Facebook To Stop Ad Blockers From Working

As much as we all seem to hate ads, they are the lifeblood, the revenue, that drives the growth off many media businesses.  But too many, too cluttered, too irrelevant, and they make the experience of watching or reading content less enjoyable.  In the digital world, ads also tend to slow down the streaming process, as they attempt to figure out which ad to present and run on site.  As a result, many users have installed ad blockers to quicken the web load refresh process and let users enjoy only the content. 

Facebook says they have figured out how to "block the blockers" to help them assure that ads are seen and their revenue grows.  But in an attempt to aid the user, Facebook is also offering more control on what ads to see and what ads to hide.  How much more control remains to be seen and whether it is more useful to the viewing experience. 

While some use ad blockers to improve the page load, others use ad blockers to improve personal privacy and protection from possible malware.  Many want to be anonymous in their viewing process and do not want to be tracked.  While my biggest gripe is how ads slow down the page from loading, I also believe that a number of the ads presented are simply not relevant to me.  That Facebook wants to improve that experience is helpful, but more importantly, they need to improve the load refresh of the page. 

TV Ad Spending Falling As Digital Rises

The NY Times reports today that "TV will account for 38.4 percent of the $503 billion global ad market this year and will drop to 38 percent of the market in 2016, according to the forecast."  A minuscule number perhaps, but perhaps more a notice of an eventual trend.  Still, with the rise of digital devices, smartphones, tablets, laptops, and more, our attention has steadily moved away from the TV screen and toward the smaller devices.  Mobile is in!  And as we all know, nothing is truly free in this world and content is being paid for mainly by advertising. 

But the digital ads that we get may not be nearly as effective as the television commercials we see.  Sure both are intrusive and too, too many, but the little screens make engagement harder.  Which brings me to a second article in today's NY Times entitled X Marks The Spot.  These pop ups and overlays and screen cloggers make me hate the advertisers that rely on them.  To say they are just a nuisance would be to truly understate how frustrating they are.  No longer comfortable with being banners that rest around the content, these digital ads make getting to the content difficult at best.  Not just that one has to sit through them to get to the content, but that as the article correctly states, trying to click the 'x' to eliminate them becomes a game unto itself. 

But the worst for me is when the pop up ad takes so long to download, creating such a lenghty latency that prevents the actual content from also downloading, that I find myself clicking away from the site.  The more this happens, the more I remember which websites I now avoid altogether, a loss for both publisher and advertiser.  And as others follow on that same path, an eventual loss for the digital industry.  The influx of intrusive advertising will be the means to the industry's self destruction.

TiVo Wants To Give Away Its TV Research

TiVo saw an interesting way to congratulate the merger of ComScore and Rentrak.  It announced plans to offer free its TV research data next year.  While consumers may not care so much, neither should research companies.  Whether this news affects any companies seems unlikely although the point TiVo is trying to make does resonate.  Per Fierce Cable article, Frank Foster, Senior Vice President and General Manager of TiVo Research states "The focus needs to be on how you connect advertisers with audiences they really want to reach, with data that can ensure that, and metrics that can verify it." 

As consumers get more and more annoyed with ads that interrupt our programming and ad messages that border on the inane, both how the message reaches us and how it builds a positive relationship with the consumer seem more important.  Does the Gecko or Flo really sell more insurance or do they push us away; does Jan sell more Toyotos or make us cringe.  And as we seek content off the TV set, do ratings really matter?

Netflix - How Much More Can They Grow

Netflix released their earnings this afternoon and the market didn't seem to like what they heard.  Earnings are down and costs are up and despite their plans to raise monthly subscription fees by a dollar, the market may be getting to saturated to expect more increases in growth.  Sure there is still growth but when it comes to the stock market, how much you grow matters more.  And Netflix might be leveling off.

As competition for content increases, costs to obtain more videos, either through acquisition or original content, will only continue to mount.  And given that Netflix has a one stream revenue model limits how much more they can keep producing.  Dollar increases a year may be nice but it may not be enough to offset subscription and content costs.  The stock market may not find Netflix the darling of streaming anymore until they produce a new revenue stream. 

