While digital media sales continue to grow, DVDs are not. It seems that consumers are fully adopting digital sales and subscription media over ownership of DVDs and other physical media. Not surprising as more televisions are internet ready, more computers have dropped the DVD slot, and consumers are enjoying easy access of content through subscription services like Netflix. In fact, DVDs and blu-ray discs were down over 10% from last year. That trend seems likely to continue.
It should be noted that when all the figures of digital and physical media are totaled up, "Total home-video spending was $17.8 billion, dropping 1.8 percent from 2013, according to the report in LA Biz. This total decline may be partly due to a weak box office, according to the report, but other factors may also be a result. Consumer spending in general and less dollars focused on entertainment verse other needs may also be to blame. Like cord cutting and cord shaving, consumers may be using subscription services and digital to pay less but get more content.
Another interesting note from the report, while consumers have pushed back on physical formats, they also pushed back on VOD. Total sales fell 6.7% from last year. Again cord cutting and cord shaving may be to blame with consumers preferring to watch on mobile devices and getting access to programming via You Tube, Netflix, Hulu, Amazon, and other OTT outlets. Given the push of these subscription services, I would not be surprised to see VOD numbers to continue to drop in 2015. Until cable operators create an alternative online platform that is added value to its wired approach and touts a true TV Everywhere mentality, VOD will only continue to find a backseat to digital.
Showing posts with label VOD. Show all posts
Showing posts with label VOD. Show all posts
Wednesday, January 7, 2015
Friday, January 2, 2015
TV Viewing On Your Terms
According to the Leichtman Research Group, "
76%
of U.S. homes have a DVR, subscribe to Netflix or use video-on-demand from a
cable or telco provider …26% of homes use two of those services, and 11% use
all three ". As for my household, we are in the 11%. We are getting more comfortable with technology in the home and more apt to use it more frequently. Income levels certainly play a part in this research study, as indicated. But I would also like to know if geography also is an issue. is DVR, VOD, and Netflix usage higher in major cities than in rural markets. And is Netflix access taken more through broadband access or by cellular. Clearly, the study demonstrates a trend toward ubiquitous behavior.
(76%)
of U.S. homes have a DVR, subscribe to Netflix or use video-on-demand
from a cable or telco provider - See more at:
http://www.multichannel.com/news/technology/76-homes-have-dvr-netflix-or-use-vod-study/386584#sthash.zFv2q2Xu.dpuf
(76%)
of U.S. homes have a DVR, subscribe to Netflix or use video-on-demand
from a cable or telco provider - See more at:
http://www.multichannel.com/news/technology/76-homes-have-dvr-netflix-or-use-vod-study/386584#sthash.zFv2q2Xu.dpuf
Thursday, December 18, 2014
Dish Finds a Frenemy With Netflix
Demonstrating that cable and streaming content can live side by side, Dish Network has become the first major cable distributor to include Netflix on its set top box. And like HBO or Showtime, Netflix will be treated as an add on package, purchased separately. Consumers though don't need to jump from one box to another to enjoy all the content they want. By including the Netflix app, Dish gives its customers convenience and simplicity in watching whatever content they choose.
Per the Dish press release, "Additionally, in the future, titles available on Netflix could be integrated into the search functionality across live, recorded and Video On Demand programs for both the Hopper as well as DISH’s forthcoming OTT service." To me, a fully integrated search feature encompassing all content on Netflix and cable would be truly valued by consumers. Partnering with Netflix, Dish demonstrates that consumers simply want more content wherever accessible and that consumers will not drop Dish but value the content that is being offered through the set top box.
Per the Dish press release, "Additionally, in the future, titles available on Netflix could be integrated into the search functionality across live, recorded and Video On Demand programs for both the Hopper as well as DISH’s forthcoming OTT service." To me, a fully integrated search feature encompassing all content on Netflix and cable would be truly valued by consumers. Partnering with Netflix, Dish demonstrates that consumers simply want more content wherever accessible and that consumers will not drop Dish but value the content that is being offered through the set top box.
Wednesday, November 19, 2014
Nielsen Attempting To Measure Netflix
It is hard to get an accurate count when companies don't want to be counted. In today's Wall Street Journal article, Nielsen hopes to measure usage of both Netflix and Amazon Prime through its audio feed. And while it may garner some information, it comes across as half-baked. First, it only measure on connected TV sets, "Nielsen is still working on a way to measure subscription-video viewing on mobile devices, where such technology won’t work." And second that it is being done without Netflix or Amazon's support.
Of course, getting good data is key to essentially what content owners want to know, "Is putting content on Netflix impacting the viewership on linear and traditional VOD". But as more and more Netflix consumption is on mobile devices, the value of the research may be strained. Common sense may already tell content owners what they implicitly already know. Viewership is shifting from cable and broadcast to digital streaming media. Current research already confirms this trend.
Why doesn't Netflix or Amazon care to be measured by Nielsen. Their revenue comes from subscription to their services and not from advertising. Internally, they know who has subscribed and what they are watching. And so, doing a deal with Nielsen today doesn't seem to be a high priority for either service. For Nielsen and its customers, the data gleaned from this workaround collection process, via audio, may tell a story, just not a complete one. Content owners that are doing programming deals with OTT providers see it as another window of revenue opportunity.
And while it may create an issue of cannibalization that could hurt ad revenue in other windows, it can also help to draw new audiences. Case in point, Breaking Bad on Netflix of older seasons led new audiences to catch up on the series to then head over to AMC to watch the current season play out. A win for both platforms. And one day when Orange Is The New Black sells a cable distribution window, the buzz it has gotten from Netflix should draw large audiences and consequently ad dollars. And Nielsen needs to find a way to accurately measure all streaming usage.
