Posts for 'Sports'

Akamai’s network investments are paying off as the company keeps delivering ever-greater levels of concurrent live sports streams. The latest example occurred with last weekend's Euro 2016 Portugal-France championship match where Akamai delivered a peak of 7.3 Tbps during overtime. That level beat the 2014 Argentina-Netherlands World Cup final which achieved a 7.0 Tbps peak.

Akamai said that over 3.3 million concurrent streams were delivered at peak across 35 rights-holders globally. Akamai’s VP, Product Management Corey Halverson told me in a briefing that a number of network investments in quality and reliability have been instrumental in supporting the record streaming activity.

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NeuLion is powering a 4K streaming option for tomorrow night’s UFC 200 pay-per-view event to viewers with Sony HDR Ultra HD TV sets in the U.S. and Canada. The stream is enabled by viewers who download the UFC app from Google Play and pay a $10 additional fee on top of the standard $59.99 PPV pass. All of the 4K encoding and delivery is done by the NeuLion Digital Platform. A parallel 4K telecast is also available to DirecTV viewers using their set-top boxes.

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I'm pleased to present the 323rd edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

Colin and I were both very impressed by the demo that Comcast CEO Brian Roberts did at INTX earlier this week of how the X1 set-top box will blend linear TV and online video streams from this summer’s Rio Olympics into one experience.

We both believe this will be a truly breakthrough viewer experience, showcasing X1’s broadband capabilities and the value of the two-way interactive network. We envision Comcast launching a massive marketing campaign in the months leading up to the Olympics highlighting how experiencing the Olympics will be “best on X1,” in turn driving new subscriber acquisitions and upgrades.

More broadly, we discuss how valuable X1 and Comcast’s back-end infrastructure are as a platform for launching new features and services. We touch on how Amazon too is leveraging its platform for its Streaming Partners Program, underscoring the anticipated competition between big video platform owners. The role of a robust platform in determining the ultimate video winners is becoming increasingly clear.

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I'm pleased to present the 318th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

First up this week Colin and I dive into the Parks data from yesterday revealing that just 5% of US broadband homes subscribe to one or more of the 98 SVOD services other than the big three (Netflix, Amazon and Hulu). We agree that the data underscores just competitive it will be for the 98 and growing) minnow SVOD services to breakthrough.

One of those 98 services is Sling TV, which this week announced the beta of a new $20/month multi-stream service that includes select Fox networks. While Colin believes it’s a smart move by Sling TV to further segment the market, I view it as both confusing and also counter to Sling TV’s brand proposition, at least as it’s currently offered.

By separating the Fox networks and ESPN networks on 2 different tiers, Sling TV is in effect forcing sports fans to take both. That means $40/month for just the 2 base packages, and, as best I can tell there are 22 other networks that are duplicated in both tiers (meaning dual subscribers are in effect paying twice for them).

It’s hard to see how this represents breakthrough value and simplification of TV. Rather it just seems like unnecessary confusion, likely driven by Disney and Fox licensing restrictions to hedge against Sling TV becoming too popular.

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I'm pleased to present the 317th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

Live-streaming was in the headlines this week as the NFL announced Twitter as its partner for Thursday Night Football games and Facebook unveiled a slew of new features for Facebook Live.

On this week’s podcast, Colin and I discuss details of both of these initiatives, comparing and contrasting the upside. Colin is more enthusiastic about the Twitter-NFL deal, which is still a bit of a head-scratcher for me. Conversely, I’m very bullish on Facebook Live and believe it’s a natural extension of how Facebook is already used. The live-streaming battle will heat up further when YouTube launches its own live feature soon.

All of this means that live-streaming is poised to become a much more mainstream activity going forward.

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Underscoring once again how unpredictable the online video space is, Twitter has emerged as the unlikely winner of the rights to stream NFL Thursday Night Football (TNF) games for the 2016-2017 season. Just yesterday I wrote that with Facebook and Apple bowing out, the bidding likely came down to Amazon, Verizon and Google, with Verizon the most likely winner for a variety of reasons.

On the one hand, Twitter’s interest in streaming the TNF games makes sense, as recently returned CEO Jack Dorsey has publicly stated that a top 2016 priority is live streaming, including leveraging its Periscope product. The 10 TNF games give Twitter a marquee property to highlight live streaming, which complements Twitter activity around all games. And Twitter already had a deal in place with the NFL for highlight clips.

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Late Friday afternoon, Bloomberg reported that Facebook had dropped out of the bidding for streaming rights to the NFL’s Thursday night package. That news followed Recode’s report from last month that Apple had also withdrawn. With two of the most likely candidates now gone, the only digital players remaining who are both big enough to afford the deal and for whom it potentially makes enough strategic sense are likely Verizon, Google and Amazon (I’m excluding Yahoo since its own instability almost certainly precludes a bid).

