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Google To Pay CBS? Unlikely.
CBS CEO Les Moonves said this week that Google TV is not going to get CBS programs for "zero dollars," suggesting that if the company were to unblock access for the device, it would only happen when Google is willing to pay. I've learned to never say never, but in this case I think the scenario where Google pays for CBS and other broadcast networks' programs similarly being blocked from Google TV is very unlikely.
When Moonves says "I'm not sure what it is," (referring to Google TV) it makes me think he either doesn't understand the Internet, is being disingenuous, or both. As I originally argued a couple of months ago, in "Broadcast TV Networks Are Wrong to Block Google TV," the device is not hard to understand. It serves essentially the same purpose for content providers on TVs as the Google search engine does online and on mobile devices. A user wants to find a piece of content or an answer to a question or a product, he/she types a term into the search bar and a list of filtered results appears. Google has also enhanced Google TV's core search and discover functionality with a bunch of apps that help emulate the full Internet experience on TV; for now those are interesting, but not yet compelling or unique vs. other devices that do similar things. Over time they may be.
Categories: Broadcasters, Devices
Topics: CBS, Google, Google TV
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Is Microsoft Planning to Join the Pay-TV Party?
Reuters is reporting this morning that Microsoft is exploring a range of options to get into the pay-TV business through a new over-the-top service. The article points to a potential "virtual cable provider" model whereby Microsoft would license multiple networks, which would be delivered to Xbox gaming consoles and other devices. Also under consideration are creating "content silos" to sell specific premium channels.
If Microsoft were to join the pay-TV business aggressively it would further alter industry dynamics. The number one issue in play right now is whether consumers are forsaking traditionally packaged pay-TV services and instead opting for some mix of free and paid online-delivered alternatives. Yet while Internet options are gaining in popularity (with Netflix's explosive growth to nearly 17 million subscribers at the end of Q3 the primary beneficiary), hard data supporting cord-cutting is still scarce.
Categories: Broadcasters, Cable Networks, Cable TV Operators, Devices
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VideoNuze Report Podcast #80 - Nov. 19, 2010
Daisy Whitney and I are back this week for the 80th edition of the VideoNuze Report podcast, for November 19, 2010. Before getting started, congratulations to Daisy on the release of "The Mockingbirds," her first fiction book, for young adult readers. It debuted 2 weeks ago and is published by Little Brown. In addition to writing the book, Daisy has put together a clever social media campaign which has lifted the book's visibility. Congrats Daisy!
This week Daisy and I discuss my post from yesterday, "Broadcast TV Networks Are Wrong to Block Google TV - Part 2" in which I laid out the case for why the networks are using a backwards-looking strategy in their decision to block their programs from access by Google TV and other browser-based connected devices.
To their credit, the networks have actually been quite forward-looking in releasing many of their programs for free viewing on their web sites and on Hulu. But now, by creating an artificial distinction between computer-based and TV-based viewing of online-delivered content, they are violating one of the most basic rules of the Internet era: don't create friction between the product and the customer. While that may help them win retransmission consent deals in the short term, I believe that in the long term it will hurt them. Listen in to learn more.
Click here to listen to the podcast (11 minutes, 43 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!Categories: Broadcasters, Devices, Podcasts
Topics: ABC, CBS, FOX, Google TV, Hulu, NBC, Podcast
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Broadcast TV Networks Are Wrong to Block Google TV - Part 2
When Fox decided last week to block access to its programs by Google TV, it was no big surprise since its broadcast brethren ABC, CBS, NBC and Hulu had already done so. By speaking in a unanimous voice, the broadcasters have sent a clear signal that viewing their programs on TV, for free, via online delivery, is not to be. While they're happy to make Hulu Plus subscriptions available via connected devices, if you want to watch for free, you'll be restricted to computer, or limited mobile device-based, viewing.
