I’m pleased to present the 403rd edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.
First up this week Colin shares thoughts on a keynote session from CES he watched featuring Turner’s Chairman and CEO John Martin and Hulu’s CEO Randy Freer. Colin zeros in on the discussion around addressable/targeted ads and how vital they are to profitability and keeping TV competitive with SVOD. Turner has been among the most aggressive TV networks investing in data and segmentation and is clearly urging the industry forward.
We then transition to discussing Facebook’s News Feed algorithm change, which I wrote about earlier this week. Colin and I are struggling with how to synch up the de-prioritization video is now going to receive with CEO Mark Zuckerberg’s repeated assertion that he wants the company to be “video first” in all that they do.
Listen in to learn more!
Click here to listen to the podcast (21 minutes, 45 seconds)
Below are the final two session videos from our recent SHIFT // Programmatic Video & TV Ad Summit.
First up is “Bringing the Precision of the Digital Age to Television” which was kicked off with a short presentation by Scott Ferber (Chairman and CEO, Videology) showcasing research on key challenges to accelerating programmatic TV. Following his presentation, Scott joined a panel I moderated, with Larry Allen (VP of Ad Innovation and Programmatic Solutions, Turner Ad Sales) and Andrew Feigenson (CEO, Simmons Research) also participating.
The second session is “Trending Now: What’s Ahead for Programmatic Video and TV?” which included Paul Alfieri (Chief Marketing Officer, Cross MediaWorks), Rob Byrnes (VP, Digital Planning, National Geographic), Rob Cukierman (VP, Sales Strategy & Partnerships, Vevo), Stephen Strong (Head of Revenue, Newsy), Tore Tellefsen (VP of TV Solutions, DataXu), with Chris Karl (CEO, VertaMedia) moderating.
Watch the session videos now!
It’s no exaggeration to say there are breakthrough innovations happening in every area of video: advertising, distribution, programming, user experience, multiscreen access and lots more. As viewers, we all benefit from these innovations, which are often behind the scenes, but which hugely contribute to our experiences.
At our recent Online Video Ad Summit, we dedicated a session to understanding innovation and how the industry is continuing to evolve in lots of ways.
The session included Frank Besteiro (Head of Business Development & Partnerships, Vemba), Mike Proulx (Chief Digital Officer, Hill Holliday), Jesse Redniss (Chief Innovation Officer, Turner), Dave Simon (VP, Video Activation, AOL) with Brian Ring (Principal Analyst, Ring Digital) moderating.
Watch the video (38 minutes, 11 seconds).
Screens are now omnipresent with viewers fluidly shifting their consumption depending on their circumstances. At our recent Online Video Ad Summit session, “Best Practices in a Multiscreen World,” panelists discussed what’s worked well for them in multiscreen, including workflows, measurement, monetization, quality of experience, storytelling, brand safety and much more.
The session included Josh Arensberg (VP, Head of Corporate Development and Strategy, Comcast Technology Solutions), Patricia Betron (SVP, Multimedia Sales, ESPN), Scott Doyne (SVP, Product Strategy, Turner), Julie DeTraglia (VP, Ad Sales Research, Hulu), with Dan Punt (Managing Director, FTI Consulting) moderating.
Watch the video (35 minutes, 52 seconds).
TV advertising is moving the way of online video advertising - with an emphasis on greater data use and audience-based targeting. That’s the conventional wisdom driving huge investments at TV networks. But in a candid panel discussion yesterday at AdExchanger’s Industry Preview, senior TV ad executives raised lots of questions about the extent to which TV will ultimately go the digital route and specifically whether sophisticated data-based targeting will take hold in the TV industry.
The session included Maureen Bosetti, Chief Investment Officer at Initiative, Peter Naylor, SVP, Ad Sales at Hulu, Marianne Gambelli, Chief Investment Officer at Horizon Media and Donna Speciale, President, Turner Ad Sales, with Kelly Liyakasa, Senior Editor at AdExchanger moderating.
