Here is a case where distribution is key. Time Warner Cable in New York City is making changes to its line-up. Fox Business News Channel, a brand new entrant to the cable line-up, has found key positioning on the basic channel line-up, channel 44 for its service, channel 45 for Fox News. CNBC doesn't hurt in this deal, they are on channel 15 with MSNBC next door at channel 14.
And where is Bloomberg...channel 109.
That must have been one heck of a negotiation to get such prime space when most new entrants are lucky today to get VOD, let alone digital carriage. And where are the channels that used to occupy that space ending up.
In this case, distribution is power.
Wednesday, September 5, 2007
Amazon's Unbox to Sell NBC Shows
As the relationship with Apple and iTunes quickly unravels, another begins, the Amazon unbox store. But what of the user. As the Apple iPod owns the vast majority of portable devices, this new relationship immediately drops all those potential users as well as those that own a mac. What is next in store for NBC to regain those users. As Hulu is not set to release till October, where does the user go to watch NBC shows on their mac and iPod devices. Perhaps that will be NBC's next announcement. As both a mac and iPod user, I am concerned. The one bright spot is the relationship of Amazon with Tivo to watch these shows.
What is missing from all this hoopla is that NBC was also using iTunes to promote its new Fall series with free downloads of its new shows. That marketing strategy appears to be missing from the Apple Unbox announcement. Building loyalty to new series seems key to the rebound of NBC in the ratings race. New shows need to find an audience and this strategy of free downloads helped to build the word of mouth and interest in becoming a regular viewer.
Tuesday, September 4, 2007
Sony May Take On iTunes in Download Arena
First, the NBC/Fox partnership, Hulu, announces their plans, then NBC pulls out of its iTunes negotiations, and today Sony announces its plan to compete with iTunes. Plus Amazon is already in the space. Does this spell the end of iTunes dominance? Did Steve Jobs and Apple take for granted their huge market share to control distribution and not see that the barriers of entry are dropping to allow more players to compete. Will the user go to the content or will Apple's distribution force content owners to continue to use them in their mix of distribution platforms.
It is all part of the survey question being asked, which is king, content or distribution.
It is all part of the survey question being asked, which is king, content or distribution.
Friday, August 31, 2007
NBC ending its relationship with iTunes
As the NBC relationship with iTunes expires in December and the launch of Hulu is expected in October, the change in distribution by NBC begs the question, what is more important, content or distribution.
I have always contended that content is king, and like the line from Field of Dreams, "If you build it, they will come." Quality content will find distribution. Recently, however, a friend of mine made the opposite assertion that distribution is king. If you have the pipeline and the access to an audience, they will come to you no matter what you offer. In fact, many cable networks have done quite well once they got access to distribution with what some may argue was not great programming.
Its the kinda question as old as the chicken or the egg.
So, what do you think. Which matters most - should an entertainment company building new content concentrate first on great quality of its content or should they spend their money first on securing great distribution deals with whatever content they can offer quickly or cheaply. Is content king or is distribution?
In the case of NBC, they seem to be saying that their content is king. Despite the huge distribution that iTunes offers, they are willing to cut that off for their own, brand new distribution platform, Hula. Content over distribution. But will the audience find Hula like they know iTunes. Only time will tell and maybe it will answer the question, content or distribution.
I have always contended that content is king, and like the line from Field of Dreams, "If you build it, they will come." Quality content will find distribution. Recently, however, a friend of mine made the opposite assertion that distribution is king. If you have the pipeline and the access to an audience, they will come to you no matter what you offer. In fact, many cable networks have done quite well once they got access to distribution with what some may argue was not great programming.
Its the kinda question as old as the chicken or the egg.
So, what do you think. Which matters most - should an entertainment company building new content concentrate first on great quality of its content or should they spend their money first on securing great distribution deals with whatever content they can offer quickly or cheaply. Is content king or is distribution?
In the case of NBC, they seem to be saying that their content is king. Despite the huge distribution that iTunes offers, they are willing to cut that off for their own, brand new distribution platform, Hula. Content over distribution. But will the audience find Hula like they know iTunes. Only time will tell and maybe it will answer the question, content or distribution.
