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August 30 2012

15:02

The newsonomics of leapfrog news video

Our political conventions reminds us that this is not the summer of love. But it may be the season we’ll remember as the summer of video.

Certainly, video’s — news video’s — growth has been noteworthy for awhile. But now there’s a bursting of new news video forms, a hothouse of experimentation that is both refreshing and intriguing. The blossoming has implications far and wide, not just for “news,” but for tech companies like Facebook and television brands from Ellen to Piers to The View. Within it, we see the capability of non-TV companies to leapfrog the TV people.

Just Monday, both The Wall Street Journal (“The Wall Street Journal wants its reporters filing microvideo updates for its new WorldStream”) and The New York Times made video announcements. A couple of weeks ago, the ambitious Huffington Post Live launched, hiring the almost unbelievable number of 104 staffers. In these three forays, and in the thinking in and around them, we see the boundaries of old media being slowly broken. We’re on the edge, finally, of new ways to both create and present news — and how to talk about the news.

It’s funny: “Video,” as a term, as a category, barely defines what we’re seeing. All video means is moving pictures, and we’ve had those since George Méliès (as Martin Scorcese reinterpreted in Hugo). We’ve known broadcast news and then cable news, witnessed their triumphs and now the declines of both. Because of twin technologies — all the iGadgets reintroducing us to the world as we know it and the behind-the-scenes digital pipes making content creation and distribution increasingly seamless — we’re seeing what creative people can do with moving pictures.

While this week’s Journal’s announcement focused on WorldStream, that semi-raw feed (all staff contributions are okayed one-by-one for public view) is but one of the full handful of Journal experiments with video.

Watch video now better embedded into stories (as the Times also has done with QuickLinks). Get appointment programs on WSJ Live (“The newsonomics of WSJ Live”). Watch on demand, in a variety of formats. Go directly to a video page, where all of the video output is categorized. And now, WorldStream, that rawish feed the Journal is doing, because it can — and because such video becomes great bait for the social web. Pick up the url, tweet it, and the Journal has happened on a social video strategy that is curiously akin to Upworthy’s.

It’s a multi-point access world for video producers. The Times will tell you that its viewing is roughly divided in thirds among its video center, its homepage video player and embedded-within-stories video. The Journal says more than half its views are now coming from embedded videos, with less than five percent of its views come from its video page. It makes sense that “video center” usage will decrease over time; these are transitional pages. Convergence is now becoming real, and we expect to see the content, text, voice, and pictures delivered in context. Finally. We don’t go to a place on sites called “Words.”

What’s most important about we’re seeing flickering before our eyes? Try these, as we look at the newsonomics of leapfrog news video.

