-
Technology Innovation is the Key to Online Video's Rise
While in LA this week, I moderated a short panel at Always On's "OnHollywood" conference with Kaltura's Ron Yekutiel, Akamai's Kevin Freund, Microsoft's David Sayed and Fox Digital Media's Gregg Colvin. The conversation focused on the key technology building blocks for online video.
Clearly there has been a ton of innovation in online video technology, and the panel concluded that online distribution has now come into its own, with key strides in publishing/delivery, devices, user experience and monetization. In particular, panelists pointed to adaptive bit rate streaming, live streaming, HD and video opening up to new applications as important steps forward. On the flip side, the challenges identified as remaining included better measurement, improved capacity in broadband ISPs' "last mile" and reduction in work flow complexity to distribute to multiple devices.
Categories: Technology
Topics: Netflix
-
Both Roku and TiVo Get Hulu Plus Access
Hulu is extending access to its Hulu Plus subscription service to Roku devices and to TiVo Premiere. The service will be available to owners of these devices for $9.95/mo. Roku and TiVo follow availability of Hulu Plus on Samsung connected devices, Sony PS3 and the iOS devices.
Of course it's a real benefit to Hulu Plus subscribers to gain on-TV viewing through inexpensive connected devices, and no doubt we can expect more
devices to come, with boxee right at the top of the list. Still, with Hulu Plus following Netflix onto these devices, consumers are inevitably going to closely compare the two services. In this respect, as I've pointed out numerous times, most recently in the wake of Netflix's expanded deal with NBCU, Hulu Plus's content is going to look skimpy.
To be fair, for what it is - access to current and past seasons of broadcast programs, Hulu Plus is a great service. The problem is that DVRs already solve the current season episode value proposition for many (40% of homes and growing, according to Leichtman Research) while the prior seasons episodes are increasingly available on Netflix. Meanwhile, with TV Everywhere rolling out, Hulu Plus will be challenged to get access to cable TV network programs.
Expanding the number of devices that can access Hulu Plus is the right move (and a refreshing update after previously blocking free Hulu.com content). Nonetheless the big challenge for Hulu Plus remains getting more content.
What do you think? Post a comment now (no sign-in required).
Categories: Aggregators, Devices
Topics: Hulu Plus, Netflix, Roku, TiVo
-
Time Warner's "Premium Video-on-Demand" Experiment is a Blind Alley
Talk about an initiative that flies in the face of all prevailing sentiment: Time Warner is moving forward on testing a new window for early-release movies on VOD priced at $20-30 apiece in 2011, according to comments its CFO John Martin made yesterday at the Goldman Sachs conference. Never mind the
wrath the idea will stir up among movie theater owners whose traditional windows get cannibalized as a consequence (Disney learned about that with its "Alice in Wonderland" early DVD release experiment last February), the real issue is that pay-TV operators should deem the idea a non-starter.
Typical VOD rental rates of $4-5 already look expensive to consumers compared to Netflix's $9 all-you-can-eat monthly plans and Redbox's $1 DVD rentals. And while there are scenarios where getting a group or family together to watch a movie makes sense, it's getting harder than ever to do so. The reality is that families are atomizing to their individual activities; perusing or playing on Facebook, watching YouTube/Hulu/Netflix/etc., playing with the Wii or Farmville, chatting on Skype, shopping on Amazon, etc. Corralling this crowd and getting them to agree on any one movie is already a challenge; the prospect of paying $20-30 for the pleasure just sets the bar that much higher.
Categories: Cable TV Operators, FIlms, Satellite, Studios, Telcos
Topics: Disney, Netflix, Redbox, Time Warner, Time Warner Cable
-
Netflix's Expanded NBCU Deal Further Marginalizes Hulu Plus
This morning Netflix announced its latest content licensing deal to bulk up the its streaming catalog, adding a range of programs from NBCU. It's a long list which includes next day access to Saturday Night Live (plus the full backcatalog), last season episodes for 30 Rock, The Office and Law&Order: SVU (in addition to renewing back episodes already available), plus past seasons of Friday Night Lights, Psych, Monk, Battlestar Galactica, Destination Truth and Eureka. Netflix didn't identify exactly how many total episodes the deal adds to streaming, but it's very substantial.