Of course, getting good data is key to essentially what content owners want to know, "Is putting content on Netflix impacting the viewership on linear and traditional VOD". But as more and more Netflix consumption is on mobile devices, the value of the research may be strained. Common sense may already tell content owners what they implicitly already know. Viewership is shifting from cable and broadcast to digital streaming media. Current research already confirms this trend.
Why doesn't Netflix or Amazon care to be measured by Nielsen. Their revenue comes from subscription to their services and not from advertising. Internally, they know who has subscribed and what they are watching. And so, doing a deal with Nielsen today doesn't seem to be a high priority for either service. For Nielsen and its customers, the data gleaned from this workaround collection process, via audio, may tell a story, just not a complete one. Content owners that are doing programming deals with OTT providers see it as another window of revenue opportunity.
And while it may create an issue of cannibalization that could hurt ad revenue in other windows, it can also help to draw new audiences. Case in point, Breaking Bad on Netflix of older seasons led new audiences to catch up on the series to then head over to AMC to watch the current season play out. A win for both platforms. And one day when Orange Is The New Black sells a cable distribution window, the buzz it has gotten from Netflix should draw large audiences and consequently ad dollars. And Nielsen needs to find a way to accurately measure all streaming usage.
Thursday, September 11, 2014
Playstation To Go OTT
Playstation parent, Sony, wants badly to be in the OTT business. And unlike Intel and its OnCue attempt, Sony seems to have a plan. Intel tried building its own set top box while Sony has the power of millions of Playstation boxes already out in the field. The next step is content and Sony plans to deliver.
Per the Wall Street Journal, Sony has "reached an agreement for its planned Web-based TV service to carry MTV, Nickelodeon and 20 other Viacom Inc. channels and offer access to streaming Viacom programming on mobile devices." And as Playstation reaches a core young adult and teen audience, Viacom networks like Comedy Central, MTV, and others seem a terrific fit. Intel eventually sold OnCue to Verizon and so far we have heard little about their plans with the acquisition. Others, like Dish Network, also want to get into the web TV gain. Of course the question remains, will consumers embrace getting fewer channels although at a lower price.
Should cable operators be worried? Remember that the same lines that deliver cable TV also delivers broadband to the home and services from Sony or Dish or others in the OTT space still need a broadband platform to deliver streaming content. Cable operators could simply charge more for broadband only connections. At the same time, cable operators can negotiate with the networks for additional access of linear and VOD content for streaming, an opportunity that would give customers a better TV Everywhere experience. Lastly cable operators can enhance their value with deals with other box companies like TiVo, XBox and others. And cable operators can still tout the power of more... more content, more accessibility, more value.
As this rock rolls down the mountain, the moss that it gathers will be more content companies doing deals with OTT. Discovery Networks has been mentioned as another possible content seller to Sony. Others will no doubt follow. For cable, all is not loss; just remember that what got you your size doesn't keep you number one. Its time to act.
Per the Wall Street Journal, Sony has "reached an agreement for its planned Web-based TV service to carry MTV, Nickelodeon and 20 other Viacom Inc. channels and offer access to streaming Viacom programming on mobile devices." And as Playstation reaches a core young adult and teen audience, Viacom networks like Comedy Central, MTV, and others seem a terrific fit. Intel eventually sold OnCue to Verizon and so far we have heard little about their plans with the acquisition. Others, like Dish Network, also want to get into the web TV gain. Of course the question remains, will consumers embrace getting fewer channels although at a lower price.
Should cable operators be worried? Remember that the same lines that deliver cable TV also delivers broadband to the home and services from Sony or Dish or others in the OTT space still need a broadband platform to deliver streaming content. Cable operators could simply charge more for broadband only connections. At the same time, cable operators can negotiate with the networks for additional access of linear and VOD content for streaming, an opportunity that would give customers a better TV Everywhere experience. Lastly cable operators can enhance their value with deals with other box companies like TiVo, XBox and others. And cable operators can still tout the power of more... more content, more accessibility, more value.
As this rock rolls down the mountain, the moss that it gathers will be more content companies doing deals with OTT. Discovery Networks has been mentioned as another possible content seller to Sony. Others will no doubt follow. For cable, all is not loss; just remember that what got you your size doesn't keep you number one. Its time to act.
Thursday, February 27, 2014
TiVo Winning Strategy Working With Cable Operators
TiVo seems to have found the winning strategy, partnering with cable operators to get their TiVo boxes into the home. That resulted in them installing to more than 300,000 customers in their Q4 announcement, and an increase of 34% from the same quarter last year. TiVo now has more than 4.2 million customers, an impressive number.
I only wish my own cable operator offered TiVo as a set top choice; instead they are pushing their own Xfinity branded IP set top device. "TiVo said it’s poised to make more progress with Comcast, which doesn’t lease TiVo boxes but has integrated its VOD service with retail-bought TiVo DVRs in select markets. After putting that plan on pause last year, TiVo said it and Comcast have since resumed that work and expect to complete the deployment in all Comcast markets by June 30, 2014. Comcast markets in line to support VOD on retail TiVo boxes include Chicago, Atlanta and Houston."
As TiVo continues to grow its base, the research that it draws from their boxes become more valuable to advertisers and to agencies. Connecting the dots between household demographics, psychographics, and preferences and watched programs helps to make a more efficient advertising buy. Its an exciting growth story for TiVo and for the premier DVR device.
I only wish my own cable operator offered TiVo as a set top choice; instead they are pushing their own Xfinity branded IP set top device. "TiVo said it’s poised to make more progress with Comcast, which doesn’t lease TiVo boxes but has integrated its VOD service with retail-bought TiVo DVRs in select markets. After putting that plan on pause last year, TiVo said it and Comcast have since resumed that work and expect to complete the deployment in all Comcast markets by June 30, 2014. Comcast markets in line to support VOD on retail TiVo boxes include Chicago, Atlanta and Houston."