  • It’s about money. Video advertising rates are holding up far better than display-around-text rates. “Give me inventory” is a cry heard from the salespeople, who find agencies and top advertisers’ pre-roll appetites nowhere near satiated. For top premium brands, $45-60 CPM (cost per thousand views) are still available, as display rates fetch as little as a tenth and as much as one-half of those numbers. In addition, companies are selling video packages and sponsored tile ads in addition to pre-rolls to sweeten their take. So production of video makes financial sense — even as news companies cut back, lay off, and pinch, pinch, pinch. The smarter companies are investing in video — staffers, training, technologies — even as they make those cuts, while other companies find themselves just stuck. Video is the second-fastest growing ad category in the U.S., according to IAB, up 29 percent year-over-year. It will be worth about $2 billion this year.
  • It’s about platforms. The Journal’s Alan Murray, who heads digital news efforts, says the company’s video traffic has doubled in six months. Why? It’s not mainly because of more use on Journal platforms, even though it’s been an innovator on the tablet. Most of that growth comes from the deals the Journal has done with an astonishing 26 “platforms.” They range from the ubiquitous iPad and Kindle to lesser known 5Min and LiveStation.1 By way of comparison, The New York Times is currently using three (Hulu, Google TV, YouTube).
  • It’s about technologies. The Times and the Washington Post have been using Google + Hangout, to facilitate conversation, and we’ve seen the fruits this week at the Republican Convention. As well-described by The Daily Beast’s Lauren Ashburn, Google Hangouts are a major, disruptive force; “no longer needed are satellite trucks or underground cables to beam talking heads to people’s living rooms. A simple Internet connection and a camera are rendering expensive gadgets obsolete.” The Journal is touting Tout, a Silicon Valley start-up that has taken much of the “friction” out of the business of video production. “Make it drop dead simple,” CEO Michael Downing says is his goal. That means taking the background tasks of uploading smartphone video from the field, “transcoding” it and then translating it to work in all the various formats (devices, screen sizes, operating sizes). That removes the work from media companies, and lets them focus on content and audience. In addition to the Journal, broadcasters including CNN, CBS, and ESPN have become customers.
  • It’s apparently not about appointment TV. HuffPo’s Live is the most interesting here. While it has 10 telegenic anchor/producer/hosts, those hosts don’t have standard daily program times. Segments will last between 12 and 35 minutes (most average 20-25), HuffPost Live president Roy Sekoff told me this week. Yet, they are fluid, with segment length adjustable on the fly. Readers pick topics — before, during, and after “Live” — from a reader-activated conveyor belt at the top of the page. “It’s the Internet,” says Sekoff pointedly, meaning it’s a flow, not a TV Guide-like grid in how readers/viewers use it. The Journal agrees. Even with on-the-hour blocks of News Hub programs, the majority of its viewing is on demand. Even for HuffPo, all of that live programming is then chunked into segments, and Sekoff estimates that he’ll have about 10,000 of them archived and ready for long-tail viewing by year’s end. We want what we want when we want it — and expect it to be there. Thus, findability becomes the issue, and the multiple points of access now being offered are very much a live test of consumer behavior and want.
  • It’s about simplicity. The Times’ announcement basically said this: You’ve proven you like video. Now we’re cleaning it up and making it more pleasurable to watch and easier to find. In the cleanup, the Times moved to 11 “navigation items” from 25, says Peter Anderson, director of video product. We see that translation in more uniform positioning of video panels on NYTimes.com pages, and a more elegant 16 × 9 video player format, replacing the oh-so-20th century 4 × 3.
  • It’s about the news — and talk about the news. In the approaches of the Times and the Journal on the one hand, and of HuffPo on the other, we see two quite different philosophies and strategies, but ones that may find meeting points. Both the Journal and the Times see their reporters as the foundation of the video process; Murray calls Dow Jones’ 2,000 journalists “the core asset.” So both are putting cameras into the hands of journalists, or enabling them to better use smartphones, thereby creating more impactful, multi-dimensional, multi-platform journalism. HuffPo, from its early days of being mainly a curator/aggregator, has had its pulse on what its progressive audience is wondering and talking about. Those topics, mostly off the news (Marissa Mayer’s pregnancy, veterans and poverty), are the ones front and center in its Live pages. Some, of course, derive from its journalists’ work, and now staffers like Howard Fineman are suggesting video segments as they prepare stories. By and large, though, the talk-about-news drives the 12-hours-a-day site (5 days a week), with actual news supplementing. Sekoff says some 1,300 HuffPo community members have “raised their hands” and been featured as talking contributors on its segments. They’re unpolished and a far more diverse (for all the good and bad that implies) lot than we see among the too familiar faces of cable TV. For the Journal and the Times, traditional stories drive the video, and then, as Peter Anderson describes it, “The New York Times starts the conversation.” (Here, the Times brings civilians more prominently into its Opinion pages.) How these somewhat opposite approaches come together will be something to watch.

Maybe, most intriguingly, this video revolution may be morphing into a social revolution.

Watch a few of the HuffPo Live segments. Call them semi-slick. The technology works. The production values are okay, even if blogger/contributors faces seem a bit low-def, as TV itself moves moves from HD to Ultra. Some raise interesting, unorthodox issues and views; some are deadly boring. They are not, though, the lookalike programming of traditional news outlets. In their socialness, they cross lines.

Here’s what I find fascinating as I watch those, and smaller steps toward engagement taken by the Times, Journal, and others. As we all watch more video, where will the minutes come from? They may come from other news, text news. They may also come from Facebook. Compare HuffPo Live to Facebook and we see lots of social/sharing commonalities — but in picture form. Discussions — less in linear words than with in-motion video. They may come from morning talk shows like “Ellen” or “The View,” or compete with The Young Turks.The minutes will come from somewhere, as these technologies are more universally adopted and the world of competition only gets more complicated. This is the world in which news companies now compete.