A few weeks ago in the first part of "Broadcast Networks Are Wrong to Block Google TV," I speculated on what was motivating the broadcasters to block Google TV, boxee and other browser-based connected devices. In the case of Google TV, it's tempting to believe they are looking to extract payments from Google to distribute their programs. Another possible explanation is that programs aren't monetized as well in online as they are on-air (the "swapping analog dollars for digital pennies" argument). Yet another explanation is that measurement of online viewing is not yet fully mature, so they're worried that if their audience shifts to connected device-based viewing, it would hurt their ratings points, and consequently their ad revenues. But none of these are broadcasters' main motivation.
Categories: Broadcasters, Devices
Topics: ABC, CBS, FOX, Google TV, Hulu, NBC, Netflix
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Listening To Hulu's Jason Kilar: Motherhood, Apple Pie - And Reality
Listening to Hulu's CEO Jason Kilar today at NewTeeVee Live, it's hard not to admire what he and the Hulu team have accomplished. For the first time,
Jason disclosed 2010 projected revenues of $240 million, up 10-fold from $24 million in '08 and $108 million in '09, which is pretty impressive growth. As always, Jason's message is extremely user-centric and forward-looking. Hearing him speak, you definitely get a sense of the positive, relentless efforts he's led to improve the service.
A key part of Jason's message is that premium video should, and will be available anytime, anyplace and on any device in the future. It's a wonderful "motherhood and apple pie" message that's hard to argue with as a viewer. Unfortunately it's also a message that's bumping up against some hard realities in the TV business that Hulu is going to have to surmount to ultimately succeed. Here are at least a few of them:
Categories: Advertising, Aggregators, Broadcasters
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5 Items of Interest for the Week of Oct. 25th
Lots more happened this week in online/mobile video, and so to make your lives easier, VideoNuze is once again curating 5-6 interesting industry news items that we weren't able to cover this week. Read them now or take them with you this weekend!
No Longer 'Must-See TV'
The WSJ reported this week that Thursday night TV viewership (live or recorded) among 18-49 year-olds is down 4.3% this season to 48.5 million, a drop of 2.2 million viewers. For this age group, the drop across all nights (live or recorded) is 2.7%. While the decreases have immediate implications on networks' ad revenue, the bigger issue of course is what the drops say about shifting consumer preferences. For example, I continue to hear anecdotes about users with connected devices now tuning in first to their Instant Watch queues instead of channel surfing or visiting their DVR libraries or VOD. The Nielsen data corroborates other data (here, here) about the decline of TV viewing, especially among young people, and is another reason why broadcast networks in particular should be embracing connected devices like Google TV, not blocking them.
CW Says Study 'Dispels Myth' About Aversion to Ads in Online Video
Speaking of networks and their online distribution, this week CW released some interesting new data that detailed extremely low abandonment rates for its shows consumed online, even with ad loads almost equal to those on-air. While it is too early to generalize, the data provides a very encouraging sign that networks may be able to achieve parity economics with on-air, even when they window their online releases for delayed availability. It's also an important sign that online video may be a firewall against DVR-based ad-skipping.
Comcast Launches Free Streaming Video Service Xfinity for All Digital Subs
In addition to releasing stellar Q3 earnings this week (albeit with a bigger-than-expected subscriber loss), Comcast also pulled the "beta" label off its Xfinity TV service this week, and relaxed its rules about who can gain access. Now any video subscriber, regardless of who they take their broadband Internet service from, can access XFTV.
Some began to speculate that it could be a precursor for Comcast allowing non-video subs to also gain access to XFTV. This is the concept I wrote about in over a year ago, in "How TV Everywhere Could Turn Cable Operators and Telcos Into Over-the-Top's Biggest Players." The idea is that TV Everywhere services like XFTV could be offered outside of Comcast's franchise areas to allow them to poach video subscribers from other pay-TV operators. It's still a fascinating concept, but nothing about Comcast's move this week suggests it's coming soon.
Insight To Bow 50-Mbps Internet In Two Markets
If you think all that Netflix and other long-form streaming is going to strain users' bandwidth, think again, as yet another cable operator/broadband ISP, 9th-largest Insight Communications unveiled plans for a speedy 50 megabit per second broadband tier. Big players like Comcast and Time Warner Cable have been offering this for a while already. It's still very pricey, but as some viewers shift more of their consumption to online and away from conventional TV viewing (see above), more bandwidth will be worth the price. Update - I missed this item, that over in the U.K. Virgin Media began taking sign-ups for a 100 Mbps broadband service. Net, net, last-mile bandwidth will keep expanding to meet increasing demand.
