Posts for 'Podcast'

My partner Colin Dixon and I are taking a Friday off from our weekly podcast, but we we'll be back next Friday, August 30th for our 193rd edition, the last one of a very busy summer.

I'm pleased to present the 192nd edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

In this week's discussion, we talk more about the unexpected role that Netflix and Amazon are playing in the CBS-Time Warner Cable retransmission consent dispute, which has knocked CBS off the air in major markets like NYC, LA, Dallas and elsewhere. As I wrote earlier this week, though "retrans" disputes have become commonplace, a new wrinkle in this particular one is that digital distribution rights are actually the main sticking point.

Having made lucrative digital deals with both Netflix and Amazon, CBS is justifiably reluctant to simply throw digital access to its programs into a deal with TWC, as it has in the past. The standoff highlights the uphill battle that pay-TV operators are having gaining content rights for their TV Everywhere services, which remain like Swiss cheese, with major holes in program availability. It also underscores the transformational role OTT powerhouses like Netflix and Amazon are having on the broader TV industry.

Further, Colin believes there's an opportunity for new market entrants (e.g. Intel Media, Sony, Apple, Google, etc.) to bid for both digital and linear rights, and then package access for consumers in inventive new ways. Colin sees broadband's lower cost of delivery creating a big advantage for these new players. I'm skeptical however, noting that the huge expense involved in licensing content and promoting a service from scratch would more than outweigh delivery savings. But, with so much change happening in the market these days, nothing can be counted out.

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I'm pleased to present the 191st edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

This was a big week for online video advertising, with 3 key milestones: AOL's acquisition of Adap.tv for $405 million (the biggest of CEO Tim Armstrong's tenure), YuMe's IPO, and Tremor Video reporting solid 2nd quarter results, in its first quarter as a public company.

As I explained earlier this week, the success of AOL-Adap.tv is riding on 3 key market trends, the shift from linear TV style viewing to anywhere/anytime/any device viewing, the democratization of video production and distribution which has led to a plethora of online originals, and the influence of technology in the ad buying/selling process. AOL is seeking to capitalize on all this through Adap.tv's programmatic platform.

Meanwhile Tremor Video, whose stock has had a bumpy start since the company went public in early July, posted a strong 2nd quarter, with revenue growing by 41% year-over-year. As CEO Bill Day explained on the earnings call, key to this was a focus on premium performance-based in-stream video advertising, which grew from 20% of revenue in Q2 '12 to 34% in Q2 '13. Mobile was also a big contributor to the quarter, rising from 4% of revenue to 13% of revenue. Bill noted the company is highly focused on providing transparency and analytics around traditional brand metrics such as brand lift, engagement, completion rates, etc. to engage buyers.

More broadly, as Colin observes, online video is giving brands and content providers more flexibility to insert product placements and other deep product integration. I agree, though for the foreseeable future, I see the vast majority of online video ad revenue coming from more traditional pre-, mid- and post-roll advertising.

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(Note: YuMe and Tremor Video's VideoHub are VideoNuze sponsors)

I'm pleased to present the 190th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

We start our discussion with data that TiVo Research and Analytics (TRA) released this past Monday, which concluded, among other things, that Netflix does not cannibalize traditional TV viewing. TRA also identified the percentage of respondents who subscribe to Netflix (and other services) who watched "House of Cards." Using these numbers, Colin calculates that about 10 million people watched the program, a healthy amount by any standard (Netflix hasn't publicly released HoC's audience). Colin sees a class of "super-viewers" whose traditional TV consumption is augmented by, not substituted with, Netflix.

One thing that caught my attention in the TRA data was that while Netflix had a 57% adoption rate among respondents, Amazon Prime was right behind it, at 50% (Hulu Plus was further back at 18%). To be fair, it's not clear whether these Prime members are actually watching video included in Prime, or are mainly focused on the unlimited shipping benefit. But, assuming that many DO watch video, it's an impressive number for Amazon, and underscores how far Prime has come in the 2 1/2 years since Instant Videos were launched.

Colin and I discuss Amazon's broader agenda and how its aggressive pursuit of video is strategic in supporting both Prime and the Kindle ecosystem (all of which I described in my post this past Monday). Given Amazon's willingness to operate on razor-thin margins, I foresee the price for licensing high-quality content continuing to rise, which will in turn pinch profitability (and subscriber growth) at pure play OTT providers like Netflix.

