Posts for 'Amazon'

  • VideoNuze Podcast #412: Deloitte Research Reveals Video Convergence; Amazon’s Math on Originals

    I’m pleased to present the 412th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.

    New data from Deloitte shows a convergence of streaming video behaviors among 3 age groups, Gen Z (14-20 year-olds), millennials (21-34 year-olds) and Gen X (35-51 year-olds) in terms of viewing frequency, subscription levels and binge-watching. Colin and I discuss the data and what’s  likely driving the convergence.

    We then dig into the math behind Amazon’s originals and how they contribute to Prime memberships and the company’s profitability. Jeff Bezos has spoken publicly about how video drives commerce. My analysis of Amazon’s “The Man in the High Castle” supports this, proving that Amazon is a totally new breed of competitor in the video and TV industries.

    Listen in to learn more!

     
    Click here to listen to the podcast (22 minutes, 11 seconds)



    Click here for previous podcasts

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today!

     
  • The Math Behind How an Amazon Hit TV Program Contributes to the Company’s Profitability

    Last week Reuters reported data from internal Amazon documents that for the first time provided insights into viewership of the company’s original TV programs and their contribution to creating new Prime subscriptions. Below I’ve done some additonal math using separately reported information to calculate how profitable at least one of Amazon's original programs could be.

    Last October, Fortune reported research from Consumer Intelligence Research Partners indicating that Amazon Prime subscribers spend an average of $1,300 per year compared to an average of $700 per year that non-Prime subscribers spend. (Note, back in Fall, 2016, Morgan Stanley said that according to its survey, Prime subscribers spend nearly $2,500 per year, vs. $544 for non-subscribers). For the purpose of my calculations, I just used the CIRP estimate of $600 incremental spending per year by subscribers.

    continue reading

     
  • Oscars are Latest Marquee TV Event in 2018 to Suffer Viewing Decline as Audiences Splinter

    Preliminary overnight numbers for the Oscars show an 18.9 rating in prime time, down 16% vs. 2017’s 22.4 rating. The overnight rating is a new record low for the Oscars, and importantly continues the dismal showing for 2018’s marquee TV events: Golden Globes (-5% vs. 2017), Super Bowl (-7% vs. 2017, worst in 9 years), Olympics (-7% vs. 2014, worst ever) and Grammys (-24% vs. 2017, worst in 9 years). Clearly TV’s biggest events are losing their luster.

    There are always challenges particular to each event (e.g. Olympics time zone issues, Patriots fatigue, etc.). In the case of the Oscars, an ongoing problem is the disconnect between best picture winners and box office performance. A fascinating WSJ article on Friday detailed how only 4 best picture winners in the past 12 years have been among their year’s 25 highest-grossing movies, with none cracking the top 15. In the current era of superheroes, animation and franchise movies, thoughtful best picture nominees simply don’t draw the biggest audiences, in turn diminishing the Oscars’ relevance (2018 could be a quasi-exception with “Black Panther”).

    continue reading

     
  • SpotX Gains Server-Side Ad Interoperability with Amazon Web Services

    Video ad tech provider SpotX has announced server-side ad insertion interoperability with Amazon Web Services’ Elemental MediaTailor service. This means that content providers which are joint customers of SpotX and AWS Elemental MediaTailor are able to use SpotX’s ad decisioning capabilities to dynamically serve targeted ads, using server-side ad insertion.

    With server-side ad insertion (“SSAI”), which is also known as ad stitching, relevant ads are integrated with the content at the server level, providing a better viewer experience as compared with when ads are inserted by the player on the user's device. The latter model often results in buffering as the player transitions between content and ads and vice versa. Buffering is major challenge for content providers because it is the leading cause of abandonment, which in turn diminishes monetization.

    continue reading

     
  • VideoNuze Podcast #401: Top Video Trends for 2018

    Happy New Year! I’m pleased to present the 401st edition of the VideoNuze podcast, and our first of 2018, with my weekly partner Colin Dixon of nScreenMedia.

    As is our tradition, we discuss our top trends for the new year. 2017 was extremely busy for the industry and we expect 2018 to be no different. Among our top trends are wireless providers pushing deeper into video, YouTube TV starting to break out among skinny bundles, cord-cutting accelerating and Amazon pursuing many different opportunities to build its video business. We also discuss 4-5 additional trends to watch.

    Listen in to learn more!
     
    Click here to listen to the podcast (22 minutes, 10 seconds)



    Click here for previous podcasts

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today!

