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With New Disney Deal, Is YouTube Poised to Disrupt Online Movie Rentals?
Last Wednesday, just before the Thanksgiving break, YouTube announced a deal with Walt Disney Studios which will make hundreds of new and classic movies from Disney, Pixar and DreamWorks available for rental. The Disney deal adds to the online movie rentals (or "iVOD" as this category is also known) initiative YouTube announced last May. Between the breadth of movies soon to be available, its aggressive pricing - including $.99 rentals on recently-released blockbusters, its integration in numerous connected devices and of course, its status as the online video market's 800-pound gorilla, YouTube may just have what it takes to disrupt the iVOD market, impacting the broader Hollywood and movie distribution industries.
Categories: Aggregators, FIlms, Studios, Video On Demand
Topics: Amazon, Apple, Disney, iTunes, Netflix, YouTube
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With Recent Deals, OTT Distributors' Content Strategies Are Crystallizing
Amid the drama and headlines surrounding OTT distributors (e.g. Netflix price increases and Qwikster decision, on-again/off-again Hulu sale, etc.), these companies' content strategies actually seem to be crystallizing, with each trying to stake out a somewhat distinct value proposition for their users. True, there is still plenty of blurriness between them, and each appears reluctant to be pigeon-holed, but recent deals suggest how each OTT distributor is positioning itself.
Below is a summary of the content strategies of most of the major OTT distributors (Netflix, Hulu, Amazon, YouTube, Walmart/VUDU, iTunes and Blockbuster) with a catchphrase that best describes their approach:
Categories: Aggregators
Topics: Amazon, Blockbuster, Hulu, iTunes, Netflix, VUDU, YouTube
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With New Channels On Deck, YouTube Plays "Strategic Catalyst" Role in Online Video Industry
Yesterday the WSJ reported that YouTube may unveil a batch of new original content "channels" as early as next week. YouTube is reportedly investing $100 million in the initiative, with potential content partners including Electus, ShineReveille, FremantleMedia, Tony Hawk, and CSI's Anthony Zuiker. While it's too early to know exactly how all of this will work, I think it is evidence of YouTube playing an important "strategic catalyst" role for the online video industry.
I initially explained this concept last April, comparing YouTube's investment in online-only programming to how cable operators invested in and nurtured early cable TV networks several decades ago. It's increasingly difficult to recall these networks' humble origins in the midst of current high-profile original entertainment programming and sports broadcasts, not to mention ratings wins, but the reality is that in their fledgling days, distributors were cable networks' lifeblood. Cable operators provided cable networks with distribution, promotion and importantly a business model (monthly affiliate fees and eventually advertising), all of which would expand in the ensuing years. YouTube is now laying the groundwork to do exactly the same thing for online-only programming.
Categories: Advertising, Indie Video
Topics: YouTube
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As Viacom-Google Appeal Begins, Question Remains Why Can't They Make a Deal?
Remember Viacom's $1 billion copyright infringement suit against YouTube initiated 4 1/2 years ago, which was decided in Google's favor last June? Well, it's alive and well, and this morning the parties will appear for short oral arguments in the U.S. Court of Appeals for the Second Circuit in New York, as Viacom begins its appeal of the decision. Of course Viacom has every right to keep pursuing the matter, but what I've wondered about from the beginning of this case is why haven't the parties been able to make a mutually beneficial business deal so that they can put the litigation aside. As the online video market has matured over the past 4 1/2 years, with the potential dollars up for grabs growing, it's become an even bigger mystery to me.
Categories: Aggregators, Cable Networks
Topics: Google, Viacom, YouTube
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Google Rolls Out AdWords for Video, Driving Performance-Based Video Ad Model
Google is announcing AdWords for Video in beta this morning, which radically simplifies the process of creating and running video ad campaigns that reach Google/YouTube's vast audiences. The new initiative also bolsters YouTube's "True View" performance-based approach as Google tries to move the market away from the traditional impressions-based spending.
AdWords for Video creates a dedicated video campaign management capability in the standard AdWords dashboard so that advertisers can efficiently allocate their spending and monitor results. AdWords for Video will benefit from YouTube's status as the biggest video destination, and Google's as the number 1 search engine.