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I'm pleased to present the 189th edition of the VideoNuze weekly podcast with my weekly partner Colin Dixon of nScreenMedia. This week we debate whether Google's new $35 Chromecast media streamer is a game-changer or not. I'm in the former category and Colin is in the latter. The caveat to my enthusiasm is that I haven't used Chromecast yet so I'm going by the Google demo and description.

As I wrote yesterday, I really like how Chromecast integrates the TV with mobile devices - something that Smart TVs hadn't achieved, but which many consumers yearn for. For many video content providers outside the pay-TV ecosystem, Chromecast offers, at last, a clear path into the living room, with increased advertising and subscription potential. If the Chromecast SDK is straightforward, I'm betting many content providers / app developers will quickly integrate it. Even with currently limited content, Chromecast sales are apparently very strong.

On the other hand, Colin is more cautious. He sees Chromecast as more of a transitional product. Colin likes how it helps the Google/YouTube ecosystem in offering an easy TV viewing solution, but doesn't see other content providers being as motivated, given other device priorities. Colin highlights the key question of how broadcasters will react to Chromecast - will they try to block its access to their online TV programs as they did with Google TV? If this is possible and they succeed, it would diminish Chromecast's value proposition.

It's a very robust debate, with no clear answers just yet. But one thing is for sure: Google has clearly stirred up the connected TV space with Chromecast. Listen in to learn more!

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I'm pleased to present the 188th edition of the VideoNuze weekly podcast with my weekly partner Colin Dixon of nScreenMedia. This week rumors were once again flying about Apple and Google looking to enter the pay-TV industry, which Colin and I separately wrote about here and here.

In our discussion, Colin notes that any potential move would be expensive, given the need to carry many networks in a typical bundle. Colin also believes that Apple's rumored plan to compensate networks for ads skipped in a premium service it may offer has some merit based on his back-of-the-envelope analysis. But Colin is skeptical the networks will be interested in shifting their model away from advertising.

I see it the other way around; given high DVR penetration, networks could be intrigued by the idea of moving more of their economics to fees. The problem is I just don't see how the economics would work for Apple or consumers.

Regrettably, all of this is based on rumors so we readily admit we don't have solid facts on which to base our arguments. And that's why I consider Apple and Google's pay-TV aspirations to be the industry's longest-running soap opera.

Listen in to learn more!

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I'm pleased to present the 187th edition of the VideoNuze weekly podcast with my weekly partner Colin Dixon of nScreenMedia. During the short July 4th week news broke that Samsung acquired Boxee. Today, we discuss whether the deal makes sense and how much Samsung could benefit. Colin believes that Samsung will benefit by being able to integrate live broadcast TV more seamlessly into its Smart TVs, something that has been missing to date, but which Boxee excelled at with its Boxee TV service.

While that would be a step forward, it feels to me like a relatively limited value proposition, since cable TV networks wouldn't be included unless a CableCARD slot was available. Even as a second TV in the home as Colin proposes, a Samsung/Boxee Smart TV seems like it would have limited appeal, due to the rise of tablet-based viewing and the ability to access broadcast TV via Hulu, network sites/apps, pay-TV operator apps, etc. (a larger question raised is whether 2nd TVs have much of a future themselves).

While Colin and I agree that the rumored $30 million purchase price for Boxee is a drop in the bucket for a goliath like Samsung, it's not clear yet how much of a return they'll get.

Listen in to learn more!

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In this week's 185th edition of the VideoNuze-nScreenMedia podcast, Colin Dixon and I mix things up a bit by introducing a new format of having a guest join us. We plan to do this periodically to get insights on new data or news. Our inaugural guest is Sudhir Kaushik, director of products, insights and optimization at Ooyala, which this week released its Q1 '13 Global Video Index (my post on it is here).

In the podcast, Sudhir sheds more light on Ooyala's key findings. We touch on topics including what's driving the surging growth of mobile video, distinctions between smartphone and tablet viewing, the important role of long-form content in shaping viewership patterns, the decline of the desktop as a viewing platform, the emergence of live programming as the dominant engagement format, what surprised Sudhir most in the data and much more.

Listen in to learn more!