     

     
  • Will Amazon Move Into Video Advertising in 2018?

    In 2017 Amazon continued launching into new businesses as it leveraged its massive scale and resources to disrupt the status quo. As we look ahead to 2018, online video adverting appears to be yet another juicy opportunity for Amazon to pursue, as all the pieces seem to be falling into place.

    As background, Amazon is already investing heavily in ad tech and ad sales staff. Of course, ads and recommendations have long been a part of the Amazon shopping experience, with text and banner ads popping up following searches and on product pages. But video ads give the company a whole new opportunity.

    continue reading

     
  • VideoNuze Podcast #400: The Top 10 Online Video Stories of 2017

    I'm pleased to present the 400th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    In this week’s podcast Colin and I discuss our top 10 online video stories of 2017. It’s been another incredibly busy year with tons of industry innovation and progress. As always, it has been a lot of fun to analyze all of this and report on it. Let us know what you think of our choices, whether you agree or disagree!

    Listen in to learn more!
     
    Click here to listen to the podcast (35 minutes, 45 seconds)



    Click here for previous podcasts

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today!

    Unless there’s some big news, this will be my last post for 2017.

    Happy Holidays to all!

     
  • VideoNuze Podcast #393: Hulu’s CEO Departs; Amazon Studios’ Brain Drain

    I’m pleased to present the 393rd edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    It’s been a big week for executive changes in the SVOD world. Hulu’s CEO Mike Hopkins is departing to become chairman of Sony Pictures Television. Randy Freer, president and COO of Fox Networks will take over as Hulu’s new CEO. Colin and I both think Hopkins accomplished a lot in his four years at Hulu and we review the company’s progress. Still, the SVOD space is more competitive than ever and Hulu has a range of challenges ahead of it.

    Speaking of executive changes, Amazon Studios is undergoing a brain drain, with its head Roy Price leaving due to sexual harassment charges followed by 3 other senior executives. Amazon Studios was already under pressure to create blockbuster programming and these management changes would seem to only increase the pressure. We dig into what’s happening at Amazon.

    Listen in to learn more!
     
    Click here to listen to the podcast (23 minutes, 50 seconds)



    Click here for previous podcasts.

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today!

     
  • VideoNuze Podcast #391: Disney’s Winning Move With Movies Anywhere, Amazon Video Ads and More

    I’m pleased to present the 391st edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia (apologies in advance, my audio quality is low).

    We cover 4 different items this week starting with the news that 4 major studios have joined with Disney’s cloud-based venture, now renamed “Movies Anywhere.” The move validates Disney’s prior decision not to join UltraViolet and presents an exciting consumer value proposition incorporating multiple online stores and spanning key devices.

    Colin then shares highlights of new global research from Ericsson Consumer Labs. No surprise, the report showed a big shift in viewing from linear to on-demand and also much higher satisfaction scores for on demand video services vs. traditional TV.  The report comes just ahead of the Q3 earnings season which is likely to show an uptick in cord-cutting.

    We then turn to a report from CNBC that Amazon is making moves in video advertising. Colin and I believe this would make a ton of sense from multiple perspectives.

    Reminder that next Thursday, October 19th we’ll be hosting a webinar on streaming sports, hosted by Akamai. Join us!

    Listen in to learn more!
     
    Click here to listen to the podcast (25 minutes, 37 seconds)



    Click here for previous podcasts.

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today!

     
  • SpotX Bolsters Amazon’s Transparent Ad Marketplace For Video Header Bidding

    Late last week SpotX announced that it has integrated its recently-launched header bidding solution for video ads with Amazon Publisher Services’ Transparent Ad Marketplace (TAM). To learn more about the integration and the benefits to publishers, SpotX and Amazon, I spoke with Tal Almany, SpotX’s Senior Director, Advanced Integrations who recently joined the company from OpenX.

    For those not familiar with header bidding, this is an approach that video providers use to offer their ad inventory simultaneously to multiple demand sources to optimize bidding and monetization. Amazon’s TAM is a header bidding solution that is cloud-based and server side, which means less code is running on the publisher’s site, creating efficiencies. TAM is relatively new to the market, but because it’s from Amazon, it has gained a lot of attention.

    continue reading

     
  • VideoNuze Podcast #385: The Role of Advertising and Subscriptions for Premium Video

    I’m pleased to present the 385th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    On today’s podcast, Colin and I discuss the role of advertising and subscriptions for premium video. I wrote about this topic earlier this week, observing that video providers today are experimenting with all models to see what succeeds. The urgency to find the successor to the lucrative multichannel bundle approach is becoming more urgent as cord-cutting increases.