Categories: Advertising
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Winners and Losers Due to Netflix's Decision to Split DVDs
Netflix's bizarre decision to separate its DVD business from its streaming business will have significant ramifications for the video ecosystem. Below are some of the clear winners, potential winners and clear losers.
Categories: Aggregators
Topics: Amazon, Apple, Blockbuster, DISH, Facebook, Google, Hulu, Netflix, Redbox, VUDU, YouTube
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MOVIECLIPS.com Partners With YouTube, Raises $7 Million
MOVIECLIPS.com has struck a deal with YouTube so that 20,000+ licensed HD movie clips will now become available in the "Movie Extras" section of YouTube movies, as well as on the MOVIECLIPS YouTube channel. In addition, MOVIECLIPS is announcing a $7 million Series B financing led by MK Capital and including prior investors.
The YouTube distribution deal is significant in giving MOVIECLIPS' library broader exposure and monetization potential than it has had. MOVIECLIPS has struck licensing deals with six Hollywood studios. MOVIECLIPS uses its technology to generate up to 1,000 points of metadata, so that users can quickly find the best of Hollywood's most memorable moments.
Categories: Aggregators, Deals & Financings, FIlms
Topics: MOVIECLIPS.com, YouTube
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YouTube Delivers 1 Billion "Promoted Videos" Ads
More evidence of YouTube's ability to monetize its massive user base: the company has announced that it has delivered 1 billion views of its "Promoted Videos" ads since launching the program less than 3 years ago. Promoted Videos are an extension of Google's AdWords model, allowing advertisers to upload short video spots, specify keyword results against which Promoted Videos should be highlighted and then set a campaign spending limit.
Categories: Advertising
Topics: YouTube
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Old Spice Nails It Again; Generates 22 Million Views for Last Week's Fabio "Challenge"
P&G's Old Spice is quickly becoming the poster child for branded entertainment success, as its latest campaign, featuring a challenge from "New Old Spice Guy Fabio" against Old Spice Guy Isaiah Mustafa generated 22 million views on YouTube last week according to YouTube Trends. In the challenge, dubbed "Mano a Mano En El Bano," viewers were asked to vote on a series of videos of Fabio and Mustafa (which Mustafa won).
Categories: Branded Entertainment
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VideoNuze Report Podcast #105 - Coldwell Banker's On Location - July 22, 2011
Daisy Whitney and I are pleased to present the 105th edition of the VideoNuze Report podcast, for July 22, 2011.
In this week's podcast, Daisy and I broaden our focus beyond how media companies are using online video by discussing Coldwell Banker's "On Location" YouTube channel, which I wrote about earlier this week. The customized mapping unit in On Location allows home buyers to easily find and play videos about homes that meet their criteria as a starting point in their search process. Daisy notes that On Location is another example of how consumers are able to take better control and use online tools to educate themselves. Smart companies like Coldwell Banker are using online video to reinvent the way they do business and stay relevant in the changing digital world.
Click here to listen to the podcast (11 minutes, 56 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!Categories: Brand Marketing, Podcasts
Topics: Coldwell Banker, Podcast, YouTube
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Coldwell Banker's On Location YouTube Channel Helping Reinvent Home Search
Never mind that Coldwell Banker is a 105 year-old brand; it is pursuing a thoroughly up-to-date strategy of engaging with its customers through the use of online video. Coldwell Banker's "On Location" YouTube channel turns the process of finding a house from a dry text-oriented approach to one that's graphical and video-based. At last month's ELEVATE: Online Video Advertising Summit, Michael Fischer, Coldwell Banker's Chief Marketing Officer, explained the company's strategy and how it's executing (see below for session video).
One data point has galvanized the company: 73% of homeowners are more likely to work with a realtor who offers to do a video for their listing, however only 12% of the real estate industry currently has YouTube accounts. That disconnect has led Michael and the Coldwell Banker team to see video as the thread that pulls together all of its online efforts. Michael believes that with the explosion of online video viewing, consumers have come to expect a video-based experience and that Coldwell Banker can differentiate itself by delivering it.
Categories: Brand Marketing
Topics: Coldwell Banker, YouTube
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1/3 of YouTube's In-Stream Ads Now In Skippable Format
Google executives were as sparing as ever in yesterday's Q2 '11 earnings call with details about YouTube's financial performance, but they did divulge one interesting new nugget: 1/3 of YouTube's in-stream ads are now in a skippable format. Susan Wojcicki, Google's SVP, Advertising shared the data point to show the rapid progress that YouTube has made since launching its "TrueView" format last December.