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I'm pleased to present the 184th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. This week we discuss the cloud's impact on video delivery. First, I share thoughts on Comcast's X2 platform, unveiled this week, in which the cloud plays a central role.

Colin notes that with Comcast's approach, there is still a fair amount of client-side processing happening, so it's not fully capitalizing on the cloud just yet. Colin draws a distinction between Comcast's approach and that of ActiveVideo Networks (which I recently wrote about), whose CloudTV moves all the processing to the cloud, allowing services to run on older set-top boxes and newer CE devices.

It's still early days in the cloud's deployment with different models at work, but there's no question it's going to become a bigger part of the video delivery landscape.

Listen in to learn more!

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(Note: this week has been a juggling act with Tuesday's Online Video Ad Summit, but VideoNuze will be back to its regular editorial schedule next week.)

I'm pleased to present the 183rd edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. This week I share very brief reactions to the Video Ad Summit, which was a big success. We had 45 speakers on 14 sessions and 550+ industry executives registered. Pictures and session videos will be posted over the next couple of weeks.

Colin moderated a terrific session, "Anywhere TV: How Devices are Driving an Explosion in Video Advertising," and he shares his takeaways and we discuss the challenges that the fragmented device landscape presents to content providers and advertisers. We also discuss a couple of interesting solutions that are bubbling up, which we'll get into in more detail next week.

Listen in to learn more!

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I'm pleased to present the 181st edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. This week we discuss the newly-unveiled Xbox One and its TV integration.

As I wrote earlier this week, Xbox One is very slick, but because it's not tightly integrated with pay-TV set-tops, it can't access on-demand and DVR programming. That means even with an Xbox One, complexity will remain in the living room. Colin notes that even the original Google TV box had better integration (with Dish TV, although it was  sub-optimal), and it still failed.

That leads Colin to believe that Xbox One will succeed as a gaming device, but he's skeptical that it will have broad appeal outside that community due to its high price and competitive options from Roku and others. I agree; though Xbox One clearly improves the live TV viewing experience, given today's changing viewer behaviors toward on-demand, it is far from being the "ultimate all-in-one home entertainment system" Microsoft says it is.

Listen in to learn more!

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I'm pleased to present the 180th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. There was a rush of interest around live streaming this week. Among the news items: ABC,TNT and TBS announced live streaming of their linear feeds; YouTube expanded its live feature and Brightcove launched a new live module, which followed thePlatform doing the same last week.

For live streaming TV, neither Colin nor I believe it will have broad appeal, with the possible exception of sports and maybe certain breaking news/events. It's no secret that on-demand, time-shifted viewing has surged in popularity, due to DVR penetration above 50% of U.S. homes and the widespread availability of TV programs online for on-demand use. So in a way live streaming TV is trying to put the genie back in the bottle - getting on-demand viewers to go back to linear.

The fundamental inconsistency to me in this is that if you're tech-savvy enough to be drawn to live streaming on an iOS device, you're even more likely to now be a mainly on-demand viewer. And for those not tech-savvy, who still do enjoy linear viewing, well, why do you need an live streaming app when you can just watch on your TV as you always have? Even the sports use case is a bit thin as watching out-of-home for most will be very expensive given mobile data rates, and most mobile device viewing happens in the home anyway.

Nonetheless, Colin and I describe all the reasons we think other TV networks are likely to roll out live streaming in the coming months as well. Maybe we're missing something, but it strikes us that these will have more to do with PR (countering Aereo for example) and supporting TV Everywhere/retransmission consent negotiations and won't end up resonating broadly with users. More interesting I think is the CW's move to make its shows available free next day on-demand via Apple TV and other devices which seems in synch with users' expectations.

Listen in to learn more!

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I'm pleased to present the 179th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. Yesterday, YouTube confirmed that it will offer content partners the ability to charge for subscriptions. In what its calling a pilot program, 53 subscription channels are being launched, some from established brands like UFC, PGA, National Geographic and Jim Henson, and many more from less well-known content partners.

In this week's podcast Colin and I discuss whether this is a big deal or not. Colin's more bullish than I am, seeing it as a very important piece in the YouTube puzzle, adding to existing advertising, rental and purchase monetization options.