    Colin and I both believe the picture is currently quite murky. We contrast the success Netflix, for example has had with ad-free viewing while subscribers to both CBS All Access and Hulu still appear to prefer to pay less and get a full ad load.

    I think there’s real power in a brand’s original identity and it’s quite hard to transition from one model to another. Colin sees more upside from “freemium” approaches that introduce viewers to content with ads but then try to upsell them to subscriptions.

    Listen in to learn more!
     
    Click here to listen to the podcast (25 minutes, 1 second)



    Click here for previous podcasts.

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today!

     
  • Video Providers Pursue Advertising, Subscriptions or Both

    Advertising, subscriptions, or both? All video providers are currently grappling with the fundamental question of what business model to pursue. With the cost of producing high-quality video and the challenge of attracting and audience more daunting than ever, deciding which path to follow has taken on increasing urgency.

    But if the stakes are higher, so too is the murkiness, especially when it comes to what consumers will pay for. Just because Netflix has 50 million U.S. subscribers doesn’t mean getting to a million is straightforward for an SVOD wannabe.

    continue reading

     
  • VideoNuze Podcast #384: Rounding Up the Week’s Top News

    I’m pleased to present the 384th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    On today’s podcast, Colin and I first discuss Q2 ’17 pay-TV video subscriber results. Skinny bundles played a big part in offsetting accelerating losses in traditional multichannel services. Will this continue and if so what are the implications?

    We then dig into the DVD market’s decline which was further accelerated this week when Amazon decided to close down its LOVEFiLM DVD-by-mail business in several European countries. Colin notes that Netflix’s DVD business has had a huge drop-off also and he speculates whether it too might get cut loose. On the bright side, Redbox re-upped its deal with Lionsgate, showing that DVDs still have a bit of life left.

    Finally, Apple was back in the news this week, reportedly allocating $1 billion for original TV shows. We speculate on whether this will be successful and what challenges Apple will face.

    Listen in to learn more!
     
    Click here to listen to the podcast (23 minutes, 23 seconds)



    Click here for previous podcasts.

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today!

     
  • Expensive SVOD Talent Wars Are Unlikely to End Well

    Another day, another high-profile - and no doubt incredibly expensive - SVOD talent deal announced. Today’s is between Netflix and the ultra-successful producer Shonda Rhimes, poaching her from ABC, where she’d been for 15 years. For Netflix, it followed last week’s deals with the Coen brothers for a new series and the company’s first acquisition, of Millarworld, plus many others.

    While Netflix has been busily announcing new originals - no doubt timed to offset the fallout from Disney’s decision not to renew its pay-1 output deal upon expiration in 2019 - Amazon hasn’t been sitting still. Last week the company lured Robert Kirkman, creator of the blockbuster “The Walking Dead” series on AMC in an exclusive 2-year deal. That followed recent deals for many other originals, with a heavy emphasis on kids shows. And don’t forget Hulu, which is coming off its biggest original success to date with “The Handmaid’s Tale.”

    continue reading

     
  • FX Launches FX+ With Comcast; Is An SVOD A La Carte World Coming Into View?

    This morning, FX and Comcast announced FX+, an ad-free subscription video on demand service available to Xfinity TV subscribers for $5.99 per month. FX+ is quite comprehensive, including full current seasons of 17 different FX shows (e.g. “The Americans,” “Atlanta,” “Taboo,” etc.) along with library seasons of 16 current and prior shows (e.g. “The Shield,” “The League,” “Nip/Tuck,” etc.). In all, there will be over 1,100 episodes of FX programming available to subscribers.

    FX+ follows the recent announcement of AMC Premiere by AMC and Comcast, which is another ad-free SVOD service, available for $4.99 per month. However, AMC Premiere doesn’t include AMC’s deep library of popular programs, highlighted by “The Walking Dead,” “Breaking Bad” and “Mad Men,” while also including some original digital content. AMC Premiere’s shallow content selection suggests its success will be modest.

    continue reading

     
  • Amazon is Poised to Nose Its Way Into the Pay-TV Business

    You would have to have had your head buried in the sand these past few months not to notice that Amazon has become the “it” company everybody can’t stop talking about. Whether buying Whole Foods, innovating its Echo smart speakers, challenging Blue Apron in meal kits, introducing its own Geek Squad to compete with Best Buy or countless other initiatives, all of a sudden Amazon seems to be omnipresent. And with an estimated 80 million Prime members, Amazon is in fact now literally present in many people’s day-to-day lives.  

