Embracing Branded Content

Getting your brand, product, or service noticed is an elusive business.  And in today's digital world, with so many advertising choices and the credibility from social media, breaking through the clutter becomes harder and harder to do.  Programmatic advertising has come along to aid in the efficiency of purchasing advertising and data is the most important component in driving where, when, how and who in ad placement.  But the challenge remains in breaking through the clutter.

General Electric, a former owner of NBC and its collection of broadcast and cable networks, certainly saw that challenge firsthand.  And as an advertiser, GE has chosen the branded entertainment route to drive home its message.  According to today's New York Times, "G.E. aims to create high-quality branded content that will highlight scientific innovation, some of it involving scientists who work for or with the company."  This six part documentary series will be aired on the Nat Geo channel later this Fall.  The plan it seems is not to overwhelm its audience with the GE brand but make it a cohesive part of the program.  "Marketing experts say this turn to branded entertainment is happening because the traditional methods of advertising are outdated and every piece of content, advertising or not, must compete for viewers’ attention."

That this article has already appeared on social media through Facebook and Twitter and that the NY Times chose to report this program as a bigger story certainly helps drive home the GE message. And the timing, just when GE is selling off its capital finance business from its core industrial business, may not be so coincidental.  Certainly we will have to wait and see if this story is revisited prior to the premiere of the broadcast.  Still, it speaks to a growing trend toward branded entertainment as a means to drive brand engagement and value. 

Apple Watch Preorders Surge

It may take weeks, perhaps months to put one on your wrist, yet despite the backlog, Apple has sold 1 million Apple Watches on just its first day.  A huge number consider that " just 720,000 Android Wear devices were sold throughout all of 2014"  according to Business Insider.   Whether the Apple Watch is considered a product winner will take years to finally determine.  In the meantime, it simply represents a small slice of the Apple marketplace which is fundamentally determined more by the number of iPhones sold then anything else they offer.  Heck, even their iTunes music and app store is a side business compared to the iPhone. 

The fact that a million customers were willing to pay $350 or more for a first generation device indicates how strong the Apple base is.  Certainly the number of sales will drop in the coming weeks, perhaps spiking a bit when inventory is available at their stores.  Still, their enthusiasm and love of Apple will encourage more apps to be created for the Apple Watch and more uses uncovered.  And as next generations of Apple Watches are released, more growth will be delivered.  Give it a couple years and you will probably find yourselves buying a new iPhone and Apple Watch at the same time.  And maybe then they will rename it the iWatch. 

Apple Watch Adoption

An important component to the successful adoption of the Apple Watch will be Apple's retail stores.  Just enter the please touch me world of an Apple store and immediately their devices are at your fingertips.  Play with an iPhone 6 Plus, try out the Apple TV, surf the web on a Macbook Pro.  And have a question, an Apple employee is easily spotted in their branded T shirt, happy to help.  Never is anyone told to not touch any of the Apple devices.  In fact, Apple makes it easy to become a fan. 

It is that approach to retail that should surely aid the introduction and adoption of the Apple Watch.  As long as the customer is allowed to play with it, touch it, figure it out, then they will build a connection and ultimately purchase.  The Apple Watch has a long life cycle ahead of it; the first generation watch will come with a lot of learning, some failure, but ultimately future success.  And while reviews were mixed on what was loved and hated on the watch, most expect future generations of the Apple Watch to succeed. 

I too may not be an early adopter of the first gen watch, but I like what I see so far.  The potential is enormous and the future bright.  Like other devices from Apple, price points will eventually come down, noticeable improvements of screen, battery, and memory will occur, and consumers will continue to demand more.  The best way to gauge the success of the Apple Watch might just be to watch consumers pour into their nearest Apple store to play with the device again and again.  For what Apple has learned through retail, the more they interact, the more likely they are to buy. 

Apple Watch Reviews Are Coming In

Not yet available for sale, the Apple Watch is being reviewed and as you would expect they include the good and the bad.  But like any first generation product, the key to longevity will depend on the value the consumer perceives from it.  Apple has a lot of experience with product launches.  Just look at the first generation of the iPod, iPhone, and iPad and see how the current generation compares.  Massive improvement and huge appeal.  So if history is any guide, the Apple Watch will follow the same curve.

But for those looking for some early reviews, I've attached some links:

CNET - "The Apple Watch is the most ambitious, well-constructed smartwatch ever seen, but first-gen shortfalls make it feel more like a fashionable toy than a necessary tool."

CNBC - "positive with caveats"

The Verge - "Apple has the marketing prowess, the retail store network, and the sheer determination to actually make this thing happen."

re/code - " If you’re an iPhone power user and you’re intrigued by the promises of wearable technology, you’ll like it, too."

Business Insider - "The watch is a really nice device that has lots of potential, but most people should skip it for now. It's good for early-adopting techies who live and breathe through their phones, but the rest of the world should wait for the next version of the watch."

NY Times - "It took three days — three long, often confusing and frustrating days — for me to fall for the Apple Watch. But once I fell, I fell hard."

Bloomberg - "The Apple Watch is cool, it’s beautiful, it’s powerful, and it’s easy to use. But it’s not essential. Not yet."

I'm sure early adopters will buy the Apple Watch just like they did the first gen iPod and iPhone, and iPad.  As battery life improves and more apps are written, I am confident the Apple Watch will become another integral part of the Apple ecosystem.  And for those homes that like the Apple Universe, the Apple Watch will be the next big must have device.

