As many household know, sports fans can be crazy. We will do most anything to watch our teams. Out of market football fans find solace with DirecTv Football package while cable homes rely on NFL Redzone. And for every type of sports interest from football to baseball to soccer to tennis, there is a channel or two devoted to it. Which makes cutting the cable cord to watch the array of sports on TV almost impossible.
The article in MarketWatch may represent more of a soccer interest but the author recognizes just how difficult it is to get access without paying for cable service. An app here or there, an illegal streaming site perhaps, but the challenge in finding specific sports content without cable, "has made cutting the cable cord so difficult, if not impossible. " Sure we can drop by the local pub to watch our games, but the cost of eating and drinking might just start to outweigh the cost of cable, as well as our own weight.
Not every one is a sports fan, but there are enough in each household that cable cord cutting won't be at much risk till all games can be streamed a la carte. And that is why broadcast and cable networks are willing to shell out big money for sports rights to air on their channels. It is the glue that keeps us tuned to cable television.
Wednesday, December 11, 2013
Content Consumption By The Numbers
20 Crazy Santa Claus Photos
19 Snacky Foods
18 LOL Memes
17 Unselfish Selfies
16 Inexpensive Gifts
15 Best Movie Lines
14 Victoria Secret Lingerie Models
...
You get the picture. Lately, web pages are filled with numbers with eye catching graphics and compelling subject lines that want us to click page after page to get to the number one reason. It is the success of David Letterman's Top Ten List that has been reworked for the web. And the bottom line, more pages consumed, more time spent with the website, and more ad impressions.
And who is doing this "content by the numbers" game well? Almost everyone these days. From Buzzfeed to Huffington Post, you can catch articles like "17 Santa Claus Photos That Make Your Skin Crawl" to "11 Things You've Always Wanted To Know About Lesbian Sex But Were Afraid To Ask". From unusual to titillating, these headlines keep our fingers clicking on the pages, with photos, videos and articles to view, as well as display ads, pre-rolls, pop-overs and pop-unders, and everything inbetween. It seems we are caught up in top 10 or whatever number suits your fancy. So have fun clicking. Me, I'm off to Business Insider to learn about "23 Spin-Off TV Shows That Totally Bombed".
19 Snacky Foods
18 LOL Memes
17 Unselfish Selfies
16 Inexpensive Gifts
15 Best Movie Lines
14 Victoria Secret Lingerie Models
...
You get the picture. Lately, web pages are filled with numbers with eye catching graphics and compelling subject lines that want us to click page after page to get to the number one reason. It is the success of David Letterman's Top Ten List that has been reworked for the web. And the bottom line, more pages consumed, more time spent with the website, and more ad impressions.
And who is doing this "content by the numbers" game well? Almost everyone these days. From Buzzfeed to Huffington Post, you can catch articles like "17 Santa Claus Photos That Make Your Skin Crawl" to "11 Things You've Always Wanted To Know About Lesbian Sex But Were Afraid To Ask". From unusual to titillating, these headlines keep our fingers clicking on the pages, with photos, videos and articles to view, as well as display ads, pre-rolls, pop-overs and pop-unders, and everything inbetween. It seems we are caught up in top 10 or whatever number suits your fancy. So have fun clicking. Me, I'm off to Business Insider to learn about "23 Spin-Off TV Shows That Totally Bombed".
Tuesday, December 10, 2013
Cable Convergence Part 2
Just because this morning's blog was about consolidation on the operator side doesn't mean that programmers aren't in play too. In my last paragraph, I suggested that smaller independent should consider merging with larger programmers. Well, Variety has just learned that Discovery Networks, home for Discovery, TLC, and Animal Planet, may be kicking the tires on Scripps Networks (SNI), parent of HGTV and Food Network. According to the article, "Knoxville, Tenn.-based SNI has been seen as a prime acquisition target for some time."
True or not, the one thing that can be stated, cable consolidation will only continue. "If anything, a Discovery-Scripps tie-up may just be the beginning of further dealmaking in the sector. AMC Networks, Starz, Viacom and even Discovery itself have been mentioned as possible acquisition targets." So in the coming weeks we may see changes on both the cable operator and cable network sides of the business.