As TiVo continues to grow its base, the research that it draws from their boxes become more valuable to advertisers and to agencies. Connecting the dots between household demographics, psychographics, and preferences and watched programs helps to make a more efficient advertising buy. Its an exciting growth story for TiVo and for the premier DVR device.
Friday, September 27, 2013
VOD Matters
Missed last night's shows on CBS, don't worry, CBS will remind you that you can still watch them through video on demand. As shows are rated based on both live and VOD viewing, it makes sense to continue to promote them and remind viewers of how easy they are to watch, or catch up, before the next new show airs the following week. "CBS predicts that increased use of video on demand for time-shifted viewing, binge-viewing and catching up with missed episodes will be 'really transformative' for the television business, Mr. Poltrack (chief research officer, David Poltrak of CBS) said." Truth is, on demand has been around for a while and consumers have been using it more and more to watch their shows. In fact, viewers used to record shows on VHS even before DVRs and even before VOD so Mr. Poltrak should also be reminding his audience to record and watch, too.
So why this news during Ad Week? Perhaps the fact that CBS is promoting series the day they were viewed. Certainly for shows that are important to the future of CBS for ratings and ad dollars, it makes sense to promote across the Fall Season, not only before its premiere but after as well. With so many premieres on so many networks, broadcast and cable, constant promotion, before and after the linear show date, makes sense for building interest and appeal and viewership, whether on linear or DVR or VOD. Frankly, it sounds like a no brainer.
So why this news during Ad Week? Perhaps the fact that CBS is promoting series the day they were viewed. Certainly for shows that are important to the future of CBS for ratings and ad dollars, it makes sense to promote across the Fall Season, not only before its premiere but after as well. With so many premieres on so many networks, broadcast and cable, constant promotion, before and after the linear show date, makes sense for building interest and appeal and viewership, whether on linear or DVR or VOD. Frankly, it sounds like a no brainer.
Friday, July 19, 2013
CBS, Inc and Time Warner Cable Clash Over Retransmission Fees
Time Warner Cable's current license fee agreement with CBS, Inc. expires June 30 and cable customers might find themselves without CBS and its owned cable networks two weeks from now. "At issue is TWC’s right to carry the CBS television network and
affiliated local stations including those in New York, Los Angeles, and
Dallas-Ft. Worth (where TWC is the dominant local cable system
operator), as well as the Showtime suite of networks, the Smithsonian
Channel, CBS Sports Network and the former TV Guide Network, now called
TVGN. CBS acquired a 50 percent stake in TVGN earlier this year (the
other half is owned by Lionsgate) and acts as its operator. The big hammer in these negotiations is CBS Sports, where NFL games are set to air starting in September."
Essentially, CBS wants more for their content and TWC wants to pay less.
TWC hasn't been the first to have acrimonious negotiations with a broadcaster and they won't be the last. Each time these agreements begin to expire, posturing begin and we as consumers are faced with ads criticizing the other for lack of good faith. Here is the latest example:
One thing is clear, at some point, now or months later, these two sides will settle. But what if Time Warner Cable decides to follow the model that Aereo has designed, building farms of mini antennas to capture the CBS broadcast signal and deliver to the consumer. It doesn't answer the problem of the the other cable networks at risk of being dropped but it does lower the cost of operations. Perhaps a financial model is due to determine what savings might come by converting to the Aereo type model. If significant, it could lead to a different balance of power. Of course building farms if antennas would take a good deal of time and resources and consumers would still be without the content for a period of time. That could lead to more drops of service before such a plan could be put in place.
Of course these negotiations are more complicated then just right of access to programming. "These deals also include other multi-platform aspects such as video-on-demand rights and TV Everywhere distribution rights." Especially with VOD, Aereo can't offer this content. But the amount of increase, whether a few pennies or dollars, add up quickly and are ultimately passed through to the consumer. And it is the increased costs of cable service that continues to push consumers to services like Aereo and other OTT options like Netflix and Amazon.
Essentially, CBS wants more for their content and TWC wants to pay less.
TWC hasn't been the first to have acrimonious negotiations with a broadcaster and they won't be the last. Each time these agreements begin to expire, posturing begin and we as consumers are faced with ads criticizing the other for lack of good faith. Here is the latest example:
One thing is clear, at some point, now or months later, these two sides will settle. But what if Time Warner Cable decides to follow the model that Aereo has designed, building farms of mini antennas to capture the CBS broadcast signal and deliver to the consumer. It doesn't answer the problem of the the other cable networks at risk of being dropped but it does lower the cost of operations. Perhaps a financial model is due to determine what savings might come by converting to the Aereo type model. If significant, it could lead to a different balance of power. Of course building farms if antennas would take a good deal of time and resources and consumers would still be without the content for a period of time. That could lead to more drops of service before such a plan could be put in place.
Of course these negotiations are more complicated then just right of access to programming. "These deals also include other multi-platform aspects such as video-on-demand rights and TV Everywhere distribution rights." Especially with VOD, Aereo can't offer this content. But the amount of increase, whether a few pennies or dollars, add up quickly and are ultimately passed through to the consumer. And it is the increased costs of cable service that continues to push consumers to services like Aereo and other OTT options like Netflix and Amazon.
