactory ROI. That's because Netflix has once again mined the extraordinary value of its user data to inform a critical business decision.
Categories: Aggregators, Cable Networks
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Netflix Lands Epix for Significant Expansion of Streaming
Netflix is announcing this morning that it has licensed both new release and catalog movies from premium cable network Epix for instant streaming. Epix is owned by and has rights from three studios, Paramount, Lionsgate and MGM. While the partners didn't specify which movies are covered under the deal and digital distribution rights can be confusing, MGM is the studio behind the James Bond franchise, and Paramount is behind the Indiana Jones franchise, so among other titles, Netflix could be getting some major attractions with the deal.
Aside from its deal almost 2 years ago with Starz, the Epix deal is the most significant license Netflix has yet reached. It is also further evidence of how important Netflix, with its strong desire to gain content rights, is becoming as a Hollywood customer. The multiyear deal will kick in on September 1st.
Categories: Aggregators, Cable Networks
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CBS-Comcast Deal Underscores Importance of Subscriptions
Yesterday's 10-year retransmission consent deal between Comcast and CBS further underscores the importance of subscription revenue streams in addition to advertising. Under the deal, CBS is rumored to receive between $.50-$1.00 per subscriber per month from the biggest cable operator in the U.S., putting it in the top tier of cable network compensation. When combined with other deals CBS has previously struck, plus additional ones it will likely conclude in the future, CBS has laid firm claim to the same "dual revenue" (monthly payments + advertising) business model as cable TV networks have long enjoyed.
The CBS-Comcast deal is more evidence of how dynamic the relationships have become between broadcast TV networks, cable TV networks, pay-TV operators and new distributors like Hulu and Netflix. The online/mobile/on-demand era has set off a scramble by premium content providers to lock in payments for their programming, while also remaining nimble enough to gain new distribution opportunities. Likewise, distributors are hungry for exclusive well-branded content.
Consider what's happened in just the last 8 months:
Categories: Aggregators, Broadcasters, Cable Networks, Cable TV Operators
Topics: Cablevision, CBS, Comcast, Hulu, Netflix, Time Warner Cable
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Starz Pursues Digital Sampling for "Pillars" Series
You may have noticed a lot of recent promotion for Starz's current mini-series, "The Pillars of the Earth," based on the book by Ken Follett. A key part of Starz's promotional efforts for this $40 million production is "digital sampling."
Starz has made the first 2 episodes of the 8-part series available on multiple outlets including free on demand for digital subscribers of major cable
operators like Comcast, Time Warner Cable, Cox and others, totaling 61 million subscribers. They are also available on DirecTV's in-house channel 101. And they are available online for Comcast's Fancast users and also on Netflix (where I happened to notice them).
Categories: Cable Networks
Topics: iPad, Penguin Group, Starz
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Why Netflix Has All of Nip/Tuck and Hulu Plus Doesn't
Last week I happened to be reviewing the catalog of Netflix Watch Instantly TV shows available and noticed something curious: all 6 seasons of Nip/Tuck were available. Not only was this the only TV series where all episodes were available, the finale episode had only been aired just a few months ago. That's unusual for Netflix, which typically only has sporadic, older seasons of TV shows available for streaming. I then checked out Hulu Plus and didn't find any Nip/Tuck full episodes available, just a smattering of clips. Considering Nip/Tuck was an FX show (a network owned by News Corp, which is a Hulu owner) and a perfect candidate to bolster Hulu Plus's mainly broadcast TV catalog, I wondered what was going?
This morning's WSJ answers my question: Netflix has signed a deal with Warner Bros. Home Entertainment Group to carry Nip/Tuck, as well as other lesser series such as "Veronica Mars," "Pushing Daisies" and "Terminator: The Sarah Connor Chronicles." (Warner Bros. produced the show) The deal illustrates the challenges Hulu Plus has ahead of it in trying to position itself as a comprehensive subscription service for more than just broadcast TV shows online.
The deal also underscores Netflix's relentless pursuit of additional content for its streaming catalog. Speculating a bit, I think it's also a dividend from the company's 28-day DVD delay deal with Warner Bros. from earlier this year. At the time I asserted that Netflix was trying to be a valuable partner to Warner Bros. by agreeing to give the studio a little breathing room to eke out some additional DVD sales before Netflix rentals kick in. First and foremost that deal made good business sense for Netflix, but I think it also showed studios that Netflix is trying to play nicely rather than trying to disrupt the ecosystem. Lo and behold a few months later the deal for Nip/Tuck and others occurs.
