Disney is moving aggressively into new media. A couple weeks ago, they announced their deal with Netflix and yesterday they announced a deal with Tivo. "TiVo is set to announce Thursday that hundreds of movie titles, most significantly from Disney, will be available to its broadband subscribers courtesy of deals with CinemaNow and Jaman." It adds another level of value to the Tivo brand. And Disney produces great content and can continue to monetize its library every few years as new parents seek great programming for their new families to watch. Will Snow White, Little Mermaid, Beauty and the Beast and all their other titles ever grow old. I doubt it. It is that rite of passage to share our favorite movies growing up with our own children.
What does change is the method of distribution. Where once the only place to go was the movie theater then The Wonderful World of Disney on Sunday Night TV, we have moved through VHS, dvd, and now download. Disney is successfully driving that trend. These new families are technologically savvy and prefer new media to old. Whether it is download to own or rent, or continue to purchase dvd or cd, the flexibility to deliver the content in whatever form the consumer desires makes it worthwhile. And as long as a digital copy cannot be easily shared and drm is working, Disney can be assured that their content remains valuable for the next generation as well.
Friday, October 24, 2008
Oprah Endorsing Amazon's Kindle
Seems like I'm not the only one that thinks Kindle is the future of reading. Oprah also agrees and is giving Kindle her thumbs up today on her show. If Oprah's Book Club recommendations are any indication of her affect on book sales, her endorsement should spike Kindle sales. "In an email to subscribers, Amazon says its founder Jeff Bezos will be appearing on Oprah to talk to her about her new favourite gadget."
Still, it is a down economy and consumers are cutting back on their spending, even their Holiday spending plans will be reduced. For Kindle to succeed, it simply needs to demonstrate how quickly the consumer will save money with Kindle versus paper. Focus marketing on cost savings and you will ultimately drive sales. Throw in the trees saved and you hit a double. Add Oprah's endorsement and it appears to be a walk off grand slam!
Still, it is a down economy and consumers are cutting back on their spending, even their Holiday spending plans will be reduced. For Kindle to succeed, it simply needs to demonstrate how quickly the consumer will save money with Kindle versus paper. Focus marketing on cost savings and you will ultimately drive sales. Throw in the trees saved and you hit a double. Add Oprah's endorsement and it appears to be a walk off grand slam!
Wednesday, October 22, 2008
Network Audience Keeps Eroding
Broadcast viewership is down. And even when you count delayed viewing via DVR, the total number is still down. Less people are watching network TV. So what does it mean and is it problematic. Perhaps not.
It does not infer that people are turning off their TV sets to, god forbid, read a book. (I'm kidding) But there may be a number of reasons why broadcast viewing is down.
1. Cable networks - more choices and not just reruns. Original series are airing on cable and getting Emmys. TBS is airing baseball playoffs. ESPN has Monday Night Football. And cable content has been regarded as a higher quality to its broadcast counterpart.
2. Writers strike - when shows premiering this year are reworkings of old shows (aka Knight Rider), its hard to say that quality shows are coming to broadcast television. The quantity of new shows this year is way down and cable offers more fresh alternatives.
3. Internet viewing - the numbers are still small compared to total TV viewing and most content is still short form. Most people may argue that internet viewing is additive and does not replace TV viewing.
4. DVDs - still popular and Netflix continues to offer a compelling service. DVD sales may be down but its number is still impactful.
5. VOD - still small but not necessarily being included in the DVR figure. Still it is a growing alternative to broadcast TV.
Once there were only a few broadcast networks and cable was repeat and unwatchable shows. But that was then. Today, the broadcast networks also own cable networks so they have more ways to reach the viewers. Broadcast viewing may be down, but I bet TV viewing, whether live, delayed, or on-demand, remains healthy and strong.
It does not infer that people are turning off their TV sets to, god forbid, read a book. (I'm kidding) But there may be a number of reasons why broadcast viewing is down.
1. Cable networks - more choices and not just reruns. Original series are airing on cable and getting Emmys. TBS is airing baseball playoffs. ESPN has Monday Night Football. And cable content has been regarded as a higher quality to its broadcast counterpart.
2. Writers strike - when shows premiering this year are reworkings of old shows (aka Knight Rider), its hard to say that quality shows are coming to broadcast television. The quantity of new shows this year is way down and cable offers more fresh alternatives.
3. Internet viewing - the numbers are still small compared to total TV viewing and most content is still short form. Most people may argue that internet viewing is additive and does not replace TV viewing.
4. DVDs - still popular and Netflix continues to offer a compelling service. DVD sales may be down but its number is still impactful.
5. VOD - still small but not necessarily being included in the DVR figure. Still it is a growing alternative to broadcast TV.