Monday, June 10, 2013
Social Media Can Hurt DVR Viewing
For live events and high involvement, edge of your seat viewing, it is harder and harder to watch them on a DVR on a delayed basis. That is if you are also socially connected to sites like Twitter and Facebook. So we are reminded in this story entitled "Game of Spoilers". "The VCR, DVR and video on demand have freed us from the tyranny of TV
schedules but the Internet imposes its own dictatorship — at least if
the show is worth it. Raging at tweets for spilling the beans, or
shouting "Shut up! I haven't watched it yet!" at your co-workers, proves
increasingly futile."
Truth is, we have faced this issue for some time. Want to watch a baseball or football game a few hours after the game may have already ended, don't check your Facebook feed. But also don't turn on sports radio. Want to watch the Oscars or last night's Tony Awards, stay away from Twitter as well as the next day's TV or newspaper. Spoilers can get exposed at all times, especially for shows that knowing how it ends effects the enjoyment of the show itself. Social media simply provides another means for revealing those spoilers. And perhaps because it is so immediate and so pervasive, it is harder to ignore when we are delayed in viewing certain programming.
The article also correctly points out that not all shows possess the spoiler issue. "Spoiling 'Big Bang Theory' is never an issue, says Thompson, even though its got a far larger audience than "Game of Thrones" — 18.68 million vs. 13.6 million, according to Nielsen." Knowing its outcome doesn't hurt the comedy of the show.
For advertisers hoping to keep their audience engaged and overcoming the other concern of the DVR, like fast forwarding through commercials, live and appointment viewing type programming can assure that a majority will watch at the immediate time and day the show is being presented. And that means better ratings and higher ad revenue.
Truth is, we have faced this issue for some time. Want to watch a baseball or football game a few hours after the game may have already ended, don't check your Facebook feed. But also don't turn on sports radio. Want to watch the Oscars or last night's Tony Awards, stay away from Twitter as well as the next day's TV or newspaper. Spoilers can get exposed at all times, especially for shows that knowing how it ends effects the enjoyment of the show itself. Social media simply provides another means for revealing those spoilers. And perhaps because it is so immediate and so pervasive, it is harder to ignore when we are delayed in viewing certain programming.
The article also correctly points out that not all shows possess the spoiler issue. "Spoiling 'Big Bang Theory' is never an issue, says Thompson, even though its got a far larger audience than "Game of Thrones" — 18.68 million vs. 13.6 million, according to Nielsen." Knowing its outcome doesn't hurt the comedy of the show.
For advertisers hoping to keep their audience engaged and overcoming the other concern of the DVR, like fast forwarding through commercials, live and appointment viewing type programming can assure that a majority will watch at the immediate time and day the show is being presented. And that means better ratings and higher ad revenue.
Tuesday, May 21, 2013
VOD Gaining Traction
I am a firm believer in Video on Demand (VOD). I have had the good fortune to work with it from the early days when networks were overly cautious about pushing viewers off linear to recognizing its power today to actually encourage linear viewership. But VOD relies on content and immediacy to it. Missed last night's Saturday Night Live. Unless you DVR it, you will have to wait a few days to watch it on VOD. Even then, the show will be missing the musical performances. Missed the finale of your favorite TV show, it may take a week before it appears on VOD. Those challenges are but one reason viewers seek content off the TV set. The other is the limitations where to watch, strictly through the set top box on the TV screen.
Finally, it seems, networks are embracing VOD. "Some television networks are also big believers in the technology because it can help partially piece back together their splintered audiences and protect their advertising revenue." VOD can provide some advantages including disabling the fast forward button to require viewership of commercials. But more importantly, "for the first time, Nielsen counted VOD views of ABC’s shows the same way it counts digital video recorder playback — that is, within three days of an episode’s premiere." And that means more advertising eyeballs and higher revenue for the shows these networks aired.
And viewers are embracing VOD, watching more hours then ever before. "This television season, VOD views of ABC’s shows are up 32 percent versus the same period last season, according to the network." A big motivation to continue to launch more shows, past and present, on VOD. For consumers already subscribed to cable, VOD brings a ton of extra value. But challenges still exist. In addition to the lack immediacy to content comes the difficulty of finding content through search and tree and branch movement through the menu. It is clunky, inefficient, and detrimental to the discovery process. Improving the menu process should help to further improve usage.
Comcast strategy of promotion of content from subscription services like HBO and Showtime with free on demand usage both brings more viewers to use the VOD menu and build interest in purchasing these premium networks. And that's a good start. Improving the on screen menu and extending the VOD reach on IP devices of authenticated viewers are the next big steps.
Finally, it seems, networks are embracing VOD. "Some television networks are also big believers in the technology because it can help partially piece back together their splintered audiences and protect their advertising revenue." VOD can provide some advantages including disabling the fast forward button to require viewership of commercials. But more importantly, "for the first time, Nielsen counted VOD views of ABC’s shows the same way it counts digital video recorder playback — that is, within three days of an episode’s premiere." And that means more advertising eyeballs and higher revenue for the shows these networks aired.
And viewers are embracing VOD, watching more hours then ever before. "This television season, VOD views of ABC’s shows are up 32 percent versus the same period last season, according to the network." A big motivation to continue to launch more shows, past and present, on VOD. For consumers already subscribed to cable, VOD brings a ton of extra value. But challenges still exist. In addition to the lack immediacy to content comes the difficulty of finding content through search and tree and branch movement through the menu. It is clunky, inefficient, and detrimental to the discovery process. Improving the menu process should help to further improve usage.
Comcast strategy of promotion of content from subscription services like HBO and Showtime with free on demand usage both brings more viewers to use the VOD menu and build interest in purchasing these premium networks. And that's a good start. Improving the on screen menu and extending the VOD reach on IP devices of authenticated viewers are the next big steps.