On the losing end of this deal is Hulu, and more specifically, its budding subscription service Hulu Plus (note the irony that one of Hulu's parent companies is NBCU). As I explained in late August, in "88% of Hulu Plus Content is Already Available for Free on Hulu.com," when it comes to content, Hulu Plus is getting squeezed from all sides, seriously limiting its ability to be much more than an outlet for delayed-release current season and past seasons' episodes of broadcast programs. This is an extremely narrow value proposition which is unlikely to gain widespread adoption.
Categories: Aggregators, Cable Networks
Topics: Hulu, Hulu Plus, NBCU, Netflix
-
6 Things Pay-TV Operators Can Learn From Blockbuster's Fall
Blockbuster's bankruptcy filing was a long time in coming, but is still daunting when you think back to how omnipresent and powerful the company used to be. To be sure, there has been a lot of distracting M&A and corporate drama surrounding Blockbuster over the years which no doubt contributed to its decline. Still, there have been fundamental shifts in its business that Blockbuster missed.
Specifically, Netflix has been both a catalyst of Blockbuster's demise and also a big beneficiary. Now, with Netflix aggressively pursuing over-the-top streaming, it is inevitably going to put pressure on traditional pay-TV operators. So what might pay-TV operators learn from Blockbuster's bankruptcy? Here are 6 things. No doubt there are more.
Categories: Aggregators
Topics: Blockbuster, Netflix
-
Netflix Makes Canadian Streaming Service Official
As expected, this morning Netflix officially announced its first non-U.S. offering, a streaming-only service in Canada, priced at CDN $7.99, including a 1-month trial. Netflix also announced Canadian content licensing deals with U.S. studios Lionsgate, MGM, Paramount, Sony, 20th Century Fox and Universal, plus Canadian distributors Alliance Films, Maple Pictures, eOne and Mongrel. In particular, Netflix called out the availability of movies like "Superbad," "A Beautiful Mind" and "Slumdog Millionaire" plus back episodes of AMC's "Mad Men" which are not available in the U.S. Conversely, some content available in the U.S. for streaming won't yet be available in Canada.
Categories: Aggregators, International
Topics: Netflix
-
Netflix Launching Canadian Streaming Service on Wednesday
It looks like Netflix is set to launch its streaming-only service in Canada this Wednesday, according to a report in The Hollywood Reporter, which says CEO
Reed Hastings will do the unveiling in Toronto. Netflix announced on July 19th that it would launch in Canada, its first non-U.S. market.
There are pros and cons to Netflix entering the Canada without offering DVDs-by-mail. The main pros are that Netflix avoids the expense associated with both building out the DVD warehouses/delivery centers and the postage expense to send discs. The cons are that the content selection will be drastically lower than what's available in the U.S., which could disappoint Canadians eager to have the same American service. Even though Netflix has been aggressively adding to its streaming catalog, it's still a fraction of what's on DVD. And it's not clear yet whether all the streaming deals Netflix has recently cut include Canadian distribution rights.
Hastings has been candid in the past that Netflix will proceed cautiously with international expansion. There are a lot of new variables outside the U.S., including competition. Over the weekend there was a report that Amazon may be looking to acquire the remaining part of U.K.'s LoveFilm that it doesn't already own.
What do you think? Post a comment now (no sign-in required).
Categories: Aggregators, International
Topics: Amazon, LOVEFiLM, Netflix
-
Google Poaches Key Netflix Executive to Run Content Partnerships
Here's an interesting executive change: Google has apparently nabbed Netflix VP, Digital Content Acquisition Robert Kyncl to be its new VP, Content Partnerships. AllThingsD.com is reporting the move, though neither side has confirmed. The Google role has been open since David Eun moved over to AOL as President of Media last February.