Netflix is being smart about building its streaming catalog. As the recent deal with Relativity Media also showed, Netflix is nibbling around the edges, getting access to better and better content, while continuing to demonstrate the value of its streaming feature to Hollywood. Next week Netflix will report its Q2 earnings, and no doubt it will show further big subscriber gains, adding to the almost 3 million subscribers it has added in the last 2 quarters. Though Netflix isn't directly competitive to Hulu Plus, the more deals Netflix can strike for shows like Nip/Tuck, the harder it will become for Hulu Plus to be much more than what it already is.
What do you think? Post a comment now (no sign-in required)?Categories: Aggregators, Cable Networks
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With ESPN Partnership, Xbox Reemerges as a Convergence Competitor
Monday's ESPN-Xbox deal brings the Xbox back into view as a competitor in the Internet connected set-top box battle that has further heated up since the
Google TV announcement. Oddly, the Xbox, a device that is already in millions of homes, is often left out of the convergence conversation. To me it seems like a sleeping giant, with many early advantages that should put it squarely on the connected STB map.
The Xbox, as a gaming device primarily, clears the hurdle many set-top boxes stumble over - getting people to buy an additional box. Gaming has allowed it to build a user base of early adopters who are eager to consume online video. Its controller is an easy to operate wireless gamepad, great for navigating screens and menus quickly. In addition, the gamepad has an attachable keyboard the size of a mobile device for easy searching of vast libraries of content.
Categories: Cable Networks, Devices, Games
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World Cup is Primed for Online and Mobile Video Coverage
After much build-up, the World Cup is finally upon us. Major brands' World Cup-themed ads have been a big part of fueling awareness, and the folks at Visible Measures have been tracking their viewership. The top 5 most-viewed ads include ones from Puma, Coca-Cola, Carlsberg, Pepsi, and of course the insanely-popular ad (22 million+) views from Nike.
The World Cup games are going to get a lot of attention online, with both ESPN3 and Univision planning lots of live online and mobile streaming. To access ESPN3 you need to be a subscriber to one of the broadband ISPs that has a deal to carry the online network (AT&T, Verizon, Comcast, Cox, etc.). Univision is open to all, but unless you speak Spanish you may want to mute the audio.
The World Cup once again shows up how important major sporting events are to online video. Past events like the Summer and Winter Olympics, March Madness, MLB.tv, Sunday Night Football and now the World Cup showcase online and mobile video at their best, providing anywhere access, interactivity and loads of additional information. The crown jewel of sports that still remains outside of online video's reach is the Super Bowl. If and when it gets live-streamed, online video will really have made it big-time.
What do you think? Post a comment now (no sign-in required).Categories: Broadcasters, Cable Networks, Sports
Topics: ESPN3, Univision, World Cup
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VideoNuze Report Podcast #63; Yankee Group Cord-Cutting Research Download Available
Daisy Whitney and I are pleased to present the 63rd edition of the VideoNuze Report podcast, for May 27, 2010.
In today's podcast Daisy starts us off by discussing her New Media Minute this week, in which she highlights recent research from Yankee Group forecasting that 1 in 8 consumers will become cord-cutters in the next 12 months. With the rise of online video viewing, cord-cutting - the idea of consumers discontinuing their pay-TV subscription service in favor of free online sources - has become a very hot topic.
In this context, the Yankee research got a lot of attention when it was released. I recently had a chance to speak to the 2 analysts responsible for the research, Vince Vittore and Dmitriy Molchanov, who walked me through some of their assumptions. They've also been kind enough to share half a dozen of their slides, which are available for a complimentary download here.
Yankee's conclusion is based on annual research the firm conducts which includes certain questions about consumers' intent. In this year's survey the question, "Does Internet video offer enough options for you to consider canceling your pay TV subscription?" As slide 3 shows, Yankee took the respondents who are considering this and then extrapolated how many will actually follow through based on trend lines from past research. I think it's a plausible approach, though 1 in 8 over the next 12 months seems very aggressive to me.
Personally, I've been skeptical about any onslaught of cord-cutting. Back in October, 2008 I laid out my 2 principal arguments: that it's difficult to watch online video on TVs (where it must be enjoyable by mainstream audiences in order for cord-cutting to really take off) and that cable programming will be very limited on the free Internet (and as a result this will be a big disincentive for fans of cable channels to drop them).
While a lot is happening on the convergence front (e.g. Google TV, Roku, etc.), with the advent of TV Everywhere, the likelihood that cable programs will not leak out onto the open Internet is lower than ever. That's not to say there isn't a ton of great video available for free or through other paid options (like Netflix's streaming), but for the vast majority of pay-TV subscribers, I'd maintain that cutting the cord will be a distant option for a while to come. Nonetheless, it is a fascinating topic which will surely get even more attention going forward.
