My internet is running slow, not because I am streaming data heavy video content, but because with every page load, ads are being served to the page. The latency it causes to get to the content is atrocious. And just try to read the page when another ad overlay pops up to stop you again. The page is reading, transferring, and mostly waiting for the ad servers on the page to decide what ads they want to serve me. I not only don't notice the ads, I become more frustrated with the website I am on.
Do you share my frustration? Let me know!
Thursday, December 17, 2015
Tuesday, December 15, 2015
Howard Stern Sticks With Sirius
Despite the possibility that Howard would leave satellite radio to be the king of streaming media, including a starring role with Netflix, Howard agreed to a new 12 year deal with Sirius radio that includes streaming video. And I wouldn't be surprised if this is the last deal Howard does before he seeks retirement.
According to Deadline Hollywood, Howard agrees "to stay on the air for five years as part of a 12 year deal with the satellite radio company that includes its first foray into streamed video programming." What Howard intends to create with this video deal remains to be seen. Given the ownership of Sirius Radio, Liberty Media and John Malone, the possibilities of a competitive streaming service to Netflix could be in the works. Howard creates unique content that will be well monetized.
For Howard Stern fans that have followed him from terrestrial radio to satellite radio, it means they will continue to get their fix of Howard throughout the day. The concern that his days on the air were over and he was ready for retirement may have been a few years premature. For at least 5 more years, listeners will be able to enjoy his astute interviews, viral fan base, and an assortment of characters.
According to Deadline Hollywood, Howard agrees "to stay on the air for five years as part of a 12 year deal with the satellite radio company that includes its first foray into streamed video programming." What Howard intends to create with this video deal remains to be seen. Given the ownership of Sirius Radio, Liberty Media and John Malone, the possibilities of a competitive streaming service to Netflix could be in the works. Howard creates unique content that will be well monetized.
For Howard Stern fans that have followed him from terrestrial radio to satellite radio, it means they will continue to get their fix of Howard throughout the day. The concern that his days on the air were over and he was ready for retirement may have been a few years premature. For at least 5 more years, listeners will be able to enjoy his astute interviews, viral fan base, and an assortment of characters.
Thursday, December 10, 2015
Skinny Bundle Not In Apple's Future
While Amazon Prime has announced discounted subscription services to Showtime, Starz and others when you are an Amazon Prime customer, Apple has decided to stop pursing a skinny Over The Top streaming bundle of live video services. According to CBS CEO Les Moonves, Apple "has suspended plans to offer a live Internet-based television service
and is instead focusing on being a platform for media companies to sell
directly to customers through its App Store".
Given existing contracts with cable operators, networks would be unable to offer financial terms for Apple to create a cost effective package of interest for consumers. While consumers like the simplicity of buying certain channels without also buying cable service, in the long run, a la carte pricing means access to a smaller number of services. You pay less but you also get less, too. The all you can eat buffet of 100's of channels at one price is no longer appealing as the price of the buffet has gotten so expensive. Cable has hit the price elasticity limit and the band is breaking.
We are also willing to settle for less as consumers are now more show centric than when they were network channel brand centric. As for Apple, their desire to build a package makes some sense for their Apple TV model. But perhaps they should look more closely at owning a content company and then having full control on how to distribute it. Viacom and CBS might just be options given all the news around Sumner Redstone's health. Scripps, Discovery, AMC might also be worth kicking the tires. If Apple wants to make an impact, that might just be in their future.
Given existing contracts with cable operators, networks would be unable to offer financial terms for Apple to create a cost effective package of interest for consumers. While consumers like the simplicity of buying certain channels without also buying cable service, in the long run, a la carte pricing means access to a smaller number of services. You pay less but you also get less, too. The all you can eat buffet of 100's of channels at one price is no longer appealing as the price of the buffet has gotten so expensive. Cable has hit the price elasticity limit and the band is breaking.