Friday, April 26, 2013
Netflix CEO Sees The End Of Linear TV
Netflix, despite its bumps and bruises, has navigated from a DVD subscription model to a digital one. And according to their CEO, Reed Hastings, imagines a TV future that is all streaming and non-linear. "People love TV viewing, but they hate linear TV, including DVRs and
cable VOD services, argued Hastings: 'The linear TV channel model is
ripe for replacement.' Stepping up to replace it are apps from companies
like Netflix, HBO and ESPN, which deliver programming to multiple
screens."And while I agree that the viewing model for consumers is changing rapidly, I believe that consumers will find a viewing experience balanced between linear and non-linear video consumption.
As I read the article, I admit a bit of confusion when Hastings describes linear TV to include DVR and VOD. But I believe his description is more between the current cable/satellite model and a digital streaming one. "Technical advances, including 4k streaming and personalized advertising, will speed up the transition from linear TV to app-based on demand programming, and TV Everywhere will make it easier for cable networks to transition into this new world."
I prefer to describe linear TV as a sit back model where we are fed video that has been pre-programmed to air at a particular time and once aired is not accessible till its next airing. A non-linear model for me is one that includes DVR and VOD and streaming services where the consumer chooses when and what to watch. And consumers are moving toward the streaming model because of the mobility and personalization factors. But some streaming is in fact linear. Huffington Post offers its HuffPost Live channel on its website. And linear still matters for live events, especially sports, as well as news, weather, and other big events. I expect broadcast and cable to deliver more live programming as a means to capture audience share from on demand. With live comes an anything goes factor that is harder to edit out. And for viewers that simply want a sit back TV experience, linear reduces the choices a viewer has to make.
So Hastings is right that streaming will impact viewing choices more and more. And his decision to build a brand experience that defines and positions itself above the fray is a smart strategy. "'For us to be hugely successful we have to be a focused passion brand. Starbucks, not 7-Eleven. Southwest, not United. HBO, not Dish.'” Competition for audience will only get fiercer when you add up all the choices a consumer can access for their viewing pleasure. And with so much non-linear choice, we may sometimes simply revert back to linear programming to simplify the viewing experience.
As I read the article, I admit a bit of confusion when Hastings describes linear TV to include DVR and VOD. But I believe his description is more between the current cable/satellite model and a digital streaming one. "Technical advances, including 4k streaming and personalized advertising, will speed up the transition from linear TV to app-based on demand programming, and TV Everywhere will make it easier for cable networks to transition into this new world."
I prefer to describe linear TV as a sit back model where we are fed video that has been pre-programmed to air at a particular time and once aired is not accessible till its next airing. A non-linear model for me is one that includes DVR and VOD and streaming services where the consumer chooses when and what to watch. And consumers are moving toward the streaming model because of the mobility and personalization factors. But some streaming is in fact linear. Huffington Post offers its HuffPost Live channel on its website. And linear still matters for live events, especially sports, as well as news, weather, and other big events. I expect broadcast and cable to deliver more live programming as a means to capture audience share from on demand. With live comes an anything goes factor that is harder to edit out. And for viewers that simply want a sit back TV experience, linear reduces the choices a viewer has to make.
So Hastings is right that streaming will impact viewing choices more and more. And his decision to build a brand experience that defines and positions itself above the fray is a smart strategy. "'For us to be hugely successful we have to be a focused passion brand. Starbucks, not 7-Eleven. Southwest, not United. HBO, not Dish.'” Competition for audience will only get fiercer when you add up all the choices a consumer can access for their viewing pleasure. And with so much non-linear choice, we may sometimes simply revert back to linear programming to simplify the viewing experience.
Tuesday, April 23, 2013
Content Is King And A Good Investment
For makers of content, the demand has never been higher. Consumers crave content to feed their entertainment hunger, on TV, on tablets, smartphones and laptops. Where only a few decades ago, video content was limited to broadcast and a few cable networks, today the list has expanded to include premium nets like HBO, SHO, and Starz, video on demand services, and especially the rise of streaming services from You Tube, Amazon, Netflix, Redbox, and so many more, both subscription and free to view.
And what appears to be the secret sauce in building a successful network or online service, original content that breaks through to become valued. Broadcasts have felt that with American Idol and other hits, premium services like HBO felt it with Sopranos, and Netflix is feeling it with House of Cards and Arrested Development. In fact, Netflix recent earnings are subscriber growth are results of this push toward original content. Consumers are craving more and that desire never seems to get fulfilled. For as one series fulfills, another takes over to attract demand. Not that every piece of original content achieves such status, but it seems that accessibility of content helps to drive viewership.
Wall Street might agree. "Corporate and private equity firms will be looking to bulk up on entertainment, driven in part by tech companies’ need for content that provides 'a level of security on prospective cash flows,' the analysis says." Comcast paid well for NBC; Disney paid well for Lucasfilms and their Star Wars franchise. And Netflix has seen its stock price soar as a result of its push toward more original and exclusive content. Today Sony has announced plans to create another network to play its library of movie content. You Tube has its original channel and Amazon is streaming original pilots to help find their next series to produce. And consumers can't seem to get enough. Of course, with so much new content being produced, the challenge to find the best gets more difficult. Breaking through the clutter to be discoverable will take on a rising challenge for all these companies in the content creation and distribution space.
And what appears to be the secret sauce in building a successful network or online service, original content that breaks through to become valued. Broadcasts have felt that with American Idol and other hits, premium services like HBO felt it with Sopranos, and Netflix is feeling it with House of Cards and Arrested Development. In fact, Netflix recent earnings are subscriber growth are results of this push toward original content. Consumers are craving more and that desire never seems to get fulfilled. For as one series fulfills, another takes over to attract demand. Not that every piece of original content achieves such status, but it seems that accessibility of content helps to drive viewership.
