Media Bites May 4 2010

TV Everywhere & Anywhere continues:

In the quest to get your entertainment ( not news, my print friends) where ever and whenever you want it, DISH Network will open up a beta web portal this summer to offer premium content. According to Multichannel News, Comcast is the only distributor to offer the service through Fancast Xfinity Video (http://www.comcast.net/on-demand-online/)-viewers can watch their favorite shows from HBO, Starz, TNT, TBS, A&E, History, CBS and AMC.

Time Warner Cable, Verizon FIOS and DirectTV are all at various launch stages. Additionally, HBO (owned by Time Warner) recently introduced HBOgo and MobiTV (http://www.mobitv.com/) has been in the game for a while now. Yup, I've already downloaded both HBO and MobiTV apps to my IPhone.

However, here's the frustrating part: Lets say I want to catch the latest episode of 'True Blood' on my Macbook. Whoops, can't do that. My cable provider is Time Warner and they haven't rolled out that product yet. OK, no worries. I'll go to HBOgo and catch it there. Blocked there as well as they have a limited number of distributors signed up and their parent company isn't one of them.

I see TONS of opportunity for media business start ups to get every distribution company, networks, programmers, marketers and tech pros on the same page so the consumer can benefit. I'll say it again with gusto: one access point, one fee, multiple devices. Hey, maybe my business partner and I could develop something........

Media Post-December 4 2009

I recently had to do a project with my fifth grade son on what my earliest memory was and I'm going to show my age here. It was the 1969 Apollo Moon launch-the famous 'one small step for man, one giant step for mankind' event. Keep in mind I thought all of the hoopla was about ME because it was a few days before my 5th birthday. Anyway, I remember them waking me up and watching it on a black and white TV with rabbit ears. 40 years isn't really that long ago, but in the TV landscape, it may as well be the age of the dinosaurs.

Ratings delivery in broadcast TV have seen a rapid decline in the the last 30 years. During the 1979-80 TV season, the top shows were 'M*A*S*H', 'Three's Company' and 'That's Incredible' with a household rating of 21.7. In the 2009-2010 season, the best of the best delivered a 13.0 household rating, a 41% decline in ratings which equates to less viewers and that means fewer consumers actually see your message if its on broadcast TV.

TV as we know it will not survive if it does not continue to evolve. Phil Leigh, of Inside Digital Media says 'whether its a monitor for video games, DVD player or laptop computer, the TV set is just a window into the Internet cloud.' And many new technologies are making it easier to hit that cloud and bypass the standard delivery format. In Q1 2009, there were 31 million TV households with a DVR, according to Mediabrands research, that number should surpass 51 million by 2014. Now I don't know about you, but you'd have to pry that DVR out of my hands.

Additionally, video streams increased to over 104.3 billion (yes billion) between January and October 2009 and Hulu had 583.2 million downloads in September 2009. Social media has also pulled consumers away from the set to watch friends, shows and dogs doing stupid things in a pool. According to Nielsen research, on-line video streams on social media sites has increased over 45%.

New gadgets are making their way into homes including Blu-Ray, Roku and Apple TV that stream movies and other content, but you may soon be watching your favorite episodes of 'Glee' and 'It's Always Sunny In Philadelphia' as well. And at Best Buy you can pick up an Internet connected TV with CinemaNow, giving users the ability to download movies. Other services like Zillion TV and Epix are developing similar technologies to give the users much more control.

The ultimate goal is a TV that streams quality content, lets me record shows or movies, play games, respond to ads I'm interested in, surf the web and work out all through one console. Hang on world, the future is upon us.

(source Crain Communications, Ad Age Nov 30 2009)

Media Bites-November 23 2009

New TV business model causing conflict between broadcast and online platforms

Broadcast television continues to spend analyzing their current business model instead of determining ways to truly partner with online sites. One network exec has stated, " the spending on Hulu versus the network is still small. But the undercutting of broadcast CPM's is something we're all concerned about. It's been more pronounced during the past few months and it's something that Hulu has not addressed." A media buying source confirms their concerns, but goes on to say that, " Hulu doesn't really represent a threat to network TV, today. However, advertisers are considering online video as an alternative to broadcast.'