Promoted Videos hit half a billion views
Fresh evidence this week that YouTube is finding innovative ways to monetize its massive audience: the company's performance-based "Promoted videos" format achieved its 500 millionth view, just 2 years after being introduced. With Promoted videos, anyone uploading a video to YouTube (brand, content provider, amateur), can buy opportunities to have that video appear alongside relevant keyword-based searches in YouTube. It's a similar format to AdWords, and of course the video provider only pays when their video is actually clicked on. As I said recently, YouTube is becoming a much more important part of Google's overall advertising mix, while for many brands, YouTube's home page is fast-becoming the most desirable piece of online real estate.
Categories: Advertising, Aggregators, Broadband ISPs, Broadcasters, Cable TV Operators
Topics: Comcast, CW, Insight, Nielsen, YouTube
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Cablevision is Now Offering to Reimburse Subscribers To Watch World Series on MLB.com
The Cablevision-Fox retransmission fight just took another ugly turn, as Cablevision is now emailing subscribers an offer (see below) to reimburse them $10 if they subscribe to the MLB.com's "Postseason.TV" package which includes the World Series starting tonight.
The gloves are clearly off in this fight, and Cablevision is obviously not hesitating to introduce its subscribers to the virtues of over-the-top streaming, which could have longer-term negative consequences. What comes next in this battle?
What do you think? Post a comment now (no sign-in required).Categories: Broadcasters, Cable TV Operators, Sports
Topics: Cablevision, FOX, World Series
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Broadcast TV Networks Are Wrong to Block Google TV
Since word broke late last week that ABC, CBS and NBC are blocking access by Google TV to their full-length programs, I've been scouring the web and speaking to colleagues, attempting to get some insights about what's going on here. Though I've heard plenty of free-floating concerns raised, I've yet to really understand solid reasons for why broadcast networks are doing this that can't be addressed somehow. Therefore, as best I can tell, for now at least, I think the broadcast TV networks are wrong to block access.
The most obvious reason is that they're creating a false and meaningless distinction between screens. Whereas you can "go online" and freely access plenty of ABC, CBS and NBC shows at their own web sites, (and at Hulu for ABC and NBC), the networks have decided that if you're trying to "go online" via your Google TV, that's unacceptable. In an age where computer screens are getting bigger all the time - looking more like TVs - why exactly should this distinction matter?
Categories: Broadcasters, Devices
Topics: ABC, Boxee, CBS, Google TV, NBC, Netflix
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6 Items of Interest for the Week of Oct. 18th
It was another busy week for online/mobile video, and so VideoNuze is continuing its Friday practice of curating 5-6 interesting industry news items that we weren't able to cover this week. Read them now or take them with you this weekend!
Networks block Google TV to protect themselves
Yesterday news started breaking that ABC, CBS and NBC are blocking access by Google TV. There are numerous concerns being cited - potential disruption of advertising, encouraging cord-cutting, incenting piracy, diminished branding, unsatisfactory ad splits with Google, and general worry about Google invading the living room. Each item on its own is probably not enough to motivate the blocking action, but taken together they are. Still, doesn't it feel a little foolish that broadcasters would differentiate between a computer screen and a TV screen like this? For Google, it's more evidence that nothing comes easy when trying to work with Hollywood. I'm trying to find out more about what's happening behind the scenes.
TWC Lines Up For ESPN Online Kick
An important milestone for TV Everywhere may come as early as next Monday, as #2 cable operator Time Warner is planning to make ESPN viewing available online to paying subscribers. Remote access is part of the recent and larger retransmission consent deal between Disney and TWC. TV Everywhere initiatives have been slow to roll out, amid cable programmers' reluctance. Further proving that remote authenticated access works and that it's attractive with a big name like ESPN would increase TV Everywhere's momentum.
Hulu Plus, Take Two: How's $4.95 a Month?