Wall Street might agree. "Corporate and private equity firms will be looking to bulk up on entertainment, driven in part by tech companies’ need for content that provides 'a level of security on prospective cash flows,' the analysis says." Comcast paid well for NBC; Disney paid well for Lucasfilms and their Star Wars franchise. And Netflix has seen its stock price soar as a result of its push toward more original and exclusive content. Today Sony has announced plans to create another network to play its library of movie content. You Tube has its original channel and Amazon is streaming original pilots to help find their next series to produce. And consumers can't seem to get enough. Of course, with so much new content being produced, the challenge to find the best gets more difficult. Breaking through the clutter to be discoverable will take on a rising challenge for all these companies in the content creation and distribution space.
Friday, April 19, 2013
Comcast Can Compete In The TV Everywhere World
Comcast's "Watchathon Week" successfully demonstrated that consumers like to access their programming on demand, both on and away from the TV screen. "The Watchathon, which ran from March 25-31, offered more than 3,500 episodes
from 30 TV networks to Xfinity TV subscribers for no extra charge,
including full seasons of current shows from premium channels HBO,
Showtime and Starz." According to their report, "It set new records on the Xfinity.com/TV site and the Xfinity TV Player
app for tablets and smartphones (no specific numbers were supplied)." Because it is an added cost to subscribers, it is likely that usage of this service will drop significantly post this free trial.
Will customers pay more to buy this service, I highly doubt; but I do believe that if Comcast offered their Xfinity on demand platform with a digital subscription for free, customers may be more willing to return to the nest and help Comcast compete more effectively against IP only competitors. It is a good step in growing out the TV Everywhere model for cable.
Will customers pay more to buy this service, I highly doubt; but I do believe that if Comcast offered their Xfinity on demand platform with a digital subscription for free, customers may be more willing to return to the nest and help Comcast compete more effectively against IP only competitors. It is a good step in growing out the TV Everywhere model for cable.
Friday, March 1, 2013
The Monetization Of Digital Content
As content gets digitized, whether from print, audio, or video, it essentially loses its wrapping, the pieces around it that differentiate it from something else. For books, it can be hard cover or softcover with any number of covers to make it appealing. For music, it can be presented as album, cd, cassette, etc. And as video, as VHS, DVD, or presented by a TV channel with wraps and intros to keep us tuned in. But the content itself is intact and unchanged, except perhaps for special Director Cuts or extended versions.
For distributors cutting deals to sell this digitized content, the classic marketing decisions must be made. For cable distributors, it is aggregating the mix of channels at a price point that works and building a platform that assures that the service is always on. For music, it is sold as a standalone song or within an album, and the ease of streaming or download. And book sellers on having a large library of content and the ease of purchase and download.
The challenge for all distributors is figuring out how to best appeal to the consumer so that they choose your infrastructure to buy from and to create a hopefully long term, loyal customer base. But consumers can be fickle and their interests can change with any internal or external force, from pricing changes to technological innovation. The successful distributor can react as well as be proactive to assure that their relationship with the consumer continues to grow.
And that is what makes the entertainment and media landscape so interesting and appealing to me; the constant change that enables innovation and growth. For cable, the rise of video on demand and interactivity on the TV set; for book sellers, the rise of e-readers and tablets, and for music, different ways to consume and enjoy, from downloading and purchase to streaming online or from Sirius and even still from radio.
Change is the constant force that assures that nothing stays the same forever. Consumers love innovation that improves the quality of their lives. We no longer can wait for the newspaper to be delivered to our door or for our news telecast at 11 pm, we need it now and digital has enabled instant accessibility. It is hard to imagine getting it any faster, but I'm sure we will. We also want it at an affordable price, willing to pay more if we can be convinced it provides greater value. And we want the extras that make the experience that much more satisfying. The challenge is figuring out what all those things are for all of the content we seek to consume.
For distributors cutting deals to sell this digitized content, the classic marketing decisions must be made. For cable distributors, it is aggregating the mix of channels at a price point that works and building a platform that assures that the service is always on. For music, it is sold as a standalone song or within an album, and the ease of streaming or download. And book sellers on having a large library of content and the ease of purchase and download.
The challenge for all distributors is figuring out how to best appeal to the consumer so that they choose your infrastructure to buy from and to create a hopefully long term, loyal customer base. But consumers can be fickle and their interests can change with any internal or external force, from pricing changes to technological innovation. The successful distributor can react as well as be proactive to assure that their relationship with the consumer continues to grow.
And that is what makes the entertainment and media landscape so interesting and appealing to me; the constant change that enables innovation and growth. For cable, the rise of video on demand and interactivity on the TV set; for book sellers, the rise of e-readers and tablets, and for music, different ways to consume and enjoy, from downloading and purchase to streaming online or from Sirius and even still from radio.
Change is the constant force that assures that nothing stays the same forever. Consumers love innovation that improves the quality of their lives. We no longer can wait for the newspaper to be delivered to our door or for our news telecast at 11 pm, we need it now and digital has enabled instant accessibility. It is hard to imagine getting it any faster, but I'm sure we will. We also want it at an affordable price, willing to pay more if we can be convinced it provides greater value. And we want the extras that make the experience that much more satisfying. The challenge is figuring out what all those things are for all of the content we seek to consume.
Thursday, February 28, 2013
Amazon Prime Adds More VOD Content
Content creators, even established networks like HGTV and Food Channel, are constantly seeking new distribution growth to build revenue streams. Cable has been for a while the predominant way to view video content and the development of video on demand (VOD) offered consumers more ways to access and view. But consumers are dropping cable and the web has become the destination for today's and tomorrow's viewer. To reach those consumers, Scripps Interactive has partnered with a new distribution partner, Amazon.
