Posts for 'YouTube'

  • Likely YouTube Spoofs Should Power New Playtex Bra Campaign to Success

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    I think Playtex is going to score big time with its humorous new ad campaign entitled "Girl Talk."

    The essence of the campaign is summed up below:

    "We uncovered that women of all shapes and sizes talk about their bras and breasts in funny, witty and candid ways," said Vicki Seawright, marketing director for Playtex intimate apparel, which is part of Winston-Salem-based Hanesbrands Inc.

    The ads will showcase women having funny, honest chats about their breasts, including using nicknames for their breasts intended only for the privacy of their own conversations. (You now see the voyeuristic aspect of the campaign)

    Playtex intends to use conventional TV and magazine buys, but supplement or "support" as the company said, with YouTube video and American Greetings e-cards.

    Here's my bet: this campaign is going to launch some uproariously funny video spoofs on YouTube. And you know what: Playtex is going to love them all. In the age of viral video-enhanced brand marketing campaigns, Playtex is taking a smart approach. By having fun with their marketing and opening the door for others to do so as well, they dramatically enhance the chances of breaking this campaign out of the clutter and getting big time buzz. In short, this campaign seems well-positioned to be an advertising triumph. Let's see.

     
  • DailyMotion Raises $34 Million, Is Category Over-Funded?

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    WSJ reported today that DailyMotion, the French video sharing site, has raised $34 million in a round led by Advent Venture Partners LLP of London and AGF Private Equity. This financing adds to a wave of capital that has poured into the overall ad-supported video sharing/video aggregator platform space in the last few months.

    Companies that I think fit in this group that have recently raised big money are Joost ($45 million), Veoh ($26 million), Metacafe ($30 million) and blip.tv ($10 million). Hulu, the NBC-News Corp JV which raised $100 million could even be considered in this category. And thinking a little more broadly you could include sites like Heavy.com, Break, Vuguru, Next New Networks, DaveTV, Babelgum, BitTorrent and others which are creating and/or aggregating broadband programming.

    To be fair, each of these companies has a slightly different approach to their content strategy (pure aggregation vs. original development vs. hybrids), market positioning and technology capabilities. However, as best I can tell, they're all trying to offer distinctive video content into broadband-only delivery networks and to one extent or another, surround this programming with interactive tools. The intended result is unique viewing experiences.

    In the aggregator roles they play, they're muscling themselves into the market owned by traditional video distributors like cable and satellite operators, and more recently telcos. These new companies are all very interesting to watch because ultimately they must do at least 3 things to generate traffic and revenue: (1) differentiate themselves from each other, (2) add value to content providers/producers relative to CPs/producers relying solely on a direct-to-consumer approach and (3) shift viewing time from the traditional distributors' programming to their own.

    Any one of these would be a pretty high hurdle to get over. Doing all three will be even tougher. Yet a lot of smart money keeps backing these companies, further demonstrating how hot this overall category is -- and how quickly it could become overfunded. But I don't expect things to cool down any time soon. We can expect further funding in this space as investors clamor to get a piece of the action in broadband video.

     
  • YouTube + Apple TV = A New Consumer Experience

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    Some pretty big news today from Steve Jobs that YouTube video will be embedded in directly AppleTV.
     
    Back in December '06, in my "7 Broadband Video Trends for 2007" e-newsletter, my #1 trend was that Apple's "iTV' box (as it was code-named then) would succeed - but only if Apple nuked its walled garden, iTunes/paid-only content strategy, in favor of allowing easy browsing of free online video. Though it would represent a big departure for Apple, I suggested the killer deal would be to make YouTube videos available to Apple TV users. (read the full entry below and here) True to its roots, Apple did launch Apple TV only with iTunes.
     
