Posts for 'ESPN'

  • @Cable Show: HBO GO Has 2.6 Million+ Downloads, Watch ESPN Has 2 Million+ Downloads

    At least two major cable networks, HBO and ESPN, are getting strong traction with their mobile apps not long after launching them. HBO GO, which was unveiled in early May, has already gained over 2.6 million downloads, while Watch ESPN has generated over 2 million downloads since launching in early April. The data was released by Alison Moore, HBO's SVP, Digital Platforms, and by David Preschlack, ESPN's EVP of Affiliate Sales and Marketing in a TV Everywhere session I hosted this afternoon at the Cable Show in Chicago.

    Both Alison and David stressed their twin goals of delivering anytime/anywhere experiences to their viewers while also supporting the subscriber authentication, TV Everywhere goals of their main pay-TV distributors. In fact TV Everywhere was, well, everywhere at this year's Cable show, dominating general sessions and informal discussions of the industry's future. Mostly there's broad consensus about how strategic untethering popular cable programming from the set-top box is, although many issues still remain unresolved. Chief among them are measurement, rights clearances and business relationship details.

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  • @ELEVATE: 75% of Cable TV Programming to be on TV Everywhere in 2 Years

    At the ELEVATE conference earlier this week I moderated a panel with executives from 3 of the leading proponents of TV Everywhere, during which they estimated about 75% of cable TV programming could be available on connected and mobile devices within 2 years. That amount would be a huge increase from what's currently available and would also represent a massive shift by the pay-TV ecosystem to delivering content to IP devices. It would also represent a huge game change in the overall TV advertising ecosystem depending on what ad policies are implemented (full ad load, partial load, etc.).

    The panelists included David Preschlack, EVP, Affiliate Sales and Marketing, Disney & ESPN Networks Group, Jeremy Legg, SVP Business Development & Multi-Platform Distribution, Turner Broadcasting and Matt Strauss, SVP & GM, Comcast Interactive Media.

    With the rise of over-the-top competitors (e.g. Netflix, Hulu, iTunes, etc.), TV Everywhere has emerged as the pay-TV industry's number one priority. No doubt at next week's Cable Show in Chicago it will be the most pervasive topic of discussion. Yet significant issues remain for TV Everywhere's rollout. Chief among them are lack of adequate audience measurement systems, limited rights and caution among cable networks. We discussed each on the panel.

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  • Senior Comcast, ESPN, Turner Executives to Discuss TV Everywhere's Game-Changing Role at ELEVATE

    I'm delighted to announce that TV Everywhere's game-changing role in the TV and advertising ecosystems will be the topic of a marquee panel of cable industry executives at ELEVATE: Online Video Advertising Summit on Tuesday, June 7th in New York City. The panel, which I'll moderate, is titled "TV Everywhere: Game-Changer for Premium Online Video and Advertising" and includes:

    • Jeremy Legg - SVP, Business Development and Multi-Platform Distribution, Turner Broadcasting System
    • David Preschlack - EVP, Affiliate Sales and Marketing, Disney & ESPN Networks Group
    • Matt Strauss - SVP and General Manager, Comcast Interactive Media

    As I've written since it first burst onto the scene almost 2 years ago, TV Everywhere is the most significant initiative in the TV industry today because it aims to untether all of the most popular programs from cable TV networks that have traditionally been locked to the set-top box in the TV room, making them available on myriad connected and mobile devices. In this respect, TV Everywhere is a strategic imperative for the pay-TV industry; as new entrants like Netflix, Hulu Plus and others have strongly embraced delivery to connected and mobile devices, they have raised the competitive bar for all others.

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  • ESPN Continues Dampening Cord-Cutting Fears

    ESPN released the its latest round of research on cord-cutting this week, finding that a tiny .18% of American homes with both pay-TV service and a broadband connection dropped their video service between the fourth quarter of 2010 and the first quarter of 2011. ESPN said the .18% is actually lower than the .28% it found in its prior period research and is fully offset by a comparable number of people who upgraded from a "broadcast-only" service level to a full pay-TV package. Not surprisingly, ESPN said that among medium-to-heavy sports viewers there was zero cord-cutting.

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  • Disney Has Religion on Digital, ESPN Is At the Core

    Disney held its annual investor day yesterday, and as usual, technology, and the opportunities it creates for the company, was at center stage. Disney introduced a new initiative called "Disney Studio All Access" providing a central location for consumers to securely access the company's range of content. Though details were sketchy, key to the plan is more flexible consumer ownership and multi-device playback. For paid, downloadable video, that remains the holy grail.

    Aside from the company's digital initiatives on the entertainment side of its house, the most important asset that Disney is trying to re-imagine digitally is ESPN. Just yesterday, the company announced a new distribution deal with Verizon, which emphasizes live online streaming of ESPN, ESPN2, ESPNU and ESPN Buzzer Beater. The deal is similar to one inked last September with Time Warner Cable, the country's 2nd-largest cable operator. No doubt others will follow.