For the news industry specifically, we see that legacy lines are written in disappearing ink, as the Journal, for instance, out-innovates ABC. One dirty little secret of broadcasting is being revealed, as technologies like Google+ Hangouts even the playing field for the print guys: it’s a game of numbers. The number of journalists in newspaper newsrooms still far outnumber those in broadcast ones. In addition, traditional TV has demanded many staffers to do the technical work of creating the broadcast. So, newspapers — if they can rapidly connect their workforces with the new technologies — have a chance to do what seems illogical: leapfrog broadcast and outflank them in the move to fully available, multi-platform news video.

Notes
  1. The full list: YouTube, iPad, iPhone, Apple TV, Google TV, Boxee, Roku, Hulu, Ustream, DailyMotion, Panasonic Internet-connected TVs, Samsung Internet-connected TVs, Sony Internet-connected TVs, Vizio Internet-connect TVs, Yahoo Internet-connected TVs, Windows Phone, Xbox (announced, not yet launched), Kindle Fire, Google Nexus 7, Pulse, 5Min, TouchTV, Flud, WatchUp, LiveStation, Tout, Etisalat.

August 22 2012

17:19

August 20 2012

15:57
05:16

Hulu CEO faces big changes

Variety :: "Outline transition plan for new CEO. Discuss potential candidates and process." These sentences are the topmost bullet points of a confidential internal memo regarding the business of Hulu obtained by Variety. Dated in July, the three-page document covers a range of sensitive issues pertaining to how two of Hulu's parent companies, News Corp. and Disney, plan to transform the streaming service.

"The reality of the situation is may be more complicated" - A report by Andrew Wallensten, www.variety.com

August 15 2012

20:28

The newsonomics of breakthrough digital TV, from Aereo to Dyle and MundoFox to Google Fiber

In 1998, when Rupert Murdoch’s News Corp. bought the Los Angeles Dodgers, the storied franchise was worth $380 million. News Corp. sold the team in 2003 for $430 million. After winning the ability to negotiate a new multi-billion sports TV contract this fall, they sold earlier this year for $2 billion, blowing the lid off sports property values.

In 1994, the San Diego Padres were worth $80 million. After recently signing a 20-year deal with Fox Sports for $1.2 billion, they sold (pending league approval) for $800 million.

Meanwhile, in 2000, the Los Angeles Times was worth at least $1.5 billion when it was sold as part of Times Mirror to Tribune Company. Today, as it is newly readied for market out of the Tribune bankruptcy, it would go for something less than $250 million. The San Diego Union-Tribune, once valued near a billion dollars, sold for about $35 million in 2009 and about $110 million in 2011.

It’s a reversal of fortune: Newspaper franchises that once outvalued baseball teams by 3-1 or 5-1 or 10-1 now see the inverse of that ratio. Why?

Two letters: TV.

Those numbers tell us a lot about the continuing power of television, in worth, in value creation, and in the news business itself. If we look just at recent events in the ongoing transformation of broadcast and cable to digital, we now see multiple breakthroughs on their path to digital. They give us indications of what the news business, video and text, will look like in the coming years. While we can argue endlessly about the relative virtues and vices of print and TV news, we must acknowledge the relative ascendance of TV and think about what that means for the news business overall.

TV’s revenues are holding up far better than newspaper companies’, and TV is better positioned to survive the great digital disruption.

TV has continued to have great audience. Nearly three in four Americans tune in to local TV news at least weekly, surpassing newspaper penetration, even as Pew Research points out they mainly do it for three topics: breaking news, weather, and traffic. Further, it retains great ad strength — 42 percent of national ad spending, matching the actual number of minutes Americans spend with the medium and making it the only medium still ahead of digital spending as digital has surpassed print (newspapers + magazines this year, both in the U.S. and globally). Yes, TV remains a gorilla. While Netflix won headlines when it announced it had streamed one billion hours of TV and movies in a single month, that huge number compared to about 43 billion hours of U.S. TV consumption, according to Nielsen’s 4Q 2011 Cross-Platform report.

In a nutshell, that’s the difference between TV and video, circa 2012. Video is the next wave — incorporating TV perhaps, but still the very young kid on the block.