In my opinion, anything that allows me to consume media when, where and how I want it is a threat to the current broadcast model. Wouldn't it make much more sense to embrace change, develop technologies and produce programming that makes me want to spend time watching?

If Time Warner Cable can develop TV Everywhere beta that lets me watch premium pay per view content on my laptop and Comcast can launch a similar version, as well as a local sports VOD, why can't NBC, CBS, ABC, FOX and the CW do the same?

Media Bites-Nov 16 2009

Media Continues To Fragment But Innovators Find A Niche.



Tired of cable or satellite? If you live in the City of the Angels, starting today you'll have a new option: Sezmi.(http://www.sezmi.com/) Here's the skinny-Sezmi transmits cable networks through digital TV frequencies that they have leased from local broadcasters. Users install two pieces of equipment that the company is calling a 'smart reception system' that brings in over the air programming and the Internet, as well as a set top 'digital media player' that sends the programming to a TV screen or records it for later consumption. Customers can opt to lease the equipment (cost unknown) or purchase for $299.00.

During the trial for a monthly fee of $5.00 you can see local broadcast, Internet channels and some pay-per-view services. For $20 more you'll have access to over 100 cable channels. As a consumer, I'm all over this concept. As a customer of an unnamed cable company, I'm paying $135 for bundled services ( cable, Internet and phone) and we rarely go that far up the digital tier. The Sezmi model would have my monthly costs at $25.00 for the service, $40 for Internet (cable carrier)and $30 for phone (Vonage or similar). In times like these every penny counts and I'd take the $40 savings. Now, in fairness, what you'd be giving up are: 24/7 customer service.

Not only is Sezmi competitively priced for users, it has a distinct advantage over other TV-over-the-internet companies: it can offer networks a percentage of subscription fees , in addition to a revenue share from advertising. At this point in time, that's something a platform like Hulu can't offer yet; but that could all change with the proposed Comcast/NBCU merger.

(source: LA Times, Jon Healy. Images from Sezmi)

Media Bites-November 6 2009

Activity in the media business affecting change in the TV landscape


(1) During the last week of October, several TV station group owners reported third quarter revenue declines: Meredith (-13%), LIN TV (-18%), and McGraw Hill (-24). (Claire Atkinson-Nov 1 Broadcasting & Cable)

(2) Comcast is oppressively pursuing the purchase of NBC Universal and many executives expect the deal to close within the next 12-18 months, even with the sticky issue of Vivendi not yet relinquishing its 20% stake in NBC Universal. The Wall Street rumor on this deal is that Comcast may sell off the NBC Network and station groups to a third party.

(3) News Corp is also on the M&A hunt, bidding on Cox Communications 65% stake in Travel Channel, renaming it to National Geo Traveler. Fuel TV, the youth oriented net may also be sold off in the process.

Mergers, acquisitions and sell offs should all be viewed in a positive light for both consumers and advertisers. Networks and TV groups that are struggling could be revived and reinvented as part of a larger media organization, offering more selection, better programming and greater promotional opportunities. Additionally, alternative viewing platforms such as Hulu, Fancast, ZillionTV, TV Everwhere and now even ITunes, will have a more expansive market as viewers may elect to watch their favorite shows on their desktop, as well as on the set-top.Its hoped, and the preliminary research is proving it true, that if viewers tune in via an alternate platform, they will also sample the show during its time slot or via DVR or other device.

And according to a recent AP interview, Comcast CEO noted, ' I've been saying for a long time that I think video over the internet is more friend than foe.'

How great that would be if all of the parties could work together to deliver quality programming to viewers when they wanted and how they wanted it, subscription models that benefit consumers and programmers and advertiser friendly opportunities that make money for all.

