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Here Comes the Video "Experience Era"
OK, one last post related to CES, and then I promise to shut up about the show.
Observing the goings-on this week, it is evident that both content and consumer electronics firms have come to the same basic conclusion: each industry's success is inextricably tied to the other's. Each recognizes that the business dynamics of the future requires a new way of differentiating their products than they are accustomed. That means, for example, that TV makers can no longer just boast about better pictures. And that content companies can no longer bank on bigger stars or funnier sitcoms to deliver audiences and profits.
Rather, both industries recognize that we are moving into what I would call the "experience era" for video. That's to say, success with consumers is going to rest more on these industries' ability to deliver superior experiences which integrate content and technology in new and compelling ways. Rather than oohing and ahhing about their new TV's picture quality or how hilarious a certain episode was, going forward consumers will increasingly cite "how cool" something is.
"How cool" are code words for "how compelling is the experience". The new currency of video hipness will require that when I invite friends to my house and want to show off, I need to have more than just a honking-big screen or a digital collection of old programs - those will be commonplace. Instead, the experiences are what will matter. Things like seamlessly accessing broadband content on my TV, interacting with it -- along with other viewers -- from my couch, and moving it around my house for playback anywhere, in a snap. Delivering these types of experiences (and more) is the new competitive bar that content and technology firms should be aiming for.
My sense is these industry executives know this, and the partnerships we saw unveiled -- and those yet to come -- demonstrate this recognition. Listen to what Bob Scaglione, Sharp's SVP Marketing said in this NY Times piece: "We already all have beautiful HD televisions. How do you differentiate? One way to provide some really unique differentiation is to provide new content. That's why we're fighting to find the right content providers."
And then what Beth Comstock, president of NBC Universal Integrated Media said: "You can't talk about consumer electronics without talking about content.....We try every new technology that comes along."
Executives across the content and technology spectrum must understand the experience era is now upon us. Steve Jobs and Apple's iPod ushered in the experience era in the music business. We now wait to see which companies in the video industry will do the same and reach for Apple's success. In a hyper competitive world, those who deliver strongly against consumers' needs and desires will be the ultimate winners in the experience battle now underway.
Agree or disagree? Post a comment and let us all know!
Categories: Broadcasters, Devices, Strategy
Topics: Apple, iPod, NBCU, Sharp
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Back from NAB - Super Session was Standing Room Only
I'm back in Boston after a short, but grueling (tip: don't fly through 2 East Coast airports during a Nor'easter!) trip out to NAB. Our Super Session ("The Revolutionizing Impact of Broadband Video") was SRO, overflowing the room that seated 700. David Eun led us off with a great keynote with my key takeaways:- "Market for content is much larger than anyone has every imagined"
- "We see ourselves as a conduit, connecting users, advertisers and content providers"
- "Broadband provides an infinite # of at-bats, the traditonal scarcity is gone"
- "Content identification isn't easy. If it were, we'd have it by now."
- "We are in a clip-driven culture. YouTube now delivering well over 100M clips per day."
After Dave's talk, our panel (George Kliavkoff from NBCU, Dan Scheinman from Cisco, Blake Krikorian from Sling, Shawn Gold from MySpace and Gary Gannaway from WorldNow) got down to business. George, who's the acting head of the JV with NBCU and News Corp, filled in some details for how the venture will work, and that affiliates will be a key part of it going forward.The panelists all agreed that community is going to be a big part of the equation moving forward and that broadcasters will be embracing in a big way. Gary articulated well that local broadcasters have a huge opportunity to excel in local content in a way that big portals will never be able to match, and that if they sell their inventory the right way, they'll be able to avoid being commoditized.I tried to get Dan to take the bait on whether the era of broadband-delivered TV programming spells concern for cable TV operators. But given Cisco's ownership of Scientific Atlanta, he deftly deflected my attempt to stir the pot....Lastly, Blake encouraged broadcasters to see his Slingbox as an opportunity for them to build loyalty with their viewers, both for viewership while on the road, and also for deepening viewership, through non-TV displays. All-in-all, despite the fact that the first attendee question during a brief Q&A session labeled us as "dying dinosaurs", it was a spirited and lively session!Categories: Broadcasters, Devices, Events, Video Sharing
Topics: Cisco, MySpace, NBCU, Sling, WorldNow
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