Rumors are swirling that Hulu may cut the price of its nascent Hulu Plus subscription service in half, to $4.95/mo. That would be a tacit recognition of Hulu Plus's minimal value proposition, largely due to its skimpy content offering. As I initially reported in August, over 88% of Hulu Plus content is available for free on Hulu.com. More important, Netflix's streaming gains have really marginalized Hulu Plus. Netflix's far greater resources and subscriber base have enabled it to spend far bigger on content acquisition. Even at $4.95, I continue to see Hulu Plus as an underwhelming proposition in an increasingly noisy landscape.
Viacom Hires Superstar Lawyer to Handle YouTube Appeal
Viacom is showing no signs of giving up on its years-long copyright infringement litigation against Google and YouTube. This week the company retained Theodore Olson, a high-profile appellate and Supreme Court specialist to handle its appeal. While most of the world has moved on and is trying to figure out how to benefit from YouTube's massive scale, Viacom charges on in court.
Verizon to sell Galaxy Tab starting November 11th for $599.99
Verizon is determined to play its part in the tablet computer craze, this week announcing with Samsung that it will sell the latter's new "Tab" tablet for $600 beginning on November 11th. The move follows last week's announcement by Verizon that it will begin selling the iPad on Oct. 28th, which was widely interpreted as the first step toward Verizon offering the iPhone early next year. Apple currently owns the tablet market, and it remains to be seen whether newcomers like the Tab can break through. For his part, Apple CEO Steve Jobs said on Apple's earnings call this week that all other tablets are "dead on arrival." Note, if you want to see the "Tab" and learn more about how connected and mobile devices are transforming the video landscape, come to the VideoSchmooze breakfast at the Samsung Experience on Wed., Dec. 1st.
One-Third of US Adults Skip Live TV: Report
A fascinating new study from Say Media (the entity formed from the recent merger of VideoEgg and Six Apart), suggesting that 56 million, or one-third of adult Internet users, have reduced their live TV viewership. The research identified 2 categories: "Opt Outs" (22 million) who don't own a TV or haven't watched TV in the last week and stream more than 4 hours/week, and "On Demanders" (34 million) who also stream more than 4 hours/week and report watching less live TV than they did a year ago. Not surprisingly, relative to Internet users as a whole, both Opt Outs and On Demanders skew younger and higher educated, though only the latter had higher income than the average Internet user. This type of research is important because the size of both the ad-supported and paid markets for live, first-run TV is far larger than catalog viewing. To the extent its appeal is diminishing as this study suggests poses big problems for everyone in the video ecosystem.
Categories: Aggregators, Broadcasters, Cable Networks, Cable TV Operators, Devices, Mobile Video, Telcos
Topics: ABC, Apple, CBS, ESPN, Google TV, Hulu Plus, iPad, NBC, Samsung, Say, Time Warner Cable, TV Everywhere, Verizon, Viacom, YouTube
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5 Items of Interest for the Week of Sept. 27th
It's Friday and that means that once again VideoNuze is featuring 5-6 interesting online/mobile video industry stories that we weren't able to cover this week. Have a look at them now, or take them with you for weekend reading!
Nielsen Unveils New Online Advertising Measurement
comScore Introduces Digital GRP `Overnights` in AdEffx Campaign Essential
Dueling initiatives from Nielsen and comScore were announced on Monday, aimed at translating online usage into comparable TV ratings information, including reach, frequency and Gross Ratings Points (GRPs). While online video ad buying is ramping up, the tools to measure viewership in a comprehensive way have been lacking. This is one of the main issues holding back content providers from participating in TV Everywhere.
Analyst: Cord-cutting fears overblown
New research shared this week by BTIG analyst Rich Greenfield concludes that less than 8% of the market is actually interested in cord-cutting. The big impediment: losing access to sports and cable programming, which is unlikely to migrate to free over-the-top alternatives. Greenfield's conclusion is that cord-cutting isn't a major threat to pay-TV operators over the next 3-5 years. Notwithstanding the research, another factor I'd point to that could tip cord-cutting the other way is consumers' belt-tightening. Much as nobody wants to lose access to programming, if the price is perceived as too high, they'll make compromises.