Has Battery Power Made A Quantum Advance

An interesting article in re/code has announced news out of Stanford University that may radically improve battery usage and recharging.  According to the article, "A research team at Stanford University says it has come up with a prototype aluminum battery that can recharge in as little as one minute, as compared to the hour or so it takes the fastest lithium-ion battery." In addition, the new battery is said to be safer, cheaper, and last longer on recharging.  while still a prototype, one can only wonder how soon before this product comes to market. 

How Big Could Charter Cable Get

Considering that the FCC has yet to approve the Comcast-Time Warner Cable deal, Multichannel is already speculating just how big could Charter get.  Once that deal is approved, and many believe that if it wasn't the FCC would have already said no, Charter Cable would move forward with its deal for Bright House Networks and acquire subs from the TWC consolidation to exceed a 10 million cable subscriber base.  

Given Malone's penchant for growth, this domestic drive for a larger cable footprint could lead to more consolidation.  According to the article, the next targets could include "Suddenlink Communications (private), Mediacom Communications (private), Cable One (planned to be spun off from Graham Holdings as a separate public company this year) and Cablevision Systems (public), with the latter possibly involved in a later system swap with Comcast."  But first, Charter would have to successfully integrate the Bright House properties before chasing after these names.  

How would the cable landscape look after AT&T acquires DirecTV and Comcast acquires Time Warner Cable, here you go:

MVPD                                                  Subscribers

Comcast/Time  Warner  Merger*         30,000,000

AT&T/DirecTV  Merger*                         26,300,000

Dish Network                                           14,000,000

Charter/Bright  House Merger*           10,000,000+

Verizon                                                        5,600,000

Cox                                                               4,100,000

Binge Viewing Seems Like A Drug Overdose

The rise of streaming content and the access to entire seasons of TV shows has encouraged binge viewing by consumers.  Where new episodes of our favorite TV shows would appear once a week with a splattering of repeats to interrupt the flow, we got used to watching a season of a show, approximately 23 episodes from September to May.  But now a TV show can have a season of 12 shows to be watched from start to finish.  And we binge to get our fill as quickly as we can. 

And viewers are binging thanks to Netflix and others with seasons of House Of Cards, Unbreakable Kimmy Schmidt, and syndicated programming like The Walking Dead and Breaking Bad.   We can't watch just one and Netflix encourages us by auto-playing the next show in order before the credits even finish on the last show.  Like an addict, we are hooked.

And no sooner are we finished, we are desperate for me.  But when we are done watching the latest season of House Of Cards or other shows, we are forced to dry out till a new batch of shows are produced, edited, and available to air.  And so we switch our habit to another series to satisfy our incredible thirst for more content.  And we are never quenched. 

Our need for immediacy, instant messaging over emails, on demand over linear, and a constant flow of ready to watch video content, might possibly be creating a monster in all of us.  We can no longer live without our smartphones, checking them throughout the day.  We lack patience.  And waiting through commercials to watch cable TV sometimes drives us mad.  We are binging on content with a demand that can't ever seem to be fulfilled.  And I doubt that we will ever slow down to smell the roses.  Binge viewing is simply one more drug for our need for getting it now. 

HBO Driving Aggressive Growth Strategy

No longer owned by a cable parent (Time Warner Cable), HBO has become fairly aggressive in fighting back Netflix, Amazon and other premium content providers.  They were early to the OTT game, offering HBO GO to authenticated cable subscribers.  They have always had a robust VOD library to drive value and retention of their cable subscription model.  And they have created a non-cable authentication platform called HBO NOW that will be exclusive to Apple TV for 3 months.  You almost need a scorecard to know what content is exclusive to any of these formats: VOD, GO, and NOW.

But even an exclusive HBO NOW offering with Apple isn't stopping HBO from being accessible to the streaming universe.  In their latest deal, HBO is offering a streaming package to Sling TV, different from Apple TV.  It includes one linear feed to their main channel HBO (not HBO 2,3, 4, etc.) and the cable VOD library and priced to consumers at $15/month.  If Apple thought that they had some exclusivity, then they must be feeling a bit cheated. But for HBO, it is an aggressive strategy to drive subscription whether a cable, Apple TV, or Sling TV customer.

So is there any content exclusivity across any of HBO's platforms? Will there be windows where one platform gets a TV series or movie and the others don't.  Or will shows like Game of Thrones be accessible regardless of the platform, VOD, GO, or NOW?  It may simply be that they are dressed up under different brand extensions but are essentially the same library of content. 

Being free of a cable operator has certainly allowed HBO and its other Turner siblings (TNT, TBS, etc) to negotiate deals without the threat of anti-synergy behavior.  With streaming access a big competitive threat to the traditional cable model, delivering their linear and on demand library as OTT streams, HBO and Turner are delivering content where and how the consumer wishes to watch it. 

Will The Key Business Die Like The Horse And Buggy

How many keys do you keep on your key chain?  The house key, the car key, an office key perhaps.  What if you could leave your keys at home and let your smartphone access all those locks and more.  That is the discussion in today's Business Insider.  But according to the article, both Apple and Google envision a keyless future. And according to the article, "Apple and Google both need these businesses because they are so big.

Consider the applications that your smartphone or Apple Watch could enable: entry and ignition in your car, entry into your home and office, access to a hotel room, and the ability to authorize access and use to others.  Wherever authorization is required, the smartphone can replace your key or smartcard to gain entry.  And wouldn't that be nice to no longer have to find your keys.