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Is Demand Media's "Factory" Approach the Future of Online Video - or Not?
Friday's $125 million IPO filing by Demand Media, the foremost content "factory" or "farm," raises the question of whether its low-cost, high-volume content creation model is the future for independent online video, or if its specialized approach is just applicable to its chosen how-to/knowledge-oriented niches.
Back in March, '09 I described how Demand's approach had enabled it to become the biggest supplier of online video to YouTube, with its ExpertVillage and eHow brands delivering the highest number of views of any YouTube partner. While not a household name, Demand pioneered a new approach to choosing which content to create, how to create it, and how to monetize and value it.
Based on multiple data sources, Demand developed a set of algorithms that could help predict the likely consumption and monetization potential of video on a given how-to/knowledge topic. When promising ones were identified, assignments would be offered out to a large freelance network of producers who would follow creative guidelines while still enjoying an ample amount of flexibility. Content is published to Demand's own sites and to 3rd parties to whom it syndicates. Social media and user contributions are emphasized as well.
Categories: Branded Entertainment, Indie Video
Topics: Demand Media, Easy to Assemble, My Damn Channel, YouTube
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Howcast is Innovating in Crowded How-to Video Market
Last week I got a heads-up on milestones that Howcast, a player in the how-to video market, has recently achieved, from Sanjay Raman, Chief Product Officer and co-founder. Howcast is now doing about 25 million playbacks per month, with about 20% of those happening on Howcast.com and 80% through its partners such as Yahoo, YouTube, MSN, Hulu, TiVo, FiOS, boxee and others. Howcast is now producing around 400 videos/month and has over 5,000 videos in its library.
Beyond the web, Howcast is innovating in a number of areas. Mobile has been a big focus, with apps for iPhone, iPad, BlackBerry and Android all released this year. Howcast says that to date its iPad app has been downloaded 150,000 times, second-most of all free apps. Howcast videos are also featured on Virgin Air's "Red" on-demand network. In addition, Howcast is also producing custom videos for corporate clients such as GE, Kodak and others where Howcast retains rights to include the video in its library.
Categories: Indie Video
Topics: HowCast
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Best Hospitals Video Series Returns for a Second Year
I missed an interesting item late last week, which is that U.S. News and HealthiNation have partnered for the second year to present their "2010-2011 Best Hospitals" video series. The series showcases U.S. News health rankings editor Avery Comarow providing an explanation of the rankings process and then drilling down into 5 specialty medical areas. There are 10 videos in this year's series and this time they are also embeddable.
I like the approach as it provides an accessible introduction to the magazine's text content, and also provides a jumping off point into HealthiNation's deeper catalog of health-related videos. Raj Amin, HealthiNation's CEO told me that his company does all of the video production, which in turn gives U.S. News a turnkey, valuable video augment to their print model. There's a banner ad at the bottom of each video player providing incremental revenue.
Categories: Indie Video, Magazines
Topics: HealthiNation, U.S. News
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Revision3 is Achieving Unaided Advertising Recall of Up to 99%
When Revision3, the independent network of online video programs, has surveyed its viewers, it has discovered that 99% of them are able to identify at least 1 of its advertisers. That incredibly high level of unaided recall is due to having its program hosts integrate advertiser messages in the middle of its programs, according to Revision3 CEO Jim Louderback, who I interviewed last week. Jim will be a featured speaker at NATPE's upcoming LATV Fest (VideoNuze readers get $200 off registrations). Following is an excerpted transcript.
VideoNuze: Revision3 is producing a lot of shows now. Tell us how you decide what new shows to launch?
Jim Louderback: It's a combination of things. We start by asking our viewers what kinds of shows they'd like to see. We scour the Internet - places like YouTube, Vimeo, blip, etc. - to find things that fit with our brands and our 18-34 male target audience. And we apply filters of what we think will work. For example, people told us they wanted a show about movies and so we were able to find a couple of guys in Florida who were making a cool show. We talked to them and refined the program - Film RIot, a little and it's been a big success. Our goal is to combine community with a topic our audience is fascinated by and hosts who are authentic and passionate.
VN: What are Revision3's top 2-3 successes?
JL: Our biggest shows are Techzilla - which is 2 geeks who are passionate about technology; Diggnation - 2 guys talking about social news; and Scam School - built around the concept of using magic to scam drinks off your friends. AppJudgement is doing well as is the Digg Reel, among others. They all come from different places but they've all developed audience and community.
Categories: Advertising, Indie Video
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Next New Networks Poised to Hit 1 Billion Views Since Inception
In July, independent online video creator Next New Networks will hit 1 billion views since its inception, company CEO Lance Podell me in an interview last week. Next New Networks is now generating 60 million views/mo across its whole network. Lance shared this statistic and more in the following interview, in preparation for NATPE's LATV Fest, scheduled for July 12-15. Lance will appear on a panel titled, "The NEXT new Network: The Intersection of Cable and Web Programming." An excerpted transcript follows.
VideoNuze: Which of your networks are doing the best, and why?
Lance Podell: The biggest are Barely Political and Barely Digital. The primary reason is because we've really tapped the mix of pop culture currency and comedy. A majority of our viewing is on YouTube and the discoverability on YouTube is still around comedy. Comedy is really, really strong.