When will advertising come to Netflix?  The push to produce is on and that strategic move might be the necessary price.  How they add advertising could also affect the subscriber base.  Commercial breaks are definitely not the solution; other ad tools are more desirable to keep its base engaged and paying.  Done well, ads will immediately boost the stock price, 

Another Inane Commercial That Makes You Wonder

If you have been reading my blog, every now and then I come across an inane ad that makes me cringe.  From the 'Vacation' Infiniti ad to the FIOS ad to the silly TD Bank ad.  Well the latest one seems to beat them all so far.  It involves a dad with his young son racing a school bus to get to school.  It seems that driving a Nissan Altima can help you outrace a school bus... WHAT????? The premise not only makes no sense it defies any logic or rational thinking.  Does Nissan want us to believe that they don't think much about safety?  There is nothing aspirational, beneficial, or even informational about why a Nissan Altima would become your preferred car to drive.  And frankly, it lacks any humor to even offset the serious consequences of what they are presenting.

If you haven't seen this atrocious ad, take a look:

FanDuel Vs. DraftKings

My sports content is being overrun with ads from two online sports fantasy campaigns.  It seems that every game, pre-game, and post-game has one or the other as a sponsor.  Fantasy leagues have been invading the sports world for some time; we are asked to no longer root for teams but for individuals instead.  And you thought there was no 'i' in team.  Each channel that presents an NFL game seems to have either FanDuel or DraftKings as a major advertising sponsor. 

Personally, I am not a fantasy sports participant, but I do understand the appeal.  It can offer a great mathematical intrigue but lately it seems to be all about the cash.  Each commercial reminds us how much money can be made daily, weekly and annually and parades real people, not actors, enjoying their financial success in fantasy bets. 

These ads are all over every NFL show..  And the NFL seems to be embracing it, perhaps because of all the money that is pouring into the league.  But the very nature of gambling and sports getting tied so closely together seems somewhat troubling for the honesty of the game.  Will it lead to manipulation, scandal, and more?  Are we headed down a slippery slope that could cause bigger troubles?  When ads present how easy it seems to win, we should also ask how easy is it to lose.  Maybe Pete Rose needs to be asked the effect gambling has had on his career.  I'm afraid the dollars being spent to push consumers to bet will only lead to bigger problems for sports and for media. 

Mobile Video Ads Work Better

What is the last display ad you recall seeing?  Frankly, my eyes gloss over most display ads; they are more a nuisance than informative, clogging up the screen.  Headers, verticals, even overlays clog our screens but may not be very successful.  Well, a research report from BI Intelligence says that video advertising is the best future for mobile and desktop screens. And that trend is continuing to grow. 

As you scroll down your Facebook or other feeds, you may notice that videos start to play automatically.  And they have been successful.  "In-stream video ads, including ads that play at the start, during, and after  video content, yielded click-through rates (CTRs) that were 18x higher than HTML5 banner ad units in February 2015, according to Google's Rich Media Gallery. "

Of course prices for video ads are higher than static ones, but if they deliver more ROI, then it is clearly a better value.  Will display ads go away completely, doubtful.  But an integrated ad buy that utilizes both strategies on a page certainly should get more notice, better brand engagement, and hopefully more click throughs. 

Netflix Subs Greater Than Comcast

Last night, Netflix released its financial numbers and they were quite impressive.  With over 65 million subscribers, both in the US and abroad, Netflix is the undisputed leader in video distribution.  In fact, Comcast, the largest cable subscriber in the US has about 22.5 million cable subscribers, a number slowly dropping as a result of cord cutting.  Comcast has about the same number, 22.5 million broadband subscribers.  So even combined, Comcast has only two-thirds the customers of Netflix. Another fact, Netflix has about 42 million here in the US, almost double the number of Comcast cable subs. 

As to growth, many believe that Netflix will exceed 200 million subscribers globally in the next 7 -10 years.  The beauty of their business model is that it only derives its income from subscriber fees, it has yet to embrace any ad model that could significantly add to its bottom line.  And while it may have to pay some transmission fees, it does not have to pay franchise fees, which are required by cable companies.  Netflix's streaming business model has also priced itself under $10 a month, unlike a cable subscription that can be far more expensive.  Netflix could easily raise their prices only a dollar and gain an incremental $65 million dollars monthly with very little backlash.  The future for Netflix seems very rosy.

And streaming is still considered to be cutting edge.  It is eerily reminiscent of Internet's move from dial up to broadband.  As consumers continue to embrace streaming media to their devices, the allure and strength of Netflix content offerings will continue to attract more of the population. 