I agree it's smart move by YouTube, but I don't think it's a game-changer. While I see this as the right thing to offer content partners - especially those with huge audiences on YouTube - this is akin to "freemium" type option that will require partners to very clearly differentiate the incremental content available in their subscription tiers in order to convert a small percentage of their free viewers to monthly subscribers.

A complicating factor is that for many users, YouTube subscriptions will be on top of - not a substitute for - already expensive pay-TV monthly bills. Then there's also a Netflix, Hulu Plus, Amazon or other SVOD subscriptions which already make a claim on finite entertainment dollars too. Lastly, YouTube is perceived as a "free" site by many, so it will take significant promotion by channels to persuade users to pay.

Bottom line: YouTube is doing right by its content partners in offering this capability, but it's up to the content partners themselves to make it successful. My guess is for most partners, advertising will continue to dominate their YouTube-related revenue for a long time to come.


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I'm pleased to present the 178th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. This was NewFronts week, when a slew of content providers presented their slate of programs and initiatives to advertisers. Having attended a couple of the presentations, I was impressed by the turnout, energy and interest, especially since this was only the second year for these types of presentations.

Advertisers have clearly moved online video beyond the experimental stage and are taking a strong interest. Colin and I agree that this is mainly due to viewers' strong adoption of online video viewing. This should only increase as viewers are presented with an exploding array of content choices. We talk more about the role that mobile and apps are playing in all of this too, and why established media needs to be aggressive in this shifting landscape.

Listen in to learn more!

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I'm pleased to present the 177th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. Earlier this week, Netflix reported solid results for Q1 '13, adding a total of about 3 million new subscribers, 2 million in the U.S. and a million internationally. Netflix projects it can ultimately obtain 60-90 million U.S. subscribers, which would be 2-3 times as many as HBO, the biggest "premium TV" network.

As I wrote earlier this week, if that were to occur - and it's still a big if - it would mean Netflix would have to get a lot of middle and lower income American homes to layer on another $8/mo or more to their already substantial pay-TV bills, OR there would have to be material cord-cutting that essentially frees up household budget for SVOD subscriptions. Colin suggests a third way, which would be "cord-shaving" - subscribers cutting back on existing pay-TV services like sports networks or premium channels to make room for Netflix in their budgets.

That of course leads to the question of what HBO might do as it observes Netflix's continued growth. It's hard to see HBO standing still, yet, for reasons HBO has discussed in the past, unbundling itself from pay-TV would be a huge step for the company. Last but not least, Amazon - which become Netflix's biggest U.S. SVOD competitor - is rumored to have a set-top box introduction planned, which could also shift the competitive balance in the U.S. Bottom line, there are a lot of twists and turns yet to occur in SVOD in the U.S.

Listen in to learn more!

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I'm pleased to present the 176th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. In the past 2 weeks, Aereo has touched off an escalating war of words between it, the broadcast TV industry and other interested parties. Today Colin and I review some of the recent back-and-forth in this battle.

News Corp. COO Chase Carey kicked things off in remarks at the NABShow last week, threatening to move Fox to cable if Aereo was deemed legal. CBS and Univision later backed him. This week broadcasters petitioned for the Second Circuit Court of Appeals to hold a full or "en banc" review of their decision, a strategy my colleague Howard Homonoff suggested they could pursue in a contributed piece on Tuesday. In the petition, broadcasters stated that "unless reversed, (the court's prior decision for Aereo) would wreak commercial havoc" on the  industry.

For its part, Aereo took the extraordinary step of taking out a full page ad in the NY Times on Tuesday, in which it said "54 million Americans use some sort of antenna to watch TV." Aereo is appealing directly to consumers, essentially trying to paint the broadcasters as stifling innovation and being anti-consumer. Aereo CEO Chet Kanojia also said this week that broadcasters would face a serious policy fight if they tried switching to cable.

Last but not least, the dispute got personal as well, as Leo Hindery, a former cable executive, and now media industry investor, called Aereo lead investor Barry Diller's involvement "despicable" and "tawdry." That was after he labeled Aereo a "pissant little company" that is stealing copyrighted material because it's not paying retransmission consent fees.

All of this over a company that hasn't yet even demonstrated its value proposition resonates with consumers! Imagine what happens if/when it does.

Listen now!

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(Apologies in advance, Colin's audio isn't very good this week.)