Assuming the move is true, it would be a key step forward for Google - and more specifically YouTube - in gaining access to premium content. Kyncl would bring not just his relationships with Hollywood, but an insider's
understanding of the economics behind all of Netflix's streaming deals with partners such as Epix, Warner Bros., Universal, ABC, Starz and others. That kind of credibility and insight would be a huge boon to YouTube, which has made some progress with premium content providers (e.g. Univision, WWE, etc), but has still had trouble breaking through. Google certainly has the stature to be a major distributor of premium content, but actually getting things done in Hollywood is notoriously tricky for outsiders.
Categories: Aggregators, People
Topics: Google, Netflix, YouTube
-
Putting Premium Content Within an Arm's Length of Desire
Robert Woodruff, the long-time president of Coca-Cola, had a famous quote summing up his ambition for the fizzy brown water: "I want Coke to be within an arm's length of desire." Given the initiatives of Apple, Google, Netflix, Hulu, Amazon, Sony, pay-TV operators, Roku, TiVo, gaming consoles and numerous others, a spin on the Woodruff quote might well be, "They're all putting premium content within an arm's length of desire." It's no exaggeration to say that we are on the cusp of unprecedented consumer access to premium content - both current and past seasons' TV programs along with archived and new-release movies.
The choices being presented to consumers are dizzying, and are poised to become increasingly complex. With Apple's announcement yesterday of a $99 Apple TV connected device, and 99-cent rentals from ABC and Fox (and others no doubt to follow), another relatively low-cost option for viewing premium content will be available. Not to be outdone, Amazon also unveiled its own 99-cent option yesterday, for downloads of TV programs, though the durability of this offer isn't yet clear. And Sony too announced a new service called Qriocity to delivery its content to its connected devices.
Categories: Aggregators
Topics: Amazon, Apple, Netflix, Sony
-
Amazon Must Offer DVDs-by-Mail As Well As Streaming to Fully Compete With Netflix
The WSJ is reporting that Amazon is gearing up to offer a subscription service to stream catalog TV shows and movies. Amazon has long offered content on a VOD rental and purchase basis, but a subscription move would put the retail giant into direct competition with Netflix, the current 800-pound gorilla of the TV/movie streaming market.
However, for Amazon to effectively compete head-on with Netflix it would need to secure comparable streaming rights, which is probably doable, albeit costly. More importantly though, Amazon would also need to offer a full
selection of DVDs, delivered by mail, and the infrastructure to support it. In some ways that's a much tougher challenge, and whether Amazon wants to take this on is a huge open question.
Categories: Aggregators
Topics: Amazon, Hulu Plus, Netflix
-
Over 88% of Hulu Plus Content is Already Available for Free on Hulu.com
A new analysis of all the content available on Hulu Plus reveals that over 88% of all the full-length TV program episodes available in the $10/mo subscription service are already freely accessible on Hulu.com. For clips, it's almost 98%. Research firm One Touch Intelligence found that out of 28K+ episodes on Hulu Plus, just 3,345 of them can't also found on Hulu.com. Two-thirds of these incremental program episodes are sourced from Hulu's broadcast TV network partners/owners, ABC, Fox and NBC.
In fairness, Hulu Plus has been live for less than 60 days and will no doubt will be adding more content down the road. But for now the high proportion of free availability diminishes the Hulu Plus value proposition for Hulu.com
users considering an upgrade. In addition, the relatively small amount of incremental episodes risks inducing churn, particularly for heavy users most familiar with the service, as they come to realize much of what they've paid to watch is actually available for free. Compounding the problem, Hulu Plus viewers see the same quantity of ads as do free Hulu.com users, so there's no ad-avoidance benefit to subscribing either.