Yelp Needs Help

Yelp, the local business review company, is not growing as fast as investors and analysts think it should.  As a user generated site of reviews on everything from restaurants to hotels to business services (even services like Photo Booth rentals for events), Yelp offers great search and recommendation for finding what you want near where you are.  But the challenge they face is how to better monetize such a service of loyal users and contributors. 

The Wall Street Journal is reporting that Yelp "is working with investment bankers and has been in touch with potential buyers in recent weeks, some of the people said."  And although traffic to the site is positive, growth may have plateaued.  Still, the company has aggregated a large database of businesses and reviews and has been a useful resource to many, including myself.  As a search engine, it is localized and relevant, and as a recommendation engine, it provides a wide array of reviews, from positive to downright snarky.  Content is king in this regard and they continue to nurture more reviews. 

Perhaps, Yelp needs a partner that can provide them with a larger array of complementary services.  I could see Yahoo and AOL as possible fits, although Google might like to get a hold of them as well. TripAdvisor might also see a strategic fit as well.  With a more strategic partner, Yelp could potentially expand into video content that augments the value of each of the businesses being reviewed.  Currently, Yelp uses photos that are uploaded.  But videos, could open up windows with additional advertising opportunities.  Videos might also encourage more time spent on the site.  In addition, a strategic partner would help drive more efficiencies to both lower costs as well as keep users engaged on more pages across the site. 

Whether Yelp decides to keep going independently or seek a merger to expand remains to be seen.  For now, Yelp has created a must have resource for finding places to eat, shop, and buy. I hope they only continue to grow. 

Television Is Not Dead

Technological change has created disruption across a vast array of industries.  And while some companies are born and others die on the vine as they refuse to adapt to change has been a hallmark of business over the years.  But the real truth is that as industries change, room still exists for the past to stay relevant, although not at dominant levels.

In the world of the media platform, we are watching as digital has surpassed both analog and physical media.  Print publications still can bring value even as digital subscriptions grow.  CDs and DVDs are still being sold, vinyl albums too, as streaming music and video continue to advance. Radio did not die when television came along and television and cable will continue to exist even as OTT platforms drive adoption.  This weeks's Adweek does a nice job telling us that linear networks will continue to survive and that Content is King!    Even through this constant change, according to the article, "Consumers want access to great content. Brands want to deeply engage with their consumers. And television will no doubt evolve to survive." 

Linear television will survive because of live events.  Consumers will turn on the TV because they want to simply watch in a lean back environment, letting one program follow the other.  Sometimes, we want our TV to be our background noise.  How linear is transmitted though will continue to change as cable companies shift to IP enabled technologies.  At the same time, we will become more proactive when we want to watch a show, as well as when, where, and how.  Mobile and social will become more important tentpoles of our viewing experience. 

And content creators now have more choices to sell their shows and movies, from traditional broadcast and cable networks to premium services like HBO and Showtime, and OTT platforms like Netflix or Amazon or Hulu.  The rise in original content being shown at this years NewFronts make the traditional upfronts vulnerable.  But that is nothing new.  A decade or so ago, cable networks were the ones challenging broadcast.  Traditional media didn't die then and it still has much life ahead of it.  The industry continues to change and the successful companies are the ones that can adapt and change with it. 

Future Of Advertising - Mobile And Social

As we engage more and more with our mobile devices, our smartphones and tablets, they become a much larger focal point for reach and frequency. More Facebook users access their accounts via through mobile rather than a computer. In fact, in Q1 of this year, Facebook's "mobile advertising revenue represented roughly 73% of advertising revenue", as mentioned in Business Insider. And given Facebook innovations, videos now automatically run as you begin to scroll down the timeline, hoping to snare you to watch and turn up the volume.  I know that I am like the majority, accessing these and other social media sites like Twitter, Pinterest, Instagram, and others on my iPad or iPhone.  And whether it is a display ad, or sponsored content, or other banner or video, this is where the future lies.  We are easily reached, personalized, and presented with relevant and hopefully engaging messages.  

And so other ad platforms may need to worry as usage patterns shift and so to the flow of ad dollars from one bucket to another.  Cord cutting on cable TV is not just an issue for subscription dollars but advertising dollars as well.  As higher percentages of our time are spent on our mobile devices and interacting with others via social platforms, so to will ad spend. 