What do you think? Post a comment now (no sign-in required).
Click here to listen to the podcast (12 minutes, 59 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!Categories: Cable Networks, Devices, Podcasts
Topics: Yankee Group
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Epix is Striving for "Lights-Out" Video Work Flows with Signiant
Signiant, which positions itself as a provider of "content supply chain management" software, is announcing this morning that Epix, the new premium cable channel, is using its software to deliver and manage video across multi-platform outlets. Epix's VP of Operations Thomas Carpenter, whom I spoke to yesterday, described his goal in working with Signiant as trying to create a "lights-out" work flow that handles content from procurement to delivery with minimal human involvement.
As Thomas explained, Epix's work flow is particularly challenging because the channel is trying to blend online, linear and on-demand distribution right from launch. This contrasts with typical situations where the linear channel and its work flows are first solidified, and then online, on-demand and other distribution is layered on later. With Epix's approach, Thomas said it's been a necessity to automate work flows as much as possible to drive maximum efficiencies.
Categories: Cable Networks, Technology
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Cable Affiliate Fees Matter. A Lot.
Over the past week or so, several people have forwarded me a post that Bill Gurley, partner at the Silicon Valley venture capital firm Benchmark Capital recently wrote titled, "When It Comes to Television Content, Affiliate Fees Make the World Go 'Round," in which he correctly observes that "over-the-top" disruption of cable/satellite/telco delivery of premium TV programming isn't going to happen very quickly due to the importance of affiliate fees. His main argument - that cable networks receive $32 billion in annual affiliate fees from cable/satellite/telco distributors that they are loath to jeopardize - is right on the money (no pun).
This of course has been the central reason that cable, as opposed to broadcast, programs have been scarcely available online. I've argued the same point for a while now, going back to "The Cable Industry Closes Ranks" in which I tried to explain how the cable industry works and why it would fight tooth and nail against disruption. Gurley further notes how TV Everywhere cleverly defends the industry against free distribution, which I agree with as well.
While there's plenty of media hype around the prospect of "cord-cutting," it's essential to understand the business dynamics in play and what impact they'll have in slowing this trend. It's rare to see a Silicon Valley VC take such a sober approach to potential disruption (because funding exciting tech start-ups is largely about funding disruption after all), so I thought Gurley's post was both refreshing and worth the read.
What do you think? Post a comment now (no sign-in required).Categories: Cable Networks, Cable TV Operators
Topics: Benchmark Capital
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Discovery and PointRoll Combine Editorial and Ads in "Dig@torial" In-Banner Video Unit
A new ad unit announced by Discovery and PointRoll and called "Dig@torial" (pronounced "digitorial") caught my attention a few weeks ago, and I've been meaning to write about it since. The unit intrigued me because it dynamically leverages Discovery's video library to enhance an advertiser's message in an easy-to-navigate rich media banner. I hadn't seen anything quite like it before and believe it is yet another indicator of how content and ads are blurring into one seamless experience.
To learn more, I talked to Michael Aronowitz, VP of Channel Development at PointRoll, which is owned by Gannett, and Brent Spitzer, VP and Leigh Solomon, Manager of Activation, both at Discovery Digital Media Advertising Sales.
PointRoll worked with Discovery to build a shell in the requested leaderboard and 160x600 skyscraper formats. In these examples 50% of the space promotes Montana Office of Tourism specifically and the other 50% offers opportunities to engage with Discovery content. When you roll over the ad it unfolds to show a mosaic of photos to look at in the Montana space (plus a link to visit www.visitmt.com), and a choice of relevant articles and videos from Discovery's library in its space. A video begins playing in-banner automatically with 4 thumbnails exposed below, plus a link to view more on a customized landing page. The videos play with a 10 second pre-roll for Montana that is frequency-capped.
Brent and Leigh explained that with the Dig@torial, Discovery works collaboratively with its advertising clients to select the most relevant content to incorporate into the ads. Discovery's team combs through its archive of video clips and proposes a playlist to the client. If the client has its own video that can be incorporated too. The video is fed dynamically into the Dig@torial unit, so it can be updated at any time. The key to making all this possible for Discovery is that it owns all of its programs, so it has a free hand to carve them up and integrate them into ads like these.
It's still early for the Dig@torial unit, but it appears to be succeeding. Michael said that the benchmark "interaction rate" for the PointRoll network (which is the first time someone interacts with a PointRoll ad) over the last 1 1/4 years is 6.4% with a 14 second engagement time. The Dig@torial press release says that regular rich media ads on Discovery's sites exceed the PointRoll benchmark by 70% and that the Dig@torial ads provide another 50% lift. That would imply an approximately 16% interaction rate and 36 second engagement time, both of which are very strong. Attesting to the Dig@torial's appeal, Brent and Leigh said that Dig@torial campaigns for 8 other clients have also recently launched or are being launched (I combed through Discovery's sites, but wasn't able to find them though).