Also interesting about YouTube is that success is relative. For example, our IndyMogul network which is about movies, but from a different angle at what's hot, is in a different vertical and at 5 million views per month, does very well there. A recent network we launched is HungryNation, which is real food for the YouTube generation has doubled and trebled over the last few months. We give new networks 90-120 days to really take off or not. YouTube and others are working hard to make new content more discoverable which is really important to launching new shows.
VN: There's been recent discussion of online video gaining viewership in primetime. Are your networks gaining in primetime?
LP: Primetime is a thing of the past - it's just not relevant any more. People can watch video-on-demand. Their lives are very different. Our viewership, at 60 million views per month, is the same as some smaller cable TV networks in primetime. So we're getting big enough to compete. Something that is interesting for us is "anytime" viewership. For example, we did some research recently and people said things like, "I come home from work or school and turn on YouTube." It's like they think of YouTube as a network. They tell us they find our humor more real and authentic. They also tell us they don't like being committed for 22 or 44 minutes or more.
Importantly, over the last 2 years web-only programming has become more reliable. Our shows come out at the same time every week. So people are tuning in, not just relying on people sending email links. And because all episodes are available they can really get into it.
Categories: Indie Video
Topics: LATV Fest, Next New Networks
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Smartphones Poised to Move to Cultural Center Stage?
Yesterday's note in the WSJ's Digits blog about 22 year-old South Korean singer Kim Yeo-hee's move from YouTube viral star to her own record deal is a reminder of the brave new world that aspiring singers now find themselves in. Of course, getting noticed on YouTube as a viral star has been a rage for years now, but what's different for Kim is that what got her noticed online is her use of music apps on 3 different iPhones as her as accompaniment.
It's a somewhat awkward scene, but you have to give Kim credit for being ingenious. And it's a lesson to other up-and-comers - having good pipes is still table stakes, but new technology and devices can help you distinguish yourself in the sea of online performers. That got me to thinking - with smartphones becoming a bigger and bigger part of our culture, what other creative ways might we see them start seeing them appear in performances?
What do you think? Post a comment now (no sign-in required).Categories: Indie Video, Music
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Online Video Gains on Primetime, Led by Indie Content
The WSJ reported on Wednesday that online video viewing over the last year has begun shifting from the lunch time daypart to the coveted primetime daypart. Online primetime viewing rose 14% to an average of 62.4 million viewers over the last year according to Nielsen.
While network programming from Hulu certainly helped, the article credited the jump primarily to independent original web series and networks like blip.tv and Revision3. Revision3's CEO, Jim Louderback attributed its share to the 40% of its audience watching on connected devices like Roku while blip's CEO Mike Hudack argued it was the rise in quality and length of programming. The average length of blip's episodes is up to 14 minutes from 6 minutes a year ago.
Mike also posted yesterday on blip's blog further sharing his excitement that blip is also close to reaching 100 million views per month. This despite the fact that its web series are produced on a fraction of Hollywood's typical budgets (his estimate is blip's shows cost one-tenth of 1% of Hulu's). Mike's argument underscores the democratization of media underway. The Internet allows hardworking entrepreneurial content creators to work successfully far outside the world of Hollywood's ecosystem to create great content and gain sizable audiences.
Add in this week's NewFront and it's clear that independent original web video is uttering a battle cry for legitimacy. As devices and platforms that blur the line between online video and television continue to emerge, this trend will further accelerate, potentially positioning indie online content as a disruptor to traditional programming.
What do you think? Post a comment now (no sign in required).Categories: Indie Video
Topics: blip.TV, Hulu, NewFront, Revision3
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Digitas' NewFront: Convergence Underway, Challenges Remain
Following this year's successful TV advertising upfront, yesterday Digitas' branded entertainment arm, The Third Act, presented its third annual and playfully titled, Digital Content NewFront. The similarities are in name only though, as the NewFront is a conference and social gathering, bringing together and showcasing top tier online content creators, distributors, and forward-thinking brands.
Before you start thinking NewFront is a bunch of web wannabes looking for their big break, the guest list was actually packed with tons of traditional media talent who have also been pursuing online content, such as Kevin Pollack, Jason Bateman, Lisa Kudrow, Teri Hatcher, and even Martha Stewart. Their involvement underscores how traditional and new media convergence is already well underway, propelled by branded entertainment.
The enthusiasm at the NewFront was abundant, with Mark Beeching, Digitas' Worldwide Chief Creative Officer, trumpeting in his opening remarks, "Online video is no longer a three minute trivial sideshow!" Still, illustrating the mixed motivations of many online content creators, Ricky Van Veen, of CollegeHumor and IAC's branded content wing, Electus, noted that most creators still view online video as a stepping-stone to TV or film.Categories: Advertising, Branded Entertainment, Indie Video
Syndicating Branded Entertainment Gains on AlphaBird-Fremantle Deal
This morning AlphaBird is announcing a deal with FremantleMedia to package and syndicate online the new branded entertainment web series, "As Worn Buy." AlphaBird recently launched as a new video content syndication service and is headed by Chase Norlin and Alex Rowland, both online video industry veterans. I caught up with Chase and Alex to understand how the Fremantle deal works, and also how the company is looking to differentiate itself.
Taking a step back for a moment, AlphaBird is working in the "Syndicated Video Economy" a term I coined a couple of years ago. The SVE is an ecosystem of companies facilitating consumption and monetization of online video across a broad network of sites and environments. In the SVE it is more important for content providers to access eyeballs wherever they happened to be - for example on 3rd party sites, on mobile devices, in social media settings, etc. than to solely try attracting them to a destination web site (along the lines of the "must-see TV" model of appointment, channel-based viewing).