Once there were only a few broadcast networks and cable was repeat and unwatchable shows. But that was then. Today, the broadcast networks also own cable networks so they have more ways to reach the viewers. Broadcast viewing may be down, but I bet TV viewing, whether live, delayed, or on-demand, remains healthy and strong.
Tuesday, October 21, 2008
Netflix sees half million Blu-ray subscribers
Netflix continues to embrace the technological shift. Not only are they deploying a download strategy, they are embracing the Hi Def world as well. And while the numbers are small, they believe that 500k of their base, or a little over half a percent, will pay a premium for HD movies on Blu-ray. Will an incremental dollar per month be felt by the Netflix customer? Or will their customer feel that this extra charge is unfair. "Netflix said the additional charge, to reflect the higher cost of Blu-ray discs, will be added to billing statements on or after November 5 and only to members who have previously enabled Blu-ray shipping on their Netflix accounts." Over the year, the added revenue impact could exceed $6 million dollars annually!
As the cost of Blu-ray players decrease, so too will the cost of discs. How long will this premium last? And will their best customers feel slighted by this added cost. Or will this increase be barely felt by this niche audience. For Netflix, the timing may be right.
As the cost of Blu-ray players decrease, so too will the cost of discs. How long will this premium last? And will their best customers feel slighted by this added cost. Or will this increase be barely felt by this niche audience. For Netflix, the timing may be right.
Monday, October 20, 2008
Actors Union Board Holds Off On Strike Authorization; Requests Mediation
SAG holds off on strike authorization...REALLY. With the economy in a downward spiral, networks like NBC cutting back on their costs, CBS/Viacom's owner Sumner Redstone, in need of capital to stay afloat, and new media barely making a dent into traditional platforms, you can't decide what to do about a strike. REALLY. You are going back to negotiators requesting mediation and continue to threaten to take a strike vote if you can't find agreement. REALLY. " The studios maintain that SAG members shouldn’t expect anything beyond what the other four major unions signed on to this year. AMPTP also pointed out that each of those deals were made in 'better economic times.' " So SAG still is considering a strike. REALLY...Really?...REALLY!
Friday, October 17, 2008
NBC Shows Content Usage Across Platforms
Using TAMI, or the Total Audience Measure Index, to count usage across platforms, NBC affirms that TV maintains a clear superiority in usage. It makes you scratch your head why the Writers Guild and SAG have fought so forcefully for its share, when its share is still a blimp. Makes you wonder why there was a strike last year at all. They truly were fighting over pennies. It demonstrates that a short term agreement would not have hurt their long term viability.
And while the information is valuable to ad monetization, it may not paint a completely true picture. Still, it is a terrific means to compare the platforms and get an aggregate understanding of how content performs. I also think that DVR usage should be measured and can only assume that it is being included inside Television. But is the information accurate and does it measure real usage. It is argued that it does not represent engagement-based measurement and that across platforms, usage measurement is not apples to apples.
But, it is a first step and represents a small leap in recognizing that content, no matter where it is viewed, has an impact on ad monetization. NewTeeVee makes an interesting point, "... because the data isn’t engagement-based focusing on total minutes, either for television or the streaming data, it’s mostly useless, but for including the download numbers we thank NBC profusely! The bottom line is, TV is still king, though streaming is growing. But, unless and until they provide minutes of streaming, it will be difficult to get a true idea of what portion of viewing of shows happens via sanctioned streaming channels." It does say that content is being viewed in many ways, across mobile, VOD, streaming, and download. Viewing patterns are changing and good content gets consumed many times over.
And while the information is valuable to ad monetization, it may not paint a completely true picture. Still, it is a terrific means to compare the platforms and get an aggregate understanding of how content performs. I also think that DVR usage should be measured and can only assume that it is being included inside Television. But is the information accurate and does it measure real usage. It is argued that it does not represent engagement-based measurement and that across platforms, usage measurement is not apples to apples. But, it is a first step and represents a small leap in recognizing that content, no matter where it is viewed, has an impact on ad monetization. NewTeeVee makes an interesting point, "... because the data isn’t engagement-based focusing on total minutes, either for television or the streaming data, it’s mostly useless, but for including the download numbers we thank NBC profusely! The bottom line is, TV is still king, though streaming is growing. But, unless and until they provide minutes of streaming, it will be difficult to get a true idea of what portion of viewing of shows happens via sanctioned streaming channels." It does say that content is being viewed in many ways, across mobile, VOD, streaming, and download. Viewing patterns are changing and good content gets consumed many times over.
Thursday, October 16, 2008
Panasonic Takes Tru2way HDTVs To Retail
Tired of your cable box forcing you to not be able to use your TV set's features. Wish the TV set could do all that it was built to do. Well the cable companies are listening and they have agreed on a platform to allow interactivity to be built right into the TV. Tru2way has been the solution and now the first sets are hitting the retail market. Unfortunately, in a bad economy, the rollout may have just slowed down.