In an interview this morning at the Paley Center, Turner Chairman and CEO John Martin hit on several key themes he believes will be critical to the company’s future success. Specifically, Martin cited business flexibility, the power of data, the shift to audience-based ad sales and mobile. Following are some of the details of the interview, which was conducted by the Guardian’s Matthew Garrahan.
I'm pleased to present the 339th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
First up this week we discuss Time Warner’s investment earlier this week in You.i TV, a video app development platform. Colin notes that the acquisition furthers Turner’s strategy of owning its own technology and going direct-to-consumer. From my standpoint, You.i TV is critical in streamlining Turner’s app development across multiple connected devices, where viewing is migrating.
We then transition to talking about skinny bundle research from Altman Vilandrie & Co., which I wrote about yesterday. The data confirmed my skepticism about how difficult it will be for skinny bundle providers to offer sufficiently comprehensive channel lineups while still enticing subscribers with cost savings. We dig into some of the most salient data points.
(apologies, the recording quality was a little sub-par this week)
Listen now to learn more!
Click here to listen to the podcast (22 minutes, 16 seconds)
The opening session of our recent Video Ad Summit, “Convergence Realized: Why TV and Video are Now Inseparable,” featured panelists David Bickford (Head of TV Sales & Multi-Platform Group Director, Bloomberg Media), Jon Heller (Co-founder and Co-CEO, FreeWheel), Nick Johnson (SVP, Digital Ad Sales Strategy, Turner Ad Sales) and Paul Williamson (Chief Investment Officer, Publicis Media Exchange U.S.).
Tim Castree (Managing Director, North America, Videology) moderated the session and also shared a 10-minute presentation at the beginning providing some of the key contextual drivers for why TV and video are converging for advertisers and publishers (Tim’s slides are posted here).
Topics of discussion included changing viewers’ behaviors leading to fragmentation, the resulting measurement challenges and what’s being done to overcome them, how advertisers are coping with “patchwork” metrics, how content providers should think about cross-screen distribution, how advertisers are planning campaigns across different and much more.
Watch the video (52 minutes, 43 seconds).
Turner announced this morning that it will launch a new ad-free SVOD service this Fall dubbed FilmStruck, which will be managed by Turner Classic Movies and exclusively draw on movies from Criterion Collection. According to the release, FilmStruck is targeted to “diehard movie enthusiasts who crave a deep, intimate experience independent, foreign and art house films.”
A Turner spokesperson confirmed that Criterion’s 1,000 movie catalog will move over from Hulu in November, where it has been under an exclusive deal announced in February, 2011 and extended in April, 2014.
TV ad budgets are being diverted to many different types of digital spending these days, so it’s no surprise to see TV networks and their partners re-asserting the value of TV advertising, especially as the all-important upfronts approach.
The latest evidence is a new study from TiVo Research, consulting firm 84.51 (part of The Kroger Co.), A+E Networks and Turner, which found that for every dollar decrease in TV ad spending, the reduction in sales was $3. The study looked at 15 consumer packaged goods brands which had reduced TV ad spending somewhere between 29% and 75%. The study then measured their sales performance for one or two quarters in the 2013-2014 period.
Happy New Year and welcome to 2016. Changes in video advertising will continue to accelerate this year. To help understand the big themes and some of the particulars, I’m pleased to share videos of both keynote conversations from last month’s SHIFT // 2015 Programmatic Video & TV Ad Summit. The morning keynote guest was Donna Speciale, president of Turner Ad Sales (interviewed by Matt Prohaska) and the afternoon keynote guest was Lou Paskalis, SVP, Enterprise Media Executive, Bank of America (interviewed by Michael Kassan).
Each session is approximately 30 minutes, and I promise that watching them both is well worth an hour of your time, providing insights from both the buy and sell sides of video advertising. The big unifying themes are 1) Video/TV advertising is shifting to an audience-based approach, 2) Data and programmatic are enabling far more precise targeting, in turn driving up the value of viewer attention and ad inventory and 3) The viewer experience is poised to improve with fewer interruptions and more well-developed brand stories.
