Is AMC Networks For Sale?

Deadline Hollywood posed the question and offered some ideas as to who might be interested in buying the company with networks including AMC, IFC, WE, and Sundance.  Possible acquirers included Scripps (also thought to be for sale), Sony, CBS and others.  But the real question is, do the Dolans want to sell.  For many years, they have been reluctant to consider selling their Cablevision business as well as MSG which included MSG and the Fuse Network.  Months ago, Fuse was also considered for sale but believed to be at a price point too rich for many to consider.  Now with this speculation in Deadline Hollywood, I wonder if there is any fact behind the story or simply something to write.

Of course, one day all these Dolan properties will be sold, Cablevision, AMC, and MSG.  But as a family business, they won't likely sell till they are ready to walk away.  And for son Jimmy Dolan, the prospect of selling MSG and his beloved Knicks seems remote.  One day AMC and Cablevision, but not his Knicks. 

The End Of Banner Ads Part 2

Just a day after Lincoln Millstein predicted at the Media Summit panel that banner ads would be disappearing, his announcement is already coming true.  In today's NY Times, Disney Interactive announced that they are laying off a quarter of their staff.  And buried further down in the article, this little gem: "Mr. Pitaro (James A. Pitaro, the president of the unit, Disney Interactive) said that Disney Online, a collection of websites anchored by Disney.com, would largely abandon display advertising in favor of advertising sponsorships and a greater focus on promoting Disney-branded merchandise."  A very timely announcement. Banner ads don't work; I know as very few people ever click on my display ads on this blog site. 

That a major company like Disney is recognizing that banner ads have lost their impact and their value also demonstrates what Mr. Millstein believed, the need to get back to more creative thinking by content makers and advertisers.  Banner ads have been a stop gap approach to monetizing web content but not an effective one.  What advertising sponsorship means for Disney will have to be watched.  Will it be clearly showcased as advertiser messages or more of a native ad approach, resembling content but pushing an ad over editorial? 

The end of banner ads may not happen as quickly as Mr. Millstein predicts, but the fact that Disney is already agreeing should mean that others will follow this same course.  And Disney, taking another approach, stresses too the promotion of e-commerce on their site.  An opportunity that may not have been fully pursued.  But for every young prince or princess out there, an easy way to get Disney merchandise without going to their theme park.

Digital Hollywood Talks About The End Of Banner Ads

I had the pleasure of attending Digital Hollywood's Media Summit this week, featuring a number of fascinating panels and well regarded speakers.  At Wednesday's Media Strategies panel, I listened as Lincoln Millstein, SVP of Hearst Corp, provided great insights, along with the other panelists.  He went further by providing new examples, outside the web universe, to support his thoughts.  In one answer, he contradicted others by saying that cultures in an organization can change and cited two auto examples with Ford and General Motors.

And in another Q&A asking what the future will hold, he saw an end to banner advertising over the next 1 to 2 years.  Millstein said, "Brands, advertisers, agencies are taking back control of creative." The banner ad no longer works and more innovative ad approaches must be taken.    Of course, we know that banner ads won't completely go away, he later remarked, but their value will greatly diminish. 

Of course, what all content and distribution companies want to know is how do I best monetize my content and my platform.  For most, the source of revenue is either subscription or advertising.  Many believe that better data will help to improve the ad experience.  And personalization is key to a better ad experience.  It was also noted that buying information needs to be combined with interest so that ads aren't being pushed for products and services already purchased.  Ads after purchase are simply wasteful, as one panelist noted. 

Roku Delivers New Streaming Device

Roku has announced its next generation streaming stick that turns any HD TV into a connected set.  And at a price point half of its first generation model, at under $50, Roku is competing directly against Google's Chromecast and even the Apple TV box.  "The other major perk over the Chromecast is you get access to all 1,200 of Roku's apps, or "channels" in Roku's parlance. This includes nearly every major service -- such as Netflix, YouTube, HBO Go, Amazon Instant, MLB.TV, Showtime Anytime, and PBS -- as well as a huge number of niche content sources."  Impressive amount of content to make any consumer satisfied.  It should be available to the public next month.

What excites me more about their efforts is their search capability.  "Besides a new look, the app also integrates Roku's excellent cross-platform search, which scours several major content sources (including Netflix, Amazon Instant, HBO Go, and Hulu Plus) to find where a TV show or movie is available and how much it costs."  For those of us wondering where to find a certain show across content providers, this feature is sure to please. 

Roku clearly has raised the bar and what Google and Apple plan to do with their devices will only keep the competition strong.  Plus at such a low price point, Roku may just have the financial edge too.

Native Ads In The Form Of A Selfie

We all worry that we are being duped on web sites when we see content that is not truly editorial, but paid sponsorship from a company.  These native ads though have become more valuable than banners as more people click on them.  Whether they know it is an ad or not, the caption and photo engages us to click.  Some sites do more to tell us which content is paid and which is not; others do not.