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  • VideoNuze Report Podcast #87 - Feb. 11, 2011

    Daisy Whitney and I are pleased to present the 87th edition of the VideoNuze Report podcast, for February 11, 2011.

    In this podcast, Daisy and I do a deep dive into the role of sports in pay-TV packaging, based on my post from Monday, "Not A Sports Fan? Then You're Getting Sacked For At Least $2 Billion Per Year." I think this is a fascinating topic and something that has been under-reported even though it has huge implications for pay-TV subscription rates as over-the-top services gain awareness.

    The basic premise of my post was that since a relatively small cluster of sports-oriented channels (e.g. ESPN, TNT, Regional Sports Networks and others) collectively cost pay-TV operators $10 per month, then the charges being incurred by non-fans and casual who fans who rarely, if ever watch these channels, could amount to at least $2 billion per year. Since writing the post and gaining feedback from various sources, it's actually quite possible that the annual charges incurred in exchange for little-to-no value could exceed $3 billion. Whatever the number is, it's very large, and effectively represents a massive subsidy that non-fans and casual fans pay each year because of escalating sports TV rights deals and astronomical player compensation.

    Click here to listen to the podcast (17 minutes, 8 seconds)



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  • Not a Sports Fan? Then You're Getting Sacked For At Least $2 Billion Per Year

    Last night 100 million plus people tuned into the Super Bowl, once again highlighting the game's singular popularity. But aside from this huge once per year spike in sports enthusiasm, a simple fact remains: if you subscribe to pay-TV services and are not a sports fan (or are just a casual one), you are paying a lot of money each month for very expensive sports-oriented cable TV channels which you mostly don't watch. This degree of wasteful overspending, which could amount to at least $2 billion every year (as I'll detail below), creates a mile-wide opportunity for entertainment-oriented over-the-top entrants to prosper.  

    The value of sports programming was a topic we tackled last week at the MIT Enterprise Forum (panelists included Mark Cuban, Avner Ronen, Paul Sagan and me). Moderator Woody Benson challenged us at the start with how he could reduce his current $260/mo cable bill. As part of the discussion, Mark volunteered that pay-TV operators probably spend around $10 per month in licensing fees just for sports-oriented cable channels (these include channels like ESPN and its sister networks, TNT, and Regional Sports Networks, "RSNs" like NESN and Comcast SportsNet here in the Boston area and others). Mark estimated that this adds up to about 25% of the total monthly amount pay-TV operators spend on programming. My sense is that Mark's $10 per month amount might be a little high, but since he owns the NBA's Mavericks and sees the TV deals, he's in a good position to know.


    (The video starts with about 40 minutes of one-on-one discussion between Mark and Woody and then shifts to the full panel)

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  • ESPN Wades Into Cord-Cutting Research Fray With New Data

    Not content to sit by and watch the headlines claiming significant cord-cutting is underway, ESPN is wading into the cord-cutting research fray, releasing a new analysis of its own, which it asserts that the activity has been totally overblown.

    By analyzing Nielsen data, ESPN says that in the past 3 months, .28 percent of U.S. households have cut the cord, though mitigating this decrease is that .17 percent of households that had been subscribing to the lowest tier of pay-TV service (dubbed "broadcast-only") upgraded to pay-TV and broadband Internet services. With approximately 110 million households in the U.S., ESPN is saying around 308,000 homes cut the cord, with 187,000 upgrading from broadcast-only, for a net loss due to cord-cutting of 121,000 households. Interestingly, that 121,000 households is quite close to the 119,000 subscribers that SNL Kagan said that U.S. pay-TV operators lost in Q3 '10.

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  • Are Live Sports Pay-TV's Firewall or Its Albatross?

    I've long assumed that live sports carried on cable TV networks (e.g. ESPN, Fox Sports, TNT, TBS, NFL Network, regional sports networks, etc.) would be a key firewall against cord-cutting since the games they air are unavailable online. In other words, if you're a sports fan, dropping your pay-TV subscription would be unthinkable. While I still believe that's mostly true, recently I've started wondering if it's possible that sports actually may also be an albatross for pay-TV operators, limiting their ability to effectively compete with online-only alternatives.

    I use the word albatross because pay-TV providers actually have very little flexibility to offer non-sports fans lower-priced packages that don't include sports-oriented channels. In fact, the most surprising aspect of last week's announcement by Time Warner Cable of a new lower-priced tier  called "TV Essentials" it's testing is that it will exclude ESPN, which is virtually unheard-of in pay-TV packaging. Because the underlying deals that cable networks have with sports leagues and rights-holders are so expensive, the networks try to get carried on the most popular pay-TV service tiers, thereby ensuring the highest number of subscriber homes (basic cable networks are paid by distributors on a per subscriber basis, so the more subscriber homes, the higher their revenue).