Today, TV is no longer a box. Sure, even with all the Rokus, Boxees, and Apple TVs, it seems like TV isn’t yet an out-of-the-box experience. But with Hulu, Netflix, and Comcast’s Xfinity, it’s emerging quickly, escaping our fixed idea of what it once was — the boob tube in the living room. If it’s not just a box anymore, it’s a platform. From that platform, we see both the disruptors and the incumbents doubling down their bets. As in most things digital, few of these launches will be huge winners — but some will drive big breakthroughs. Some of the iconic legacy companies we’ve long known will be absorbed in the woodwork as new brands supplant them. Consider the spate of recent innovation, as we quickly assess the newsonomics going forward:

  • NBC, bashed up and down Twitter, nonetheless proved out a new business model with its multi-platform approach to Olympics coverage. Whatever you think of the tape delays or the suspended reality of Bob Costas’ gaze, NBC made the economics work, surprising itself and others. Its live streaming has ratified the development of cable- and satellite-authenticated, all-access digital delivery. That reinforces cable/satellite value. Further, it whetted prime-time viewing appetites, boosting ratings and earning NBC more ad revenue than it had projected. That’s icing on the cake for NBC, which, under Comcast ownership, has rocketed forward in digital strategy. The network has made a number of moves to transform itself into a global, video-forward, digital news company, joining the Digital Dozen global news pack. Recently, it bought out Microsoft’s share of msnbc.com, a leading Internet news portal. It immediately rechristened it NBCNews.com. In short order, it appointed Patricia Fili-Krushel as the new head of NBCUniversal News Group, an entity made up of NBC News, CNBC, MSNBC, and the Weather Channel. A former president of ABC, with 10 years of experience at Time Warner, she heads a growing news operation. Earlier this year, NBC combined its sports properties into a unified NBC Sports Group, merging NBC’s broadcast sports unit and Comcast’s regional sports networks. NBC is growing out of its digital adolescence. (See “One year after she was hired, Vivian Schiller’s ‘wild ride’ at NBC is just beginning.”)
  • Aereo, the TV startup funded by media magnate Barry Diller, is expanding its footprint from its current New York City base, and starting to offer multiple promotional deals. Diller’s in-your-face challenge to over-the-air broadcasters (CBS, NBC, Fox, ABC, CW, PBS) takes their signals and delivers that programming via the Internet. It charges consumers $12 a month, or as little as a dollar a day. They can then watch those TV stations on up to five devices; in addition, they can deliver these signals to a TV via Apple TV or Roku. Aereo also offers DVR capability, with 40 hours of storage. It’s classic disruption, with Aereo upping the pressure on the cable bundle and messing with the “retrans” fees that broadcasters get from cable companies to run their programming. Is it really legal, as a court recently found? It may be as legal as Google presenting snippets from every publisher and directory provider.
  • Local broadcasters — representing a broad swath of ownership groups organized in a newer company called Pearl — are bringing local TV to our mobile devices themselves. Just a week ago, Metro PCS started selling a Samsung Galaxy S phone with a TV receiver chip in 12 markets. That’s just the first push of Mobile Content Ventures, a collection of Pearl, NBC, Fox, and others. Expect mobile TV, marketed as Dyle, to be available for other phones and tablets, either with built-in chips or after-market accessories — although price points are an issue, with $100-plus premiums likely over the next year. So what does this innovation mean? Simply, that broadcasters are going direct to mobile consumers — no Internet needed, no data charges applying, and maybe providing more consistent video connectivity — with live programming; whatever is on TV at that moment is also on your phone or tablet. Broadcasters just use part of their digital signal to, uh, broadcast to us on our phones. It’s that antenna, and its cost, that’s the issue. Business questions abound. Given the timing of the launch, Dyle seems like an aspiring Aereo killer, and certainly broadcasters would like to see it do that, if further court action doesn’t. More deeply, though, broadcasters want to maintain their direct-to-consumer brand identity as they do a balancing act and try to keep those retrans fees from cable and satellite companies. They don’t want to be left out of the digital party.
  • Social TV pulls up a chair. First it was startup Second Screen, matching tablet ads to real-time TV viewing. Now ConnecTV, partnered with Pearl, is trying to corner the activity as it takes off. Its promise: “synchronization of local news, weather, sports, and entertainment programming along with social polls.” Ah, synchronicity, a Holy Grail of our digital aspirations. Last week, Cory Bergman (a man of at least three full-time digital lives, with MSNBC, Next Door Media, and Lost Remote) sold his Last Remote social-TV site to Mediabistro.
  • Then there’s the disruptor of everything on planet Earth, Google. The company recently announced it is putting another $200 million into YouTube Channels, building on its initial $150 million investment. The move emphasizes how quickly YouTube is growing beyond its homegrown, user-generated roots. Now partnering with dozens of prime video producers, creating more than 100 new channels, it is trying to establish itself in viewers’ lives as a go-to video aggregation source. Major video producers are still wary of Google getting between them and their customers, both ad and viewer, but many others are signed on. Meanwhile, in Kansas City, Google Fiber TV (TV that’s healthier for you?) launches. It’s a rocket shot at the cable, telco, and satellite incumbents. It’s also a demonstration project: providing more, cheaper. The more: interactive search for TV that combs your DVR and third-party services such as Netflix. (Yes, The Singularity ["The newsonomics of Google ad singularity"] marches on.) Google Fiber TV combines DVR and third-party (Netflix-plus) search. Its DVR holds 500 hours of storage of shows in 1080p and the ability to record eight TV shows simultaneously. Bandwidthpalooza. Google’s goal: Toss a hand grenade among the TV-as-usual business models, and pick up some of the pieces, adding new significant revenue lines.
  • CNN moves to break out of its identity funk, figuring out what that powerful global brand means in this fast-changing digital news world. CNN President Jim Walton recently stepped down, clearly acknowledging that his 10-year run had reached an end. “CNN needs new thinking,” he said in a farewell note. On TV, CNN has been beaten up badly both both Fox News and MSNBC. In 2Q, CNN showed its worst numbers in 20 years, down 35 percent year-over-year. On the web, it’a a top-three news player. But overall, it’s become the Rodney Dangerfield of news entities, getting little respect. Its cable fees — the strength of its revenues — could be challenged by low ratings. Going forward and competing against other global news brands — many of which are transitioning their own businesses to gain far greater digital reader revenue — it is, at this moment, caught betwixt and between. How it brings together a single — and global — digital/TV identity is at the core of its continuing journalistic importance and financial performance.