Subscribers to Amazon prime will now have access on demand to multiple series from HGTV and Food. Not only can they stream and watch, but consumers can purchase and download episodes as well. While this is clearly good news for both Scripps and Amazon, I must wonder what Scripps' current distributors, Comcast, Time Warner, Cablevision and others think of this deal. True, shows are being available to paid subscribers to Amazon Prime, but it must still feel like a competitive threat. And while it is strictly on an on demand basis and not a linear feed of the network, viewership is moving more and more to an on demand world with the only exception being live programming.
Kudos to the Scripps team on what will be seen by many in the cable industry as playing with fire. In the long run, deals with these alternative platforms, the ones currently disrupting the media industry, should ultimately keep the Scripps brands accessible to every home. And distribution is certainly the name of the game.
Subscribers to Amazon prime will now have access on demand to multiple series from HGTV and Food. Not only can they stream and watch, but consumers can purchase and download episodes as well. While this is clearly good news for both Scripps and Amazon, I must wonder what Scripps' current distributors, Comcast, Time Warner, Cablevision and others think of this deal. True, shows are being available to paid subscribers to Amazon Prime, but it must still feel like a competitive threat. And while it is strictly on an on demand basis and not a linear feed of the network, viewership is moving more and more to an on demand world with the only exception being live programming.
Kudos to the Scripps team on what will be seen by many in the cable industry as playing with fire. In the long run, deals with these alternative platforms, the ones currently disrupting the media industry, should ultimately keep the Scripps brands accessible to every home. And distribution is certainly the name of the game.
Tuesday, July 24, 2012
Going To The Movies Not So Worth It
Here's a basic question, are you going to the movies more or less times than you went say last year or 5 years ago. Does the movie experience or interest in a title push you to go out and would you be willing to go back to see the same film again and again? It seems that the cost of going to the movies, coupled with much shorter distribution windows and better home viewing experiences has hurt attendance. "Attendance at the movies last year was the lowest since 1995, and per-person attendance fell to a 25-year low — in particular among younger consumers who frequent the cinema most often, a new report shows." 3D movies have grown, but the cost to watch and the experience in general underwhelms. Imax screens help, but there are few around to make them convenient to the masses. And the price to watch and the cost of refreshments make the total cost a bigger drain on the pocket books.
On the other hand, films released early in the year are accessible through on demand or online in less than a year. With vastly improved HD TV sets and high resolution iPads, the cost is much less and the enjoyment more. For a family of 4, a night out at the movies with popcorn is more than $60; the cost to watch on VOD with a microwave popcorn bowl, under $10. It is that growing chasm between the two choices in a depressed economy that strikes at the nerve of the movie industry. When going to the movies becomes a more special experience, we go less and expect much more in return.
"Back in 2002, the average moviegoer went to the theater eight times a year; last year, it was fewer than six. In particular, younger viewers are going to movies less often. Attendance per person for consumers ages 12 to 24 is down 40 percent since 2002." Blockbusters try to help, but the rising costs limit how many we choose to watch. This trend is not limited to movie theaters. Look at professional sports and see how few seats are being sold. Yankee stadium as an example has rows and rows of seats empty; the New York Jets face similar issues trying to sell out its stadium. As costs rise, less people can afford to go. And once they begin to switch their viewing behavior, it becomes more difficult to win them back to your venue.
On the other hand, films released early in the year are accessible through on demand or online in less than a year. With vastly improved HD TV sets and high resolution iPads, the cost is much less and the enjoyment more. For a family of 4, a night out at the movies with popcorn is more than $60; the cost to watch on VOD with a microwave popcorn bowl, under $10. It is that growing chasm between the two choices in a depressed economy that strikes at the nerve of the movie industry. When going to the movies becomes a more special experience, we go less and expect much more in return.
"Back in 2002, the average moviegoer went to the theater eight times a year; last year, it was fewer than six. In particular, younger viewers are going to movies less often. Attendance per person for consumers ages 12 to 24 is down 40 percent since 2002." Blockbusters try to help, but the rising costs limit how many we choose to watch. This trend is not limited to movie theaters. Look at professional sports and see how few seats are being sold. Yankee stadium as an example has rows and rows of seats empty; the New York Jets face similar issues trying to sell out its stadium. As costs rise, less people can afford to go. And once they begin to switch their viewing behavior, it becomes more difficult to win them back to your venue.
Tuesday, July 17, 2012
TiVo May Skip Ads, But It Also Measures Who Is Watching Them
The beauty of TiVo and other less notable DVR technology is the power it offers to easily copy and replay programs, whenever you are in the mood to watch. No expiration of VOD assets to worry about; copy all the episodes of your favorite show and watch at your leisure. Add to that the convenience of fast forwarding past the commercials and you are in control. But surprisingly, we are sometimes too lazy to hit the button and we let the ads play through.
Ironic, but what leads to TiVo's need to take advantage of viewership data and match to the ideal profile when pushing ads to the consumer. And in order to do it well, TiVo has found a partner. "The television analytics company TiVo is expected to announce on Tuesday that it has acquired full ownership in TRA, a research company that has found success in recent years with a system that matches up television viewing with consumer buying habits." With best information of household shopping preferences and show interest, ads can be targeted to the right audience in order to get the most effective reach. And as DVR owners are not taking full advantage of the fast forward feature, they too are being reached.
Why aren't more cable operators offering TiVo technology in their cable box? Wouldn't their local ad sales efforts be better helped with a collaboration with TiVo verse their own generic DVR? I wait and wonder.