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  • 5 Items of Interest for the Week of Nov. 15th

    After a short break, VideoNuze's Friday feature of curating 5-6 interesting online/mobile video industry news items that we weren't able to cover this week, returns today. Read them now or take them with you this weekend!

    Time Warner Cable Experiments With Lower Tier Video Package
    It's a rare day when a cable operator announces a lower-priced offering, but that's what Time Warner Cable did yesterday, unveiling a test of what it's calling "TV Essentials." The new tier, priced between $30-$40, will most notably exclude ESPN, the most expensive channel in the cable universe, meaning right away TV Essentials isn't targeted to sports fans. I've argued for a while now that pay-TV operators have ceded the low-priced/value-oriented end of the video market to Netflix (and others), which given the ongoing recession is a mistake. It will be interesting to see how the new bargain service fares; 2 things that will limit its appeal though are that no channels will be offered in HD, and that it appears those with broadband Internet and telephone services won't benefit from typical package discounts.

    Nielsen study: We're still a nation of couch pumpkins

    More evidence this week that despite all the deserved enthusiasm over online and mobile delivery, good old-fashioned TV viewing still rules in terms of hours of consumption. Nielsen said that the average person watched 143 hours of TV per month in Q2, essentially flat vs. a year ago. For homes with DVRs, hours of time watched on them nudged up a bit to about 24 1/2 hours. On a related note, this week comScore released its online video viewing data for October, which showed average viewing of 15.1 hours per person. While online video has made huge progress in the last few years, it still has a ton of room to grow to catch up with TV.

    More Videos Ads, More User Acceptance
    Speaking of the comparison between online video and TV, this week brought some interesting new data on monetization patterns for premium online video. Online video ad manager FreeWheel released data that showed mid-roll ads are the fastest-growing category of ads (up 693% since Q1), and now represent 8% of its ad volume. Completion rates have increased for pre, mid and post-roll ads this year, but notably mid-rolls have the highest completion rate, at 90%. FreeWheel's conclusion is that monetization of premium online video is starting to look a lot like TV, with ad pods inserted throughout. Going a step further, if viewer acceptance of mid-rolls stays high, then this represents a valuable opportunity for TV networks in particular to combat DVR-based ad-skipping.

    Startup Claims To Have Set-Top Hulu Can't Block
    It was inevitable that Hulu's decision to block access to its programs would set off a game of whack-a-mole, with various devices springing up to do end-arounds. Sure enough, the $99 Orb TV debuted this week, prominently positioning itself as the device that can bring Hulu (among other content) to your TV. One catch is that Orb streams video from your computer and only does so in standard definition. It addresses the "keyboard in the living room" challenge by also including a smartphone app to control the device. It's not a perfect solution, but it does provide a glimpse into the PR-unfriendly dynamic that Hulu, and the broadcast networks, have created for themselves by blocking access to their content by Google TV and others. No doubt there will be plenty more Orb-like devices to come to market in the months ahead, all positioning themselves as solving the blocking problem.

    Comcast's Top Digital Exec Amy Banse to Open New Silicon Valley Equity Fund for Cable Giant and NBC
    As Comcast enters the final stages of approval for its NBCU deal, the company this week announced a new NBCU management structure. One item that wasn't formally announced yet, but was reported by AllThingsD earlier this week was that Amy Banse, formerly head of Comcast Interactive Media (now headed by Matt Strauss), will be heading to Silicon Valley to run the combined operations of Comcast's current Comcast Interactive Capital venture arm, and NBCU's current Peacock Equity (a JV with GE). With all the distribution, technology and content assets that will be under the Comcast roof, the fund will be at the top of any online/mobile video startup's list of strategic investors. I've known Amy for a while and have enjoyed having her on industry panels; she'll be a huge asset to Comcast in the Valley venture world.
     
  • 6 Items of Interest for the Week of Oct. 18th

    It was another busy week for online/mobile video, and so VideoNuze is continuing its Friday practice of curating 5-6 interesting industry news items that we weren't able to cover this week. Read them now or take them with you this weekend!

    Networks block Google TV to protect themselves
    Yesterday news started breaking that ABC, CBS and NBC are blocking access by Google TV. There are numerous concerns being cited - potential disruption of advertising, encouraging cord-cutting, incenting piracy, diminished branding, unsatisfactory ad splits with Google, and general worry about Google invading the living room. Each item on its own is probably not enough to motivate the blocking action, but taken together they are. Still, doesn't it feel a little foolish that broadcasters would differentiate between a computer screen and a TV screen like this? For Google, it's more evidence that nothing comes easy when trying to work with Hollywood. I'm trying to find out more about what's happening behind the scenes.

    TWC Lines Up For ESPN Online Kick
    An important milestone for TV Everywhere may come as early as next Monday, as #2 cable operator Time Warner is planning to make ESPN viewing available online to paying subscribers. Remote access is part of the recent and larger retransmission consent deal between Disney and TWC. TV Everywhere initiatives have been slow to roll out, amid cable programmers' reluctance.  Further proving that remote authenticated access works and that it's attractive with a big name like ESPN would increase TV Everywhere's momentum.