It is why TV Everywhere is so important  for content providers.  And why many today have apps for authenticated viewing on mobile devices.  It is why the DOJ and the FCC are looking so hard at the Comcast - Time Warner Cable merger and that together they would control a majority of the broadband pipeline in the US.  Monopolistic pricing, controlled or limited access to content, and lack of a competitive threat are key concerns.  

And as I look at the growth of mobile, I am struck with an interesting idea.  For companies like Netflix, Amazon, Hulu, and others delivering content to mobile devices, the thought of complementing these services with social networks for its members to discuss content that they have consumed on their respective apps. Consider a Netflix social app that is easily accessed and used to reach other "fans" of House Of Cards, Orange Is The New Black, Unbreakable Kimmy Schmidt or other series and where they can discuss in detail.  Such a companion site would also enable these content providers to add an advertising revenue stream into their mix.  It may be a niche social platform at first but may just drive future growth.

For it is the increasing usage of mobile platforms in our daily lives and our desire to interact with others online that is driving new opportunities for advertising.  At the same time, traditional ad platforms, threatened by this new growth, must continue to play in the new space and become ubiquitous across all platforms, print, TV, radio, digital. By being accessible via the mobile platform, advertisers too will gain with better data based on individual preferences, not household ones.  And it is that one-on-one relationship that we have on our mobile devices that is the future of advertising. 

Netflix Growth, Now And Future

Netflix is currently on a roll, growing faster than estimated, and delivering a streaming video experience worldwide.  With a library of older TV content, a rotation of popular movies, and a commitment to original series, Netflix has created a strong value proposition, given a subscription fee of less than ten dollars a month.  Whether traditional TV sees Netflix as direct competition or a complement to their own line-up remains to be seen; still, new consumers are continuing to subscribe. 

As of the close of the second quarter, their total international base is almost 60 million subscribers with the U.S. alone counting for two thirds of that total. If cable households in the US are over 100 million, than Netflix still has a huge opportunity base to continue to grow.    The launch of HBO Now may be seen as a competitor, as is Amazon and Hulu Plus, but it is likely that consumers who desire the shows and movies from each of these choices don't view subscription as a zero sum game.  That is to say, these services can all grow together. 

The possible challenge to subscription only services is that at some point growth levels out and could possible shrink a bit.  At today's U.S. sub base of 40 plus million, raising rates just a dime adds $4 million dollars more in revenue every month and a dollar a month increase means $40 million more each month, or $480 million plus a year.  But rates can rise only so much so quickly before subscribers balked.  Cable TV is learning that painful lesson.  So how else does Netflix try to grow revenue?

With original programming, the possibility of syndicating series like House of Cards or Orange Is The New Black back to cable is a possibility although the value may be low given the ubiquitous nature of streaming.  Netflix certainly has gained lots of data on its users that could be sold as well.  Perhaps Netflix might consider adding a small amount of advertising into its welcome screen.  Banner ads while searching for content to watch could make sense without being too much of an intrusion to the subscription value.  And if it keeps subscriber fees down, even better.  Yes, their current one revenue stream model is working quite well, but I suspect that there must be some discussion on how to derive additional revenue opportunities for its existing base. 

ESPN Reminds Planners That Cross-Media Advertising Matters

Hopefully most media planners know that the best way to reach a broader audience is to advertise across media platforms.  It also raises awareness, interest, engagement, and hopefully intent to purchase.  Advertising on one platform, especially when consumers interact with so many different types, from print to TV, pc and mobile, billboard to coupons, limits the reach and frequency one hopes to achieve. 

But I guess ESPN wants to remind us of that.  In the Wall Street Journal article in the CMO Today Advertising section, the headline screams, ESPN Urges Advertisers to Hit All Devices.  In it, their research reaffirms "that the key to effective ads is getting in front of viewers across all their devices."  Did this group finally realize that?  That new research was needed to quantify what has been known for years seems silly.  If we get to the gist of what I can only consider as pure PR, ESPN wants its advertisers to spend advertising dollars across all its platforms to assure that it best reaches a male skewed demo.  Yes, integrated marketing clearly works to reinforce brand messaging and well known for decades. That given the rise in new media platforms, like mobile, hasn't seemed to change this fact.  Still, given the start of upfronts, something ESPN found important to reaffirm. 