The SVE recognizes that the Internet is a highly fragmented, on-demand centric medium that requires its own unique formulas for success. Everyone working in the SVE understands that it's still very early in the game, and the rules of the road are being figured out in real time. The key to the SVE is simultaneously pleasing the main constituencies - video content creators, advertisers, publisher sites and users. All of this needs to be done in the context of long-standing expectations that each constituency has about how things have always worked. The SVE can't be a revolution; rather, to bring all the constituents along, it needs to gradually migrate from and respect the way things have always been done.
AlphaBird is trying to carve out its role in the SVE by focusing on syndicating branded entertainment (web series with deep brand/product involvement/visibility/placement) to a network of publishers. Alex explained that AlphaBird's key differentiator is to insert the video in an editorial position within publisher web pages, as opposed to in advertising positions (e.g. existing 300x250 in-banner placements). The goal is to provide incremental value to publishers and their audiences. The proposed payoff to the brand is higher awareness (through editorial positioning), engagement (all video is click-to-play) and ROI (all pricing is performance-based). AlphaBird is guaranteeing audience to brands, though not down to certain specific sites just yet. Clarification - AlphaBird is offering site level guarantees.
Given the trend of brands creating their own content, and the difficulty of generating online audiences, AlphaBird's concept is appealing (though to be fair, it's not entirely unique as Grab Networks, for example, also does editorial placements). It's easy to see why Fremantle, which is a content creation expert, but an online video syndication newbie, would value this kind of partnership. Chase said that achieving distribution goals is the number one challenge facing content creators, and that's where AlphaBird is focused.
My main concern is that achieving pure editorial placements is a very heavy lift and is hard to scale. It requires high-touch interactions to gain buy-in from editorial staff who are rightly concerned about their product's integrity (and as a result often bringing a bias against 3rd party video). That creates a far higher bar to clear than convincing the ad team to run something in a location already used for advertising in order to pick up a few extra bucks. A lack of scale would challenge AlphaBird's ability to win deals from major brands requiring significant exposure.
AlphaBird's hand-crafted approach also means a lot of detailed integration and follow-on QA to ensure the video is running according to expectations conveyed to the brand upfront. That would be welcome, given some of the stories emerging about low-quality syndication market activity, but it's costly to deliver. Alex acknowledged all of this and agreed that trying to automate as much as possible is the key to scaling the model successfully.
With the Fremantle deal, AlphaBird is plowing new ground for branded entertainment in the SVE. Chase says the company is already profitable, and it is begin funded from revenue. For those interested in the SVE's ongoing evolution, AlphaBird will also be worth keeping an eye on.
What do you think? Post a comment now (no sign-in required).Categories: Indie Video, Syndicated Video Economy
Topics: AlphaBird, FremantleMedia
YouTube's Meager Sundance Rental Revenues Really Weren't That Surprising
This week brought news that YouTube's recent foray into rentals netted the company a whopping $10,709.16. I wasn't surprised by the results, as YouTube only made 5 Sundance films available for 10 days. As I suggested 2 weeks ago, even with YouTube's massive audience, it would be unreasonable to expect too much. Still, it was great promotion for the indie film producers and no doubt a learning experience for YouTube.
I'm not religiously opposed to YouTube broadening its model beyond free and ad-supported video, but I do think YouTube needs to be wary of spending a lot of time trying to secure me-too rights for distribution of Hollywood's prime TV and movie output. That's highly competitive ground, and Netflix for one, has enormous advantages given its robust subscription model. YouTube is in the pole position when it comes to the ad-supported online video model and it needs to be relentlessly focused on proving it can make the model profitable.
What do you think? Post a comment now (no sign-in required).
Categories: Aggregators, FIlms, Indie Video
Topics: Sundance Film Festival, YouTube
VideoNuze Report Podcast #44 - December 18, 2009
Daisy Whitney and I are pleased to present the 44th edition of the VideoNuze Report podcast, for December 18, 2009. This will be the last podcast for 2009, and we'd both like to say a huge thanks to everyone who's been listening in this year.
This week I start things off by providing further detail on my experience so far with Comcast's TV Everywhere initiative, Fancast Xfinity TV (or "FXTV" as I call it for short), which was released in beta to 14 million subscribers this week at no additional charge. On the whole I think it's a respectable effort, and in the big picture, is exactly what the company should be doing with online distribution. The main challenge for improving it is getting lots more content from ad-supported and premium cable networks, so that users are more likely to find what they're looking for. For all kinds of reasons, this won't be easy, but if any company can make it happen, it's surely Comcast.
Then Daisy reviews her '09 predictions and shares her "New Media Minute Awards for Excellence." She recognizes Kaltura, 5Min, boxee, Quantcast, and number 1 pick, MyDamnChannel. All have excelled this year, attracting new venture financing, signing new deals and growing their business. Daisy is particularly proud of MyDamnChannel because it also achieved profitability this year. Listen in to find out more.
Click here to listen to the podcast (14 minutes, 18 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!
Categories: Cable Networks, Cable TV Operators, Indie Video, Podcasts
Topics: 5Min, Boxee, Comcast, Kaltura, MyDamnChannel, Quantcast
New "If I Can Dream" Series Taps Streaming, Mobile, Social Media
Simon Fuller's 19 Entertainment announced a new reality series yesterday, "If I Can Dream" which will rely on streaming, mobile and social media to dramatically enhance audience engagement. "If I Can Dream" will follow five young actors as they pursue Hollywood fame and fortune. The series will be distributed on its own site and through Hulu, MySpace, Clear Channel and others.