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The never-ending tussle between pay-TV operators and sports TV networks over escalating carriage fees is back in focus due to the standoff between Comcast and the YES Network, which has the rights to broadcast New York Yankees games, among others. Comcast dropped YES last November, leaving approximately 900K of its New York area subscribers without access to YES. With the Yankees’ opening day one week from today, the standoff is going to gain much more attention.

As with other sports TV carriage disputes, this one boils down to money and audience. Comcast is arguing that YES’s demand for a reported $6 per month per subscriber isn’t justified given its ratings. Last November Comcast said that over 90% of its subscribers didn’t watch the equivalent of even one quarter of the 130 games YES broadcast in 2015. Nielsen said that YES averaged 250K viewers in 2015, a decrease of 44% vs. its peak of 450K in 2007.

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I'm pleased to present the 310th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

This week Colin and I recap our experiences streaming the Super Bowl to the various devices we tried. As I wrote on Monday, overall I thought the streaming quality was quite strong, with latency being the primary issue. Colin’s experience was more mixed, with his good old over-the-air signal the strongest.

No surprise, the size of the audience streaming the game set a new record with nearly 4 million unique viewers, up about 60% vs. last year. But I was a bit surprised it wasn’t even bigger given the breadth of OTT options. Unfortunately CBS didn’t provide any details on streaming by device. We discuss the factors that drove audience one way or another.

With the Super Bowl behind us, all eyes turn to the NFL’s pending OTT deal for its Thursday Night package. There are so many potential bidders in the mix who can leverage the games to their advantage.

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Overall, the quality of streaming of last night’s Super Bowl was strong, although I experienced inconsistent latency across different devices I was using. As shown in the images below, I set up an informal lab in my house, with the game on Comcast, via X1 (center), Roku TV (left rear), Amazon Fire TV on an Insignia (right rear), CBSSports.com (front left and right) and Verizon Go90 (front center).

As can be seen, each device is lagging behind the CBS broadcast feed on TV and to a different extent. I measured the latency at a few points and it seemed to get worse as the game progressed. For Lady Gaga’s national anthem, the Roku and Amazon feeds were approximately 40 seconds delayed, but by the end of the game, each was over a minute delayed. The online streams were approximately half this delay and the Verizon stream still slightly better.

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Continuing the trend of making live sports available to viewers across a wide range of devices, CBS will stream live coverage of this Sunday’s Super Bowl 50 broadcast to viewers both online and through an expanded network of over-the-top connected TV devices, including Xbox One, Apple TV, Roku and Microsoft 10. This decision by CBS and the NFL to allow, and even encourage, the consumption of the premier sports event of the year through connected TV devices is significant for 5 reasons:

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The NFL announced yesterday that it was splitting broadcast rights to Thursday Night Football in 2016 and 2017 between CBS and NBC. The WSJ reported that each network will pay $225 million for the annual rights, a 50% increase over the $300 million per season that CBS alone had been paying.

But the higher broadcast fees are just the beginning of how the NFL will more fully monetize the upcoming seasons. More intriguing were the sentences from the NFL’s press release: "The NFL is in active discussions with prospective digital partners for OTT streaming rights to Thursday Night Football. A deal announcement is expected in the near future."

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FreeWheel has released its Q3 ’15 Video Monetization Report (VMR), which reveals the continuation of a number of important industry trends. Both ad views and video views grew 28% vs. Q3 ’14, consistent with growth rates seen over the past few quarters.

Live video was once again the fastest-growing genre, with a 113% year-over-year growth, compared to 30% for long-form and 9% for short-form. Sports was again the biggest driver of live with 63% of sports video viewed live, compared with 17% of news video viewed live (other genres were in low single digits). News had the biggest proportion of short-form (76%), while Entertainment (60%) ad Kids (59%) had the biggest proportion of long-form.

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I'm pleased to present the 290th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

On this week’s podcast we do an in-depth Q&A with our guest Lee Berke, who runs LHB Sports, Entertainment and Media, Inc. Lee has helped dozens of teams create and implement sports TV networks. He has a wealth of insights into the role of sports in pay-TV and how online and mobile video are causing leagues and teams to adjust their traditional distribution strategies.

Sports are a key driver of increased pay-TV rates and as VideoNuze readers know, I’ve been writing for years (examples here, here, here) about the billions of dollars non-fans pay each year in the form of a “sports tax” - subsidizing expensive sports networks they never watch. With the advent of robust, inexpensive OTT entertainment programming options, the pay-TV multichannel bundle has come under more pressure than ever, with subscriber losses peaking in Q2 ’15.

In our Q&A with Lee we explore these issues and how he sees OTT impacting teams, leagues and sports TV networks. Lee believes TV will remain the most significant revenue source in sports for the foreseeable future, but also sees the leagues more aggressively experimenting online to serve a new generation of fans. Lee also describes how he’s advising teams, particularly on how to maintain flexibility and capitalize on new technologies.      