Media Bites-October 27 2009

There is another player in the TV universe that hasn't even launched yet that may be worth checking out: Zillion TV. According to their website (zilliontv.tv) you choose the programs, how to watch even what addressable ads you'll accept. Right now they have agreements in place with Disney, NBC Universal, SONY and Warner Brothers.

Content streamed to my TV via the internet connection, I choose how I want it, when I want it and what ads I see. What a concept-media delivered to me when I want to get and programming I choose to receive. I may have to drop the cable provider when this launches.

Media Bites-October 16 2009

Comcast-NBC Universal-Vivendi deal will change the entertainment landscape.
The deal for Comcast to buy 51% of NBC Universal is just about wrapped up and the word is stil out on whether Vivendi will divest its 20% stake in NBC Universal.

Comcast subscribers total over 24 million and contribute to more than half of the company's 2009 revenue. The reasoning behind this deal all points back to viewing of content or as Brian Roberts, Comcast CEO calls 'cable bypass'-canceling their subscriptions and gravitating towards on line viewing platforms. The way around that is to prevent posting content on the internet, fee for content or accessing the content by proving users already subscribe to a pay TV service (TV Everywhere) Once this deal is complete, Comcast would hold the most TV assets worldwide including a percentage of the NBC broadcast network, Telemundo, USA, Bravo, MSNBC and CNBC.

To complete the deal that Comcast wants, Vivendi,(http://www.vivendi.com/vivendi/-accueil-en-) the French media and telecommunication company must shed 20% of its ownership in NBC Universal. Vivendi has until Nov 15 to notify one of its media partners GE, on whether they will sell any interest in NBC Universal.

It would be great if this entertainment merger and acquisition resulted in better quality programming, reduced subscription rates and innovative viewing technologies. It should since Comcast (http://www.cmcsk.com/)would control most of the content and production currently airing. Stay tuned as this will not be the end of TV consolidation, there will be much more to come that will hopefully make a positive impact on they way TV is delivered and consumed.

September 15 2009

Its rare that a TV show sticks with me several days after it aired-but I have to say the Sunday September 13 Episode of 'Mad Men' was a bit disturbing and emotional.

http://www.amctv.com/videos/mad-men/?bcpid=8803972001&bclid=32693689001&bctid=39615751001

AMC has a real hit on their hands. Amazing cast, great writing, period costuming and culture.
Check it out. Sundays at 10PM on AMC

August 27, 2009

I will admit that I will tune into unscripted TV fair on a semi-regular basis-'American Idol', 'Real Housewives ' franchise, 'Deadliest Catch', 'Ghost Adventures', 'Ghost Hunters' and 'Top Chef'.

We all know the economics of why in the last several years there has been a huge increase in the amount of reality TV: It is a lot less expensive to produce than a scripted series. Broadly speaking, if the cost to produce a non-scripted cable series is $150,000 per episode x 13 in a series=$1.95million. Spot time against the show is sold on a national and local availability and in a 60 minute show, there may be up to 5 commercial pod breaks with room for 2-3 minutes worth of messaging. Lets have a little fun with the math-If a national spot in 'Real Housewives of Atlanta' sells for a conservative $10,000 (and I think I am underestimating) x 8 national avails=$80,000 in revenue from national advertisers in hour x 13 episodes=$1.04 million. And that doesn't include the local airtime or the product placement or barter to offset the cost of production expenses. And keep in mind, a non-scripted show on cable can be run over and over again, gathering more ratings and revenue.

The fact is we enjoy watching others struggle, work hard, overcome challenges, argue and make up because we think to ourselves that could be me or I wish I had the balls to do that or I give them credit because I could never get on a boat or on a stage and do that. Kudos to you.

What I cannot tolerate watching is programming that is vapid, demeaning and quite frankly a waste of air time and most recently found to be linked to violent crime. Shows like 'NYC Prep' 'I Love Money', 'Real World', 'Miami Social', 'My Antonio' ,'MY BFF' and the list goes on and on and on. And now we have the sad story of Ryan Jenkins, a contestant on "VH1's Meghan Wants a Millionaire', and his murdered girlfriend, as well as the Brazilian TV producer that hired professionals to murder and then sent a crew over to film it.