    And as it has floundered, I've taken plenty of flack from readers reminding me that these 3rd party, standalone boxes don't have a prayer. And that's why today's YouTube deal is a huge step in the right direction for Apple TV. YouTube is the big guerilla of all online video sites. But as big as it is, its use has mainly been constrained to computer screens. So by enabling easy viewership on TVs, Apple has created a whole new consumer experience, which I believe will prompt new buyers of Apple TV.
     
    And as Apple embeds more video sites (hey wouldn't it be easier if they just put a browser in Apple TV?), the proposition for box keeps getting stronger. This "over-the-top" or "cable bypass" approach should be another wake up call for cable and satellite operators. There is so much energy being invested in these alternative approaches (e.g. Xbox, TiVo, Sony, Netgear, etc.) that eventually some segment of consumers is just going to drop their traditional subscriptions and go a la carte. My original entry is below from December 20, 2006.
     
    All the 7 Trends for 2007 can be read here. -------------------------------------------------------------------------------------- "Apple's iTV box will likely succeed (but only if more than just iTunes video is easily accessible). This is clearly my most controversial prediction and the one I will devote the most ink to. Let me stipulate upfront - standalone appliances like these are indeed the "third rail" of consumer electronics. I understand all the reasons why they don't succeed. And the list of failures is long and undistinguished. However, my bet is that is that if ever a company stood a chance of succeeding and a box potentially met a clear consumer need, it is Apple and iTV. (by the way, "iTV" is just a code name, expect a new name prior to launch). Apple's user-centric design, functionality and coolness quotient are its key differentiators.
     
    First, for those of you who missed it, back in September Steve Jobs pre-announced the company's "iTV" box (see it here). Product pre-announcements are very rare for Apple. iTV's suggests that Jobs wanted to both lay some pre-launch buzz groundwork and also simply couldn't contain his enthusiasm for this product's market opportunity. To understand iTV's market opportunity, it is necessary to understand current broadband-delivered video viewership.
     
    As I see it, the amazing ramp up in broadband video consumption this year is surpassed by an even more amazing fact - that virtually all of this viewership has occurred on users' computers. Think about it - virtually all those clips, full-length programs and movies are consumed on the PC, not the TV! Nobody could have predicted that. But of course the TV is still the preferred viewing device for just about everyone. So logic suggests that if someone could make an affordable, easy-to-install box that unshackled users from their computers, allowing them to easily bridge the PC/broadband world with the TV, there would be a market for such a product. And that this could be far more than a niche opportunity, given that it could potentially disrupt cable and satellite operators' set-top box/walled garden stronghold.
     
    iTV's success turns on one key factor: Apple's content strategy for the product. And the hitch in iTV's potential is that to date Apple's content model has been to aggregate paid-only media in iTunes, its digital download store. The company has gotten off to a decently strong start selling TV programs and the like on an a la carte basis for $1.99 or more. But carrying over this paid approach is not a strong enough content strategy to support iTV.
     
    In fact, in the music world, a recent Ipsos study showed that only 25% of MP3 owners use fee-based download services. That's been OK for iPod sales because many people still have large CD collections (or share theirs with friends), which can be easily "ripped" to iPods. But what would the equivalent source of video content be to support iTV? Possibly DVDs, though converting them for iPod use is far from a mainstream activity (plus, why bother anyway?). How about the free video podcasts from a Byzantine array of providers also available through iTunes? Doubtful. Quite simply, if Apple extends its iTunes paid approach to iTV it would be forcing iTV buyers to pay for each and every incremental piece of video content to get value out of their iTV purchase. The number of people willing shell out $299 for an iTV box without readily available free content is tiny.
     
    Therefore, the alternative - providing easy TV-based viewing of free, ad-supported broadband video - should be iTV's core value proposition. Cracking this nut allows Apple to break open the video distribution value chain, with consumers finally getting TV-based access to the content they love. And it positions iTV as the key building block in making "long tail" video content accessible on TVs, potentially setting up Apple as a longer-term competitor for all video services (i.e. a possible competitor to cable and satellite).
     