Could Streaming Network TV Boost Advertising

With the planned release of Apple's TV subscription streaming service, networks might just be greeted with an advertising opportunity, the ability to dynamically insert commercials to specific households.  Thus one commercial spot could be sold to reach a certain household based on relevant data while the same spot could be sold again to a different set of households.  Advertisers would pay a premium but would have more certainty that their ad was reaching a relevant audience.  And networks could sell the same ad spot multiple times.  In addition, different ads could be served based on the device being used to watch the program, one for the Apple TV box, another to the iPad or iPhone.  Ads could be dynamically inserted on linear as well as on-demand and DVR programming.  The likely results, higher engagement, higher viewership, and more revenue. 

Is Programmatic Advertising Killing Sales Jobs?

There is no doubt speed, effectiveness, and efficiency with technology that makes programmatic advertising a win for buyers and sellers of media.  Programmatic has been the buzz word of late, which fairly simply automates the purchasing and trafficking of advertising into available spots.  It is most connected to the digital world but continues to creep into traditional television advertising models.  In essence it removes human interaction from the equation and it is a disruptive technology.  

As a result of all this automation, media companies are able to cut back on employees.  In fact, AOL announced a couple weeks ago, ahead of its quarterly earnings, that it was laying off "150 employees Friday, or 3% of its staff.  The bulk of the layoffs, or close to 100, were in sales, a result of the company's surging growth in so-called programmatic ad sales, according to a person with direct knowledge of the situation who was not authorized to speak on the record", according to USA Today.

AOL is not alone in these efforts and this is not the first time that technology has replaced labor.  Look no further then the assembly line that once required huge numbers of factory workers and now can be done with machines.  But it is a first for media, that less ad sales people are needed to drive the revenue for the business.  Will it replace humans completely, the answer is obviously no.  The key differentiater is creativity and the ability to develop innovative advertising programs that ad buyers want.  Content partnership, product integration, and cross marketing integration still requires the human touch.  But buying and placing a digital ad or 30 second commercial can more easily and efficiently be done without the hard sell or human negotiation.

The key success behind programmatic advertising seems to be the research that lives across all the data and the ability to decipher it in meaningful ways to best choose which media and in what combination makes for the best campaign.  And post advertising, the proof will be in the results the campaign generates.  Who is engaging with the content, when are they consuming, why are they interested can now all be captured digitally.  And that information, across set top boxes, web platforms, credit card information, and more are being absorbed, analyzed, and released.  Ask the right questions and your ad can reach exactly the type of person you seek to create engagement with.  And with hopefully a higher percentage that you are reaching only those likely to be interested in the first place.  Bottom line, successful financial results means that programmatic ad buying will then become the new norm. 

More OTT Aggregators Coming

As cable prices continue to rise, consumers eager for more provider alternatives will soon have multiple ways to watch TV networks without a cable subscription. Certainly shows from different cable networks end up coming to Hulu, Amazon, and of course Netflix, but they tend to be from past seasons and not the current one that is airing on the respective network.  But now these networks are making distribution deals with OTT services to offer their networks across streaming platforms.

Recently, Dish announced its own OTT service called Sling TV.  And now we have Sony, working through its Playstation division deliver its OTT streaming service, dubbed Vue.  According to Gigaom, "Sony announced in recent months that it has struck agreements with CBS, NBC and Fox as well as Viacom, Scripps and Discovery for Vue."  That means that networks like HGTV, Food, Discovery Channel, MTV and others will be included in this service.  Most interesting, NBC, owned by Comcast Cable, will also offer both its broadcast network as well as its cable channels including Bravo, CNBC, USA, and more.

Given the threat of cord cutting and the desire to be accessible to the next generation of consumers, the move to streaming is a necessary one.  Certainly the cable companies need to also create an authenticated streaming version of their entire cable line-up, accessible through streaming and available inside and outside the home, to best compete with competitors like Sling TV and Vue.  At the same time, the networks need to not lose their relevancy against other OTT providers like Netflix who value the show over the network and are pursuing their own original programming strategy.  Otherwise, these same networks will fear a complete erosion of not only their license fee model, but eyeballs to their network and the ad dollars they charge. 

Hey TV, Netflix Is Your Frenemy

What do you do with an entrant in your business that spends millions of dollars for your content but also is taking viewers away from your channels?  That is certainly the question poised in today's New York Times on the Netflix Effect on television. 