    Hulu Plus, Take Two: How's $4.95 a Month?
    Rumors are swirling that Hulu may cut the price of its nascent Hulu Plus subscription service in half, to $4.95/mo. That would be a tacit recognition of Hulu Plus's minimal value proposition, largely due to its skimpy content offering. As I initially reported in August, over 88% of Hulu Plus content is available for free on Hulu.com. More important, Netflix's streaming gains have really marginalized Hulu Plus. Netflix's far greater resources and subscriber base have enabled it to spend far bigger on content acquisition. Even at $4.95, I continue to see Hulu Plus as an underwhelming proposition in an increasingly noisy landscape.

    Viacom Hires Superstar Lawyer to Handle YouTube Appeal
    Viacom is showing no signs of giving up on its years-long copyright infringement litigation against Google and YouTube. This week the company retained Theodore Olson, a high-profile appellate and Supreme Court specialist to handle its appeal. While most of the world has moved on and is trying to figure out how to benefit from YouTube's massive scale, Viacom charges on in court.

    Verizon to sell Galaxy Tab starting November 11th for $599.99
    Verizon is determined to play its part in the tablet computer craze, this week announcing with Samsung that it will sell the latter's new "Tab" tablet for $600 beginning on November 11th. The move follows last week's announcement by Verizon that it will begin selling the iPad on Oct. 28th, which was widely interpreted as the first step toward Verizon offering the iPhone early next year. Apple currently owns the tablet market, and it remains to be seen whether newcomers like the Tab can break through. For his part, Apple CEO Steve Jobs said on Apple's earnings call this week that all other tablets are "dead on arrival." Note, if you want to see the "Tab" and learn more about how connected and mobile devices are transforming the video landscape, come to the VideoSchmooze breakfast at the Samsung Experience on Wed., Dec. 1st.

    One-Third of US Adults Skip Live TV: Report
    A fascinating new study from Say Media (the entity formed from the recent merger of VideoEgg and Six Apart), suggesting that 56 million, or one-third of adult Internet users, have reduced their live TV viewership. The research identified 2 categories: "Opt Outs" (22 million) who don't own a TV or haven't watched TV in the last week and stream more than 4 hours/week, and "On Demanders" (34 million) who also stream more than 4 hours/week and report watching less live TV than they did a year ago. Not surprisingly, relative to Internet users as a whole, both Opt Outs and On Demanders skew younger and higher educated, though only the latter had higher income than the average Internet user. This type of research is important because the size of both the ad-supported and paid markets for live, first-run TV is far larger than catalog viewing. To the extent its appeal is diminishing as this study suggests poses big problems for everyone in the video ecosystem.


     
  • 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.


     
  • 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.

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  • 4 Items Worth Noting for the Jan 11th Week (Real's Rob Glaser, ESPN Mobile, Broadband's impact, Vail goes 360)

    1. Goodbye to RealNetworks' Rob Glaser - For broadband veterans like myself, this week's news that RealNetworks' founder and CEO Rob Glaser is stepping down from the CEO role after 16 years brought to mind how far the online video and audio worlds have come, in a relatively short time. Having done a fair amount of work with Real back in my Continental Cablevision days, some of my first memories of seeing video delivered through the Internet were with the RealPlayer.

    There is no question Rob was one of the pioneers of the online video industry, and everyone working in the industry today owes him and Real a debt of gratitude. In the Internet's first wave, Real was out ahead of everyone in audio and video. Unfortunately for the company, Microsoft's decision to roll out its own media player (and to bundle WMP with Windows) scrambled Real's future and set off years of antitrust litigation. Over the years Real has tried many things, some of which worked and some of which were serious head-scratchers (Ryan Lawler recounts 5 of the company dumbest moves here).

    Personally, it's been a while since any video I wanted to watch required the RealPlayer download. And the last time I did download it, I was so incessantly bombarded with offers that I uninstalled it and swore I'd never download it again. Nonetheless, Real remains one of the largest digital media and technology companies, with $140 million in Q3 '09 revenues and almost $400 million in cash and short term investments. The new CEO will inherit all this, plus the challenge of how to make Real a more significant player in a broadband-dominated world that Rob envisioned so many years ago.

    2. ESPN: "Mobile will be bigger than the web" - I'm always on the lookout for insights from content executives charged with building their company's mobile initiatives (and mobile video more specifically) and so I found MocoNews.net's interview with John Zehr, ESPN's SVP and GM of Mobile a worthwhile read. ESPN has made a ton of progress in mobile since its MVNO was shut down and the post provides growth stats on some of ESPN mobile's most successful efforts.