Ironic, but what leads to TiVo's need to take advantage of viewership data and match to the ideal profile when pushing ads to the consumer. And in order to do it well, TiVo has found a partner. "The television analytics company TiVo is expected to announce on Tuesday that it has acquired full ownership in TRA, a research company that has found success in recent years with a system that matches up television viewing with consumer buying habits." With best information of household shopping preferences and show interest, ads can be targeted to the right audience in order to get the most effective reach. And as DVR owners are not taking full advantage of the fast forward feature, they too are being reached.
Why aren't more cable operators offering TiVo technology in their cable box? Wouldn't their local ad sales efforts be better helped with a collaboration with TiVo verse their own generic DVR? I wait and wonder.
Thursday, April 19, 2012
There Is Money in VOD
Linear TV has taken a backseat to on demand viewing. Except for live programming, especially sports, waiting for 8PM for prime time programming to start in order to watch is ancient history. Now we have VOD and DVR to watch what we want, when we want. And as more and more households have embraced this technology, the money trail has certainly followed. "With free video on demand usage continuing to surge, Rentrak estimates the platform represents at minimum, a $1 billion advertising opportunity." Good news for content companies seeking a ROI from these different platforms.
Of course, all this on demand viewing is not limited to the TV screen. Consumers also want to consume this content on other devices, including laptops and tablets. This quoted ad dollar number may be limited to the TV screen which means that their is more ad dollars at play. And at the end of the day, if you create great content, you will find a large audience willing to consume it. The more flexibility you offer on where it can be consumed, linear, on demand, online, the more you can monetize it.
Of course, all this on demand viewing is not limited to the TV screen. Consumers also want to consume this content on other devices, including laptops and tablets. This quoted ad dollar number may be limited to the TV screen which means that their is more ad dollars at play. And at the end of the day, if you create great content, you will find a large audience willing to consume it. The more flexibility you offer on where it can be consumed, linear, on demand, online, the more you can monetize it.
Tuesday, March 6, 2012
Cable VOD Could Be Much Better
Today's Paid Content article offers great insight into cable's problem with VOD. While streaming content flourishes, cable VOD remains underutilized and lacking its full revenue potential. "Simply put, at a time when consumers are actively sampling on-demand programming streamed via the internet, they aren’t exploring the VOD options that exist on the cable services embedded in their living rooms."
The reasons are obvious. First, there is less current content. Shows that premiere on linear channels are slow to populate on VOD. Second, search remains slow and clunky. The interactive menu guide looks more like a Prodigy dial up window screen and lacks any ease of use, especially against today's internet streaming guides. Third, any advertising is more intrusive than interesting. Pop up ads cover the screen and are hard to dismiss. And lastly, box issues cause latency, freezing, and interruptions. Put all together, it creates a poor user experience. For me, my on demand TV viewing is helped by the DVR; still it requires proactive work to record in advance of the show airing.
Can VOD be fixed? As the web has built a friendly system to access and view, consumers are seeking ways to access and stream to their connected devices. Apple's future announcement could throw another wrench into the current cable VOD problem. Perhaps the fix is for cable to truly embrace web streaming of its VOD library. Better search, faster speeds, recommendations, can all help. And as far as revenue growth, more targeted advertising that doesn't overly clutter the show that is being watched.
The reasons are obvious. First, there is less current content. Shows that premiere on linear channels are slow to populate on VOD. Second, search remains slow and clunky. The interactive menu guide looks more like a Prodigy dial up window screen and lacks any ease of use, especially against today's internet streaming guides. Third, any advertising is more intrusive than interesting. Pop up ads cover the screen and are hard to dismiss. And lastly, box issues cause latency, freezing, and interruptions. Put all together, it creates a poor user experience. For me, my on demand TV viewing is helped by the DVR; still it requires proactive work to record in advance of the show airing.
Can VOD be fixed? As the web has built a friendly system to access and view, consumers are seeking ways to access and stream to their connected devices. Apple's future announcement could throw another wrench into the current cable VOD problem. Perhaps the fix is for cable to truly embrace web streaming of its VOD library. Better search, faster speeds, recommendations, can all help. And as far as revenue growth, more targeted advertising that doesn't overly clutter the show that is being watched.
Wednesday, February 22, 2012
Canoe Ventures Dropping Interactive Ads Business
As the content community embraces the cloud and Cisco plans to sell its S-A set top box business, Canoe Ventures has announced that it is giving up on EBIF. "The decision to abandon ITV ads and dramatically pare back Canoe's mission came after a review by its cable operator owners, according to a Canoe spokeswoman." The push for better connectivity to the web, more cloud based operations, including N-DVR and VOD, and perhaps even Comcast's push into a rival Netflix streaming business, all demonstrate that the set top box is history.
Also too, advertisers didn't find much interest in overlays that intruded on top of video commercials. With the primary goal to click a button for more information, the boxes looked intrusive and the clicks weren't coming. And advertisers and viewers weren't embracing the added value feature either. So what is next for Canoe? "Canoe's more narrow goal, at this point, will be to build a way for MSOs and national programmers to generate revenue from dynamically inserting ads into on-demand content across both VOD inside the home and TV Everywhere outside the home." But with other companies, like Seachange and others, already in this space, can Canoe re-model and survive? It just doesn't look promising.
Also too, advertisers didn't find much interest in overlays that intruded on top of video commercials. With the primary goal to click a button for more information, the boxes looked intrusive and the clicks weren't coming. And advertisers and viewers weren't embracing the added value feature either. So what is next for Canoe? "Canoe's more narrow goal, at this point, will be to build a way for MSOs and national programmers to generate revenue from dynamically inserting ads into on-demand content across both VOD inside the home and TV Everywhere outside the home." But with other companies, like Seachange and others, already in this space, can Canoe re-model and survive? It just doesn't look promising.
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