True or not, the one thing that can be stated, cable consolidation will only continue. "If anything, a Discovery-Scripps tie-up may just be the beginning of further dealmaking in the sector. AMC Networks, Starz, Viacom and even Discovery itself have been mentioned as possible acquisition targets." So in the coming weeks we may see changes on both the cable operator and cable network sides of the business.
Cable Content Convergence Not To Fear
Today's NY Post talks about smaller, independent cable programmers fearing distribution growth from cable operator consolidation. "The biggest fear is that a takeover by an operator paying higher fees of
an operator paying lower fees will result in smaller programmers being
offered the lower fees across the combined, larger system, executives
and industry insiders said." But that is true for all cable programmers. The other fear is that it gets harder for smaller cable programmers not already distributed to gain a larger footprint as their are less cable operators to negotiate with. In some cases, a programmer on one operator might even get dropped as the system is merged with another cable operator.
For cable operators, consolidation means opportunities to renegotiate license fees lower as a result of exceeding certain subscription benchmarks. A programmer in both consolidated properties will directly feel the effect of lower revenues per subscriber without any increase in subscriber size; the cable operator gets more cost efficiencies.
Gaining space on a cable operator has never been harder and requires deep pockets to spend "marketing dollars" to the cable operator for a channel spot. I can only assume that an independent channel like Al Jazeera America must have spent a fortune to get back on to Time Warner Cable. But they may also worry that if Charter acquires TWC that their deal could backfire.
But cable consolidation should not be viewed as "bleak" according to one independent programmer. The rise of OTT means that other platforms exist to reach consumers. There may not be high license fees to start but such was the case with cable in the early days, as well. But OTT platforms would love to make themselves more valuable and interesting to consumers. Independent programmers should be strategizing where to best position themselves. Whether it is on gaming platforms like XBox One or Sony's PS4, upstart Aereo, or even struggling platforms like Intel Media. And don't forget Roku, You Tube, Hulu Plus, and others. Sure cable operators have the dominant platform today, but not the only one.
Of course there is one other way to try to get on a cable operator platform. Smaller independents might just want to consolidate themselves. Perhaps Discovery, ABC/ESPN, or NBCUniversal would be interested in acquiring you. It is a dog eat dog world and the challenge to grow is to look outside the box or risk being eaten.
For cable operators, consolidation means opportunities to renegotiate license fees lower as a result of exceeding certain subscription benchmarks. A programmer in both consolidated properties will directly feel the effect of lower revenues per subscriber without any increase in subscriber size; the cable operator gets more cost efficiencies.
Gaining space on a cable operator has never been harder and requires deep pockets to spend "marketing dollars" to the cable operator for a channel spot. I can only assume that an independent channel like Al Jazeera America must have spent a fortune to get back on to Time Warner Cable. But they may also worry that if Charter acquires TWC that their deal could backfire.
But cable consolidation should not be viewed as "bleak" according to one independent programmer. The rise of OTT means that other platforms exist to reach consumers. There may not be high license fees to start but such was the case with cable in the early days, as well. But OTT platforms would love to make themselves more valuable and interesting to consumers. Independent programmers should be strategizing where to best position themselves. Whether it is on gaming platforms like XBox One or Sony's PS4, upstart Aereo, or even struggling platforms like Intel Media. And don't forget Roku, You Tube, Hulu Plus, and others. Sure cable operators have the dominant platform today, but not the only one.
Of course there is one other way to try to get on a cable operator platform. Smaller independents might just want to consolidate themselves. Perhaps Discovery, ABC/ESPN, or NBCUniversal would be interested in acquiring you. It is a dog eat dog world and the challenge to grow is to look outside the box or risk being eaten.
Monday, December 9, 2013
Apple Invades China
Despite some concerns that Apple didn't build a cheap enough iPhone, come this Thursday, "China Mobile, the largest wireless carrier in the world, will start taking pre-orders for Apple's iPhone". And yet the expectations are running high that the iPhone will quickly gain significant market share. Perhaps staying as a premier brand with a high price point along with the recent release of its iPhone 5s, with a gold back, China might just fall in love with the iPhone just as the US and other markets do.