More specifically, Donna discusses, among other things, the extensive data investments that Turner is making, how advertisers and agencies are evolving to converge linear TV and digital buying, Turner’s plan to cut ad loads in half on truTV by Q4 ’16 and how to capitalize on mobile. Lou discussed, among other things, why mass advertising and the reach/frequency model is being replaced, the 3 biggest challenges facing marketers, how BofA is integrating data from across its business segments and why he believes GE is the most effective content marketer today.
Together, Donna’s and Lou’s insights provide an excellent strategic roadmap for where the industry is heading and what key challenges lie ahead. As you’re thinking about your 2016 priorities, I highly encourage you to watch their videos and learn from them.
I’m excited to share that Donna Speciale, President of Turner Broadcasting Ad Sales, will be our keynote guest at the SHIFT // 2015 Programmatic Video & TV Ad Summit on Tuesday, December 1st in NYC.
Donna will be interviewed on the topic of “How TV Networks Can Capitalize on Programmatic.” Since TV networks have the most valuable ad inventory, programmatic represents a unique opportunity, especially as consumption of TV programs goes multi-screen. TV networks must balance programmatic innovation with the benefits of the traditional direct sales model. Turner has been aggressively building out its data capabilities to drive further value from its premium content.
Donna’s session will be one of the highlights of a jam-packed day of sessions meant to demystify programmatic video & TV and accelerate its adoption. Over 30 industry leaders, all with direct experience with programmatic video & TV, are set to speak, representing companies including ABC, Altitude Digital, AMC Networks, Assembly, Bloomberg Digital, comScore, Havas Media, Hill Holliday, Horizon Media, Magna Global, MediaVest, Meredith, Operative, Razorfish, Roku, SpotX, The Weather Company, Viacom, Videology, VivaKi, Xaxis and others.
Remember - all early bird registrants will be entered to win a 50-inch Sharp Roku TV (value $450), generously provided by Roku. In addition, early bird registrants also save $100 off the regular rates. Further discounts are available on 5-packs and 10-packs. And, startups and students can register for the reduced $195 ticket (contact me for the code).
I hope you’ll join us for this must-attend day of learning and networking!
Learn more and register now!
These are complicated times for video content providers, with more opportunities to monetize their video inventory and partner with advertisers, yet more complexity as well. How to succeed in this rapidly evolving environment was the topic of our Video Ad Summit panel, “Modernizing the Monetization of Video: The Content Provider’s Perspective.”
The session included Lorne Brown (Founder & CEO, Operative), Sean Holzman (Chief Digital Revenue Officer, Bonnier), Stephano Kim (SVP, Ad Operations & Chief Digital Strategist, Turner Broadcasting), David Morris (Chief Revenue Officer, CBS Interactive) and Lisa Valentino (Chief Revenue Officer, Conde Nast Entertainment), with Tom Herman (CEO, DashBid) moderating.
The wide-ranging discussion touched on various topics including how campaign success metrics are changing, why performance and engagement are paramount, how content providers are creating their own data management platforms and selectively exposing their first-party data, why the consumer is really in the driver’s seat, the role of branded entertainment, the challenges of moving to a direct-to-consumer approach at scale, ad-blocking and much, much more.
So-called "skinny bundles" of TV networks face long odds of success given the dispersion of actual TV viewership, cross-ownership of broadcast-cable TV networks by media conglomerates and underlying economic realities, according to a new analysis by MoffettNathanson.
The conclusions align with points I made in last Friday's podcast and previously, as I've asserted that the "Swiss cheese" channel lineups found in skinny bundles will lack broad appeal. This was a central finding from recent Bernstein research as well. Conversely, bulking up channel lineups with more TV networks (as Sony has done with its new PlayStation Vue service) eliminates the opportunity for a cost-savings value proposition that would resonate most with would-be cord-cutters or cord-nevers.
In last Friday's podcast, Colin and I covered a lot of ground in assessing HBO Now's opportunities and risks. One of the points I raised, which I believe deserves much more attention in understanding HBO Now's disruptive potential, is how it threatens pay-TV's multi-billion dollar "sports tax" on non-fans.