That’s a short list. We could easily add HuffPo’s streaming initiative and The Wall Street Journal’s wider video embrace. Or Les Moonves’ digital moves at CBS. And Fox’s new MundoFox, Spanish-language TV network, taking on Telemundo and Impremedia. The new network, at birth, offers a strong digital component, working at launch with advertisers along those lines. Let’s note some quick takeaways here, all of which we’ll be talking about in 2013:

  • Note how much you see the names News Corp. and Fox here. While segregating its text assets (and liabilities), News Corp. is investing greatly in the video future.
  • Cable bundling’s longevity is uncertain. There’s a lot of residual power here, but we know how quickly that can fade in legacy media. Yes, the unbundling of cable and satellite has been overestimated by some, as Peter Kafka pointed out recently. Yet, these multiple digital strategies may still push a tipping point. Clearly, legacy TV media, despite their public protestations, sees that potential and is acting in multiple ways to prepare for it.
  • Though broadcasters are making major digital pushes, they start from a lowly digital position. Many broadcasters can count no more than 5 percent of their total revenues coming from digital. That compares to 15-20 percent or more for newspaper companies. While there are other sources of revenue have been more stable than those of newspapers, they need to grow digital revenues quickly to make up for inevitable erosion of older money streams.
  • TV ≠ newspapers. Much of broadcasters’ revenues are made on non-news programming, as much as one-half to two-thirds for most local broadcasters. While learning from TV experience here is useful, given lots of differences, the learnings must be smartly applied. As news consumers and advertisers move increasingly digital, though, that thick line that separate local TV from local newspapers thins by the day.

The all-access, news-anywhere, entertainment-everywhere era has created a new massive business competition. Which brands will be top of mind? Who will consumers pay? How valuable is news itself in this contest?

Comcast, Time Warner, Verizon, AT&T — pipes companies — are in one corner. CNN, NBC, CBS, ABC, Fox, HBO, Showtime, and other known-to-consumer brands in another. Aggregators like Netflix and Hulu over there. Media marketers like Amazon and Apple holding court. Google. The local broadcasters fighting for their place in this digital ring. This new battle of brands, in and around “TV,” is now joined.

August 01 2012

18:56

Hulu app finally lands on Apple TV

VentureBeat | Washington Post :: Apple rolled out a software update for its Apple TV set-top box Tuesday that includes a new app for Hulu.

What took so long? - A report by VentureBeat | www.washingtonpost.com

April 27 2012

16:09

Daily Must Reads, April 27, 2012

The best stories across the web on media and technology, curated by Lily Leung.