Of course, once China Mobile has the iPhone then so do consumers gain access to the iTunes library and the opportunity to buy apps, music and movies. And for me gaining more users into the Apple infrastructure means access to more of Apple's products including iPads, Apple TV and more. The China Mobile launch is certainly a big deal.
Of course, once China Mobile has the iPhone then so do consumers gain access to the iTunes library and the opportunity to buy apps, music and movies. And for me gaining more users into the Apple infrastructure means access to more of Apple's products including iPads, Apple TV and more. The China Mobile launch is certainly a big deal.
Time Warner Cable, For Sale Or Not
The year is close to ending and the M&A guys would love to announce one more deal before the end of the calendar year, but Time Warner Cable, may be playing a game of will they or won't they. According to future CEO, current COO, Rob Marcus, denied the Bloomberg report that he was willing to sell at the right price but was in fact in it "for the long haul". Of course despite the will they or won't they thinking, Charter has expressed interest and Comcast may be talking to its bankers as well. Given the push toward broadband and the need for more efficiency by the cable operator to expand, Time Warner Cable may be in fact negotiating how such an acquisition could take place and how might current management be affected. I suspect that a deal will get done and I don't see how Comcast can be involved unless they are willing to trade some systems to Charter for others.
Friday, December 6, 2013
NBC's Sound Of Music Steps In The Right Direction
Ahh the challenges of live television, missed marks, fumbled lines, sound issues, but still what a joy to see. While the acting on last night's show may not be golden, the singing certainly was. And I must give NBC high marks for doing something that rarely gets done anymore beyond sports and awards shows. Live Television. "30 Rock" did it a couple times and now a 3 hour theatrical production. I have yet to see the ratings but I suspect that many people tuned in to watch. I also expect to hear that others recorded it to watch at their leisure. It may have had its flaws, but it is a great plus for broadcast television.
I must admit to reading with laughter the snarky remarks coming from Twitter. It offered tremendous fodder for creative commentary. But it also indicated that many people were watching it. While I personally like when theatrical shows are shown from the Broadway stage and in front of a live audience, I have to commend the set direction and flow from one set to another as well done. The acting showed how important it is to have experience on the theatrical stage, but the singing was terrific. I understand that the music was prerecorded which misses the extra appeal of a live orchestra. And without an audience to applaud, the timing of the show was unimpeded, letting the production end at the planned time. But it lacked that extra energy and isn't that what "LIVE" is all about.
So my hope is that broadcasters look at this production as a ratings and financial winner and plan to do more live programming. It has been long missing on television and is a refreshing change to what is currently being shown.
I must admit to reading with laughter the snarky remarks coming from Twitter. It offered tremendous fodder for creative commentary. But it also indicated that many people were watching it. While I personally like when theatrical shows are shown from the Broadway stage and in front of a live audience, I have to commend the set direction and flow from one set to another as well done. The acting showed how important it is to have experience on the theatrical stage, but the singing was terrific. I understand that the music was prerecorded which misses the extra appeal of a live orchestra. And without an audience to applaud, the timing of the show was unimpeded, letting the production end at the planned time. But it lacked that extra energy and isn't that what "LIVE" is all about.
So my hope is that broadcasters look at this production as a ratings and financial winner and plan to do more live programming. It has been long missing on television and is a refreshing change to what is currently being shown.
Thursday, December 5, 2013
Microsoft Adds More Debt...Why?
With Microsoft launching its latest gaming platform, Xbox One to solid revenues and planning a change to its executive ranks with the retirement of Steve Balmer, the latest news may make you wonder. According to Bloomberg, "Microsoft Corp. (MSFT) sold $8 billion of
bonds in dollars and euros, a record offering from the world’s
largest software maker". Perhaps one reason is to take advantage of lower interest rates as many speculate that they will be rising; Microsoft says that the funds will be used for "general corporate purposes".