While the show will have a traditional 30 minute television-show format, it's clear that Fuller plans to use technology to differentiate the show from the myriad other reality offerings. All of the actors' moves will be streamed live using new sensor technology and audiences will interact with the actors via text, blogs, Twitter, MySpace and other in real-time. For sponsors Pepsi and Ford, we'll no doubt see new brand engagement opportunities. Some of this has already been done with other shows, but Fuller appears to be looking to take it to a whole new level.
Hulu's role is also intriguing. I haven't thought of Hulu as having a place in broadband-only original productions, but as I consider this move, it makes sense. Though deal terms were not disclosed, Hulu is likely putting up no money, and is instead bringing its substantial traffic and promotional capabilities to the partnership. It costs Hulu nothing to give "If I Can Dream" visibility on the site, so it's in a strong position to help establish the show. With the company's reach into brands and agencies it can sell ads without bumping into broadcast networks' sales reps.
It will be interesting to see how "If I Can Dream" unfolds. All the technology in the world can't make a show compelling, but with "American Idol" and "So You Think You Can Dance" to his credit, Fuller clearly knows what goes into making a hit. And the trailer looks pretty good. Layer on the audience engagement and this could be the start of an exciting new programming model.
What do you think? Post a comment now.
Categories: Aggregators, Indie Video
Topics: 19 Entertainment, Clear Channel, Hulu, MySpace, Simon Fuller
Oprah's New Channel Reinforces Value of Paid Distribution Model
Oprah Winfrey's decision last week to voluntarily wrap up her long-running talk show captured the biggest headlines, but a more subtle takeaway message should also be noted: even in the broadband age where content providers can connect directly to their audiences, there's still enormous value in working through distributors who are willing to pay a guaranteed monthly fee to carry a 24/7 linear channel. In this case the channel is new Oprah Winfrey Network (OWN), which is a 50-50 joint venture with Discovery Communications and will be Oprah's main business focus.
OWN is actually taking over the 70 million home (U.S.) carriage that Discovery established for its digital channel Discovery Health Channel which didn't generate much ratings success. This allows OWN to count on an established revenue stream from its distributors before a single program has been put on air or a single ad has been sold. As a result, a portion of the new venture's financial risk is mitigated from the start. Of course there will still be huge pressure on OWN to create programs that have sustainable audience appeal (the bread and butter of all networks, cable or broadcast), but the cushion of those monthly distributor payments cannot be underestimated.
I've said for a long time that the fundamental differentiating aspect of broadband video is that it is the first open video delivery platform. By open I mean that content providers are able to reach their intended audiences without requiring deals with any third party cable operator, satellite operator, telco, cable network, broadcast network, local broadcast TV station, etc. If you're a producer, that's incredibly liberating: just put your video up on a server and online audiences have immediate access to it. YouTube's 10 billion+ monthly streams, many of which are user-generated, attest to how powerful a concept open video delivery is.
Of course the problem is that just because you can produce video and make it available, doesn't mean it has any economic value to an advertiser or to a distributor. By definition distributors only seek to take on products that they believe have value in the retail marketplace. In cable's early days, operators were desperate to differentiate themselves as more than retransmitters of broadcast stations and were willing to take on channels with untested and often quizzical formats: 24 hour news (CNN), music videos (MTV) and low-popularity sports (ESPN), among others. Over time the fees these channels and others command have grown significantly, helping fuel their programming budgets and in turn their audience popularity.
But as anyone who has more recently tried pitching a new cable network to a cable, satellite or telco operator knows, the standards for getting distribution have become insanely high. It's not just that these cable/satellite/telco operators need to keep their costs down because they have limited ability to raise their monthly rates, it's also that they recognize very few new channels can generate bona fide new value in their lineups. This is part of why the few recent channel success are sports-driven startups like the NFL Network or regional sports outlets like the Big Ten Network.
A comparable paid distribution model has not yet developed for broadband video. For a time I believed that sites like Hulu, Joost and Veoh might be able to develop such a model given the amount of capital that each had raised. Only Hulu now has the potential to do so, though there's no indication as yet that it intends to. Absent a paid distribution model, the vast majority of broadband-only video producers are reliant on advertising, just like broadcast TV networks. Some broadband producers are proving that an ad-only model works, yet there's no question a viable paid distribution model would be a tremendous boost for the industry.
Watching Revision3's Tekzilla on TV the other night via Roku, I was reminded that until broadband video is widely available on TVs it will remain hard for any new paid distribution model to take root. That's because consumers will require a comparable living room viewing experience before many of them show a willingness to pay. The good news is that this experience is coming, as millions of TVs will soon have broadband access, either on their own or through a connected device (e.g. Roku, Xbox, Apple TV, etc.). Until then though, the paid distribution model will only be available to Oprah and others with gold-plated appeal.
What do you think? Post a comment now.
Categories: Cable Networks, Cable TV Operators, Indie Video, Satellite, Telcos
Topics: Discovery, Oprah Winfrey Network
VideoNuze Report Podcast #40 - November 13, 2009
Daisy Whitney and I are pleased to present the 40th edition (whoo-hoo!) of the VideoNuze Report podcast, for November 13, 2009.