Categories: Aggregators, Broadcasters
Topics: ABC, FOX, Hulu, Hulu Plus, NBC, Netflix
-
Pondering the (Potential) Impact of Apple's New iTV Device
Once again it's the silly season, when rumors and pronouncements about still-shrouded-in-secrecy Apple products start flying around the Internet, often forecasting a future radically changed by another wave of Steve Jobs' magic wand. The latest Apple product in the speculative crosshairs has been dubbed "iTV," and was originally described back in May by Engadget as an "iPhone without a screen" (and a phone for that matter), that would bring the world of Apple's App Store to the big screen and would also be capable of playing some flavor of HD video. It would also carry a surprisingly low (for Apple products anyway) $99 price tag.
It's easy to see an iTV device being a volume success for Apple, though given its low price point, profit margins could be a different story. The groundwork for iTV's success has been laid by the massive success of Apple's App Store and iTunes, which would now would be inexpensively connected to the TV. The concept "apps on TV' is getting a lot of attention lately, with Samsung making a big push, and of course Google TV being primed to deliver apps from the Android Market.
Categories: Devices
Topics: ABC, Apple, Google TV, iTV, Netflix
-
5 News Items of Interest for the Week of Aug 16th
I've received positive feedback on the Friday feature I introduced 2 weeks ago, highlighting 5-6 of the most intriguing online and mobile video industry news items that I noticed during the week. As a result, I'm continuing on today and look forward to your further reactions.
As a reminder, each day in the right column of both the VideoNuze web site and email you'll find the "Exclusive News Roundup" which includes the most relevant online and mobile video industry articles that I've curated from numerous sources around the web. Typically there are 35-40 links rounded up each week, which means VideoNuze now has thousands of links available, all fully searchable. This is an invaluable resource when doing research and I encourage you to take a look next time you're hunting for a specific piece of online/mobile video information.
Now on to this week's most intriguing news:
Hulu is Said to Be Ready for an I.P.O.
The big news leading off the week was that Hulu is testing the waters for a public offering valuing the company at $2 billion. Investors beware: while ad sales are up, exclusive deals with key TV networks are short-term, subscription service Hulu Plus is still unproven and competition from Netflix and others is intensifying. If the deal works, it will be a huge milestone for the company.
Rumored $99 iTV Could Pave Way for $2,000 Apple-Connected Television
A Wall Street analyst conjectures that Apple is well-positioned to offer a high-end, connected TV. Apple has been on the sidelines as online video makes its way to the TV, surely this won't remain the case forever.
Netflix Lust for "True Blood" Is Unrequited As HBO Blocks Path
Though Netflix just landed Epix, it is unlikely to get a deal with HBO any time soon, as the big premium network is committed to its current distribution partners, and to its own online extension, HBO Go. Netflix will still find plenty of other willing partners given its strong motivation to acquire streaming content rights.
In Battle of Smartphones, Google Has the Right Answer
With Google's Android phones proliferating, the iPhone's market share is slipping. And with Android tablets coming, the iPad will soon be in the crosshairs from competitors. For mobile video this means more choices and flexibility.
Net Profits for BermanBraun
Big ad agency Starcom MediaVest commits up to a $100 million to upstart Hollywood producer for deeper brand integrations. More evidence that ad spending is moving online and in more creative ways.Categories: Advertising, Aggregators, Cable Networks, Deals & Financings, Devices, Mobile Video
Topics: Apple, BermanBraun, Google, HBO, Hulu, Netflix, Starcom MediaVest
-
VideoNuze Report Podcast #72 - Aug. 13, 2010
Daisy Whitney and I are pleased to present the 72nd edition of the VideoNuze Report podcast, for August 13, 2010.
In this week's podcast, Daisy and I dig further into this week's Netflix-Epix deal. In particular, we discuss the deal's possible implications, including what it might be mean to the pay-TV industry (cable/satellite/telco).
As I argued in my post this week, "Netflix-Epix Deal Ratchets Up Importance of TV Everywhere," the cable industry should be taking note of how much closer Netflix is continuing to come to its traditional turf, and use TV Everywhere to aggressively counter it. However, my perception is that TV Everywhere rollouts are lagging, which is to the detriment of the industry. Listen in to learn more.