"Panasonic's first tru2way-enabled Viera plasma HDTVs will be offered in 42- and 50-inch sizes. The sets include a tru2way cable receiver -- eliminating the need for a separate set-top box -- that should theoretically work in any cable system that supports the technology." These sets are being sold in two markets, Chicago and Denver; hopefully, it will become nationwide soon.
While fist generation products tend to need tweaking, its nice to see that Panasonic, Sony and Samsung are putting tru2way into their HD sets. If you don't like the cable box, your prayers have been answered.
"Panasonic's first tru2way-enabled Viera plasma HDTVs will be offered in 42- and 50-inch sizes. The sets include a tru2way cable receiver -- eliminating the need for a separate set-top box -- that should theoretically work in any cable system that supports the technology." These sets are being sold in two markets, Chicago and Denver; hopefully, it will become nationwide soon.
While fist generation products tend to need tweaking, its nice to see that Panasonic, Sony and Samsung are putting tru2way into their HD sets. If you don't like the cable box, your prayers have been answered.
Wednesday, October 15, 2008
Big Media, Bad Idea: Synergy Isn't Working
Once upon a time, bigger was better and synergy meant cost effectiveness and strategic efficiencies. But somehow, that concept seems no longer true. While conceptually synergistic relationships make sense; perhaps the human part of the equation offsets the logical side. Or so that seems to be the case today, especially with media companies. As measured by shareholder value, "Between last week and the same week a year ago, Time Warner shares were down 50 percent; Viacom was off 59 percent; G.E. had fallen 46 percent; News Corp. slid 65 percent; and Disney, the big winner, had tumbled a mere 34 percent."
Content connected to distribution is not a happy marriage; Time Warner is divorcing Time Warner Cable and continues to talk about pushing off AOL as well. Should Comcast Cable spin off its programming arm? What about Cablevision and Rainbow Media? The market seems to want these entities to separate in order to unlock more shareholder value. But will it also improve their operations?
In a recent move, Showtime and CBS are presenting content outside their distribution plant with You Tube. "Last week, it put Showtime content front and center in a new partnership with YouTube, offering the channel's most recent series premieres of Dexter and Californication to viewers for free." Would these deals be easier if Showtime spun off from CBS.
The biggest concern is how we measure success. What is more important, long term ROI or short term shareholder equity? Are they mutually exclusive or can they both be met? Clearly the market wants its value now but will that also improve the value of the content and distribution as separate entities as opposed to combined ones? It will be interesting to see which strategy works best.
Content connected to distribution is not a happy marriage; Time Warner is divorcing Time Warner Cable and continues to talk about pushing off AOL as well. Should Comcast Cable spin off its programming arm? What about Cablevision and Rainbow Media? The market seems to want these entities to separate in order to unlock more shareholder value. But will it also improve their operations?
In a recent move, Showtime and CBS are presenting content outside their distribution plant with You Tube. "Last week, it put Showtime content front and center in a new partnership with YouTube, offering the channel's most recent series premieres of Dexter and Californication to viewers for free." Would these deals be easier if Showtime spun off from CBS.
The biggest concern is how we measure success. What is more important, long term ROI or short term shareholder equity? Are they mutually exclusive or can they both be met? Clearly the market wants its value now but will that also improve the value of the content and distribution as separate entities as opposed to combined ones? It will be interesting to see which strategy works best.
Digital TV switch will be messy: FCC official
As February 17, 2009 gets closer and closer, the public will be inundated with the message, get a digital converter or you will lose your TV signals. But will they pay attention. As the country has been divided into the haves and have-nots, those that have a cable connection need not worry. But for those that don't, they may find themselves in the dark, literally.
"About 15 percent of U.S. households use only analog TV sets and could risk their screens going black as analog signals are turned off, according to the Government Accountability Office, a congressional watchdog group." So do those 15% matter or because they most likely fall into the have-not group, their transition is less a priority. I keep wondering whether the transition date won't be delayed. I put the odds on that it gets pushed back. "Congress ordered the switch to digital, effective February 17, to free up public airwaves for other uses, such as for police and fire departments." An added month may be needed as we reach the date. People tend to wait till the very last moment and thus an increase in requests for the digital coupon may not be fulfilled in time. In either case, the clock is ticking.
"About 15 percent of U.S. households use only analog TV sets and could risk their screens going black as analog signals are turned off, according to the Government Accountability Office, a congressional watchdog group." So do those 15% matter or because they most likely fall into the have-not group, their transition is less a priority. I keep wondering whether the transition date won't be delayed. I put the odds on that it gets pushed back. "Congress ordered the switch to digital, effective February 17, to free up public airwaves for other uses, such as for police and fire departments." An added month may be needed as we reach the date. People tend to wait till the very last moment and thus an increase in requests for the digital coupon may not be fulfilled in time. In either case, the clock is ticking.
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