Thursday, August 30, 2007
CondéNet, MSNBC Strike Syndie Pact
"CondéNet has struck a deal with MSNBC.com to syndicate content from a variety of its signature Web brands, including Style.com, Men.Style.com, Epicurious.com, as well as select content from several Condé Nast magazines, ranging from Vogue to the recently launched Condé Nast Portfolio."
Great initial synergistic opportunity for CondéNet and their magazines to get increased awareness for their brands on the web. For print to survive, these relationships are important strategically to take these brands to the next level. At the same time, these print brands need to augment their content with video and interactive elements to truly build sustained value for their brand. Awareness through highly trafficked sites like MSNBC.com is a good start, as CondéNet realizes the power of the distribution model; to follow that strategic plan to a next level, they should look for additional partners in cable and broadcast TV. Extend the brand with MSNBC into the on-air linear world too. And I can think of many other outlets to explore, Lifetime, WE, Style, Oxygen that could benefit from a partnership with CondéNet brands as well.
Great initial synergistic opportunity for CondéNet and their magazines to get increased awareness for their brands on the web. For print to survive, these relationships are important strategically to take these brands to the next level. At the same time, these print brands need to augment their content with video and interactive elements to truly build sustained value for their brand. Awareness through highly trafficked sites like MSNBC.com is a good start, as CondéNet realizes the power of the distribution model; to follow that strategic plan to a next level, they should look for additional partners in cable and broadcast TV. Extend the brand with MSNBC into the on-air linear world too. And I can think of many other outlets to explore, Lifetime, WE, Style, Oxygen that could benefit from a partnership with CondéNet brands as well.
Wednesday, August 29, 2007
In Europe, a Push by Phone Companies Into TV
IPTV seems like an awesome technology, most notably its ability to link content programming with interactivity - call up sports stats as you watch a game, choose your American Idol favorite as you watch the show, ask and receive information at the click of a button. That combination opens up opportunities for programmers and advertisers to truly impact the user experience. So why is it not being quickly embraced. Obvious issues include digital rights, security, and acceptance. Some programmers are reluctant to license their content through this pipeline till they can legally figure out their own legal rights to the content they feature.
The article contends that the growth in Europe is dependent on consumer acceptance. AT&T is working with an IPTV model here in the US. I think that the issue is not to sell the technology, but to sell the solution. As an example, Apple took the mp3 player and made it ergonomic and attractive and valuable to the consumer with their iPod. For IP, make the content easy to navigate and interact with, an interface that consumers clamor for, say a remote resembling the Apple iPhone, and make the functionality intuitively easy to use.
The article contends that the growth in Europe is dependent on consumer acceptance. AT&T is working with an IPTV model here in the US. I think that the issue is not to sell the technology, but to sell the solution. As an example, Apple took the mp3 player and made it ergonomic and attractive and valuable to the consumer with their iPod. For IP, make the content easy to navigate and interact with, an interface that consumers clamor for, say a remote resembling the Apple iPhone, and make the functionality intuitively easy to use.
Tuesday, August 28, 2007
Web's Niche TV Programs Win Sponsors
Terrific article in today's WSJ targeting the long tail of programming that is popping up on the web and the small, but engaged audiences they are reaching. Two of my favorites are mentioned in this article, Wallstrip and NextNewNetworks, and how they are extremely flexible to support their partners so as to find a revenue model. Most notable, the use of in program product placement and editorial content extolling the value of the advertised brand.
Is this a good thing? Obviously, the need to find a revenue model that supports the costs of these "niche" channels is essential. But is editorial and/or entertainment standards being lowered to advance the cause of the ad model. And the fact that these channels are not yet reaching a scalable size to make a big dent, will this collaborative approach lead to more awareness and eyeballs to the channel. That is to say, perhaps the advertising drives brand recognition. As articles such as these appear, more people are learning that these channels exist. Channels like Wallstrip, with the powerful CBS brand behind it, has more potential through synergy with its parent and deep pockets to bankroll its growth. I will say this, these niche channels are very entertaining and their key to survival is a growing audience and a sustainable revenue model. The long tail of programming can incubate many terrific ideas, but as history proves, reach and ratings do matter. Programming costs money and someone has to pay; and advertisers seek identifiable returns to keep investing their marketing budgets in this long tail of entertainment opportunities. I wish them well and I personally will keep watching!
Subscribe to:
Posts (Atom)
