VideoNuze Posts

Today, I'm pleased to share a guest post from Alan Wolk, Global Lead Analyst at KIT Digital. As Alan points out, the Xbox Kinect technology has helped open up a new world of possibilities for navigating video content on TVs (I was recently in KIT's offices and played with their Kinect Sky TV app, which I thought was amazing). Beyond Kinect however, further technology improvements are coming, all of which means the remote control is poised to move far beyond its humble roots. Read on to learn more.

Building the Next Remote Control: Kinect is Just the First Step

by Alan Wolk

In the pre-cable TV world, the remote control was a truly amazing device. It allowed viewers to raise and lower the volume without getting out of their chair, while jumping seamlessly between the handful of channels that were available.

The advent of cable TV made the remote a little more complicated: with 20 or 30 channels in the line-up, the remote now needed a keypad to enter the actual channel number. The more channels cable systems added, the more critical the remote became. But around the time we moved from dozens of channels to hundreds of them, it become evident that a better system was needed: scrolling through so many channels ten at a time was not particularly time efficient, especially since viewers knew the names of channels they wanted to watch, not their constantly shifting numbers.

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Video ad technology provider FreeWheel added another big content provider to its customer roster yesterday, announcing that it will be powering video ads for a group of NBCU's broadcast and cable networks' properties.

In particular, the deal also covers NBCOlympics.com, the network's destination for the London games this summer. FreeWheel noted that as a result advertisers will be able to make specific digital ad buys and combined broadcast/digital packages, which NBC will be able to deliver. This opens up potential targeting at a more granular level than has been available with traditional TV.

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The age-old question of whether viewers will pay to skip ads will be put to the test in the online video industry with "SkipIt," a clever new service SpotXchange is launching today. For participating publishers, a SkipIt "chicklet" appears when a video ad starts playing; if the viewer clicks on it, the ad closes and the content continues. Each ad skipped costs the viewer $.10, which is automatically deducted from their pre-funded account. When an ad is skipped, the advertiser receives a credit from the publisher who is paid a percentage of the viewer's fee by SkipIt. (see SkipIt's video at bottom for more)

Initial publishers testing SkipIt include CineSport, Film Annex, IDG TechNetwork, OneScreen, Tech Media Network and Tetris Online. Combined, SkipIt estimates this will represent 20 million video ads presented each day to over 100 million viewers.

Michael Shehan, SpotXchange's CEO, explained a couple of weeks ago when he previewed SkipIt for me that the service is intended to empower viewers with more choice about which ads they watch, reduce wasteful spending by advertisers and deliver a more satisfying experience by the content publisher.

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I'm pleased to be joined once again by Colin Dixon, senior partner at The Diffusion Group, for the 127th edition of the VideoNuze Report podcast, for Mar. 30, 2012. First up this week we discuss Comcast's controversial assertion that streams from its Xfinity app running on Xbox won't count against subscribers' 250 gb/month data cap because they're running on Comcast's "private network" (note: Comcast has deleted "private network" references in its Xbox FAQ).

Colin argues strongly that this is an inappropriate policy in that it essentially creates a "fast lane" for Comcast's own traffic, while disadvantaging other video streams - basically the same concern raised by net neutrality advocates. Colin makes compelling points about the shared nature of broadband access and the longer-term implications of a "private network" model. For my part, I'm still curious the use case for the Xfinity Xbox app; unless it's used for TVs where a set-top box isn't present, it feels somewhat redundant to what's already available via Comcast's VOD.

Next we turn our attention to this week's mega-deal for the Dodgers. As I wrote yesterday, I think the deal will lead to even higher Regional Sports Network licensing fees, which in turn means even higher subsidies by non-sports fans to make the deal work. This is a problem throughout the pay-TV world, and the new Dodgers owners are betting non-fans will continue to pay ever-higher rates for sports they don't watch. Colin and I discuss the implications for over-the-top services and the pay-TV multichannel bundle.

Listen in to learn more!

Click here to listen to the podcast (21 minutes, 45 seconds)

Click here for previous podcasts

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This week's eye-popping $2.15 billion acquisition of the Dodgers officially makes Los Angeles ground zero for the most egregiously anti-consumer aspect of today's pay-TV multichannel bundle: the massive annual subsidization by non-sports fans of hyper-expensive sports programming.

This is a topic I have written about previously in "Not a Sports Fan? Then You're Getting Sacked For At Least $2 Billion Per Year" and "Why Albert Pujols is Over-the-Top's New Best Friend." A confluence of factors, some particular to L.A.'s sports market, is bringing this little-understood issue into the spotlight, in turn raising the question of whether non-sports fans will revolt, seeking out less expensive over-the-top alternatives.

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Here's a great example of how online video advertising is opening up a new world of opportunities for savvy marketers: office supply giant Office Depot is dynamically creating customized video ads that are retargeted to visitors of OfficeDepot.com for specific products they browsed or purchased. Office Depot is leveraging SundaySky's "SmartVideo" and other technologies in order to re-engage visitors and drive new purchasing. Office Depot's Nicole Fraley explains how this works in the video interview embedded below, and SundaySky's president and CRO Jim Dicso recently provided me with some additional details.

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I'm on Beet.TV today discussing the VideoNuze 2012 Online Video Advertising Summit on Tues., June 19th in NYC. Thanks so much to Beet.TV's Andy Plesser, whose NYC office I visited last week. Beet.TV is a media partner for the event, which is shaping up to be an exciting day of learning and networking. Lots more to come! (click "continue reading" to watch)

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Today I'm pleased to share a video interview I did with Vuguru's Chief Creative Officer Kristin Jones at the recent NATPE Market conference in Miami, FL. Among other topics, Kristin describes Vuguru's business model, some of the successful originals that it has created, how she sees online distributors differentiating themselves and where the market for digital content is heading from here.

The interview runs about 7 minutes. (Note, I'm off camera and my audio isn't great, so the questions are overlaid in text.)

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