1. Rupert Murdoch apologizes for hacking scandal (NYT)



2. Providence may sell its stake in Hulu for $2 billion (Bloomberg)



3. Redbox revenue grows 39 percent in the first quarter (LAT)



4. Gawker still embraces anonymous commenters as other media orgs push them away (Gawker)



5. Free data-journalism handbook to launch Saturday (Online Journalism Blog)



6. Why flying drones may be a big part of the future of journalism (Fast Company)




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April 18 2012

16:18

Daily Must Reads, April 18, 2012

The best stories across the web on media and technology, curated by Lily Leung.

1. Julian Assange launches talk show on Russian television (NYT)



2. Father of the world wide web urges people to demand their personal data from Google, Facebook (Guardian)



3. Hulu's paid subscription service hits 2 million users (GigaOm)



4. More people are watching TV shows on their tablets (MediaDailyNews)



5. Can Twitter replace newswire services? (Digiday)



6. Netflix could move from streaming to making content (GigaOm)



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April 17 2012

15:28

Video subscription service Hulu Plus hits 2 million users

GigaOM :: Hulu Plus, Hulu’s paid subscription service, has hit 2 million users and is helping put the company’s revenue on a faster pace than last year, said Hulu’s CEO Jason Kilar. Speaking at the Ad Age Digital conference in New York, Kilar said the milestone makes Hulu Plus the fastest growing video subscription service in the U.S. to hit the 2 million subscriber mark.

Continue to read Ryan Kim, gigaom.com

Tags: Hulu
05:11

Business as usual: Hulu, the online TV Site, adds original programming

New York Times :: This week, Hulu will look more like a traditional network than an Internet pioneer. At a presentation on Thursday in New York, Hulu, created as a service for watching network television online, will pitch advertisers on original programming in an annual ritual known as upfronts that are typically reserved for cable channels and network broadcasters.

Continue to read Amy Chozick | Brian Stelter, www.nytimes.com

April 13 2012

19:42

Amazon massively inflates its streaming library size

Fast Company :: Amazon boasts that it has "more than 17,000 movies and television shows" on Amazon Prime Instant Video, its streaming service that competes with Netflix and Hulu Plus. The "17,000" figure has been widely parroted in the media, but where does the number come from? Upon closer examination, the total number of movies and TV shows available to Amazon Prime members, who pay $79 a year, is actually far lower. Only 1,745 movies are available to stream on the company's Prime service, and just roughly 150 TV series.

Continue to read Austin Carr, www.fastcompany.com

February 10 2012

07:26

Amazon: No plans to launch a standalone video service soon

GigaOM :: Amazon has aggressively grown its Prime Instant Videos service over the past year, more than tripling the amount of content available to subscribers since launch. And as Amazon continues to add more content to Prime Instant Video, there have been speculations that it could introduce a service not tied to its Amazon Prime offering. But that’s probably not in the cards — at least not in the near term — according to the company’s top video content acquisition exec.

Today, access to its streaming video service comes bundled with Amazon Prime. But some rumors have emerged lately, suggesting that Amazon could unbundle the service and offer it as a standalone competitor to Netflix or Hulu Plus.

Continue to read Ryan Lawler, gigaom.com

Tags: Hulu Netflix

January 19 2012

18:20

Daily Must-Reads, Jan. 19, 2012

The best stories across the web on media and technology, curated by Lily Leung

1. TV news starts covering SOPA after fleet of major sites go dark (TV Newser)

2. Did the anti-SOPA protests work? (PC World)

3. Apple unveils iBooks Author, an app for easy self-publishing (GigaOm)

4. Why the news industry should mimic Hulu, Netflix (Nieman Lab)

5. Julian Assange, of WikiLeaks, talks to the Rolling Stone (The Rolling Stone)

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15:00

The newsonomics of signature content

What’s your signature content?

Quick: If somebody buttonholed you in an elevator, a school play, or a bar, and said, “Why should I pay you for that?” — what do you tell them?

Each passing week, it seems we’re further into the age of signature content. That only makes sense: If the death of distance is now old news, if everything is available everywhere at the touch of button or the swipe of a finger, then what makes any news or entertainment brand stand out amid this plague of plenty?