So on the Academy Award telecast on Sunday, we were treated to Ellen DeGeneres taking a selfie with a number of stars using her Samsung Galaxy phone.  Product promotion, native ad, it was a scripted piece.  And from what we now understand, a paid for moment.  "The integration of the Samsung Galaxy Note 3 into the show itself offered another example of why marketers have become so fond of programming like the Oscars and the Super Bowl. They are live shows that tens of millions of viewers deem each year as must-watch television, and they provide numerous alternative ways to engage with consumers beyond traditional commercials." All I can say is brilliant marketing!

But there was unintended product placement, too.  "And during the pizza delivery stunt engineered by Ms. DeGeneres, there were two brand logos clearly visible on the boxes delivered to the theater: Big Mama’s & Papa’s Pizzeria and Coca-Cola."  Unfortunately, neither paid for a sponsorship.  And in fact, the soft drink sponsor was their competitor, Pepsi.  Of course, when programming is live, unintended things happen, too.  At least we didn't have any streakers.

Apple TV Set Top Not A Bad Business

With all the focus on on iPads and iPhones, Apple's set top TV box, priced under $100, continues to do well.  Last year, it sold over a billion dollars in revenue of this product and since inception has "sold more than 13 million units of its 'hobby' product, compared with eight million for the competing Roku set-top."  Not bad numbers given that Apple spends significantly more of its time on its other product line. 

The good news is that Apple recognizes that the Apple TV is not the runt of the litter and plans to put more investment and time into this product.  The hope is that a next generation will be announced before the end of the year.  Having that expectation myself, I have held off buying the Apple TV set top; I am eager for that new release to finally purchase one for at least one of our HD sets. 

Of course, I believe more investors and enthusiasts are still more interested in what next new product will emerge.  Will it be a TV set, a product I don't believe they should release, or a wearable device, like the possibility of an iWatch.  I would be more excited to hear that news.  Until hten, congrats on the good news on Apple TV set top boxes; it may not be as sexy as an iPad or iPhone, but it is a welcome device in the home. 

ABC Streaming The Oscars ... With A Catch

At first glance, the news that ABC would be streaming the Oscar telecast on Sunday was good news to cord cutters and non cable households.  But the truth is in the fine print, you must first be an authenticated cable customer.  "In order to access WATCH ABC, you must have a cable subscription through Comcast, Cablevision, Cox Communications, Charter Communications, Midcontinent Communicaitons (sp), Verizion FiOS, Google Fiber or AT&T U-Verse in either New York, Los Angeles, Chicago, Philadelphia, San Francisco, Houston, Raleigh-Durham or Fresno."  Certainly added value for cable customers not able to watch through their cable box.

But what if ABC offered the Oscars to everyone, whether they bought cable or not.  Would they really lose broadcast viewership or would they gain a much larger number of consumers who would like to watch but aren't authenticated.  And if they can monetize the advertising of the video stream, could it be a profitable tactic too.  I'm sure the big worry is to risk losing license fees that they get from their cable operator partners.  Its why they are fighting Aereo. 

And wouldn't each ABC affiliate in each market want to show their own streaming feed to maximize their local ad load too.  By limiting to authenticated viewers only, the ABC Network most likely expects that it won't materially affect its affiliates ratings in each DMA.  But would opening the stream to all web enabled devices be more favorable than problematic.  Or is the concern that it could lead to letting the genie out of the bottle and lead to widespread cord cutting.  Doubtful. 

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. 

Is Aereo Stealing Or Adding Value To Broadcaster Signals?

According to the major broadcasters, "Aereo is engaging in theft on a massive scale and must be stopped."  They will get their day in court as the Supreme Court has agreed to listen to the case.  But while everyone argues, Aereo continues to grow markets and customers. 

Aereo argues that broadcast signals are being delivered to homes over free, over the air signals.  They are simply renting to consumers an antenna to capture those signals as well as additional services like DVR.  So is it stealing signals or not?  Broadcasters have been able to get cable operators to pay for access to their networks because of previous rules known as must carry and retransmission consent.  Some smaller broadcasters relied on must carry, requiring cable operators to carry their service, at no charge, to assure that their low powered signals gained wider distribution.  Others, charged for their networks.  Univision, a Spanish language broadcaster, successfully transitioned from must carry status to retransmission consent, as their network gained popularity.  For them, it opened a brand new revenue stream.

In these cases, broadcasters provided a signal directly to cable operators' headends, but Aereo has taken a different route.  By renting individual antennas, it has created a work around that seems to stay true to the notion of antenna carriage of broadcast signals.  That they deliver added services to the consumer and charges for rental and service in no way interrupts or interferes with the broadcaster.  And as long as broadcaster continue to use over the air signals, I believe that Aereo will continue to have a successful business.  That said, I believe that Aereo will win the Supreme Court case.