I've been writing about the sports tax - how non-fans effectively subsidize the cost of super-expensive sports networks such as ESPN and regional sports networks (RSNs) that they don't watch - for almost 5 years now. In a back-of-the-envelope analysis I did following a panel I sat on with Mark Cuban back in 2011, I estimated the annual tax on non sports fans amounted to at least $2 billion per year (4 years later, it's now much higher).
Turner Broadcasting System Latin America has launched a new OTT service in Latin America and Brazil, powered by Kaltura's OTT TV platform and IBM's SoftLayer cloud infrastructure.
The service is being offered in Spanish and Portuguese and is available on iOS and Android smartphones and tablets. It includes both live TV channels and VOD options. Notably, it is being offered through Turner's pay-TV partners, so it does not appear to be disruptive to the existing ecosystem, but rather a TV Everywhere extension.
Dish Network has been very public about its interest in launching an over-the-top pay-TV service (a virtual pay-TV operator or "vPop") this year. But on Dish's Q3 '14 earnings call yesterday, company chairman Charlie Ergen provided an update on its progress, tamping down short-term expectations for the vPop service and its likely market impact. More importantly, as I explain below, Ergen's comments highlight some of the vPop's conflicting goals and significant challenges.
Following are Ergen's initial comments on the call about the vPop service (from the transcript at Seeking Alpha), in which he speaks candidly about the complexity and uncertainty involved with the launch:
I'm pleased to present the 235th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
First up this week, Colin recaps how well the recently wrapped-up World Cup did with live-streaming. As Colin notes, the final game delivered 1.8 million concurrent live viewers. Also interesting was how mainstream streaming mid-day games seemed to become. Unlike March Madness games, which have always been streamed in the workplace somewhat surreptitiously, World Cup streaming seemed completely acceptable.
Continuing our sports theme, we then turn to a WSJ article this week which revealed that the NBA is seeking to double the approximately $930 million per year in TV rights fees it receives from Disney/ESPN and Time Warner/Turner when these deals expire after the 2015/2016 season.
If the NBA were to succeed, and gain $2 billion or so in fees, that would translate into around $20 per year for each of the approximately 100 million U.S. pay-TV subscribers (even more when you factor in the pay-TV operator's retail margin).
The dirty little secret of these super-expensive sports deals is that ALL subscribers pay - whether you're a fan or not - meaning the "sports tax" on non-fans is getting bigger all the time. With escalating pay-TV bills, the big question is whether non-fans will become heavier cord-nevers and cord-cutters.
Listen in to learn more!
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I'm pleased to present the 227th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
This week we dig into the Turner-Comcast deal from earlier this week, under which Turner is providing past seasons' and full current season's episodes to some of its most popular programs to Comcast for viewing on VOD and TV Everywhere. As I wrote earlier this week, a key enabler of the deal is Turner's ability to dynamically insert ads in the on-demand streams.
Colin and I agree that, to the extent the deal becomes a template for others, it could have a wide-ranging impact on the ecosystem. To date, Netflix and other OTT providers have been able to aggregate huge libraries of past seasons' episodes, which have fueled binge-viewing.
But as advertising in VOD/TVE grows and improves, it could become the financial foundation for operators to gain far greater content rights. That in turn could change the negotiating balance for content and perceptions of pay-TV operators. Colin and I explain what could be ahead.
Listen in to learn more!
(Note also Colin is hosting a free webinar next Tuesday on Fox Sports Go TVE app. Sign up here.)
Turner Broadcasting will provide Comcast with VOD and TV Everywhere access for some of its most popular programs across all of its cable networks, under a deal announced this morning. A significant aspect of the deal is that it gives Comcast rights not only to past seasons' episodes, but also to all current season episodes - what's known as "stacking rights." The deal is a big win for Comcast and also underscores the emergence of dynamic ad insertion in VOD/TVE streams as an important new revenue driver.