(Note that in the podcast I say it's not clear whether Netflix is actually getting access to all movies that are available on Epix. I've since clarified that with a Netflix spokesman who told me Netflix will get everything Epix has rights to.)
Click here to listen to the podcast (15 minutes, 42 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!Categories: Aggregators, Cable Networks, Podcasts
Topics: EPIX, Netflix, Podcast
-
Cox Embraces Over-the-Top Video In Unique Deal With TiVo
Another day, another head-turning example of how the boundaries between traditional and over-the-top (OTT) online video distribution are blurring. This morning Cox Communications, the 3rd-largest U.S. cable operator, is
announcing that it will integrate its entire VOD library into TiVo's Premiere multi-purpose box, the first time a major cable operator has done so with a retail-only product. Cox will promote and offer free installation for Premiere which, when coupled with a CableCARD, will support Premiere as a full set-top box solution in its markets (Premiere boxes cost $300 or $500). The deal is a significant win for TiVo, which has continued to rollout clever products, but has been challenged to go beyond its traditional retail proposition.
As important, TiVo will continue to make available all of its integrated online
video offerings (e.g. Netflix, Amazon, YouTube, Break, Howcast, CNET, etc.), which means that Cox is enabling online video options to be exposed and promoted side-by-side with its own video offerings. As Jeff Klugman, TiVo's SVP/GM of Products and Revenue explained to me yesterday, TiVo's search function would allow, for example, a user searching for "30 Rock" to see results including Cox VOD listings for the current season and upcoming on-air episodes blended with prior seasons available from Netflix, Amazon or Blockbuster.
Categories: Cable TV Operators, Devices
Topics: Cox, EPIX, Netflix, Starz, TiVo
-
With Its Epix Deal, Netflix Once Again Shows Data is King
Among the many speculations surrounding this week's Netflix-Epix deal is how much Netflix is actually paying. While there have been rumorssuggesting the tab could run as high as $1 billion, nobody except the principals really knows. However, after talking with a Netflix spokesman yesterday, it is likely that whatever Netflix's is paying, it is virtually guaranteed to receive a satisfactory ROI. That's because Netflix has once again mined the extraordinary value of its user data to inform a critical business decision.
Categories: Aggregators, Cable Networks
-
Netflix-Epix Deal Ratchets Up Importance of TV Everywhere
Today's Netflix-Epix deal should be setting off alarms in the CEO suites of major cable operators around the country that TV Everywhere must get rolled out ASAP. The Epix deal underscores the extent of Netflix's financial resources and its ambition to gain a bigger chunk both of consumers' entertainment mindshare and their spending.
The first, a shift in mindshare, is already underway. With 15 million subscribers, an expanding streaming library, countless ways to view (e.g. iPad, Xbox, Roku, Blu-ray, etc, etc), a value-packed $9/mo entry tier and a customer-focused brand, Netflix has established a reputation for itself as the cutting edge video leader. In social settings these days, it is practically inevitable that someone will bring up how they're streaming Netflix content to the device of their choosing and how cool it is. Conversely, despite the cable industry's numerous positive digital TV efforts, it is still dogged by lagging customer service, often confusing pricing tiers and suboptimal user experiences.
Categories: Aggregators, Cable TV Operators, Telcos
Topics: Comcast, EPIX, Netflix, Time Warner Cable
-
Netflix Lands Epix for Significant Expansion of Streaming
Netflix is announcing this morning that it has licensed both new release and catalog movies from premium cable network Epix for instant streaming. Epix is owned by and has rights from three studios, Paramount, Lionsgate and MGM. While the partners didn't specify which movies are covered under the deal and digital distribution rights can be confusing, MGM is the studio behind the James Bond franchise, and Paramount is behind the Indiana Jones franchise, so among other titles, Netflix could be getting some major attractions with the deal.
Aside from its deal almost 2 years ago with Starz, the Epix deal is the most significant license Netflix has yet reached. It is also further evidence of how important Netflix, with its strong desire to gain content rights, is becoming as a Hollywood customer. The multiyear deal will kick in on September 1st.