    Reflecting the key shift in mobile away from "on-deck" carrier-focused distribution deals to a more open Internet-like environment, Zehr said ESPN's mobile revenue model is built on payments from aggregators like FLO TV and MobiTV, advertising and app sales. That sounds a lot like the traditional cable model of affiliate fees, advertising and ancillary revenues like commerce. And just like in cable ad sales, ESPN sells all of its mobile ads itself, avoiding third-party ad networks that it believes would commoditize the ESPN brand. ESPN is clearly bullish on mobile, with Zehr saying "Not too far in the future, mobile will be bigger than the web." With the Apple vs. Google mobile war getting underway there's a lot of momentum building. Still, to keep things in perspective, we're a long way from mobile eclipsing the web.

    3. Does broadband help the economy or not? - I was intrigued by this piece in Network World, reviewing a new study, "Does Broadband Boost Economic Development?" which makes the case that where broadband connectivity is available, it helps local economies, though it doesn't necessarily help the individuals who live there. I'll admit, this is pretty wonky stuff, but as broadband becomes ever more central to our economy and to video in particular, it's important to understand broadband's impact. This is true all the more so as we have a major net neutrality debate looming this year, which could have far-reaching consequences for both content providers and network operators.

    4. Vail introduces 360 degree video, it's almost like being there - Finally, on a lighter note, if you've been itching for that ski trip to Colorado this winter, or just want to escape the daily grind for a few minutes of pleasure, check out Vail's new virtual video clips, shot in 360 degree splendor with partner Immersive Media. The company's Dodeca spherical camera system captures video from 11 different sensors, allowing the viewer to click on the controls to switch angles.

    Immersive caught my attention recently with music concerts they've captured and plus their work with brands like Red Bull, Armani and Mercedes. The company offers a full suite of capture, production and distribution services. In Vail's case, you get to experience some of the mountain's best runs alongside other skiers. It's great marketing for Vail and though it's no substitute for actually being there, your legs won't hurt afterwards either!

    Enjoy the weekend!

    (Note - The VideoNuze Report podcast with Daisy Whitney will resume next week)

     
  • Gourmet Magazine's Closing Offers Lessons for Navigating the Broadband Era

    Earlier this week when Conde Nast pulled the plug on Gourmet magazine and 3 other titles, there was much hand-wringing about the depressed state of the magazine industry. But while falling ad sales, costs of production, editorial issues and redundancy were all contributors to the 68 year-old Gourmet's ultimate fate, in my view, its failure is part of a much larger story of how much the media business has evolved. More specifically, Gourmet offers abundant lessons for those trying to successfully navigate the broadband era.

    Gourmet, and its owner Conde Nast, are part of a proud media tradition that relied mainly on tying an editorial approach and brand to one specific media outlet - the magazine. In this traditional paradigm, the media world was thought of in terms of categories: broadcast TV network, newspaper, radio, cable, etc. While the same corporate owner might have interests across categories, the specific mission of each media property was well-defined: turn out the best product possible for your chosen medium and keep your audience and advertisers coming back for more. (As a sidenote, this is a key reason why most magazine companies did not launch cable TV networks related to their areas of specialty 25 years ago, thereby opening the field for upstarts.)

    The problem is that this model is out of synch with the way many real people actually experience media today. People affiliate with media brands in a more deeply self-identifying way. It's no longer just the information and entertainment that's conveyed, but also about the statement affiliating with that media brand makes and/or the implied trust and comfort that's provided. For better or for worse - depending on your perspective - brand affiliation is now a deeply ingrained part of our cultural landscape.

    Smart advertisers know this too. They are not just interested in just reaching their target audience when they pick up a magazine for example. They want to surround consumers with their brand whenever consumers engage with their chosen media. Advertisers continue to grapple with how to optimize their media spending to gain mindshare and drive sales.

    Forward-thinking media companies have realized for sometime now that changing consumer and advertiser preferences must drive the way they do business, not the other way around. Two examples I like to cite are ESPN and Food Network, two highly successful cable networks that have built strong media brands and prospered by constantly reinforcing the value of their core franchises.

    Among the many non-cable activities each has launched are successful magazines. That may seem ironic given the magazine industry's woes, but in truth each has figured out how to extend their brand, editorial, and importantly, advertiser interest into print. Food Network magazine's recent success is all the more remarkable; while Conde Nast has undergone a wrenching downsizing, Food Network Magazine, which launched in October '08 (in partnership with Hearst), has recently expanded its circulation base to 900,000, nearly on par with what Gourmet achieved after 68 years.

    Noteworthy for ESPN and Food Network have been their successful online initiatives and push into broadband video, all reinforcing their core franchises. In addition to its ad and commerce supported web sites, ESPN has rolled out ESPN 360, a subscription online video service available in 41 million U.S. broadband homes for which ISPs pay a monthly fee. Food Network too has been busy expanding its franchise in online video, among other things recently launching Food2, a broadband-only channel catering to younger viewers that cultivates up-and-coming talent. And as I wrote on Monday, Scripps Networks (Food's owner) just announced a deal with 5Min (an online video syndication platform) to proliferate its content across the web while also gaining access to additional targeted ad inventory to sell.

