Posts for 'Lifetime'

  • Cable's Original Programs Should Be A Bulwark Against Cord-Cutting

    A WSJ article today, "TV's Alternate Universe," about the proliferation and inventiveness of basic cable programs, provides an unintentional reminder of the value these shows have as a bulwark against cord-cutting. The article points out that basic networks will spend $23 billion this year on 1,462 originals, up from $14 billion on 863 shows just 5 years ago. The fact that these shows are both finding an audience and that they are virtually unavailable for free online makes them highly strategic assets as the pay-TV industry is increasingly buffeted by over-the-top video competition.

    Two years ago, in "Cutting the Cord on Cable: For Most of Us It's Not Happening Any Time Soon," I argued that there are 2 key reasons mass-scale cord-cutting was unlikely, at least in the short term: first, the difficulty of watching online-delivered video on TVs (instead of on computers) limited its appeal as a substitute for pay-TV service for mainstream consumers,  and second, the loss of numerous popular cable entertainment programs resulting from cord-cutting would give many people pause.

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  • WWE's "Smash-Ups" Drives Excitement for WrestleMania 25th Anniversary

    World Wrestling Entertainment (WWE) has created an innovative user-edited video application called "Smash-Ups" to engage its fans and drive excitement for this Sunday night's "WrestleMania 25th Anniversary" event. It's a great example of how long-form video can be segmented and made available to users to exercise their creativity in support of the brand. In this case, WWE is also offering a $5,000 prize to the user who creates the best clip.

    I've been a fan of these kinds of mashup or re-mix apps, going back to a post I did in August '07 about the one that Universal Pictures and Metacafe created for "The Bourne Ultimatum." More recently, NFL has had success with its NFL "Replay Re-Cutter" launched last fall. I continue to believe they offer a clever way for fans to engage with the brand and potentially tapping into archive content that likely isn't creating any current value. The clips create new video views and incremental ad inventory. And as the clips are shared by users they also become a cheap source of viral marketing.

    WWE gets all this. Brian Kalinowski, WWE's EVP, Digital Media said, "The WWE is renowned for its passionate fans and compelling content, and WrestleMania Smash-Ups allows us to bring both together in an innovative, engaging broadband video experience....unleashing the full value of our library of tens of thousands of video clips to drive greater engagement from our viewers and enhanced content monetization." In addition to the video clips, Smash-Up lets users edit the segments provided, and insert audio tracks and title cards. If there's one downside, it's that the maximum clip length is 2 minutes, which is not a lot of time for hard-core fans to create a meaningful montage out of 25 years of classic footage.

     

    The Smash-Ups are powered by Gotuit, a company I've written about which has also recently announced it is powering Major League Soccer's "QuickKicks" video portal and remix and Lifetime's "Movie Mash-up" feature. As CEO Mark Pascarella and VP &GM Patrick Donovan, explained, a key Gotuit advantage for all these initiatives is that no new video clips are actually being created. Rather, by using Gotuit's metadata and indexing capabilities, the content provider can tag particular scenes and present them as clips. When users create their mixes, they're actually just combining a series of "virtual clips" - time-coded in and out points in the underlying long-form video files. This makes managing these activities a lot simpler and cost-effective. The Smash-Ups also showcase how the Gotuit UI can be fully customized and integrated with WWE's look-and-feel.

    WWE is monetizing the clips through both sponsorships (THQ) and ads. A pre-roll or mid-roll is inserted up to a maximum frequency of 1 ad per 2 minutes of content (a Gotuit setting the content provider can adjust). Users can share their creations with embed code or via email. WWE has also done a great job promoting the Smash-Ups, enlisting its superstars to make their own videos which are posted on YouTube.

    These user-edited applications (especially if they're part of contests with meaningful incentives) are a pretty compelling tactic for content providers to drive viewership and monetization. I expect we'll continue to see more of them launched.

    What do you think? Post a comment now.