This week Daisy first shares observations on her recent interview with Gary Vaynerchuk, who is best known as the host of Wine Library TV/The Thunder Show. Gary has a new book out called "Crush It!" part of a 10-book deal he did with HarperStudio. The book focuses on how you can build your personal brand using all of the Internet's various communications tools. Vaynerchuk has a lot of credibility as he's built up a huge following for Wine Library TV. Now with the books, he's showing how online popularity can be leveraged into the print world. For a good example of the show, check out this episode featuring Wayne Gretzky.
We then shift to my post from earlier this week, "Sony Gets It Wrong with 'Meatballs' Promotion." I took Sony Electronics to task for a new promotion they're starting which provides a free 24 hour rental of the movie "Cloudy With a Chance of Meatballs" to buyers of connected Sony Bravia TVs and Blu-ray disc players. It's also available as a $24.95 rental for current owners of these devices. I explain more about why I think this promotion falls way short and does little to advance the agenda of delivering movies via broadband.
Click here to listen to the podcast (14 minutes, 12 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!
Categories: FIlms, Indie Video, Podcasts, Studios
Topics: Sony, Wine Library TV
Health-Related Video Vertical Poised for Growth
Last week brought two announcements suggesting that the health-related video vertical market is poised for growth: first, that HealthiNation will be distributing its videos on AT&T U-Verse and HealthGrades, and the second, that HealthCentral is partnering with 5Min to syndicate its videos across 5Min's distribution network.
I've been following HealthiNation for a while and last week CEO and co-founder Raj Amin told me that the AT&T deal brings to about 28 million the number of American homes where HealthiNation's content is available on video-on-demand (VOD). Raj's enthusiasm for VOD distribution helps validate points I made last May in "Made-for-Broadband Video and VOD are Looking Like Peanut Butter and Chocolate," in which I suggested that rather than broadband video and VOD being competitive with each other, they can actually complement each other well.
In HealthiNation's case, Raj indicated that VOD distribution is particularly important for its sponsors, as they value views in the living room in addition to those on the computer, where most broadband video occurs today. The multiple ways that VOD is promoted by incumbent video providers given HealthiNation's content lots of visibility. The downside Raj noted is that VOD lacks the same interactivity/engagement opportunities as viewing online provides, and that inserting ads is not nearly as easy. The latter means that HealthiNation must manually attach ads to each of its VOD streams. This would be extremely laborious for content providers with hundreds or thousands of titles, but for HealthiNation, which offers dozens of VOD titles at a time, it is manageable. Raj emphasizes that VOD's ability to help surround the consumer with content and sponsor messages is a key differentiator for HealthiNation, and a key reason it has pushed hard into VOD.
HealthiNation's strategy is primarily to syndicate its content rather than be a destination site, and it has over 50 partners in its network now, with potential reach of about 40 million unique visitors/month. HealthiNation insists that its video be played in its player, and that it controls the ad inventory. This is primarily because of its commitments to its sponsors (mainly pharma) to deliver only highly targeted viewers, provide detailed performance metrics and use mostly display ads, not pre-rolls. All of these contribute to HealthiNation offering a differentiated value proposition relative to typical TV ads.
Separate, HealthiNation also announced a partnership last week with HealthGrades, which is the leading provider of ratings information on doctors, hospitals and nursing homes. Overall Raj said that at its peak, HealthiNation is now generating 3 million uniques/month. It has over 300 videos that are 2-3 minutes long (or longer for VOD) and growing. The company has raised $12.5 million in total, and Raj says it will be profitable in 2010.
Meanwhile last week also brought news that HealthCentral, a large online provider of health-related content and operator of a health-related online ad network, is partnering with 5Min, a video syndicator which I wrote about here. Under the deal HealthCentral's videos will be added to 5Min's existing health library, for syndication to over 350 different sites. HealthCentral will take on exclusive ad sales responsibilities for pharma and OTC clients for 5Min's video focused on health, specific conditions, parenting, pregnancy, fitness and nutrition.
The HealthCentral deal is similar to the recent deal 5Min did with Scripps Networks in the food and home & garden categories. In both, 5Min landed a large anchor content partner, to which it then gave exclusive ad sales responsibilities for part of the category. In this way 5Min gains both valuable content and also category-specific advertising expertise. I continue to like how 5Min is building out its model methodically across important content categories.
Even as Washington slogs through health care reform legislation, the health-related online video space is rapidly evolving. More than ever, individuals recognize the need to educate themselves. Video provides a breakthrough way to simply and completely explain complex ideas. As a result I see lots of growth ahead in this vertical.
What do you think? Post a comment now.
Categories: Indie Video, Telcos, Video On Demand
Topics: 5Min, AT&T U-verse TV, HealthCentral, HealthGrades, HealthiNation
4 Items Worth Noting for the Oct 26th Week (Counting online video views, Zappos prank videos, 3DTV, 2010 trends)
Following are 4 items worth noting from the Oct 26th week:
1. Online video viewership claims are murky - Props to Jim Louderback, CEO of Revision3, for his opinion piece in AdAge this week, "Where's the Outrage Over Online Video Viewership Claims" in which he cites multiple examples of how content providers' hyperbole and the media's lack of fact-checking/analysis allow all kinds of ridiculous viewership numbers to gain traction as fact. Compounding things is the inconsistent definition of what even constitutes a "view." Jim notes that a fraction-of-a-second play start often can be enough. For advertisers in particular, trying to understand where to place their spending in the emerging online video medium, it is "buyer beware." A great reminder of how immature the online video industry remains.