    ESPN and Food Network are not alone in having capitalized on the trend away from the single media outlet model, though they are surely among the most successful. On the other hand, giants like Conde Nast (even despite its successful Epicurious.com site) and others continue to struggle in finding the formula for success in the new media world. To be sure, there's no respite in sight; I only see the multi-platform media model accelerating from here. For example, mobile-delivered video, currently being driven by the iPhone, but soon by other smartphones too, represents the next big wave to crash against traditional media's shores.
     
    Learning to successfully adapt to these new realities is not an option. The alternative is the eventual demise of other proud names.

    What do you think? Post a comment now.

     
  • 2009 is a Big Year for Sports and Broadband/Mobile Video

    Pick your favorite sport - baseball, basketball, football, golf, tennis, auto racing, etc. and it's likely that in 2009 some part of the action has been available via broadband or mobile video. 2009 is looking like the year that sports executives - and the TV network honchos that pay dearly for sports' broadcast rights- concretely realized that broadband and mobile complement traditional sports broadcasting and that they should be embraced, not spurned.

    In VideoNuze's News Roundup, I've been keeping track of all the broadband and mobile sports headlines this year. Here's just a partial list of what I've captured, along with links:

    - PGATour.com to Offer Live Video Streams of Key Holes for Tour Playoffs (B&C)

    - U.S. Open to Stream Almost All Matches Online (PaidContent)

    - DirecTV Offers NFL Sunday Ticket via Internet in NY Trial (USA Today)

    - "Live at Wimbledon" Streaming Coverage Announced by NBC (Sports Media News)

    - Cablevision Subs Will Gain Access to In-Market Streaming of YES's Yankee Telecasts (Multichannel News)

    - MLB.com Streams Live Baseball Games to the iPhone (NYTimes Bits)

    - NBA Playoffs to Stream on Android App (Online Media Daily)

    - Speedtv.com to Stream Part of Le Mans 24 Hours (Multichannel News)

    - NHL to Launch Daily Stanley Cup Pre-game Web Series (Mediaweek - reg required)

    - Follow the Masters on Your iPhone (Electronic House)

    - March Madness! YouTube Gets Live Video via Silverlight (NewTeeVee)

    In some cases the initiatives provide specially-produced video, while in other cases they offer streams that are already available on TV. The former type isn't that surprising as supplementary video can add a lot of value to the main event (the analog in entertainment are the popular "behind-the-scenes" extras that come with DVDs).

    It's the latter type - where broadcast streams are delivered via broadband or mobile, either live or on-demand - that is much more intriguing as it represents a big step forward in sports and TV network executives' thinking about multi-platform distribution. Traditionally the approach has been to tell fans when the sporting event was on and on which network to find it. But with these broadband and mobile efforts, increasingly we're seeing executives scrap that model and replace it with a more fan-friendly approach that seeks to bring the action to fans, on-demand and wherever they might be.

    In my view, this is a welcome change. Regrettably, big-time sports are now all about big-time money. To understand the stakes, I'm fond of reminding people to do the math on what just ESPN rakes in on just its U.S. monthly affiliate fee of approximately $3.75 from cable operators, satellite operators and telcos carrying the channel into 90 million + homes (your calculator may run out of zeros if you try). With that kind of money on the line, it's imperative that networks and sports themselves figure out how to harness new technologies to deliver more value. From the looks of 2009's initiatives, they appear to be well on their way.

    What do you think? Post a comment now.

     
  • VideoNuze Report Podcast #28 - August 21, 2009

    Daisy Whitney and I are pleased to present the 28th edition of the VideoNuze Report podcast, for August 21, 2009.

    In this week's podcast, Daisy and I first tackle the subject of the Southeastern Conference's new media policy fumble that I wrote about on Wednesday this week. For the upcoming football season, the SEC first banned all social media in the stadiums by game attendees, and later revised it to just exclude fan-generated video of game action.

    I took the SEC to task, suggesting that the policy was wrongheaded because it limits the role that fan video could play in expanding the game experience and incorrectly assumes that fan video might actually compete with live game feeds from partners ESPN and CBS. Further, the policy is completely impractical to enforce, requiring security officers to frisk entering students and examine cell phones for video capability.

    Daisy raises the example of when YouTube posted the infamous SNL "Lazy Sunday" clip, and NBC ordered it to take the clip down, foregoing tons of free promotion. That incident occurred almost 4 years ago, and since then major media companies have come a long way in adopting the role of user-generated video and video sharing as a promotional tool (see this week's Time Warner-YouTube clip deal as further evidence). On the other hand, the SEC still appears to be living in the stone ages. Somebody there needs to get their game on.

    Shifting gears, Daisy explores the idea of how technology is helping video producers collaborate far more extensively than ever before. Producers and creators are now able to share images and raw footage to an unprecedented degree, which is making the creative process far more efficient. That in turn leads to more extensive creative output. Daisy identifies a slew of technology providers who are active in this emerging space.

