Diddy Might Want His Fuse TV

While previous speculation that AMC Networks could be for sale came last week, today we are back to word that the fuse network is close to being sold.  According to the report, "Sean Combs, the hip-hop mogul now known as Diddy, has bid about $200 million for the Fuse cable-TV channel".  He would combine it with his own music channel Revolt TV and gain wider cable distribution.  Will Jimmy Dolan sell?  Is there other motivation to make such a deal?

For those that don't know, fuse and MSG CEO Jimmy Dolan also fronts a band, JD and the Straight Shot.  If you saw the movie, August:Osage County, you may have actually heard some of their music.  Perhaps a move with Diddy helps JD get his music a wider awareness and notoriety.  Or it is simply the time to cash out.  But given Jimmy Dolan's love of music and the music scene, it is hard to believe that he would let go of fuse completely. 

XBox One Uses Exclusive Content To Drive Sales

Content is king reigns again as Microsoft uses this strategy to drive sales of its Xbox One platform.  The content is Titanfall, a shooter game played socially.  And because it is exclusive, it requires both XBox and membership in Xbox Live.  With all the hype behind the release, Microsoft should see a bump in sales.  But is it enough to overtake Sony and its Playstation 4 system.

Certainly XBox needs this kind of game to drive sales but what it a calculated move to wait almost half a year from the launch of its new platform to release it.  Would it have helped XBox to deliver this game with the initial launch?  I suspect the initial strategy may have been to do just that but that the game simply wasn't ready in time to launch it earlier.  But if it was, why did they wait?

Beside launching a more expensive gaming system then the PS4 and not initially allowing older games to play on this new device, this may have simply been a third strike in missed opportunities.  Clearly the XBox One is not a bad device, it just is not as popular to date as its rival.  Hopefully, the release of Titanfall will be the exclusive content that brings sales figures closer to Playstation.

As for gamers like my son who chose the PS4, they are clearly disappointed that the game is exclusive to the other gaming system.  Will they switch? Will they hope that PS4 has its compelling exclusive content to remind them of the value of their system?  Or will they use an old XBox 360 platform to play the game when it is finally released in that version?

This millennial audience may have a hard time waiting for the next big thing.  They have been raised on immediate consumption and the thought that a future game is on the horizon may be hard to wait for. How many PS4 gamers also buy the XBox One; you never know.

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.