     
  • Cutting the Cord on Cable: For Most of Us It's Not Happening Any Time Soon

    Two questions I like to ask when I speak to industry groups are, "Raise your hand if you'd be interested in 'cutting the cord' on your cable TV/satellite/telco video service and instead get your TV via broadband only?" and then, "Do you intend to actually cut your cord any time soon?" Invariably, lots of hands go up to the first question and virtually none to the second. (As an experiment, ask yourself these two questions.)

    I thought of these questions over the weekend when I was catching up on some news items recently posted to VideoNuze. One, from the WSJ, "Turn On, Tune Out, Click Here" from Oct 3rd, offered a couple examples of individuals who have indeed cut the cord on cable and how their TV viewing has changed. My guess is that it wasn't easy to find actual cord-cutters to be profiled.

    There are 2 key reasons for this. First it's very difficult to watch broadband video on your TV. There are special purpose boxes (e.g. AppleTV, Vudu, Roku, etc.), but these mainly give access to walled gardens of pre-selected content, that is always for pay. Other devices like Internet-enabled TVs, Xbox 360s and others offer more selection, but are not really mass adoption solutions. Some day most of us will have broadband to the TV; there are just too many companies, with far too much incentive, working on this. But in the short term, this number will remain small.

    The second reason is programming availability. Potential cord-cutters must explicitly know that if they cut their cord they'll still be able to easily access their favorite programs. Broadcasters have wholeheartedly embraced online distribution, giving online access to nearly all their prime-time programs. While that's a positive step, the real issue is that cord-cutters would get only a smattering of their favorite cable programs. Since cable viewing is now at least 50% of all TV viewing (and becoming higher quality all the time, as evidenced by cable's recent Emmy success), this is a real problem.

    To be sure, many of the biggest ad-supported cable networks (MTV, USA, Lifetime, Discovery) are now making full episodes of some of their programs available on their own web sites. But these sites are often a hodgepodge of programming, and there's no explanation offered for why some programs are available while others are not. For example, if you cut the cord and could no longer get Discovery Channel via cable/satellite/telco, you'd only find one program, "Smash Lab" available at Discovery.com. Not an appealing prospect for Discovery fans.

    Then there's the problem of navigation and ease of access. Cutting the cord doesn't mean viewers don't want some type of aggregator to bring their favorite programming together in an easy-to-use experience. Yet full streaming episodes are almost never licensed to today's broadband aggregators. Cable networks are rightfully being cautious about offering full episodes online to aggregators not willing to pay standard carriage fees.

    For example, even at Hulu, arguably the best aggregator of premium programming around, you can find Comedy Central's "The Daily Show" and "Colbert Report." But aside from a few current episodes from FX, SciFi and Fuel plus a couple delayed episodes from USA like "Monk" and "Psych," there's no top cable programming to be found.

    As another data point, I checked the last few weeks of Nielsen's 20 top-rated cable programs and little of this programming is available online either. A key gap for cord-cutters would be sports. At a minimum, they'd be saying goodbye to the baseball playoffs (on TBS) and Monday Night football (on ESPN). In reality, sports is the strongest long-term firewall against broadband-only viewing as the economics of big league coverage all but mandate carriage fees from today's distributors to make sense.

    Add it all up and while many may think it's attractive to go broadband only, I see this as a viable option for only a small percentage of mainstream viewers. Only when open broadband to the TV happens big time and if/when cable networks offer more selection will this change.

    What do you think? Post a comment now.

     
  • Staying in Synch with Broadband Users

    Yesterday's interview with market researcher Bruce Leichtman highlighted a key point in his latest study: that broadband video is most heavily adopted by 18-34 year old males. That point has been supported by research from other firms and is one of the key drivers behind a lot of the new broadband-only video programming that's sprouted up in the past couple of years.

    A clear implication of this finding is that current video providers that target 18-34 males better be aggressively pursuing broadband video offerings if they want to stay competitive in this new media landscape.