    Click here to listen to the podcast (13 minutes, 50 seconds)

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  • Fan Video is Odd Man Out in Southeastern Conference's Confusing New Media Policy

    The college football season hasn't yet officially begun, but the Southeastern Conference (SEC) has already fumbled the ball a couple of times with its confusing new media policy which bans fan-generated videos at games.

    The confusion began when the SEC told its member universities that "Ticketed fans can't produce or disseminate (or aid in producing or disseminating) any material or information about the Event, including, but not limited to, any account, description, picture, video, audio, reproduction or other information concerning the Event." As Mashable and others noted, the policy effectively - and bizarrely - barred all social media activity at games. The policy was widely translated to mean that Facebook updates, Tweets, photo uploads and of course YouTube clips would be verboten.

    But, faced with a sharp backlash, the SEC softened its stance, allowing "personal messages and updates of scores or other brief descriptions of the competition throughout the Event." Further, it allowed photos to be taken, as long as their "distributed solely for personal use..." But while Twitter, Facebook and the like would be allowed under the new policy, fan-recorded game action videos would still be prohibited.

    In an interview with The Buzz Manager Blog, Charles Bloom, the SEC's Associate Commissioner of Media Relations explained, "the intent of the policy....is trying to protect our video rights, as they pertain to our television and media partners. So, someone in the stadium can enter Twitter feeds or Facebook entries and photographs, but the game footage video is something that we will try to protect." He added further "We're in the new year, the first year of our television and digital rights agreement, so there was a feeling that we needed to push this through pretty quickly..."

    The SEC indeed has two big money contracts - a $2 billion, 15 year deal with ESPN, and an $800M+, 15 year deal with CBS, which includes an assortment of wireless, VOD, and data rights. The SEC also recently announced a partnership with XOS Digital to launch the SEC Digital Network, intended to be the "largest online library of exclusive and comprehensive SEC sports content available anytime, anywhere." With so much on the line, the SEC pursued the hardline path - pre-emptively prohibiting fan-generated video.

    Is this a smart policy? Does fan-generated video really "compete" with professionally-captured video? And is the policy even enforceable? I'd argue the answers are no, no and no, making the SEC look both paranoid and out of touch.

    First off, fan video serves to enhance the overall event experience, a key goal of the sports-crazy SEC. One can imagine fans at various locations in the stadium capturing compelling new angles that the TV producers may have missed or edited out. A curated collection of these clips could be added to the SEC Digital Network, possibly in a well-marked, "Fan Zone." Note this would be free content the SEC would be getting, that could also be monetized.

    Second, it's ridiculous to think fan-generated video "competes" with the networks' feed. The limited zoom and audio capabilities of an iPhone or Flip video camera mean the fan videos captured in a raucous 90,000+ seat stadium are going to be iffy at best. That's not to say these videos won't have value, but please - nobody is going to turn off their HDTV to watch some fan's live stream. At some point technology may evolve so that a fan's inexpensive video camera can produce comparable video to a professional's; but that point is still a ways off.

    Third, the video policy is impossible to enforce. Is security at the stadiums going to frisk students before entering and then confiscate phones with video capabilites, while letting others pass through? All while it tries to hustle tens of thousands of rambunctious fans through the gates? Bedlam would result.

    While the SEC rightfully wants to protect the value of its TV contracts, its lack of understanding for how its policy plays out in the real world is plainly obvious. If the SEC - and others - looked at social media and user-generated video as an opportunity rather than a threat then the policies they created would make a lot more sense.

    What do you think? Post a comment now.

     
  • VideoNuze Report Podcast #23 - July 2, 2009

    Below is the 23rd edition of the VideoNuze Report podcast, for July 2, 2009.

    This week Daisy shares additional information about ESPN's Ad Lab for emerging media. The Ad Lab, which was first disclosed by ESPN last year, is intended to various ad formats in the ESPN video player. It is one of many different tests and research projects in the market. As Daisy and I say, everyone's trying to learn how best to monetize the nascent online video; this creates a lot of valuable data, which market participants then need to parse through to fully understand.

    I get into further details on my post yesterday, "Video Companies Raised $64M in Q2 '09, Notching Another Stellar Quarter." Despite the recession and the slowdown in venture capital investments, at least 26 industry companies have raised at least $219M over the last 3 quarters, which is impressive by any measure. Still, it hasn't been easy, and one indicator of what investors prefer is that not one of the 26 investments is in a content provider or video aggregator.

    Click here to listen to the podcast (14 minutes, 24 seconds)

    (Note, with vacations planned, our next podcast will be July 24th)

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    The VideoNuze Report is available in iTunes...subscribe today!