Brands and sites are perpetually trying to identify ways to increase user engagement and conversion. By blending client messages with relevant and strongly branded content, the Dig@torial unit is breaking new ground in delivering value to all parties. It's also a reminder that for content providers, it's worth trying to secure re-use rights to programming and then archiving and tagging them for subsequent retrieval. Dig@torial is showing that content's value can extend well beyond its initial airing.
What do you think? Post a comment now (no sign-in required).Categories: Advertising, Cable Networks
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Is "Cord-Cutting" a Big Deal or Not?
"Cord-cutting," the idea of disconnecting your cable/satellite/telco video subscription service in favor of online viewing only, got renewed attention this week as new research from a Canadian firm named Convergence Consulting Group said that 800,000 U.S. households have unplugged in the last 2 years. Though that number is a teeny-tiny fraction of the population that still takes subscription TV, the question begs, is this an early indicator of rampant cord-cutting to follow, or a blip that's unlikely to get that much bigger over time?
Back in the fall of '08 I asserted that for most people cord-cutting isn't going to be happening any time soon for 2 key reasons. First, that it's still relatively hard for most mainstream users to connect broadband to their TVs, which is an essential ingredient to long-form viewing. There's no question that this has gotten easier since, and will only get easier still. Eventually broadband to the TV will be ubiquitous. But until it is, cord-cutting raises technical and comfort challenges most people don't want to confront.
The bigger obstacle to cord-cutting is the loss of cable-only programming that isn't available for free online. Back in '08 the concept of TV Everywhere wasn't yet around. Now that it's beginning to rollout (albeit painfully slowly), it's evident that the cable ecosystem is determined to see cable programming remain accessible only to those who maintain a paid subscription.
My take is that cable programming is the key firewall against cord-cutting. For some, losing cable programs won't matter. But my guess is that for most, losing their favorite cable programs by cutting the cord will be a non-starter. As Conan's move this week to TBS illustrates, increasingly the most distinctive shows are on cable. And note the "firewall within the firewall" is marquee sports programming on channels like ESPN, TNT and Fox Sports, which isn't going online for free ever. This precludes virtually all true sports fans from cord-cutting.
Net-net, the debate about cord-cutting's potential needs to focus on how much value audiences place on their favorite cable programs. If it's a lot, then little cord-cutting will ensue; if it's a little - and there are suitable free online substitutes - then we'll see lots more cord-cutting.
(Note - all of this is fodder for our VideoSchmooze panel discussion on April 26th "Money Talks - Is Online Video Shifting to the Paid Model?" Early bird discounted registration expires today!)
What do you think? Post a comment now (no sign-in required).Categories: Cable Networks, Cable TV Operators
Topics: Convergence Consulting Group
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Wrapping Up the YouTube-Viacom Court Documents Coverage
Wow, based on the extensive coverage of the newly disclosed court documents in the Viacom-YouTube copyright lawsuit, you'd almost think the business press hit the pause button on everything else going on yesterday to spend time reading the details. The combination of 2 heavyweight companies slugging it out, billions of dollars at stake and juicy, behind-the-scenes details finally revealed (like how the $1.6 YouTube acquisition largesse was shared) makes this an irresistible story with lots of legs.
I've only spent a little time reviewing the documents, but for those interested in the 360 degree immersion, following is some of the best coverage I've been reading, in no particular order. No doubt there's plenty more to come. And if you're a real glutton for punishment, just google "Viacom YouTube court documents" and you can spend your entire weekend reading everything!
Viacom Says YouTube Ignored Copyrights - NY Times
YouTube Accuses Viacom of Secretly Uploading Clips - Mediapost
Viacom, YouTube Trade Barbs in Copyright Feud - Multichannel News
Viacom and Google Trade Accusations - WSJ
YouTube Says Viacom Agents Secretly Uploaded Video, Then Lawyers Sued - AdAge
The Numbers Behind the World's Fastest Growing Web Site: YouTube's Finances Revealed - AllThingsD.com
Viacom, Google Air Dirty Laundry in Court Docs - CNET
Did YouTube Jilt Viacom for Google - NewTeeVee
Revealing Docs Emerge in Viacom, YouTube Spat - Variety
What do you think? Post a comment now (no sign-in required)Categories: Aggregators, Cable Networks
Topics: Google, Viacom, YouTube
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