We are also willing to settle for less as consumers are now more show centric than when they were network channel brand centric. As for Apple, their desire to build a package makes some sense for their Apple TV model. But perhaps they should look more closely at owning a content company and then having full control on how to distribute it. Viacom and CBS might just be options given all the news around Sumner Redstone's health. Scripps, Discovery, AMC might also be worth kicking the tires. If Apple wants to make an impact, that might just be in their future.
Wednesday, December 9, 2015
New Content On Amazon Prime Isn't Free
The news that Amazon Prime was going to bundle additional content subscriptions into its bundle seemed like a winning partnership. But as details emerge, it is clear that is not the case. What has been announced is that Amazon Prime customers can purchase subscriptions to other content packages, including Showtime Now and Starz at a discounted amount.
As Wired correctly assesses, "Whether or not these deals attract new members to Prime, the rise of more a la carte options for TV feels like yet another step toward a world where TV is truly on demand." Given the continuing high costs for cable, that seems a given.
As Wired correctly assesses, "Whether or not these deals attract new members to Prime, the rise of more a la carte options for TV feels like yet another step toward a world where TV is truly on demand." Given the continuing high costs for cable, that seems a given.
Monday, December 7, 2015
TV Ad Spending Falling As Digital Rises
The NY Times reports today that "TV will account for 38.4 percent of the $503 billion global ad market
this year and will drop to 38 percent of the market in 2016, according
to the forecast." A minuscule number perhaps, but perhaps more a notice of an eventual trend. Still, with the rise of digital devices, smartphones, tablets, laptops, and more, our attention has steadily moved away from the TV screen and toward the smaller devices. Mobile is in! And as we all know, nothing is truly free in this world and content is being paid for mainly by advertising.
But the digital ads that we get may not be nearly as effective as the television commercials we see. Sure both are intrusive and too, too many, but the little screens make engagement harder. Which brings me to a second article in today's NY Times entitled X Marks The Spot. These pop ups and overlays and screen cloggers make me hate the advertisers that rely on them. To say they are just a nuisance would be to truly understate how frustrating they are. No longer comfortable with being banners that rest around the content, these digital ads make getting to the content difficult at best. Not just that one has to sit through them to get to the content, but that as the article correctly states, trying to click the 'x' to eliminate them becomes a game unto itself.
But the worst for me is when the pop up ad takes so long to download, creating such a lenghty latency that prevents the actual content from also downloading, that I find myself clicking away from the site. The more this happens, the more I remember which websites I now avoid altogether, a loss for both publisher and advertiser. And as others follow on that same path, an eventual loss for the digital industry. The influx of intrusive advertising will be the means to the industry's self destruction.
But the digital ads that we get may not be nearly as effective as the television commercials we see. Sure both are intrusive and too, too many, but the little screens make engagement harder. Which brings me to a second article in today's NY Times entitled X Marks The Spot. These pop ups and overlays and screen cloggers make me hate the advertisers that rely on them. To say they are just a nuisance would be to truly understate how frustrating they are. No longer comfortable with being banners that rest around the content, these digital ads make getting to the content difficult at best. Not just that one has to sit through them to get to the content, but that as the article correctly states, trying to click the 'x' to eliminate them becomes a game unto itself.
But the worst for me is when the pop up ad takes so long to download, creating such a lenghty latency that prevents the actual content from also downloading, that I find myself clicking away from the site. The more this happens, the more I remember which websites I now avoid altogether, a loss for both publisher and advertiser. And as others follow on that same path, an eventual loss for the digital industry. The influx of intrusive advertising will be the means to the industry's self destruction.
Friday, December 4, 2015
Diversification For Barnes And Noble
The new CEO of Barnes and Noble, Ron Boire, has some ideas how to reinvigorate the chain. Perhaps he had the chance to read my blog 2 1/2 years ago on July 1, 2013 entitled Saving Barnes And Noble. In it, I write about partnerships and diversification to enhance and increase customer engagement with the store.