     
  • 6 Reasons Why the Disney-YouTube Deal Matters

    Late yesterday's announcement that Disney-ABC and ESPN would launch a number of ad-supported channels focused on short-form content was yet another meaningful step in broadband video's maturation process. Here are 6 reasons why I think the deal matters:

    1. It validates YouTube as a must-have promotional and distribution partner

    For many content providers it's long since become standard practice to distribute clips, and often full-length content, on YouTube. Yet aside from CBS, no broadcast TV network has seriously leveraged YouTube. That's been a key missed opportunity, as YouTube is simply too big to ignore. It's not just that YouTube notched 100M unique viewers in Feb. '09 according to comScore, it's that the site has achieved dramatically more market share momentum over the past 2 years than anyone else, increasing from 16.2% of all streams to 41% of all streams.

    Increasingly, YouTube is not the 800 pound gorilla of the broadband video market; it's the 8,000 pound gorilla. Disney has acknowledged what has long been tacitly understood - as a video content provider, it's impossible to succeed fully without a YouTube relationship.

    2. It creates a path for full-length Disney-ABC programming to appear on YouTube and elsewhere

    While this deal only contemplates short-form video, and more than likely, mostly promotional clips, it almost certainly creates a path for full-length episodes to appear as well, as the partners build trust in each other and learn how to monetize. Full-length content is most likely to come from ABC, not ESPN (the release pointedly states no long-form content from ESPN's linear networks is included) as part of a newly expanded distribution approach.

    For YouTube, which has been aggressively evolving from its UGC roots in its quest to generate revenues, the current clip deal alone is a big win; gaining distribution rights to full-length programs would be an even more significant step. Underscoring YouTube's flexibility, the current deal allows ESPN's player to be embedded, and for Disney-ABC to retain ad sales. YouTube's reported redesign, which places more emphasis on premium content, is yet another way it is getting its house in order for premium content deals.

    3. It opens up a new opportunity for original short-form video to flourish

    When you think about broadcast TV networks and studios, you immediately think of conventional long-form content. Yet all of these companies have been producing short-form content that either augments their broadcast programs, or is originally produced for broadband, as Disney's own Stage 9 is pursuing. The levels of success of this content have been all over the board.

    With YouTube as a formal partner, Disney can aggressively leverage it as its primary distribution platform, gaining more direct access to this vast audience. Facing unremitting market pressures on many fronts, broadcast TV networks themselves need to reinvent their business models. Short-form original content married to strong distribution from YouTube would be a whole new strategic opportunity.

    4. It puts pressure on Hulu and other aggregators

    It's hard not to see YouTube's gain as Hulu's - and other aggregators' - loss. For sure nothing's exclusive here, and as PaidContent has reported, discussions about Disney distributing full-length programs on Hulu (as well as YouTube) are also underway. But the Disney deal underscores something important that differentiates YouTube from Hulu: YouTube is both a massive promotional vehicle and a potential long-form distributor, while Hulu is really only the latter.

    YouTube's benefit derives from its first-mover status. Hulu has done a tremendous job building traffic and credibility in its short life, but it is still distant to YouTube in terms of reach. I continue to believe it is far easier for YouTube to evolve from its UGC roots to become also become a premium outlet than it is for Hulu - or anyone else - to ever compete with YouTube's reach.

    5. It raises threat warning to incumbent service providers by another notch

    It's also hard not to see the Disney deal moving YouTube's threat level to incumbent video service providers (cable/satellite/telco) up another notch. We discussed YouTube's importance to these companies at the Broadband Video Leadership Evening 2 weeks ago (video here), and I thought the panelists generally did not give YouTube much credit as it deserves.

    I continue to believe that of all the various "over-the-top" threats to the current world-order, YouTube is the most meaningful ad-supported one. It has massive audience, a potent monetization engine in Google's AdWords, and with the Disney deal, increased credibility with premium content providers. Especially for younger audiences, the YouTube brand means a lot more than any incumbent service provider's. If I were at Comcast, Verizon or DirecTV, I'd be keeping very close tabs on YouTube's evolution.

    6. It exposes the absurdity of the ongoing Viacom-Google litigation

    Two weeks ago at the Media Summit I listened to Viacom CEO Philippe Dauman describe the status of his company's $1 billion lawsuit against Google and YouTube. As he talked of mounds of data and reams of documentation being collected and reviewed, I found myself slumping in my chair, thinking about how well all the lawyers involved in the case must be doing, and yet how pointless it all seems.

    The old adage "2 wrongs don't make a right" fits this situation perfectly. There is no question that in the past YouTube was lax about enforcing copyright protection on its site and cavalier about how it responded publicly to the concerns of rights-holders. But it has made much progress with its Content ID system and a good faith effort to become a trusted partner. All of this is evidenced by the fact that Disney wouldn't even be talking to YouTube, much less cutting a deal, if it didn't view YouTube as reformed. While the media world is moving on, adapting itself to the new rules of video creation, promotion and distribution, Viacom continues to waste resources and executive attention pursuing this case. To be sure, Viacom has been plenty active on the digital front, but it is long overdue that these companies figure out how to resolve their differences and instead focus on how to work together to generate profits for themselves, not their lawyers.

    What do you think? Post a comment now.