    Exactly what content should be easily available through ITV is less clear to me. Certainly a key selection criterion is video that is either NOT currently available through cable or satellite. Many video content providers still dreaming of becoming a digital cable channel would salivate at the opportunity to be accessible on consumers' TVs. Plus broadcast and cable TV networks would love a way to get their broadband-only webisodes and other "broadband channels" all the way to the TV.
     
    But the most tantalizing content deal would be one with Google/YouTube. Consider how many YouTube devotees would love to get convenient access to this content right on their TVs. Since Apple has no in-house advertising skills and assets, and Google is the reigning advertising king, a partnership would be mutually beneficial. With Eric Schmidt, Google's CEO, now on Apple's board of directors, the personal relationship between he and Jobs would help clear the way for a deal.
     
    Packaging and offering easy access to ad-supported video would be a big content strategy departure for Apple, but a necessary one for iTV to fully flourish. Remember, selling hardware is what Apple's really all about. Given Apple's famous appetite for secrecy, I expect we'll only find out how Steve Jobs has decided to play his hand upon iTV's official launch. If it's to be iTunes-only paid video, I'll downgrade iTV's likelihood of big-time success considerably. "
     
  • The TV Industry’s New Call Letters: Y-A-H-O-O, M-S-N, A-O-L and M-Y-S-P-A-C-E?

    Today’s announcement from NBC and News Corp, that they have set up a venture to distribute full length programs plus promotional clips through 4 major distributors (with more to come) heralds a potentially new, and radically different era, for the broadcast, and possibly the cable TV industries.

    In one fell swoop, 2 of the major broadcast networks have granted distribution rights to four of the Internet’s most-trafficked sites. If one assumes that it is inevitable that the broadband/PC world will be linked up with consumers’ living room TVs (whether through AppleTVs, Xboxes, Slingcatchers, etc.), then it sure seems to me as though we are on the brink of seeing a full-scale digital replica of the analog broadcast TV affiliate model being born. If that’s the case, what does that mean for existing players, most notably local broadcast TV stations? And how about cable TV and satellite operators, who have long relied on retransmitting high-quality feeds local broadcast feeds of network programming as a staple of their value proposition?

    I’ve been writing about how the video distribution value chain is being impacted by broadband video for a while now. My March 2006 newsletter, “How Broadband is Changing Video Distribution” recapped my firm’s Q1 2006 report, “How Broadband is Creating a New Generation of Video Distributors: The Market Opportunity for Google, Yahoo, Microsoft, AOL, Apple and Others”. In this report we identified these companies as a so-called ‘Group of 5” which were best-positioned to benefit as new broadband-centric distributors and explained our reasons for this conclusion.

    Flash forward one year. Today’s announcement cements the distribution heft of 3 of the 5 (Yahoo, MSN and AOL). Meanwhile, Google’s acquisition of YouTube has strengthened its distribution prowess. If it can build on initial partnerships with the many content providers with which it works, its power will only grow. And of course, Apple now boasts almost 60 TV networks and content producers providing programming to iTunes. Its launch of AppleTV strengthens its hand as the hardware provider-of-choice in linking up the broadband and TV worlds.

    We’re exploring all of this in a report we’re (quite coincidentally) working on right now, which examines broadband’s impact on the video distribution value chain. It both updates the Q1 2006 report, and also expands it to include the roles of emerging players such as Joost, BitTorrent, Wal-Mart and others. We’ve been very fortunate to have access to many of the players in the space to gain unparalleled insights into their plans. The report is due out soon. I’ll keep you posted on its progress.

     
  • The Only Topic Anyone I Talked to This Week Cared About

    Was of course Viacom's $1 billion suit against Google. I must say, all eyes are riveted on this one. My take is that it's hard to believe there isn't a business deal to be made between these two companies that wouldn't be better for both than having the lawyers slugging it out.