Why YouTube Viewers Have ADD and How to Stop It
Abandonment rates for online video have always been a concern, and using new research, Visible Measures CMO Matt Cutler now quantifies the behavior. Expect 20% of the audience to drop out within 10 seconds of hitting play, 33% by the 30 second mark and 44% by 60 seconds in. Pretty sobering data but incredibly important in thinking about content creation and monetization.
Networks Have Sharing Issues With Hulu
Hulu's New Hoop
On the one hand, Hulu's network partners, ABC, NBC and Fox are reportedly pulling back ad inventory that Hulu is allowed to sell, yet on the other, Hulu is reportedly out aggressively selling ads in Hulu Plus, its subscription service. Meanwhile this week Hulu also announced that Hulu Plus will be accessible on both Roku devices and TiVo Premiere, as it continues chasing Netflix in the subscription game.
The New Apple TV Reviewed: It`s All About the Video
Apple TV devices started shipping this week, and reviews began popping up all over the web. This mostly positive review indicates that the user experience is solid, but that content selection is still skimpy. That's no surprise given how few deals Apple has struck to date. Yet to be seen is how Apple TV performs when it can access other iOS apps.Categories: Advertising, Aggregators, Analytics, Broadcasters, Devices
Topics: ABC, Apple TV, comScore, FOX, Hulu, NBC, Nielsen, Visible Measures, YouTube
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5 Items of Interest for the Week of Sept. 13th
It's Friday and that means once again VideoNuze is featuring 5-6 interesting online/mobile video industry stories that we weren't able to cover this week. Read them now or take them with you for the weekend. Enjoy!
Meet YouTube's Most In-Demand Brand Stars
A fascinating look at how major brands are hiring amateurs who have gained large followings on YouTube to pitch their products. The concept of "celebrity spokesperson" is getting redefined in the online video era.
Logitech Revue with Google TV Coming 9/29 for $299, Dish Network Offering Discounts?
We may be less than 2 weeks away from Logitech's "Revue," the first implementation of Google TV, hitting the market, with Dish Network subscribers possibly getting a deeply discounted $179 offer. The connected device space is increasingly crowded and there's high anticipation to see how Google TV stacks up.
Pre-order a Boxee Box Now
Speaking of connected devices, Boxee announced this week that pre-ordering is available from Amazon for its Boxee Box connected device, manufactured by D-Link. Like Google TV, but unlike Apple TV or Roku, Boxee offers the prospect of browsing the full Internet for video, not just what's been integrated with the device.
Samsung Reveals Tablet Launch Plans
Meanwhile the strongest potential competitor to the iPad, Samsung's "Tab" will begin shipping in just a few weeks, with availability from all 4 major U.S. wireless carriers. The Tab is very focused on mobile video, running Android 2.2 which supports Flash 10.1. That means Hulu and all other Flash-based video should work, significantly expanding the universe of choices beyond what is available on the iPad. No pricing yet, but the Tab looks like a meaningful iPad alternative.
Ivi Seeks to Become an Online Cable System
Can an online service retransmit network TV through the Internet, and charge for it without having any underlying agreements in place with the networks themselves? That's what Ivi, which unveiled its software this week, is attempting to do, pointing to U.S. copyright law as making its offer legit. We'll see; with TV networks gaining no new revenue coming in plus the risk of cannibalization we should expect them to raise vigorous legal challenges.
Categories: Aggregators, Brand Marketing, Broadcasters, Devices, Mobile Video
Topics: Boxee, D-Link, Google TV, Ivi, Logitech, Samsung, YouTube
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Vidyo Introduces VidyoCast for Broadcast Production in the Cloud
Vidyo, which has focused on high-quality videoconferencing over IP networks, is now turning its sights to the broadcast market, introducing "VidyoCast" today, which can move the entire broadcast production process into the cloud, powered by broadband delivery. Jim O'Brien, a broadcast veteran who recently joined as GM of VidyoCast, walked me through the solution earlier this week.