Closed systems — from three or four TV networks to less than a dozen big movie studios to a half-dozen major magazine publishers to geographically dominant newspapers — made signature content less important. Sure, big shows and big names have always driven media to some extent, but now, media without big names or big shows are going to get lost in the ether. Take Hulu’s announcement last week about Hulu Originals. You do have to wonder if Hulu’s fictional 13-episode “Battleground,” about a dysfunctional political campaign, will be bested by the Republican reality show in progress when the show debuts next month. Hulu is also bringing a Morgan Spurlock series for a second run, and probably will feature one other new program. The Hulu announcement joins Netflix’s own foray into signature content. Three years ago, would the thought of Netflix signing up Little Steven to do an original comedy series have crossed anyone’s imagination?

Hulu and Netflix both need to distinguish themselves in the market — not only from each other, but from Comcast, DirecTV, and Time Warner, among others. They need to buy protection as supposed masses consider cutting the cord on packaged services, Roku-ing and Apple-enabling Internet video onto their living-room screens. In movies and TV, we’re quickly morphing from a world of news and entertainment anywhere — get all of these things, somewhat haphazardly (Comcast Xfinity, for instance) on all of our devices — to one in which consumers ask, “What special do you have for me, in addition to my all access? Yes, All-Access, the cool feature of 2011, will quickly graduate from a wow to an expectation.

Why as consumers should we pay $7.99 (down from an initial $9.99) to Hulu Plus, when the same stuff (kinda sorta) is available through Boxee, or Apple TV, or Netflix, if I can find it? Why am I paying $7.99 a month (apparently the magic price of the moment) to Netflix for a catalog of films that is both voluminous and too often lacking what I want? Consumers are going to be asking that question a lot more.

Publishers, distributors, aggregators, and networks all want more money, and they’ve seen — courtesy of tablets and All-Access — that consumers are now more ready to pay for digital content than ever before.

Forget “content wants to be free.” Now content wants a fee. And everyone from Time Inc to The New York Times to the Memphis Commercial Appeal to Hulu’s co-owners (Fox, Disney, and Comcast) see gold. They see another digital revenue stream, in addition to advertising or to cable subscription fees. Yet they are increasingly believing they’ve got to up the ante (and Hulu is raising new funds to buy original programming) to compete and to win those consumer dollars.

News companies — at least one in ten U.S. daily newspapers and many consumer magazines — are rapidly embracing digital circulation revenue and All-Access. Yet results have been quite uneven. That makes sense: Consumers will pay for digital news, feature, and entertainment content, but they don’t want to overpay, and they’ll increasingly be forced to make choices. Buy this; let that go.

Let’s be clear. Paid media is paid media, and the original-programming pushes of the video companies have great meaning for news and magazine companies, global to local. For them, the calculus is similar. News and magazine brands can launch new products, though that’s out-of-their-DNA-tough for many. So they’ve focused primarily on sub-brands, many of which are people. These are the faces of news and magazines; many of these have become hot commodities over the last several years (“The newsonomics of journalistic star power“) as companies try to distinguish themselves — and give readers and viewers a reason to pick them out of the crowd.

How, though, can media companies afford to pay a premium for branded, promotable talent, talent that may open consumers’ pocketbooks? That’s easy: spend less on other content. So we’ve got the rise of user-generated content, obtainable free or cheap, and all kinds of new syndicate action from Demand Media to startup Ebyline (and maybe NewsRight), all trying to make it cheap and easy to get more medium- and higher-quality content more cheaply. What’s old is new again — as a young features editor, I got regular visits from syndicate and wire salesman, ranging from high-quality to the Copley News Service, that sold its stuff by the pound.

Another prominent model no news or magazine company can afford to ignore: The Huffington Post. Back to the early days when Betsy Morgan first teamed up with Arianna, HuffPost has worked this evolving content pyramid. At the top, a few highly paid site faces, many opinionated faces (some paid, most not), and then low-cost aggregation, much of it AP, headlined with the site’s recognizable swagger.

Then, of course, there’s the old standby: staff cutting. We’ve seen lots of staff cutting. In fact, these days, while we see some announcements like Media General’s big Tampa cut, most of the bloodletting is less public, but no less real. If you need to pay more to stars, and ad revenues are still declining, staff cuts of less than premium content (and those that produce it) make economic sense (“The newsonomics of the new news cost pyramid“). It’s the new news math.