Categories: Aggregators, Cable Networks
-
5 News Items of Interest for the Week of Aug 2nd
In addition to producing daily original analyses focused on the evolution of the online/mobile video industry, another key element of VideoNuze is collecting and curating links to industry coverage from around the web. Each week there are typically 30-40 stories that VideoNuze aggregates in its exclusive news roundup. Many readers have come to depend on this curated news collection to ensure they're always up to speed.
Now, to take news curation up another level, on Fridays I'm going to test out highlighting 5-6 of the most intriguing news items of the week. In case you missed VideoNuze for a day or two during the week, you can check in on Friday to see the these top 5-6 industry stories of the week, some of which VideoNuze may have covered itself. Synopses and implications are noted. Enjoy and let me know your reactions!
Wired to Produce Short Films For iPad
The tech magazine recruits Will Ferrell for four short videos that lampoon inventions that failed to take off. Exclusively for its iPad app. More evidence of print pub capitalizing on video.
Motorola and Verizon team up for TV tablet
Enjoying success with its Droid smartphones, Motorola now looks to challenge the iPad, with its own tablet device, using Google's Android OS. A partnership with Verizon could mean new online video features for the phone giant's FiOS service. Another sign of evolution in the pay-TV business.
Bewkes: Rental Delays From Netflix, Redbox Is Paying Off For DVD Sales
The 28-day DVD delayed release window Warner Bros. struck with Netflix earlier this year is helping the studio gain better sales for films The Blind Side and Sherlock Holmes. The deal helps Netflix position itself as a valued partner in the midst of declining DVD sales.
Dish to stream live TV on iPad, other devices
Dish Network takes place-shifting to a new level with plans for an iPad app that would allow remote streaming, likely using its Sling technology. Subscription TV, mobile video viewing and cool devices converge.
FCC Calls Off Stakeholders Meetings
The FCC's private net neutrality negotiations are off the rails as a reported bilateral deal between Verizon and Google causes controversy. Next steps are unknown as the FCC's plan to keep Internet playing field level hits a major pothole.Categories: Devices, FIlms, Magazines, Regulation, Satellite, Telcos
Topics: DISH, FCC, iPad, Motorola, Netflix, Verizon, Warner Bros., Wired
-
CBS-Comcast Deal Underscores Importance of Subscriptions
Yesterday's 10-year retransmission consent deal between Comcast and CBS further underscores the importance of subscription revenue streams in addition to advertising. Under the deal, CBS is rumored to receive between $.50-$1.00 per subscriber per month from the biggest cable operator in the U.S., putting it in the top tier of cable network compensation. When combined with other deals CBS has previously struck, plus additional ones it will likely conclude in the future, CBS has laid firm claim to the same "dual revenue" (monthly payments + advertising) business model as cable TV networks have long enjoyed.
The CBS-Comcast deal is more evidence of how dynamic the relationships have become between broadcast TV networks, cable TV networks, pay-TV operators and new distributors like Hulu and Netflix. The online/mobile/on-demand era has set off a scramble by premium content providers to lock in payments for their programming, while also remaining nimble enough to gain new distribution opportunities. Likewise, distributors are hungry for exclusive well-branded content.
Consider what's happened in just the last 8 months:
Categories: Aggregators, Broadcasters, Cable Networks, Cable TV Operators
Topics: Cablevision, CBS, Comcast, Hulu, Netflix, Time Warner Cable
Posts for 'Netflix'
Connect with VideoNuze
Exclusive News Roundup
- Disney’s Hulu, Fox Entertainment Ink Four-Year Streaming Deal Renewal Variety
- DirecTV officially calls off merger with Dish Network The Desk
- Mediaocean Buying Adtech Company Innovid for $500 Million WSJ
- The Trade Desk is building a CTV operating system called Ventura Axios
- Why Everyone Is Now Watching Podcasts on YouTube WSJ
- Netflix’s Tyson-Paul Boxing Show Spikes Views, Crashes Service Bloomberg