When is it enough. I'm a business owner and a capitalist and I'm all about making money but I think this really speaks volumes about our society and culture when this programming makes it on the schedule.

I remember pitching several shows to the Manager of Development at VH1 several years ago. While we were discussing shows,ratings and revenue, her comment to us was:(and I'm paraphrasing) ' we're going to ride the reality train until it comes to a stop' Maybe it has. Or should.

August 17 2009

I have been waiting for this season premiere and wasn't disappointed. The first scene with Don reliving his early life, including his birth was disturbing and moving at the same time. Loved Betty's comment to Don after Sally broke his valise that she was 'taking to his tools like a little lesbian'

Must agree that of all the characters, I really enjoy watching Peggy evolve. Here is a woman that started out acting little a frightened little mouse and has now become a force to be reckoned with. If you could fast forward the agency 4o years, I think she and Joan would be running the place and taking no prisoners.

I have to admit, I didn't see the foreplay scene coming with Sal and the bellhop that came to fix the air conditioning. And the look that Don gives him when he sees him is priceless-amused, disturbed and understood all in that 30 second shot.

All is not what it seems on'Mad Men' -and that's what makes it so amazing.

http://www.amctv.com/originals/madmen/

And while your here, Mad Men Yourself -;) Here I am-circa 1963

August 7 2009

News Corp President Rupert Murdoch announces to analysts and reporters that the company will start charging for all news websites in the struggling newspaper division as well as strong revenue generator FOX News Channel. Q4 showed a loss of $203 million dollars.

So now that the business model doesn't work and the company is experiencing one of the worst years ever, its time to charge consumers for reading newspaper content on line. Guess what-that concept is going to backfire. The argument here is that quality journalism is expensive. Yet, I'm still trying to get my head around paying for content on-line when there are literally thousands of other sources to turn to- other news outlets, bloggers, and Twitter feeds. The argument I often make with local media properties when pitched 'news' is by the time I see it or read it, its already 'old news'.

I think the only way to make paying for news content work, is for it to have tremendous value to the user. Offer up something they cannot get elsewhere. Deliver an integrated approach that includes a customized home page, rss reader, free print delivery, Iphone app and incentives and discounts for using multiple services. Its a business and I am all for making money-but it's a bad move for media properties to just start charging for content that was delivered up free. Its a recipe for disaster.

August 4 2009

Last Friday on the Media Man radio show, we discussed breaking down the 'walled gardens' of media outlets. In fact, one of my guests, Heather Way says she no longer even uses the term traditional media as it really has become more and more digital with each passing day.

A recent article in TV Week from CBS Chief Research Office Dave Poltrack has a vision of media where the DVR is really a passing fad. What? No more recording of shows or restart what you've missed? Potrack sees a world where most of the viewing won't be seen on the square box in your living room, you'll be doing it via the internet and not neccessarily on your computer. Highspeed internet providers will stream the content to your big screen TV.

However, its all about revenue, so lets follow the money trail: the highspeed ISP would pay a fee to the broadcast property for any users that want to access the content, users would then view for free or pay a moderate subscription cost (similar to Itunes) to view commercial free. Great for broadcast properties as they will know have a dual revenue stream-ad dollars and funding from the internet providers.

Keep in mind, since both the ISP and the broadcaster have details on the household, this makes for a perfect addressable ad opportunity, only serving advertising messages that are appropriate for that household in that market. What a concept. No more ads for retailers or restaurants that don't exist near you. No more ads for luxury cars or Florida retirement homes. What if you take this one step further and use the technology that is currently available to find out about Miami while you're watching 'Burn Notice' or purchase diabetic equipment while viewing 'Nurse Jackie' or order up a case of Grey Goose Vodka during 'Mad Men.

The walled gardens are crumbling and media is headed this way-I am hopping on for the ride.