I'm pleased to present the 218th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. Both of us have continued to observe signs of how online video is coming of age, and today we discuss some of them.
We start with news that Comcast will begin selling episodes of "House of Cards" in its Xfinity online store. Putting aside the question of why someone would buy an episode for $1.99 when they could binge-view all 26 episodes in a month for $7.99, both of us thought it's noteworthy that the largest cable operator believes an online-only series is worth selling (and note too, the deal was done with Sony Pictures, and that Verizon also has been selling the series).
Then there was the report that Disney might acquire Maker Studios, a pure-play online video / YouTube content provider. While Colin and I get a chuckle out of the idea that the Disney flag could fly over Epic Rap Battles and PewDiePie, we agree it would be a smart bet to gain reach into the all-important millennial segment.
Then we turn to the $18 million investment by Warner Bros. in Machinima, an online video gamer-centric content creator also targeting millennials. The 2 companies already had a successful collaboration with the "Mortal Kombat: Legacy" web series. No doubt the new investment will spur more gamer-centric originals for distribution by Warner Bros.
We wrap up by discussing just how important millennials are to the video's future. Recent data suggest this group is still pretty glued into the pay-TV ecosystem, but their behaviors are changing fast, in turn leading established media companies to focus on online video more than ever.
Three items last week brought to mind one central question I've long wondered about: can traditionally free, ad-supported online video providers make the leap to a paid, subscription model? The first item was a long piece in Variety that chronicled the struggles the first set of YouTube content partners trying subscriptions is having upselling their free viewers. Second, Reuters broke the news that Machinima, one of the biggest online video players (and a big YouTube partner) is planning to go it alone in creating its own subscription service to complement its free, ad-supported offering. And third was the milestone news that Netflix, by far the most successful online subscription service, garnered 14 Emmy nominations, including 9 for "House of Cards" alone.
How do these all tie together?