    Amazon has what it calls “pillars” (Prime, e-commerce, cloud, etc.), and it’s becoming clearer by the quarter that video is fast becoming another one. In video, the company’s efforts are wide-ranging - devices (Fire TV), original content (which is included in Prime and on which it is spending billions), licensed content (also in Prime), live sports (with its NFL Thursday night deal), SVOD distribution (via its Amazon Channels program for 3rd party and original services), digital video premieres (with its Amazon Video Direct program), international (expanding its own SVOD service to 200+ countries) and technology enablement (with AWS and acquisitions like Elemental). In sum, Amazon is already operating in virtually every part of the video value chain.

    Despite all of this, I believe that Amazon’s video efforts are still completely under-appreciated. With a number of industry trends coming into view, Amazon’s video momentum could significantly increase and carry it straight into the heart of the pay-TV industry.

    continue reading

     
  • U.S. SVOD Adoption Up to 64% of Homes, With 29% Streaming Daily

    U.S. adoption of Netflix, Amazon Prime and/or Hulu is up to 64% of homes, an increase from 47% in 2014, according to Leichtman Research Group. Of those who have one of these SVOD services, 51% now have more than one of them, up from 35% in 2014.

    On our podcast last week, Colin and I talked about how the number of people taking multiple SVOD services has become a central trend in the industry and is helping spur growth for all providers. Both Amazon’s Jeff Bezos and Netflix’s Reed Hastings have insisted over the years that people will take multiple services, and that appears to now becoming reality.

    continue reading on VideoNuze iQ

     
  • User Experience is the New Battleground for Video Providers

    If you’re like me, you may have noticed that recently you’ve become a little less patient when you to try to watch a video and things don’t go exactly right. Whether it’s difficulty finding the desired video, momentary buffering, an intrusive/irrelevant ad or some kind of device issue - these sources of friction are increasingly noticeable and in turn disappointing.

    I don’t find this surprising. We live in a world where instant gratification and seamless user experiences are becoming the new normal. Those that don’t measure up stand out more readily as sore thumbs. Among other things, we can now do a super-convenient voice search using a smart speaker, request a personal driver though Uber or Lyft with just a few taps on our smartphones, get a refund on an Amazon return the moment the package is scanned at UPS and lots more. Simply put, for many of us, the Internet and apps are making life easier all the time.

    continue reading

     
  • How Comcast Has Eaten Into Apple’s Movie Rentals/Purchase Dominance

    An article in the WSJ over the weekend “Apple’s iTunes Falls Short in Battle for Video Viewers” caught my attention for a number of reasons, not least of which it touched on how quickly Comcast has succeeded in growing its market share in digital movie rentals and downloads.

    While iTunes is estimated to still hold the market share lead in the digital movie rental and purchase industry with a share of between 20% to 35%, that’s down from over 50% in 2012. The article notes that Amazon’s share is now up to around 20% and Comcast’s is at 15%. For Amazon, video rentals and purchases represent another way it leverages its e-commerce expertise. Rentals/purchases are also very complementary to Amazon’s Prime Video service. In many ways, there’s nothing surprising at all about how Amazon has taken a bite out of Apple’s market share.

    continue reading

     
  • Breaking Through With New TV Experiences

    Execs from broadcasters, content owners and tech companies recently joined 100,000 of their peers at the NABShow 2017 convention in Las Vegas. A key focus for many at the show was how to drive breakthrough multiscreen experiences, get consumers to engage more and fully monetize the many opportunities that are emerging.

    During the Online Video Conference's “Breaking Through With New TV Experiences” session I moderated, attendees heard about the latest efforts underway by industry leaders to bring more personalization, discoverability and innovation to content delivery. Consumers have an incredible range of choices of multiscreen services that now span beyond VOD and linear to include fast-evolving OTT offerings. Representatives from Comcast Technology Solutions, Amazon, Gracenote and TiVo joined the discussion to shed insight into ongoing work, challenges ahead and what it takes to deliver industry-leading multi-screen experiences. Panelists also pulled back the curtain on the back-end capabilities that will be required to support these increasingly complex services.

     
    IBB Consulting works closely with operators and content owners to help design and execute multiscreen distribution strategies. Many of the efforts and activities that we heard about from the panelists are being undertaken or considered by a range of stakeholders today.

    continue reading