Posts for 'Cable Networks'

  • CNN Sets Pipeline Free

    News from CNN that it is jettisoning the subscription model for its Pipeline service. Smart move for them. Based on our recent report on the top 75 cable TV networks’ broadband video initiatives, I now count only 3 networks still using a subscription model (note, all in conjunction with free, ad supported video).
     
    Those 3 are:
    • Golf Channel “The Drive” Premium Membership - $29.95/year (lots of instructional video – makes sense to charge)
    • CourtTV “EXTRA” - $5.95/mo (feeds of multiple trials simultaneously, for the armchair criminologists among you)
    • Weather Channel “Desktop Max” $29.99/year – (really the ad-supported Desktop service, but minus the ads, and also more comprehensive than just video)
    In dropping its subscription charge, CNN is acknowledging that it’s too tough to get users to pay for news online. No doubt adding to their motivation is the red-hot broadband video ad market. For top tier content like CNN’s, I consistently hear CPMs in the $25-40 range. That’s too tempting to pass up. Credit though to CNN for giving subscriptions a try. Good evidence that experimentation still can find a home in the big media world.
     
  • CBS Begins to Embrace

    cbs.jpgCBS has announced that it is partnering with at least 13 "leading community-building websites and social application providers" to allow its users to incorporate clips in their pages at these sites.

    I think this is a great step by CBS toward embracing what I have termed the "clip culture."

    Our Q4 '06 report on the broadcast industry and broadband video concluded that to date, the networks have looked at broadband as simply a new distribution path for existing programming. While this is a significant opportunity, another big one is using the broadband medium to redefine the kind of programming they offered and how fans could engage with it.

    Since traditional networks are steeped in 30 and 60 minute thinking, they've been slow to recognize how powerful short (i.e. 2 minute'ish clips) are online. YouTube exploited networks' reticence, with users uploading tons of networks' clips (albeit without permission, but that's another story).

    The language of the CBS press release is a little vague, but it suggests that CBS will determine which clips users can embed. This is a great start. While this announcement is a positive, it doesn't appear to go far enough in allowing users to actually create their own clips for embedding. That would be the ideal. Hopefully that's coming next. That's what today's users want.

     
  • My Cable IPTV Panel Today: Is Cable Bypass for Real?

    I was in NYC today moderating the opening session at Cable IPTV, which is a new and very timely conference organized by Fred Dawson, editor of ScreenPlays magazine (kudos to Fred and his team for a very well run event).
     

    The panel was entitled, “The Cable Perspective on Trends in “Over-the-Top” and User-Generated Video” and the panelists were Sean Doherty, CEO, Channels.com, Keith Kocho, Founder, ExtendMedia,Jim Turner, VP, Interactive, A&E Networks and Bill Wheaton, VP, Digital Media, Akamai Technologies, Inc.
     

    We had a wide-ranging conversation, mostly focused around the theme of whether broadband video is going to shape up as a real “cable bypass” or “over-the-top” medium, or whether cable operators are going to maintain their dominant role as video packagers.
     

    I’ve said for a while that the broadband video aggregation role is cable’s to lose. With tens of millions of traditional video and broadband Internet access subscribers, cable is extremely well-positioned to bring together the best of broadband video with the best of traditional broadcast and cable programming. Yet I’ve been disappointed that cable operators have been slow on the uptake while other aggregators have aggressively ramped up (e.g. Apple, Google, Joost, Yahoo, etc.). Aided by new bypass devices like AppleTV, Xbox, Netgear, etc, these companies are all aiming to eventually steal cable’s video customers.
     

    Today’s panelists reinforced my thinking that these would-be bypassers are in for a tough fight. Bill pointed out that since operators own their own networks, they can deliver quality-of-service (QOS) that others can’t. This is especially important when it comes to delivering really big Blue-Ray or HD-DVD files. Meanwhile, Jim reminded all of us that “most favored nations” clauses in most cable networks’ carriage agreements with operators will be keeping plenty of lawyers busy just determining if networks can even make deals with the upstart broadband video aggregators.

     
    And then of course our panel followed Andrew Olson’s opening keynote (who is co-founder of thePlatform, and now SVP, Strategy and Development for Comcast Interactive Media), during which he highlighted all of Comcast’s new broadband video initiatives (Fancast, Ziddio, etc.). Plenty of messages that Comcast is hip to broadband video and is now moving fast to defend its turf.

    Lastly, cable operators are now being offered some interesting new technology that will bridge broadband video over to existing digital set-top boxes inexpensively and without truck rolls.
     
    I saw a demo of ICTV’s ActiveVideo platform at the Cable Show last week and it was pretty compelling. It is at least one viable alternative for operators to accelerate their own convergence initiatives.

    The broadband video aggregation area is going to be very interesting to watch…..