    Sure YouTube traffic is up since pulling down many of the Viacom clips, but really what does that prove except that YouTube's rapid growth rate can compensate for these kinds of hiccups? For YouTube to maintain its position as the ultimate video destination, it can't afford to have gaps in its clips springing up here and there. So it should be motivated to make a deal, not just with Viacom, but with all big media companies.

    As for Viacom, it's inconceivable to me that they are better off not being a part of YouTube. Exhibit A is the free promotion and exposure The Daily Show has received over the last year from YouTube. Viacom's going to have to lock a muzzle on Jon Stewart to prevent him from lambasting his corporate parent's decision.

    None of us knows how courts will interpret the DMCA in this case. The legal scholars' comments I've followed this week certainly don't form a consensus. So I continue to believe, as I wrote about last November ("Big Media's Most Vexing Challenge"), that big media companies' traditional copyright control mentalities are causing them to underoptimize their broadband opportunities. The sooner they loosen their traditional copyright approaches, the sooner they'll be able to fully exploit broadband's potential.

     
  • Oscar’s Bellyflop

    Lots of scorn flying around the net this week criticizing Oscar's takedown notices to YouTube combined with their miserly video offering at their own site. I'm just going to pile on here. What's happening is totally consistent with the findings of our Q4 '06 report on the broadcast industry and broadband video. A key conclusion of that report was that today networks look at broadband as essentially a new distribution path for existing shows. The 2 options are consumer paid downloads (dominated by iTunes) and free streaming episodes.

    What they haven't done yet is create robust clip areas complete with interactivity. This area has been dominated by YouTube and others. As I said in Variety, as a result of networks' inactivity, a vacuum has been created which YouTube is filling. Consumers want clips and they want to interact. The networks should be creating these offerings on their own sites. And they should be working with YouTube. But to do neither is ostrich-like. Their inactions suggest they just wish this whole broadband/community thing would just pass already.

     
  • Dvorak and I in Agreement on Copyright Control

    John Dvorak has a good post at MarketWatch regarding Viacom's take down notice to YouTube. Although he's harsher than I've been in the past ("The company is just clueless about new media"), his general point that this is a control issue is similar to what I said back in November in "Big Media's Most Vexing Challenge".
     
    Big media companies need to adjust their copyright control mindsets if they're going to exploit the power of new broadband distribution models. Distinguishing between use of their content that drives new promotion and awareness vs. use of their content that undermines their business models is the key. Just lumping everything into the latter category shows both paranoia and lack of understanding of how the market is shifting.
     
  • Viacom-YouTube. The Gloves are Coming Off

    Well not quite yet, as the lawsuits are not yet flying. But we're getting there. After some flip-flopping on this last fall, today Viacom officially told YouTube to take down its clips, reputed to number over 100,000. Obviously you'd need to be involved in these negotiations to know the details of what the offers and counter-offers have been, but it's a disappointment for both parties not to be able to work things out.

    As I wrote back in November, "Big Media's Most Vexing Challenge (and How to Overcome It)", companies like Viacom are going through a painful adjustment process to the new broadband-dominated world. This flare-up with YouTube is yet another example.

     
  • UGC Revenue Sharing Ramps Up?

    Chicago Tribune article suggests that user generated content producers being paid for their works will soon be ubiquitous. Of course Revver and others have been doing this for a while now. Steven Starr from Revver raises the “recognition vs. reward” question that undoubtedly passes through any UGC producer’s mind.

    I’ve said for a while that if someone had laid the YouTube business plan next to the Revver business plan back in 2005, logic would have suggested that Revver would have better prospects given its willingness to share revenues with producers (thereby creating more incentive to post there).

    However, what would have been missing from that logic would be the 2 things that I believe made YouTube an early (and big) winner – namely its willingness to push the envelope in allowing copyrighted material to be posted on its site and its superior user experience. Having won the first battle, YouTube appears poised to overlay the financial incentive long missing for content producers. If well-executed, this should make the landscape even tougher for all the others to succeed.

     
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