Certainly, Microsoft has watched as Google, Samsung, and Apple have taken the lead in the hardware race. Their tablet, the Surface 2 lacks the buzz that other tablets offer. And both Google and Apple have invested in the infrastructure to provide content to their devices. With PC sales waning, Microsoft's success with Office may diminish too. Today their best new product is the Xbox.
So perhaps, Microsoft may be wanting to enlarge its cash war chest for a possible purchase. A cable operator like Time Warner Cable or content creator like AMC Networks, or perhaps an OTT content distributor like Netflix. Where does Microsoft want to be in 5 years and what do they want to be known as, a hardware company, software company or a content company.
Certainly, Microsoft has watched as Google, Samsung, and Apple have taken the lead in the hardware race. Their tablet, the Surface 2 lacks the buzz that other tablets offer. And both Google and Apple have invested in the infrastructure to provide content to their devices. With PC sales waning, Microsoft's success with Office may diminish too. Today their best new product is the Xbox.
So perhaps, Microsoft may be wanting to enlarge its cash war chest for a possible purchase. A cable operator like Time Warner Cable or content creator like AMC Networks, or perhaps an OTT content distributor like Netflix. Where does Microsoft want to be in 5 years and what do they want to be known as, a hardware company, software company or a content company.
Should Native Advertising Be Regulated?
As consumers become less susceptible to clicking on display advertising, web publishers have relied on other technological moves to assure that ads get seen and hopefully clicked. From launching web pages under and over existing pages to expanding content to fill the screen. All done to assure that access to free content enables revenue monetization. While pre-roll of ads on video is one way to force consumption, another has been to use advertising that looks like editorial to encourage viewership. Dubbed native advertising or content sponsorship, it has quickly become a successful means to increase web clicks. Some sites highlight the block to indicate that it is sponsored, others might actually put a footnote or header to indicate it. And still others let the native ad content blend seamlessly with the other editorial content. But should it be a case of buyer beware?
Such was the case of a conference held to discuss native advertising. "Consumer advocates, publishers and advertisers who spoke at the event generally expressed agreement with the idea that Web sites should make clear when they are running native ads -- at least when the ads directly hawk a product." An example that has been used is that of a drug company that promotes an article about management of a health problem and cites its drug as a possible remedy but not other alternative options. When not labelled clearly as sponsored, consumers may be confused in thinking that the drug mentioned was an "independent analysis" and a "best remedy" And it is that possible confusion that has the FTC wondering how native advertising needs to be distinguished from editorial for the consumer.
Not all native advertising sells products or services. Some are actually used for content recommendation to encourage viewers to visit another website. " In some cases, the sponsored content is just an item that advertisers think readers will find interesting. But some advocates say that even those types of native ads should carry a disclosure, so consumers will know that the article didn't originate with the publisher." So should all native advertising or sponsored content be treated equally? I maintain that some notification may seem helpful, users are apt to overlook. The idea of "caveat emptor" or buyer beware still should hold true. Should these ads become more deceptive the consumer will engage and fight back and the marketplace will feel the effect.
Such was the case of a conference held to discuss native advertising. "Consumer advocates, publishers and advertisers who spoke at the event generally expressed agreement with the idea that Web sites should make clear when they are running native ads -- at least when the ads directly hawk a product." An example that has been used is that of a drug company that promotes an article about management of a health problem and cites its drug as a possible remedy but not other alternative options. When not labelled clearly as sponsored, consumers may be confused in thinking that the drug mentioned was an "independent analysis" and a "best remedy" And it is that possible confusion that has the FTC wondering how native advertising needs to be distinguished from editorial for the consumer.
Not all native advertising sells products or services. Some are actually used for content recommendation to encourage viewers to visit another website. " In some cases, the sponsored content is just an item that advertisers think readers will find interesting. But some advocates say that even those types of native ads should carry a disclosure, so consumers will know that the article didn't originate with the publisher." So should all native advertising or sponsored content be treated equally? I maintain that some notification may seem helpful, users are apt to overlook. The idea of "caveat emptor" or buyer beware still should hold true. Should these ads become more deceptive the consumer will engage and fight back and the marketplace will feel the effect.
Subscribe to:
Posts (Atom)