The primary benefits of the cloud-based approach are cost-savings and more operational flexibility, without sacrificing quality. Vidyo believes that by using IP networks instead of typical satellite transmission, broadcasters can save up to 90% of their typical costs. VidyoCast is also being positioned as a backup solution, particularly in situations where typical broadcast backup isn't feasible or is cost prohibitive. VidyoCast is meant to easily integrate into incumbent broadcast infrastructure.
Categories: Broadcasters
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Justice Dept Considering Online Restrictions For Comcast-NBCU
An article in today's WSJ, "Comcast Gets Static on Net TV" describes how the Justice Department is scrutinizing the online video implications of Comcast's deal to acquire control of NBCU. According to the article, the Justice Department is digging in to try to understand what, if any, implications the deal could have on online-delivered TV shows and movies from NBCU.
The article points out that nothing is likely to come out of the investigation that could derail the deal. However, the results could provide the foundation for the Justice Department to impose restrictions on Comcast's flexibility to decide where and how NBCU's premium programming could be distributed online. The purpose would be to head off Comcast somehow gaining preferred and/or exclusive access.
The investigation is merited given the size of the deal and yet the yellow caution flags should be up regarding the government making too many assumptions about how the online video market will unfold. As I've written a number of times, we are continuing to see surprising deals, technologies and products which challenge popular assertions that online video and incumbent pay-TV models are on a collision course with one another, with one winning at the other's expense. Just in the last few weeks, the Netflix-Epix deal, the Cox-TiVo partnership, and possibly this week 99-cent broadcast TV rentals from Apple all show that the market is incredibly dynamic, with a blending of online and traditional distribution becoming more common.
That said, Comcast already has huge market power, and control of NBCU's top-notch assets mustn't deprive others of access from which consumers gain. Finding the delicate balance between just enough safeguards, but without limiting innovation, is the key.
What do you think? Post a comment now (no sign-in required).Categories: Broadcasters, Cable TV Operators, Deals & Financings, Regulation
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Over 88% of Hulu Plus Content is Already Available for Free on Hulu.com
A new analysis of all the content available on Hulu Plus reveals that over 88% of all the full-length TV program episodes available in the $10/mo subscription service are already freely accessible on Hulu.com. For clips, it's almost 98%. Research firm One Touch Intelligence found that out of 28K+ episodes on Hulu Plus, just 3,345 of them can't also found on Hulu.com. Two-thirds of these incremental program episodes are sourced from Hulu's broadcast TV network partners/owners, ABC, Fox and NBC.
In fairness, Hulu Plus has been live for less than 60 days and will no doubt will be adding more content down the road. But for now the high proportion of free availability diminishes the Hulu Plus value proposition for Hulu.com
users considering an upgrade. In addition, the relatively small amount of incremental episodes risks inducing churn, particularly for heavy users most familiar with the service, as they come to realize much of what they've paid to watch is actually available for free. Compounding the problem, Hulu Plus viewers see the same quantity of ads as do free Hulu.com users, so there's no ad-avoidance benefit to subscribing either.
Categories: Aggregators, Broadcasters
Topics: ABC, FOX, Hulu, Hulu Plus, NBC, Netflix
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Is Apple Planning to Pair 99-Cent TV Show Rentals With Its $99 iTV?
Bloomberg is reporting that Apple is in "advanced talks" with CBS, Disney and Fox about making available TV programs for 99-cent rental. The programs would be offered within 24 hours of when they aired and once rented, the viewing window would be just 48 hours. It's not clear whether the iTunes rental model would be targeted only to Apple's "i" devices, or if it would be more widely available. If the program deals happen, could it be that Apple is planning to pair availability of 99-cent rentals with the unveiling of its $99 iTV device at its rumored Sept. 7th keynote event?
In my earlier post, "Pondering the (Potential) Impact of Apple's New iTV Device," I speculated that the iTV device would have little impact on the pay-TV ecosystem, since major cable TV networks and pay-TV providers will resist Apple's attempts to reinvent their business models. However, I suggested that Steve Jobs could have a trick or two up his sleeve for the iTV's launch. Sure enough, 99-cent broadcast TV rentals, announced just weeks prior to the Fall TV season kickoff, would be a very good trick indeed.