Well that is exactly what Boire wants to do, increase foot traffic by expanding its merchandise. His background with other big box stores may be useful to his revamp efforts. As today's NY Times article shares his plans, he sees the revitalization of the brand as a "lifestyle brand" and destination. I believe that there is a strong opportunity to re-brand and re-energize and that he can create a successful new type of retail opportunity. I urge him to continue to look at partnerships with other smaller chains as a means to grow. I am excited to see B&N become a must visit shopping destination.
Well that is exactly what Boire wants to do, increase foot traffic by expanding its merchandise. His background with other big box stores may be useful to his revamp efforts. As today's NY Times article shares his plans, he sees the revitalization of the brand as a "lifestyle brand" and destination. I believe that there is a strong opportunity to re-brand and re-energize and that he can create a successful new type of retail opportunity. I urge him to continue to look at partnerships with other smaller chains as a means to grow. I am excited to see B&N become a must visit shopping destination.
Thursday, December 3, 2015
Hasta La Vista DirecTv?
According to reports, the brand name DirecTv will fade away in 2016. Since being purchased by AT&T, the plan has been to create a more unified brand experience. And as a result, the DirecTv brand name will fade away to be replaced by the much longer AT&T Entertainment moniker.
Of course, if that is the case, it is likely that the AT&T U-Verse brand will also convert to the AT&T Entertainment brand. Such a switchover to the single name will take place over some time as new logos will incorporate both names until the full change takes effect.
Cable has worked hard to differentiate its corporate brand from its product brand. Comcast uses the Xfinity name while Cablevision has pushed Optimum as its cable brand. So which brand should have been kept, AT&T or DirecTv or should it have been left alone? Let me know.
Of course, if that is the case, it is likely that the AT&T U-Verse brand will also convert to the AT&T Entertainment brand. Such a switchover to the single name will take place over some time as new logos will incorporate both names until the full change takes effect.
Cable has worked hard to differentiate its corporate brand from its product brand. Comcast uses the Xfinity name while Cablevision has pushed Optimum as its cable brand. So which brand should have been kept, AT&T or DirecTv or should it have been left alone? Let me know.
Monday, November 30, 2015
Disney And ESPN Rocked By Cord Cutting
High subscriber fees, a decline in sports interest, more entertainment choices, and other challenges have rocked the world of cable television. The Disney company, a bellwether of the media industry, is feeling those changes firsthand. In the last 2 years, we learn that the ESPN Network lost 7 million subscribers, ABC Family (to be rebranded to Freeform, a mistake I believe) has lost 5 million subs, and Disney Channel 4 million. Hard to make up those revenue losses without raising advertising fees, but a smaller base doesn't help drive big increases. It is unlikely to expect a rebound as consumers continue to cut the cord and seek more OTT programming alternatives. And Netflix, Amazon Prime and others are driving them to switch with huge libraries of content ad the rise of original programming too.
For a must have network like ESPN, the rise in sports license costs, higher ticket prices to attend live sporting events, and other challenges have driven away the middle class family from attending games and building fan interest. Instead, the draw has become fantasy gambling, a short term boon but ultimately long term killer of sports, in my opinion. Television sports interest continues to draw healthy ratings, but the future generation fan may be less interested in watching. As fantasy sites get barred from advertising and used in certain states, we may in fact be watching the tipping point in sports value.
As for networks like Disney and ESPN, their challenges are also being faced by other cable networks like Fox, Viacom, Scripps, AMC, and others. Declining subscriber revenue cannot be made up easily. Increased advertising minutes have led to viewers seeking OTT choices that are commercial free. It is no longer fun to watch a show or movie that has what appears to be more ads than content. And that influx of ads, along with high cable bills, may be the two primary reasons customers are fleeing the cable universe.