2. Zappos's "world's fastest nudist" viral video campaign adds to media's gullibility - The NY Times had a great item this week on Zappos's "world's fastest nudist" campaign, a series of humorous videos on YouTube showing a guy named Donnie streaking around the streets of New York with nothing but a fanny pack on.
While the videos are clever, the media that picked them up and ran with them as being real are now looking decidedly dim. CNN's Anderson Cooper surely tops the gullibility list, as he and anchor Erica Hill featured one of the videos (showing Donnie buying a taco at a food stand) on AC 360's nightly "The Shot" feature. Cooper blithely passes on that Donnie "holds over 400 nude speed records..." One suspects Walter Cronkite would have dug in and not have been duped by Zappos. However, I'm hardly one to talk, as I was taken in by the "Megawoosh Waterslide Video" this past summer. The old adage "don't believe everything you read" really needs to be updated to "don't believe everything you watch." Meanwhile, Zappos undoubtedly loves all the free publicity.
3. Enough of HDTV, get ready for 3DTV - Speaking of not believing what you watch, and shifting focus somewhat from online video, I got my first peek at what 3DTV looks like earlier this week. 3D has become a mini-rage recently, with various TV set manufacturers launching 3D-enabled models, looking to drive content creators to jump on the 3D bandwagon. The catch to 3D video is that it's much more expensive to produce because of the need for multiple cameras. That may be OK for movies where the extra cost can be recouped through higher ticket prices, but for regular TV shows it's been a serious obstacle.
However, the approach used by a small NJ-based company named HDLogix, whose demo I saw, introduces a workaround to this issue. Instead of requiring original production to be shot in 3D, the company runs existing video through its algorithms to dynamically generate 3D effects (I saw segments of the movie "300"). That means no additional production expense is incurred by the content creator. Don't ask me any more about how it works, as the technology is way outside my sweet spot. I will say this, it's pretty cool stuff and I could see 3D adding a lot of new value to online video, especially advertising.
4. What to look for in 2010 - One last follow-up to the CTAM Summit panel I moderated on Tuesday. My last question to the panelists was to name 1 thing that the 1,500+ cable industry attendees in the audience should be paying most attention to in 2010. These were their answers:
Paul Bascobert (Chief Marketing Officer, Dow Jones & Company) - e-book readers make huge advances, especially with a new Apple product hitting the market
Matt Bond (EVP, Content Acquisition, Comcast) - the "customer is king" - stay focused on that
Andy Heller (Vice Chairman, Turner Broadcasting System, Inc.) - the advent of 4G mobile networks and adoption of the "mobile Internet"
Jason Kilar (CEO, Hulu) - follow your companies on search.twitter.com to stay in touch with what your customers are saying
David Preschlack (EVP, Disney and ESPN Networks Affiliate U.S. Sales and Marketing) - the number of access points for content providers will continue to explode
Peter Stern (EVP & Chief Strategy Officer, Time Warner Cable) - make every interaction with customers an opportunity to build a positive relationship
Great food for thought.
Enjoy your weekends!
Categories: Brand Marketing, Indie Video, Predictions, Technology, Video Sharing
Topics: CNN, CTAM, HDLogix, Revision3, Zappos
4 Items Worth Noting (Hulu, TiVo-Emmys, GAP-VMIX, Long Tail) for Sept 21st Week
Following are 4 news items worth noting from the week of Sept. 21st:
1. Bashing Hulu gains steam - what's going on here? - These days everyone seems to want bash Hulu and its pure ad-supported business model for premium content. Last week it was Soleil Securities releasing a report that Hulu costs its owners $920 per viewer in advertising when they shift their viewership. This week, it was a panel of industry executives turn. Then a leaked email from CBS's Quincy Smith showed his dissatisfaction with Hulu, and interest in trying to prove it is the cause of its parent networks' ratings declines.
What's happening here is that the world is waking up to the fact that although Hulu's user experience is world-class, its ad model implementation is simply too light to be sustainable. I wrote about this a year ago in "Broadcast Networks' Use of Broadband Video is Accelerating Demise of their Business Model," following up in May with "OK, Hulu Now Has ABC. But When Will it Prove Its Business Model?" Content executives are finally realizing that it is still too early to put long form premium quality video online for free. Doing so spoils viewers and reinforces their expectation that the Internet is a free-only medium. When TV Everywhere soon reasserts the superiority of hybrid pay/ad models, ad-only long-form sites are going to get squeezed. At VideoSchmooze on Oct 13th, we have Hulu's first CEO George Kliavkoff on our panel; it's going to be a great opportunity to understand Hulu's model and dig further into this whole issue.
2. TiVo data on ad-skipping for Emmy-winning programs should have TV industry alarmed - As if ad-skipping in general wasn't already a "hair-on-fire" problem for TV executives, research TiVo released this week on ad-skipping behavior specifically for Emmy-winning programs should have the industry on DEFCON 1 alert. Using data from its "Stop | Watch" ratings service, TiVo found that audiences for the winning programs in the 5 top Emmy categories - Outstanding Comedy Series, Drama Series, Animated Program, Reality-Competition and Variety/Music/Comedy Series - all show heavier than average (for their genre) time-shifting. The same pattern is true for ad-skipping; the only exception is "30 Rock" (winner of Outstanding Comedy Series) which performs slightly better than its genre average.