I'm pleased to present the 175th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. This week Colin and I attended NABShow 2013 in Las Vegas, where we had a booth and recorded 20+ video interviews with industry executives, which we'll post over the next couple of weeks.

Through the interviews and other on-site discussion, we came away with a number of observations, which we share today. We focus specifically on the trend toward live event / live linear streaming, what's coming up with HEVC encoding and whether 4K TV will fly. All of these were omnipresent topics/questions at NABShow.

Listen in to learn more!

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I'm pleased to present the 174th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. There's no question video is moving to streaming and electronic delivery, but DVDs still have plenty of life left. That's what Redbox is banking on to get a foothold with its new Redbox Instant service, as CEO Shawn Strickland explains in this interview. Both Colin and I think it's a smart, albeit risky, strategy given the inevitable downward trend in DVD usage.

I see part of DVD's durability as due to Hollywood's windowing practices. Because of the multi-billion pay-TV window, licensing to networks like HBO, Starz and EPIX, major studios delay the availability of movies in SVOD services. The intervening home video access continues to give DVDs life. Unless and until Hollywood abandons the pay-TV window, DVDs will continue to have life. And since Netflix has essentially abandoned DVDs, there's a big opportunity for Redbox.

However, Redbox Instant has another problem, which is that its streaming content selection today is terrible, as Colin explains. That means prospective subscribers have to determine whether its worth the $3/mo or so they're effectively paying for it on top of the DVD value which is worth around $4-$5/mo. Colin and I are both skeptical. Even if Redbox Instant doesn't fly, we both see DVDs being with us for a long time to come.

Listen in to learn more!

Reminder: Colin and I will be at NABShow next Mon. and Tues. in our booth SU12907. If you're there and have a moment, please stop by to say hi.



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I'm pleased to present the 173rd edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. This week we focus on the rising cost of content to pay-TV operators and the rising quality of content found online.

In a post yesterday, Colin validates pay-TV operators' complaints about programming costs, noting, for example, that at Comcast they rose from 34% of video revenue in '08 to 40% in '11 (at Time Warner Cable they were 41% and at DirecTV they were 45%). As we discuss, these escalating costs are eating into operators' profit margins as subscriber rate increases haven't kept pace. As VideoNuze readers know, sports is a major culprit in all of this, though entertainment networks have raised their own rates as well.

Against this backdrop, the quality of content available online is improving markedly. For example in just the past couple of weeks, we've seen Netflix announce another new series, with the producers of The Matrix films and Babylon5, Amazon Studios announce new shows "Betas," "Zombieland" and "Sarah Solves It" and Crackle a second season of "Chosen."  Further, anime network Crunchyroll disclosed it's now up to 200K paying subscribers, TheBlaze (Glenn Beck's online video network) is raising $40M. Even the BBC, one of the most traditional TV networks, announced it will be premiering shows on its iPlayer.

In short, the quality of programming online is getting better all the time, while the cost of content to pay-TV operators is escalating, in turn putting pressure on subscriber rates. All of this means viewership patterns are bound to change and with the broader video industry.

Reminder: sign up for "Sizing Up Apple TV" a free video webinar, next Tuesday, April 2nd featuring Brightcove's Jeremy Allaire and me.
    
Listen in to learn more!

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I'm pleased to present the 172nd edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. This week we first discuss Google Fiber, which Google announced this past Tuesday would roll out to a second city, Olathe, KS. Nonetheless, as we discuss, it still feels like Google Fiber is a hobby for Google, though its executives recently asserted otherwise. Neither Colin nor I quite understand what Google Fiber's actual market impact or game plan is, and we are skeptical that there's a business case to support its broader rollout.

We then turn our attention to another Google-related item, which is that YouTube announced this week it is now attracting 1 billion visitors/month, even as (according to my analysis), its U.S. online-only traffic has dropped by 32% year-over-year. But, because comScore doesn't measure mobile access, this isn't an accurate portrayal of YouTube's reach, which is clearly expanding. Colin has further data that adds color to the situation.

Separate, Colin has released his excellent new white paper, "Second-Screen Apps for TV" (free download here)

And a reminder to sign up for "Sizing Up Apple TV" a free video webinar on April 2nd featuring Brightcove's Jeremy Allaire and me.
    
Listen in to learn more!

(update - the correct pronunciation of Olathe, KS is "O lay the" (thanks Frank Hughes!).

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