Categories: Broadcasters, Devices
Topics: Apple, CBS, Disney, FOX
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For Broadcast TV Networks, Google TV is Friend, Not Foe
Reading this morning's WSJ story, "Google TV Is a Tough Sell Among Would-Be Partners," you get the impression that broadcast TV networks are viewing Google TV as a potential disruptor of their business models. While the networks should take time to fully understand Google's new product, plus
assess additional work being asked of them (e.g. enhanced metadata) and how their programs will be incorporated in Google TV's UI, on the whole, broadcast TV networks should view Google TV as beneficial, not disruptive, to their digital distribution efforts.
Broadcast networks are right to be concerned about what effect viewing on any new digital device will have on their on-air business models. I've written often about my concern that the networks' web sites and Hulu's "ad-lite" approach was threatening to their on-air economics. However, more recently the networks (and likely Hulu) have been increasing their digital ad loads. ABC for one has said that digital delivery profitability is already on a par with "DVR economics" (accounting for ad-skipping by DVR households), and more ads will only further enhance digital's ROI. Certainly ABC's decision to make its programs available on the iPad is evidence that proper monetization, along with a coherent windowing approach, can yield incremental views and profits from distribution to new devices.
Categories: Broadcasters, Devices
Topics: ABC, CBS, FOX, Google TV, NBC
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CBS-Comcast Deal Underscores Importance of Subscriptions
Yesterday's 10-year retransmission consent deal between Comcast and CBS further underscores the importance of subscription revenue streams in addition to advertising. Under the deal, CBS is rumored to receive between $.50-$1.00 per subscriber per month from the biggest cable operator in the U.S., putting it in the top tier of cable network compensation. When combined with other deals CBS has previously struck, plus additional ones it will likely conclude in the future, CBS has laid firm claim to the same "dual revenue" (monthly payments + advertising) business model as cable TV networks have long enjoyed.
The CBS-Comcast deal is more evidence of how dynamic the relationships have become between broadcast TV networks, cable TV networks, pay-TV operators and new distributors like Hulu and Netflix. The online/mobile/on-demand era has set off a scramble by premium content providers to lock in payments for their programming, while also remaining nimble enough to gain new distribution opportunities. Likewise, distributors are hungry for exclusive well-branded content.
Consider what's happened in just the last 8 months:
Categories: Aggregators, Broadcasters, Cable Networks, Cable TV Operators
Topics: Cablevision, CBS, Comcast, Hulu, Netflix, Time Warner Cable
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FreeWheel Lands Univision and Scales Up for Live Events
FreeWheel, the video ad management and monetization provider, is announcing this morning that it has landed Spanish-language broadcaster Univision as its latest customer. In the past year, Univision has become one of the most active broadcasters involved with online video, signing a deal to move a large amount of its content to YouTube for distribution, offering full episodes of its telenovelas at a recently-created web site, "Novela y Series," launching a video app for BlackBerry users, and of course most recently, streaming 10 million+ hours of live World Cup games on UnivisionFutbol.com
For FreeWheel, Univision follows Turner, Warner Bros., VEVO, Discovery, CBS and others on FreeWheel's customer roster. Note that Univision had not yet deployed FreeWheel for its UnivisionFutbol.com site but that FreeWheel was
inserting ads in ESPN3.com's World Cup online streaming which generated 7.4 million unique viewers and 15.7 million hours viewed. I talked to co-CEO and co-founder Doug Knopper earlier this week, who shared some recent statistics from the World Cup action and discussed how FreeWheel is scaling up to better serve ads in live, as well as on-demand, online video.
Categories: Advertising, Broadcasters
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7 Quick Reactions to Hulu Plus
Hulu unveiled its much-rumored subscription service this afternoon, dubbed "Hulu Plus." I haven't used the new service, but based on the explanation and the teaser video, here are 7 quick reactions:
1. Is there consumer demand for Hulu Plus? - This looms as the fundamental question that will be answered as Hulu Plus rolls out. From CEO Jason Kilar's blog post, it appears that, at least initially, Hulu Plus is a bet on consumers having an appetite for a library of broadcast network programs since that's all that's been highlighted so far. Hulu identifies about 2,000 library episodes in addition to current seasons. Unless Hulu Plus really beefs up its catalog, it won't be long before the library holds few surprises for returning visitors.