    But less clear is whether video providers that don't primarily target 18-34 males, or maybe have them as secondary audiences, should also be investing in this new medium in order to stay in synch with broadband users. Though other age groups and demos are also adopting broadband video, they are clearly less fervent, at least for now. In a world with finite resources, should these other video producers not worry so much about broadband video and instead stay mainly focused on their traditional approaches? Or should they invest in the broadband medium as well, even if their true target audiences may be smaller for now? I think they should do the latter, for the following 3 reasons:

    1. Eventually broadband video usage will deeply penetrate all age groups. This is a macro trend that all programmers need to be in synch with. Previous technology adoption patterns show that what starts with young, and often male, early adopters, eventually spreads out to other groups as well. There's no putting the broadband video genie back in the bottle. Three-to-five years from now, virtually all Internet users will view video as just another routine application, alongside email, search, commerce, etc. Today's video providers need to position themselves properly.

    2. Cultivating younger audiences is critically important. Marketing types always emphasize how important it is to cultivate younger audiences. Brand choices and loyalties are developed early, and it is more difficult down the road to influence these. Look around and see brands that once targeted somewhat older, and wealthier, segments but which now also try to target the young - Heineken, BMW and Tiffany to name a few.

    The fact is that young people have energy, enthusiasm, spending power and a strong desire to promote their favorite brands to cohorts. So even video providers need that may not normally skew young need to figure out how to have some appeal to this group, because they will be key drivers of the brand's strength down the road. In fact this is what a number of cable networks, like Lifetime, AMC and Food Network been doing in recent years. Though they didn't originally target younger audiences, they began cultivating them through programming choices and marketing campaigns. They are all succeeding.

    3. Now is the time to learn about broadband video. Given the above two reasons, it is urgent that video producers targeting all age groups and demos start their learning process now. Finding pockets of current heavy users to appeal to is the key challenge. As a new medium, broadband has its own set of capabilities well beyond being just another pipe to funnel current programming. Understanding these opportunities will not happen overnight. No video producer should wake up one day 3 years from now, when a healthy percentage of its viewers are spending substantial time on broadband, and realize they didn't cultivate the knowledge and skill sets to succeed in this new medium.

    Video producers across the spectrum are grappling with how to attract and retain audiences in the broadband and on-demand era. Though 18-34 year old males are today's heaviest users, that will change over time. All video providers need to stay in synch with this.

    What do you think? Post a comment and let us all know!

     
  • Lifetime Debuts Programs on Yahoo, iTunes, How Long Will These Happy Faces Prevail?

    B&C carried word yesterday that Lifetime will be the latest cable network to eschew unveiling its new programs or seasons on air, preferring instead to go the online route. This follows similar recent moves by Discovery/TLC, FX (in partnership with cousin company MySpace) and others, with plenty, I suspect, yet to come.

    For now, there seem to be happy faces all around the cable industry regarding these online premieres. Cable networks argue that online generates upfront buzz leading to higher awareness and ratings for on air. This in turn builds value in multichannel subscription services. This was the point that Bruce Campbell, Discovery's president of digital media made at the recent CTAM NY panel I moderated. Of course, networks are doing the right thing following audiences online, all the while continuing to proclaim that their traditional affiliates (cable and satellite operators) are their most important customers.

    Maybe I'm missing something, but I doubt all these happy faces will prevail for long. My guess is that at some point next year the lights are going to go on in the cable operator community that the portals and other new distributors are getting access to programs that operators' monthly affiliate fees pay for in the first place. Of course gone are the days of cable exclusivity, but if and when operators flex their muscles and express their change of heart about online premieres, my bet is they'll stop.

    Operators should know that, at some point, the law of "there's only 24 hours in a day" kicks in - so if someone caught the premiere online, they don't actually need to tune in for the on air debut. And of course, do cable operators really want to allow viewers to grow accustomed to seeing high-quality long form programming online and/or through portals?

    I think we'll see lots more of this activity until the cable operators call "foul". In the meantime, operators would be smart to start getting some of these premieres on their own portals, to bolster their own online positions.

     
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