The numbers for AMC's "Mad Men" (winner of Outstanding Drama Series), are particularly eye-opening: 85% of the TiVo research panel's viewers time-shifted, and of those, 83% ad-skipped. (Note as an avid Mad Men viewer, I've been doing both since the show's premiere episode. It's unimaginable to me to watch the show at its appointed time, and with the ads.) The data means that even when TV execs produce a critical winner, their ability to effectively monetize it is under siege. How long will BMW sign up to be Mad Men's premier sponsor with research like this? TiVo's time-shifting data shows why network executives have to get the online ad model right. When TV Everywhere launches it will cater to massive latent interest in on-demand access by viewers; it is essential these views be better monetized than Hulu, for example, is doing today.
3. Radio stations push into online video as GAP Broadcasting launches with VMIX - Lacking its own video, the radio industry has been a little bit of the odd man out in the online video revolution. Some of the industry's bigger players like Clear Channel have jumped in, but there hasn't been a lot of momentum, especially with the ad downturn. But this week GAP Broadcasting, owner of 116 stations in mostly smaller markets announced a partnership with video platform and content provider VMIX. I talked to VMIX CEO Mike Glickenhaus who reported that radio stations are starting to get on board. For GAP, VMIX is providing an online video platform, premium content from hundreds of licensed partners, user-generated video tools and sales training, among other things. GAP's goal is to be a "total audience engagement platform" not just a radio station. Sounds right, but there's lots of hard work ahead.
4. So is there a "Long Tail" or isn't there? Ever since Chris Anderson's book "The Long Tail" appeared in 2006 there have been researchers challenging his theory which asserts that infinite shelf space drives customer demand into the niches. The latest attempt is by 2 Wharton professors, who, using Netflix data, observe that the Long Tail effect is not ironclad. Sometimes it's present, sometimes it's not. Anderson disputes their findings. The argument boils down to the definitions of the "head" and "tail" of the markets being studied. Anderson defines them in absolute terms (say the top 100 products), whereas the Wharton team defines them in terms of percentages (the top 1 %).
I've been fascinated with the Long Tail concept since the beginning, as it potentially represents a continued evolution of video choice; over-the-air broadcasting allowed for 3 channels originally, cable then allowed for 30, 50, 500, now broadband creates infinite shelf space. Independent online video producers and their investors have bet on the Long Tail effect working for them to drive viewership beyond broadcast and cable. With Nielsen reporting hours of TV viewership holding steady, we haven't yet seen cannibalization. However, with Nielsen, comScore and others reporting online video consumption surging, audiences may be carving out time from other activities to go online and watch.
Enjoy your weekends! There will be no VideoNuze on Monday as I'll be observing Yom Kippur.
Categories: Advertising, Aggregators, Broadcasters, Indie Video, Radio
Topics: AMC, GAP Broadcasting, Hulu, Long Tail, Netflix, VMIX
4 Items Worth Noting from the Week of August 17th
Following are 4 news items worth noting from the week of August 17th:
CBS's Smith says authentication is a 5 year rollout - I had a number of people forward me the link to PaidContent's in-depth coverage of CBS Interactive CEO Quincy Smith's comments at the B&C/Multichannel News panel in which he asserted that TV Everywhere/authentication won't gain critical mass until 2014.
I was asked what I thought of that timeline, and my response is that I think Smith is probably in the right ballpark. However, these rollouts will happen on a company by company basis so timing will vary widely. Assuming Comcast's authentication trial works as planned, I think it's likely to expect that Comcast will have its "On Demand Online" version of TV Everywhere rolled out to its full sub base within 12 months or so. Time Warner Cable is likely to be the 2nd most aggressive in pursuing TV Everywhere. For other cable operators, telcos and satellite operators, it will almost certainly be a multi-year exercise.
NFL makes its own broadband moves - While MLB has been getting a lot of press for its recent broadband and mobile initiatives, I was intrigued by 2 NFL-related announcements this week that show the league deepening its interest in broadband distribution. First, as USA Today reported, DirecTV will offer broadband users standalone access to its popular "Sunday Ticket" NFL package. The caveat is that you have to live in an area where satellite coverage is unattainable. The offer, which is being positioned as a trial, runs $349 for the season. With convergence devices like Roku hooking up with MLB.TV, it has to be just a matter of time before the a la carte version of Sunday Ticket comes to TVs via broadband as well.
Following that, yesterday the NFL and NBC announced that for the 2nd season in a row, the full 17 game Sunday night schedule will be streamed live on NBCSports.com and NFL.com. Both will use an HD-quality video player and Microsoft's Silverlight. They will also use Microsoft's Smooth Streaming adaptive bit rate (ABR) technology. All of this should combine to deliver a very high-quality streaming experience. But with all these games available for free online, I have to wonder, are NBC and the NFL leaving money on the table here? It sure seems like there must have been some kind of premium they could have charged, but maybe I'm missing something.
Metacafe grows to 12 million unique viewers in July - More evidence that independent video aggregators are hanging in there, as Metacafe announced uniques were up 67% year-over-year and 10% over June (according to comScore). I've been a Metacafe fan for a while, and their recent redesign around premium "entertainment hubs" has made the site cleaner and far easier to use. Metacafe's news follows last week's announcement by Babelgum that it grew to almost 1.7 million uniques in July since its April launch. Combined, these results show that while the big whales like YouTube and Hulu continue to capture a lot of the headlines, the minnows are still making swimming ahead.