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Yesterday, the National Hockey League and Major League Baseball Advanced Media announced a multi-faceted 6-year deal in which MLBAM will pay $600 million to take over distribution and operations of NHL’s GameCenter LIVE and Center Ice online subscription services (including via pay-TV operators), manage all of NHL’s web sites, manage all of NHL Network’s operations (including taking over ad sales) and jointly develop new digital products. As part of the deal, NHL is reportedly getting a 7%-10% stake in MLBAM, which is also reportedly going to be spun off (finally) from Major League Baseball. (clarification, per MLBAM spokesman, NHL's stake is in BAM Tech, the technology arm of MLBAM)

That’s a mouthful, but what it amounts to is a major expansion in MLBAM’s scope of business, instantly morphing the company from being primarily a provider of technology services supporting rights-holders to being a multi-platform distribution company in its own right. As such, MLBAM may have just become the most disruptive force in sports TV, signaling to every broadcast and cable TV network which has an interest in sports TV -  from CBS, ABC, NBC, ESPN and on down the line - that the ground just shifted underneath them. Here’s why.

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Disney CEO Bob Iger was interviewed on CNBC’s “Squawk Box” this morning (see below embed) and offered a surprising long-term vision for ESPN, saying, “Eventually, ESPN becomes a business that is sold directly to the consumer, where there’s an engagement that ESPN will know who their consumers are, will use that information to customize the product to enable personalization, to engage more effectively and offer advertisers more value as well. That’s longer-term. I think there’s an inevitability to that, but I don’t think it’s right around the corner.”

It was the first time that I’ve heard Iger articulate so clearly how he sees ESPN’s future unfolding. Iger made the comments in the context of describing the huge distribution, promotion and consumption changes roiling the media landscape. Iger observed that despite a fall-off in pay-TV subscriptions, he doesn’t see the ecosystem changing significantly in the next 5 years, and that it was impossible for anyone predict with conviction how the media world will look 10 years from now.

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With talk of cord-cutting everywhere these days, independent ad-supported cable TV network Tennis Channel is showing early signs of success with a compelling new model in which linear, TV Everywhere and OTT converge to super-serve audiences and reinforce the value of sports on pay-TV.

At the 2014 French Open, Tennis Channel launched "Tennis Channel Plus" which runs $12/month or $80/year. Tennis Channel Plus now provides access to over 650 live events per year and over 1,000 hours of on-demand viewing. This means Tennis Channel adds broader coverage of tournaments it already broadcasts on linear, plus streaming of tournaments it hasn't previously covered.

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Here's some data that contradicts conventional wisdom: in a new survey from Clearleap, 67% of pay-TV subscribers said sports are not the reason they maintain a subscription, citing viewership of programs on other TV networks instead. Even sports fans didn't express a lot of enthusiasm for sports as justifying the multichannel bundle, with almost half citing other programs they watch as requiring a subscription.

There has always been a strong industry consensus that live sports were the firewall for pay-TV's multichannel bundle. Even as entertainment programming has proliferated in OTT services and elsewhere, the only place to get marquee sports programming was on pay-TV. Therefore, the reasoning went, sports were the "glue" keeping subscribers on board.

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I'm pleased to present the 271st edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

We had recorded last week's podcast just prior to the news that Comcast was dropping its merger bid for Time Warner Cable, so first up this week we share thoughts on why the deal collapsed.

In my view, the perception of the deal transformed from being cable-centric to being broadband-centric, largely due to the rise of online video usage. As a result, Comcast, post-merger, having 57% of American broadband connections under the new 25 mbps definition, became a sticking point (never mind that it actually has 56% on its own, reflecting its aggressive broadband infrastructure upgrades).

This is a key irony of the deal's failure - Comcast has invested billions in technology, but its woeful customer service ultimately undermines these investments and defines its reputation. In a hypothetical world where Comcast was a "most admired company," (like Apple, Amazon, etc.), I think it's quite possible regulators would have actually welcomed the Time Warner deal.

We then turn our attention to Verizon's "Custom TV" packaging and ESPN's lawsuit. As I explained in Has Verizon Put ESPN Into a Public Relations Headlock Over Opaque "Sports Tax?" I think Verizon is making a brazen move to reign in sports costs. Colin and I agree it's the most startling thing yet to happen in a tumultuous year for the pay-TV industry.

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We've seen a lot of surprising moves in the pay-TV industry in 2015, but at the top of the list has to be how Verizon is trying to put ESPN into a public relations headlock with its new "Custom TV" packaging plan.

If you haven't been watching this closely, Verizon announced "Custom TV" last week. Under the plan, Verizon FiOS subscribers can take a base package of 45 channels, including the 4 broadcast TV networks, for $54.99 per month, and get 2 "channel packs" which are smaller groups of genre-based such as lifestyle, Entertainment, News & Info, Sports, etc. Additional channel packs are $10 per month.

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