TrueView is an important building block in a larger industry initiative Google is pursuing, to have 50% of video ads include a cost-per-view element. Google believes that by giving viewers the option to skip the ad or select a particular one, engagement will be stronger which will in turn drive rates higher. As with DVR ad-skipping, viewers also gain greater control of their experience which so satisfaction will improve.
Categories: Advertising, Aggregators
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New Data Indicates Almost Half of Online Viewers Watch Pre-Roll Ads Even When They Can Choose Not To
Two recent data points share a common, though somewhat surprising, conclusion: almost half of online viewers watch pre-roll ads to the end even when presented with the choice to opt out and skip the ad entirely. Clearly two data points aren't enough to form a real trend, but they do provide insight into how online video advertising may ultimately differ from traditional TV advertising.
The first data point came from YouTube and Scripps, via this article in Online Media Daily. Scripps ran ads for 3 different programs on YouTube using its "True View" format that allows users to easily skip past the ad. It turned out that 44% of viewers actually watched the ad through to the end (a key benefit of the TrueView model is that advertisers only pay for ad views, not for skips).
Then separately this week, video ad manager AdoTube released its Q1 2011 In-Stream Ad Format Index, which provides data on the 4.25 billion ad impressions generated across AdoTube's network (slides here). Among the key findings: 45% of viewers of its "Polite Pre-Roll" which allows skipping, watched through to the end. That was a 7% increase from the prior quarter and on par with conventional pre-roll ads. Another interesting finding was that when the Polite Pre-Roll is used, the abandonment rate for the content itself is 18% lower than when conventional pre-rolls are used, suggesting that ad choice enhances the content experience.
Categories: Advertising
Topics: AdoTube, Scripps, YouTube
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TED, YouTube and the Renaissance in Ad Creativity
Yesterday TED celebrated the 5 year anniversary of its "TEDTalks" being distributed online, with 500 million views to date. TEDTalks, which feature individuals speaking for up to 18 minutes on a variety of different subjects, are thought-provoking and inspiring. Using the power of online video, TED has extended its reach and influence far beyond the group of people who attend TED events in person.
More recently, TED, with the support of YouTube and others partners, has begun to focus on how advertising can be reinvented in the digital age to be more compelling and relevant. Last September, it launched "Ads Worth Spreading" (a spin on its tagline of "Ideas Worth Spreading") to recognize ads that nurture passion and encourage viewers to watch and be a part of a community. AWS seeks to move the advertising model beyond "ambushing" viewers, as has long been advertising's M.O., to instead develop a shared dialogue.
At the recent ELEVATE conference, we were very pleased to have Ronda Carnegie, TED's head of global partnerships and John Militello, Google's head of creative innovation, Americas join us for a fireside chat to discuss AWS and the role YouTube itself is playing in redefining how brands engage their audiences (video after the jump). I've written a number of times recently about breakthrough campaigns on YouTube (e.g. Perrier, The Expendables, Desperados beer); no doubt other creative ads on YouTube will follow.
Categories: Advertising
Topics: Sharethrough, TED, YouTube
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Perrier Scoring With Interactive YouTube Campaign
Add Perrier to the list of brands that are discovering the power of running creative video campaigns on YouTube. Perrier launched a clever interactive experience called "Le Club Perrier" 2 weeks ago that appears to be driving significant viewership and engagement. Viewers are invited to watch and pass along links to videos in order to "unlock" the next versions which promise to get "sexier, steamier and wilder as the number of viewers goes up" (right, could they make it more tempting?).
It seems to be working though, at least according to the viewership meter, which indicates nearly 7 million total views to date (the campaign is also #5 on this week's AdAge/Visible Measures Viral Video Chart, though with a far lower view count). Part of the mystery is that it's not clear how many times the videos have been shared via email, Twitter or Facebook, or what it takes to unlock the next version. However, the invitations to share are heavily promoted and follow each video segment.