For a must have network like ESPN, the rise in sports license costs, higher ticket prices to attend live sporting events, and other challenges have driven away the middle class family from attending games and building fan interest. Instead, the draw has become fantasy gambling, a short term boon but ultimately long term killer of sports, in my opinion. Television sports interest continues to draw healthy ratings, but the future generation fan may be less interested in watching. As fantasy sites get barred from advertising and used in certain states, we may in fact be watching the tipping point in sports value.
As for networks like Disney and ESPN, their challenges are also being faced by other cable networks like Fox, Viacom, Scripps, AMC, and others. Declining subscriber revenue cannot be made up easily. Increased advertising minutes have led to viewers seeking OTT choices that are commercial free. It is no longer fun to watch a show or movie that has what appears to be more ads than content. And that influx of ads, along with high cable bills, may be the two primary reasons customers are fleeing the cable universe.
Thursday, November 26, 2015
Amazon Prime Seeks To Master The Bundle
I have been known to say that history repeats itself; for good and for bad. And in the world of marketing, a good idea is a good idea, often repeated under various creative strategies. One such notion is the strategy of bundling, the art of combining items into a single, larger package. Cable television did it quite successfully, first in bundling cable channels together and offering a large selection of differentiated networks at one low price, and again in creating the triple play of cable, phone, and data at one competitive price.
Amazon has repeated that strategy with the creation of Amazon Prime, a bundle of services including same day delivery, cloud storage of photos, special offers as well as Prime Music and Prime Instant Video, all at a low annual fee. And while the centerpiece is free delivery, the additional pieces help to create strong added value. And the strategy seems to be working.
But delivery alone might not be enough and the value of content cannot be minimized. Amazon seeks to strengthen its Instant Video subscription with original shows as well, including the Emmy winning Transparent. Now,Amazon Prime seeks to expand its Prime bundle with other subscription services. According to Variety, "The retail giant has been pitching the idea to add third-party video subscription services to its Prime subscription service to TV networks and online video services, offering them Amazon’s huge Prime customer base with its existing billing relationships as an incentive." That might suggest that services like HBO Now, Showtime, or perhaps even Hulu could be added to their bundle. As cable has learned, the bigger the bundle, the more value perceived, the better to attract new subscribers to the service.
But cable has also learned what can happen when too big causes the bundled price to rise and for consumers to start cutting the cord. For cable, it has led to the new term of the skinny bundle, with a lesser number of aggregated services. As Amazon plots its growth strategy, let it also recognize that it can sometimes get too big. Controlled growth, meaningful value, at a competitive price. So far, Amazon Prime continues to make itself a valuable commodity, but if it leads to price increases then it can also hurt your efforts.
Amazon has repeated that strategy with the creation of Amazon Prime, a bundle of services including same day delivery, cloud storage of photos, special offers as well as Prime Music and Prime Instant Video, all at a low annual fee. And while the centerpiece is free delivery, the additional pieces help to create strong added value. And the strategy seems to be working.
But delivery alone might not be enough and the value of content cannot be minimized. Amazon seeks to strengthen its Instant Video subscription with original shows as well, including the Emmy winning Transparent. Now,Amazon Prime seeks to expand its Prime bundle with other subscription services. According to Variety, "The retail giant has been pitching the idea to add third-party video subscription services to its Prime subscription service to TV networks and online video services, offering them Amazon’s huge Prime customer base with its existing billing relationships as an incentive." That might suggest that services like HBO Now, Showtime, or perhaps even Hulu could be added to their bundle. As cable has learned, the bigger the bundle, the more value perceived, the better to attract new subscribers to the service.
But cable has also learned what can happen when too big causes the bundled price to rise and for consumers to start cutting the cord. For cable, it has led to the new term of the skinny bundle, with a lesser number of aggregated services. As Amazon plots its growth strategy, let it also recognize that it can sometimes get too big. Controlled growth, meaningful value, at a competitive price. So far, Amazon Prime continues to make itself a valuable commodity, but if it leads to price increases then it can also hurt your efforts.
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