     
  • Revisiting the Long Tail on My Cable Show Panel Next Week

    Next week I’ll be in Vegas for the annual Cable Show. This is the cable TV industry’s annual gathering of operators, programmers and vendors. I’ve been attending this show for years and it’s great fun to reconnect with lots of old colleagues and friends.
     
    Last year I moderated a session with video executives from AOL, Google, MSN and Yahoo, which, based on feedback I received afterwards, helped a lot of attendees understand how significant these companies are going to be in the video distribution business (and therefore, why they need to be on cable executives’ radar screens).
     
    Once again I’ll be moderating a discussion session, this year entitled, “Video’s Online Adventure: New Ideas for a New Generation of Television.” The session features Doug Hurst, SVP, Scripps Networks, Joe Gillespie, EVP, CNET, Ian Blaine, CEO, thePlatform, Bob Leverone, VP Video, Dow Jones Online and Karl Quist, President, TotalVid.
     
    As a former “cable guy”, one of my main goals with these sessions is to continue helping the industry recognize that the world of video is changing dramatically. Cable executives have been remarkably adaptive to change over the years. But with broadband’s openness now allowing scores of new video providers and distributors into the market, many of cable’s fundamental operating assumptions are going to be severely tested.
     
    For example, if the concept of the Long Tail (originally an article, and now a book by Chris Anderson), is applied to the cable industry it suggests that cable’s “walled-garden” content paradigm is going to be undermined by broadband’s infinite choice and personalization. I wrote an extensive piece about this way back in March, 2005 and I think it’s truer now than ever.
     
    All of the panelists have a great vantage point to comment on the Long Tail’s impact on cable. Bob and Joe come from publishers (print and online respectively) that haven’t done a lot with video previously, but are now aggressively pursuing it. Karl has started a specialty video distribution business that is only possible due to broadband. Doug’s company is leveraging broadband to create many new broadband experiences. Finally Ian’s company is powering many broadband video initiatives from established and startups.
     
    All in all, this group will bring an invaluable perspective to attendees trying to figure out how the video proliferation that broadband is causing will impact their corner of the cable business!
     
  • Broadband is an Opportunity – CNNMoney Recognizes this with New Luxury Channel

    I was talking to a reporter earlier today, who asked me if traditional media companies should view broadband video as a threat.

    It’s often tempting to think of anything new or any change as being threatening. That’s probably human nature. So it’s perfectly understandable why broadband video is still perceived as a threat by many.

    But in fact, broadband is a giant opportunity.

    Here’s a great example. CNNMoney.com launched a new Luxury “channel” on its site. This gives CNNMoney a place to grab the attention of high net worth audiences. By showcasing products with glossy video that luxury products companies and retailers want to be next to, CNNMoney is able to tap into new ad dollars in a targeted way. Could Turner have launched a conventional cable channel on “luxury”? Not a chance. There’s no room left on the dial and financing a 24x7 linear network would take big bucks until it eventually got to break-even.

    Broadband lets Turner/CNN get into an important new category for a modest amount, leveraging their brand and traffic to generate new revenues.

    I keep saying that media companies should view broadband as not only an opportunity, but one of the biggest ones they seen in ages. CNNMoney seems to get it.

     
  • Discovery Getting It with UGV Contest

    Multichannel News (note: subscription required) describes Discovery's plan to have users submit parodies of Discovery's top shows. Great example of how a major media company is "getting it" with UGV. I've said for a while that major media companies should take a gradual approach with UGV, first enabling it in a controlled manner, rather than the free-for-all seen on YouTube.
     
    This initiative from Discovery lets fans express their love of favorite programs through creative parodies, which Discovery will selectively showcase on-air and online. Hopefully they'll enable the parodies to be easily passed around and will be promoted during the shows themselves. I expect more of these kinds of efforts from big media companies going forward.
     
  • Dvorak and I in Agreement on Copyright Control

    John Dvorak has a good post at MarketWatch regarding Viacom's take down notice to YouTube. Although he's harsher than I've been in the past ("The company is just clueless about new media"), his general point that this is a control issue is similar to what I said back in November in "Big Media's Most Vexing Challenge".
     
    Big media companies need to adjust their copyright control mindsets if they're going to exploit the power of new broadband distribution models. Distinguishing between use of their content that drives new promotion and awareness vs. use of their content that undermines their business models is the key. Just lumping everything into the latter category shows both paranoia and lack of understanding of how the market is shifting.
     
  • Viacom-YouTube. The Gloves are Coming Off

    Well not quite yet, as the lawsuits are not yet flying. But we're getting there. After some flip-flopping on this last fall, today Viacom officially told YouTube to take down its clips, reputed to number over 100,000. Obviously you'd need to be involved in these negotiations to know the details of what the offers and counter-offers have been, but it's a disappointment for both parties not to be able to work things out.

    As I wrote back in November, "Big Media's Most Vexing Challenge (and How to Overcome It)", companies like Viacom are going through a painful adjustment process to the new broadband-dominated world. This flare-up with YouTube is yet another example.

     
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