Categories: Advertising
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comScore: YouTube's Time Per Viewer In May Tops 5 Hours, More Than Next 5 Sites COMBINED
comScore released its May 2011 U.S. online video rankings today which once again illustrated the extent to which YouTube remains the 800-pound gorilla of the online video market. For the first time, YouTube's time spent per viewer during the month exceeded 5 hours, coming in at 5 hours, 11 minutes. That reflects nearly 2.2 billion viewing sessions generated from over 147 million unique viewers (83.5% of all Americans who watched any online video in May).
Looked at another way, YouTube's 5 hours, 11 minutes of viewership is more than the next 5 properties ranked had during the month, combined. The number 6 property, Microsoft's sites, had 46.5 million visitors for the month, less than a 1/3 of YouTube's, and 252 million viewing sessions, just 1/9 of YouTube's (see below). Hulu is the only property remotely close to YouTube in viewing time per user, racking up 3 hours, 38 minutes per viewer in May from 196 million viewing sessions. But Hulu had 28.5 million unique viewers in May, less than 1/5 of YouTube's.
Categories: Advertising, Aggregators
Topics: comScore, Hulu, YouTube
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YouTube Has Been a Home Run for Google and the Online Video Industry
Back in October, 2006, when Google announced its intention to acquire YouTube, the fledgling, but already-dominant video upload/sharing site, for $1.65 billion, many observers thought it was a wild swing by Google, and further evidence of its profligate ways. Critics cited YouTube's thin UGC-based business model, its minimal revenues and its skyrocketing hosting/delivery costs caused by surging usage. Even though the deal was all in stock, it indeed looked like a rich price, and an unjustifiably huge short-term reward to YouTube's founders and investors.
Yet yesterday's news from YouTube, that a staggering 48 hours of video are now uploaded to the site each minute, and that it hit a recent peak of 3 billion video views in a single day, both underscore how YouTube has been a home run for both Google and for the larger online video industry. YouTube's ongoing viewership dominance is a rare "winner take all" situation in which second place video upload/sharing competitors are practically off the radar screen. Google now owns the dominant asset in one of the fastest-growing sectors of the Internet, which has huge revenue potential as consumer adoption of online video and devices soars. That $1.65 billion looks cheap now, all the more so given the durability of Google's own robust ad business.
Categories: Aggregators
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VideoNuze Report Podcast #98 - May 5, 2011
I'm pleased to present the 98th edition of the VideoNuze Report podcast, for May 5, 2011.
In this week's podcast, Daisy Whitney and I discuss YouTube's forecast that by 2015, 50% of video ads will include cost-per-view video, which I wrote about earlier this week. If the forecast pans out, it would cause a huge transformation in the way the online video ad market works, since virtually all of today's in-stream video ads don't have any performance aspect.
As we discuss, the move isn't that surprising, as it attempts to re-shape the video ad market to look more like the search advertising market, which Google dominates. By aligning engagement with advertiser payments, there's clearly more efficiency. But it would be a radical departure from the way TV advertising has traditionally been bought, so it would take a concerted effort by brands and agencies to adapt to the model. Listen in to learn more.
Click here to listen to the podcast (13 minutes, 18 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!Categories: Advertising, Podcasts
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YouTube: By 2015, 50% of Video Ads Will Include Cost-Per-View Video
At WPP Group's Global Video Summit yesterday afternoon, hosted by Kantar Video, GroupM and WPP Digital, Baljeet Singh, YouTube's product manager for video monetization reiterated a bold assertion YouTube has made periodically over the past 6 months: by 2015, 50% of video ads will include cost-per-view video.
Baljeet defines "cost-per-view" as an engaged view of a video ad where "engaged" means the user chose to watch that video in some way. The vast majority of today's in-stream pre-rolls, mid-rolls and post-rolls that auto-play during the content experience wouldn't qualify under the definition. If YouTube is right, then massive change is coming in how online video ads are created, purchased, valued and measured.
Categories: Advertising
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3. YouTube Getting Back Into the Hollywood Movie Rental Game
This week also brought unexpected news that YouTube is seeking to license movies from top studios for online rental. Hmm, somebody please explain to me how YouTube thinks it can create a differentiated offering relative to what's already available from iTunes, Amazon, Vudu, etc. because I don't get it. Plus, just a few weeks ago it seemed like YouTube was placing its bets on original web-only content, which felt like a viable strategy. Now YouTube wants back into Hollywood. It's hard to see how this will have a happy ending with so many options already available.
Categories: Aggregators, FIlms
Topics: YouTube