Kodak introduces contest to (re)name its new Zi8 video camera - It's not every day (or any day for that matter) that I get to write how a story in a struggling metro newspaper had the mojo to influence a sexy new consumer electronic product being brought to market by an industrial-era goliath, so I couldn't resist seizing this opportunity.
It turns out that a review Boston Globe columnist Hiawatha Bray wrote, praising Kodak's new Zi8 pocket video camera, but panning its dreadful name, prompted Kodak Chief Marketing Officer Jeffrey Hayzlett to launch an online contest for consumers to submit ideas for a new name for the device, which it intends to be a Flip killer. Good for Hayzlett for his willingness to change course at the last minute, and also try to build some grass roots pre-launch enthusiasm for the product. And good for the Globe for showing it's still relevant. Of course, a new name will not guarantee Kodak success, but it's certainly a good start.
Enjoy your weekend!
Categories: Aggregators, Broadcasters, Cable TV Operators, Devices, Indie Video, Sports
Topics: Babelgum, Boston Globe, CBS, Comcast, Kodak, MetaCafe, MLB, NFL, Roku, Time Warner Cable
4 Items Worth Noting from the Week of August 10th
Following are 4 news items worth noting from the week of August 10th:
Discovery Channel signs onto Comcast On Demand Online trial - Comcast added yet another cable programmer this week to the roster of those participating in its TV Everywhere trial. Discovery will make available episodes of "Man vs. Wild," "Swords," "Stormchasers" and "Verminators" though with some delayed windows that take a little edge off their appeal. Comcast has made a ton of progress corralling networks for its trial, but 4 of the big 5 cable network owners - Disney, Fox, NBCU and Viacom - remain holdouts. No coincidence that the first 3 are Hulu's owners.
Swarmcast powers MLB.TV on Roku, introduces "Autobahn Live for CE" - Following on Roku's announcement this week that it is offering MLB.TV, Swarmcast announced it was powering the service through a new offering called "Autobahn Live for CE." Swarmcast's COO Chad Tippin explained to me that integrating with CE devices that drive broadband/TV convergence is a key company goal. Chad is confident that Swarmcast's high-quality, scalable HTTP streaming service will work on these various CE devices, and that as the number of them deployed swells, a new "long tail of live sports" will flourish. Live sports and events (e.g. concerts) could be a significant contributor to device adoption. For example, picture getting a coupon for $50 off the purchase of a Roku when you buy a pay-per-view of a streaming blockbuster concert.
Babelgum grows to nearly 1.7 million unique visitors in July, 2009 - I heard from Michael Rosen, EVP and Chief Revenue Officer at Babelgum this week, with news that the site has grown to nearly 1.7 million unique visitors in July (comScore), following its U.S. launch in April. I profiled Babelgum back in April and was cautiously optimistic about its approach to curate high-quality, independently-produced video into 5 channels (music, film, comedy, Our Earth and Metropolis). The site is fully ad-supported. Babelgum's growth comes on top of a slew of made-for-broadband video initiatives I detailed recently. The NY Times also had a great story this week on how independent filmmakers are taking distribution into their own hands. Despite the recession, this corner of the broadband market seems to be hanging in there.
Zune HD coming Sept 15th - Microsoft at last announced this week that the Zune HD digital media player will be in retail on Sept 15th, with pre-orders now being accepted. Zune HD introduces a touch-screen interface, 720p video playback, HD radio and other goodies. It is sure to raise the visibility of high-quality portable video another notch. But I find myself wondering: as the iPhone and other smartphones incorporate video playback (and recording) into one device, how large is the market for standalone high-end media players like Zune? Related, the iPhone's risk of cannibalizing the iPod has become a hot topic recently. Things to ponder: will users want to carry 2 devices? Or might they appreciate the ability to drain their battery watching video without risking the loss of their cell phone? Lots of different things in play.
Categories: Aggregators, Cable Networks, Cable TV Operators, Devices, Indie Video, Sports, Technology
Topics: Apple, Babelgum, Comcast, Discovery, iPhone, iPod, Microsoft, MLB.TV, Roku, Swarmcast, Zune
VideoNuze Report Podcast #26 - August 7, 2009
Daisy Whitney and I are pleased to present the 26th edition of the VideoNuze Report podcast, for August 7, 2009.
In this week's podcast, Daisy discusses her article on ExtendMedia's new OpenCase Publisher product targeted to support TV Everywhere-type initiatives, which I also wrote about this week. Daisy is observing a trend toward vendors organizing themselves for TV Everywhere, recognizing that while Comcast appears to be the first to market in testing TV Everywhere, other service providers are moving ahead as well. It's a complex new area and we both expect to see a number of vendors throw their hat in the ring to become preferred solutions.
Separate, I add further detail to my post, "Despite Hurdles, Made-for-Broadband Video Projects Proliferate," which describes many examples of new independent web series that have been announced over the past couple of months. It turns out to be a pretty lengthy list, helping to debunk some of the doom and gloom that's hung over this market, created by the ongoing recession in general plus the failure of some high-profile independents like 60Frames, Ripe, ManiaTV and others. When you review the list, you realize there's still a lot of experimentation going on and plenty of people trying to capitalize on the broadband medium. We expect this to continue.
Click here to listen to the podcast (12 minutes, 58 seconds)
Click here for previous podcasts
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Categories: Indie Video, Podcasts, Technology
Topics: ExtendMedia, Podcast