2. Hulu Plus lacks many of Netflix's advantages - It's tempting to think of Hulu Plus competing directly with Netflix, and to an extent of course they're after the same general target consumer. But Netflix has several very significant advantages: a brand that's identified with subscriptions and 14 million+ currently paying subscribers, a deep DVD library of 100,000+ titles (which has every single episode Hulu Plus will be offering), a streaming library of 17,000+ titles (offered at no extra cost to subscribers) and integrations with all the same devices Hulu Plus is touting (except the iPhone, which is coming soon). Further, Netflix has far deeper resources; it is a public company with a $6 billion market cap that spends $250 million/year on marketing and has publicly-stated commitment to obtain more streaming rights from Hollywood. With Netflix on one side and cable on another, it's unclear how Hulu Plus will expand its menu. I don't see Hulu Plus diminishing Netflix's rapid growth.
3. Ads in Hulu Plus would be a big-time buzz-kill - I did a double-take when I first read this line in Jason's post: "Hulu Plus is a new revolutionary, ad-supported subscription product that is incremental and complementary to the existing Hulu service." Whoa - are there going to be ads in Hulu Plus? That will be a flat-out non-starter for many prospective subscribers. Yes, I know about ad-supported cable networks, but that's for first-run programming, not for library or catch-up fare. Hulu Plus must be an ad-free zone. Meanwhile, it's important that Hulu still prove the 100% ad-supported business model for its existing experience. With much in flux regarding ad loads there's new messaging Hulu will likely be rolling there too.
4. Why wasn't Android or Google TV mentioned? - Is it a little weird that there was no mention of Android or Google TV in today's unveiling? I think so. Android is fast-gaining on the iPhone (surpassed by some metrics) and Google TV is poised to make a big splash in the fall. Why no mention? Is there an anti-Google bias at work?
5. Hulu Plus adds more support for HTML5 - Hulu Plus is another boost for HTML5 and another small dent for Flash. By making Hulu Plus available on non-Flash supported Apple devices, the it seems the Hulu team has been willing to make the investment to diversify beyond Flash, which it has used since launch.
6. Comcast must already be considering how it exits the Hulu joint venture - When the Comcast-NBCU deal clears, Comcast will inherit NBCU's ownership stake in Hulu. With Hulu Plus it's hard to see why Comcast will want to retain that stake. There's no discernible benefit to Comcast owning a minority position in a new over-the-top subscription service that whets the appetite of potential cord-cutters. It's one thing for selective NBC programs to be freely available for catch-up on Hulu.com, but a deeper library in a paid subscription service? No way, especially not as Comcast is trying to build value in its own TV Everywhere service.
7. Hulu gets credit for a well-executed launch - Stepping back, the Hulu team deserves credit for keeping its subscription under tight wraps and executing a solid launch. There have been no shortage of rumors, but to my knowledge there haven't been any specifically identifiable leaks in the Hulu ship. That's a big accomplishment, especially when you consider how many people must have had knowledge of the plans. The launch includes a well-articulated CEO message, a nicely-done sizzle reel (that is in Flash, which makes it not viewable on the iPad or iPhone!), several device integrations and a roadmap of add-ons, and a slow-rollout plan that will generate excitement among early adopters.
There are still many unknowns about Hulu Plus, but for now this is plenty to chew on.
What do you think? Post a comment now (no sign-in required).Categories: Aggregators, Broadcasters
Topics: ABC, Android, CBS, FOX, Google, Hulu, NBC
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Here's What Fox, NBC and Hulu are Doing with Increased Online Ad Loads
Get ready to see more ads in TV programs viewed online. Following my exclusive 2 weeks ago about ABC doubling the number of ads in its iPad app, and soon on ABC.com, the same increased ad load is happening with Fox's and NBC's online programs, and in my opinion, likely with Hulu as well. Here's what I've learned:
Categories: Advertising, Broadcasters
Topics: ABC, CBS, FOX, Hulu, NBC
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