VideoNuze Posts

I'm constantly on the lookout for data points that provide insights into how viewer behavior may be changing, particularly with respect to possible shifts from traditional pay-TV offerings to new over-the-top (OTT) alternatives.

That's why a client note from the media analysts at Citigroup this week, which highlighted the ratings drop-off that cable TV networks as a group are experiencing, caught my eye. The Citigroup note follows a recent WSJ report explaining that 11 of the top 15 cable networks have lost audience this year, including a whopping 25% decline at Nickelodeon among its kids 2-11. Citigroup said that for each of the last 6 months, cable's total day ratings decline has actually accelerated, from 2.3% last October to 7.8% in March.

Citigroup's main concern about this ratings drop-off is that cable networks' ad revenue growth is slowing as well, in turn pressuring their media company owners' valuations. While that is surely a worry for investors, an even broader issue to consider is whether the drop-off in cable's ratings is the tip of the OTT iceberg, signaling that the explosion of online-delivered alternatives is beginning to impact viewership patterns. While it's too early to conclude this, all of the elements that would drive OTT's rise - at cable's expense - appear to be falling into place.

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At yesterday's IAB Digital Video conference, 10 industry executives (see list at bottom of this page), debated how best to define "premium video." It's not an academic question, because for many brands and agencies, the concept of "premium" determines whether the video will qualify for ad spending at all. And of course, the more "premium" the video is, the higher the pricing its ad inventory will command, which in turn drives the video's profitability. At a time when more original online video is being produced than ever (much of it deficit-financed), understanding in advance what is premium - and therefore monetizable - is critical to achieving success.

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If you're planning to be among the tens of thousands of attendees at next week's NABShow in Las Vegas, please plan to stop by VideoNuze's first-ever booth, in the South Upper Hall at SU11706, next to the Content Theater. The booth will be open all day Monday-Wednesday, April 16-18.

VideoNuze has partnered with NABShow to record short video interviews with industry executives, which will run selectively on VideoNuze.com and on NABShow's daily "NAB Live" web site. I'll have a video crew with me (ok, "crew" means a camera operator!) and we'll be doing shoots both in the booth and also at exhibits. The interviews will be relatively informal - we'll discuss company/product news, industry trends, NABShow observations and whatever else comes up. Many interviews are already scheduled, but I still have some slots available. There are no charges involved.

Whether you'd like to do an on-camera interview or not, I hope you'll stop by to say hi, bring me up to speed on what you/your company are doing and exchange thoughts on the online video industry. I connect with many VideoNuze readers via email, comments, IM and phone, but here's an opportunity to actually meet in person!

Innovid, which enables online video advertisers and publishers to add interactive elements such as Facebook, YouTube, Twitter and sharing to their campaigns, is announcing that VAST and VPAID ad tags will now be auto-created within its iRoll Studio.

The enhancement eliminates the work flow process step of advertisers and publishers needing to submit their ads back to Innovid for tags to be created before campaigns can be trafficked out. This in turn reduces cost and resources to turn typical pre-roll ads into an iRoll ad.

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Comcast announced on its blog on Friday that it will indeed authenticate HBO GO for use by subscribers with both Xbox and the Xbox Live service. When Xbox initially announced two weeks ago that it was enabling Comcast's Xfinity TV, MLB.TV and HBO GO apps, Comcast (along with Time Warner Cable and Bright House) subscribers were unable to access HBO GO, because the cable operators weren't authenticating it. For Comcast subscribers, that meant the only HBO programs they could view on their Xbox was via the Xfinity app, which offers far less content. The move set off a vocal protest by Comcast/HBO/Xbox subscribers, including a much-noticed Facebook post by Netflix CEO Reed Hastings.

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I'm pleased to be joined once again by Colin Dixon, senior partner at The Diffusion Group, for the 128th edition of the VideoNuze Report podcast, for April 6, 2012. First up this week we discuss another angle of last week's Xbox video launch - whether Comcast will reverse itself and authenticate HBO GO for its subscribers (as Netflix CEO Reed Hastings wrote openly on Facebook asking Comcast to do). Then we discuss the downturn in March Madness online traffic and the effect of Turner's new paywall.

Last week when Xbox launched a number of new video apps including Comcast's Xfinity, HBO GO and MLB.tv, Comcast made a decision not to authenticate HBO GO for its own subscribers with Xboxes, thereby forcing them to settle for HBO content that's available within its own Xfinity app. As Colin points out, that was a continuation of Comcast's (and other pay-TV operators') policy of not authenticating the HBO GO app for its subscribers using Roku.

A vocal group of Comcast/HBO subscribers with Xbox complained, with Hastings's post getting the most attention. This week, the NY Times reported that Comcast might reverse itself and authenticate HBO GO after all. It's confusing stuff, and Colin and I do our best to explain what might be going on behind the scenes with the balance of power between cable operators and cable networks.

We then discuss news that daily March Madness traffic was down 10% year-over-year, likely attributable to Turner introducing a $3.99 app to view the games for which it had broadcast rights (CBS games were still available online for free). There was a paywall up until a few years ago, when the full tournament went free online, causing an explosion of traffic and ad revenue. Colin and I interpret the new data and its broader implications for TV Everywhere.

(For everyone celebrating holidays, enjoy your weekend!)

Listen in to learn more!


Click here to listen to the podcast (18 minutes, 48 seconds)


Click here for previous podcasts

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Yesterday YouTube got a lot of coverage of its new licensing deal for hundreds of movies from Paramount because separately, the studio's parent company, Viacom, has been involved in a bitter copyright litigation with YouTube for years. While it's noteworthy that the parties are able to do business despite suing each other, the bigger questions here are whether YouTube's initiative to rent Hollywood movies makes sense and can succeed?

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The VideoNuze 2012 Online Video Advertising Summit on June 19th is continuing to gain momentum, with eight leading industry organizations on board as media partners: CTAM, NATPE, OPA, REELSEO, Beet.TV, The Diffusion Group, The Ad Club of New York and Jack Myers Media Business Report.

All the media partners are offering special discounted early bird registration to the Video Ad Summit which they will promote through their various communications channels. I'm delighted to have these partners working with VideoNuze, helping ensure the Video Ad Summit's success (note this event takes the place of last year's ELEVATE conference which drew 400+ attendees).

In addition, MWW Group, one of the ten largest independent global agencies, will be the public relations partner for the Video Ad Summit. MWW and The Fortex Group, which it acquired last year, have been long-time partners with VideoNuze for its events.

The Video Ad Summit has an amazing group of industry executives speaking, and I'll be adding them to the web site shortly - so keep an eye out!

The Video Ad Summit is generously supported by sponsors Auditude (Adobe), YuMe, Adap.tv, Collective, Conviva, Mixpo, TubeMogul and Videology.

Click here for early-bird registration