Consumers are watching television differently.  The cost of cable television has skyrocketed while society has become more mobile. Linear television makes us wait while on demand and streaming lets us control when, where, and how we watch our shows.  And while advertising pays for programs to be made, subscriptions can as well while eliminating the interruptions of commercial breaks.  As a result, Netflix has disrupted the traditional model.  Truth is that linear TV will not go away.  When we don't know what to watch, we can still graze across all the choices and find a show to watch.  And live events force us to wait to watch at the appointed hour.  Netflix and other streaming services simply provides us with more choice as well as more flexibility. And advertising free is a nice benefit.

Television has been slow to change their current model.  It took years for content companies and cable operators to invest in on demand.  And their authenticated TV Everywhere model still lags as a competitive solution.  Netfix Chief Content Officer Ted Sarandos has offered a possible idea for cable operators to pursue.  "Rather than debate what is driving that change, established television companies should change their business models, Mr. Sarandos said. As an example, he said that cable operators should invest in new technologies that would allow people to watch TV episodes weeks after they have been broadcast, but allow advertisers to insert up-to-date commercials."  My one change to that idea, not weeks later but the next day and to keep it accessible for a month or longer.  And lastly, enable authenticated devices outside the cable box to access the content. 

Ultimately, Netflix will be seen by the consumer as a complement to cable TV, not as a direct threat.   Consumers will seek the platform that serves the content they want to watch.  TV viewership may continue to migrate to streaming until a new balance is found.  But cable operators can pursue a more robust authenticated TV Everywhere model that delivers a great platform of easy to find, easy to view, and easy to monetize content that will serve future generations. 

Amazon To Offer Ad Supported Video Streaming Service

Amazon's plan to rule the online universe has taken a fresh turn with plans to expand its video strategy.  Currently offering Amazon Prime, a $99 a year service that includes video streaming, free shipping, and more, its next move is a separate free, ad supported video streaming service to attract a larger audience.  While no specific launch date was announced, the service could appeal to cord cutters among others.  And while some think it could hurt the Netflix subscription model, I actually believe it will only help it.

For Amazon, it offers another way to monetize its exclusive online content, shows like Alpha House and the new kids series, Gortimer Gibbon's Life On Normal Street, as well as acquired programs from HBO including The Sopranos, Deadwood, The Wire, and more.  Adding an ad component will also help track and perhaps even enable its advertising to lead to online purchase behavior (on the Amazon website, of course).  The data of users to the service coupled with their purchase behavior could bring premium ad pricing.  Plus, the appeal of the Amazon free streaming service might eventually upsell them to a Prime customer.

Why shouldn't Netflix be worried?  Viewer consumption of programming is based on appeal and interest.  With its blend of original and acquired TV and movie content, and a relatively inexpensive monthly price, Netflix customers will remain as long as there is always a breadth and depth of content choices.  But Netflix might just consider a free ad supported service to both monetize its video content and drive adoption to upsell to its subscription service, too.  And Netflix, because they are not tied to their own e-commerce model could also offer a click through to other online retailers to purchase after viewing an ad.  Netflix might like a piece of that action, as well.  The only downside for Netflix, that customers drop the paid subscription for the free model, but it might be worth the risk.

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. 

Data May Be True King When It Comes To Success

Having content to view may not be the same thing as having content that people watch.  And when it comes to measuring success, how many watch, who they are, what they like, and where they go may ultimately determine how successful any piece of content can be.  The data behind the content, the analytics and insight derived from who is watching a piece of content is imperative to financial success.  It is reminiscent of the adage asking if a tree falls in the forest and no one is there to hear it, did it make a sound.  That data is crucial especially when it drives advertising dollars.

The buzz on measurement of content, whether linear, on demand, streaming, or download requires that it is properly being collected, that it is accurate and correct, and that the time frame in which it is collected is relevant to the process.  And for media buyers, that reaching an audience is not just a size based proposition, but also efficiency to a segment of the population you are trying to reach, whether age based, gender, income, purchasing behavior, etc. 

The system today seems far from perfect.  Do we count live only views, Live and same day delayed, or +3 day or +7 views.  Did the pre-roll play, was the sound on, was it fully visible, and is it a real impression?  Questions of fraud remain part of the conversation.  Still, with verified data, the value is essential in making content profitable.