These newsonomics of signature content are getting clearer. Netflix is planning to spend 5 percent of its expenses — or $100 million a year — on original, Netflix-defining content. Hulu is spending about a quarter what Netflix’s total, or $500 million in total, on all content licensing this year. We don’t know how much of that is for original content, but observers believe “Battleground” will cost $15-20 million for its 13 episodes. With its other forays, it will probably spend closer to 10 percent of its content budget on original content.

Curiously, many newspaper newsrooms constitute only 10-20 percent of the overall expenses of a daily newspaper company. So we’re starting to see some new, and old, arithmetic play out here.

Simply, Andy Forssell, Hulu’s SVP of content, explained the cost/benefit ratio to Variety: “…having an original scripted series that hasn’t been seen anywhere else yet is considered the best tool for standing out with either advertisers or viewers.”

As usual, we see the bifurcation of the bigger national brands — those with more audience to gain and more money to spend — and local news brands. While many local newspapers have cut to the bone, with too much of the tissue in the form of experienced, name-brand metro and sports columnists cajoled or drummed into “early retirement,” we see increased branding of stars at places like Time, The New York Times, Fox News, and ESPN. The sports network may be the classic business model of our age, and in its anchors and top analysts — many initially lured from daily newspapers — it has shown the way for many years now.

At the Times, consider business editor Larry Ingrassia’s build-up of business columnists, from veterans Gretchen Morgenson and Floyd Norris to new(er)bies Andrew Ross Sorkin, Brian Stelter, David Carr, Ron Lieber, and David Pogue. And the Times more recently picked up James Stewart from archrival Dow Jones.

At Fox News, Roger Ailes has cannily built the most successful cable news operation not on the interchangeable blondes that provide so much fodder for Jon Stewart and Stephen Colbert, but on O’Reilly and Hannity.

At NBC, the news franchise is so built around Brian Williams that his well received newsmagazine “Rock Center with Brian Williams” is synonymous with its host.

At Time Warner’s CNN and Time, we see the building of a worldly franchise on Fareed Zakaria’s clear-eyed, no-nonsense view of our times.

And then there’s the more local and regional press. Newspapers have long believed that it wasn’t any one or a half-dozen names that sold the paper. They’ve believed the news itself was the star, and the daily information report was the brand. That may be still be true of the Times, the Journal, the Financial Times, the Guardian, and a handful of other national/global news organizations — all of which have substantial, multi-hundred newsrooms that produce branded, unique products. It’s less true of regional and local dailies, many of which still present too much commoditized news in national, business, entertainment, and sports coverage, and have bid goodbye to many faces familiar to readers. Those that have retained familiar faces must do what they can to keep them; all need to recruiting more.

Then they may have a good answer to the question, in one form or another, consumers and advertisers will increasingly ask: What’s your signature content?

January 12 2012

20:10

Homeland Security watches Facebook, Twitter, Hulu, WikiLeaks

Reuters :: The U.S. Department of Homeland Security's command center routinely monitors dozens of popular websites, including Facebook, Twitter, Hulu, WikiLeaks and news and gossip sites including the Huffington Post and Drudge Report, according to a government document.

Continue to read Mark Hosenball, www.reuters.com

January 05 2012

13:41

Deloitte survey: Where did nine million cable subscribers go?

A substantial market shift: 9% did and 11% are willing to.

AllThingsD :: New year, new chance to talk about cord-cutting/shaving/avoiding. Which is either a big deal that’s going to get bigger, or basically imaginary, depending on who you like to listen to. If you’re in the big deal camp, then you’ll like a new survey from Deloitte, which finds that a staggering one in five U.S. residents say they have either cut the cord or are thinking about doing it. The breakdown: 9% of survey respondents say they’ve recently cut the cord and are getting their shows from Netflix, Hulu, iTunes, etc.. And another 11% say they might do it.

Continue to read Peter Kafka, allthingsd.com

December 01 2011

16:43

November 14 2011

17:19

September 05 2011

08:00

Look at Netflix, Hulu, Apple TV - Future of TV is "TV in the cloud"

TechCrunch :: TV is moving to the cloud. It is inevitable, just as other kinds of media from books to music are increasingly delivered over the Internet. Netflix, Hulu, and even Apple TV are making inroads when it comes to distributing traditional TV shows and movies to Internet-connected screens. YouTube keeps grabbing more of our attention, accounting for 7 percent of total time spent on the Internet in the U.S., according to comScore.

Erick Schonfeld: "And yet the TV as well as movie industry are proving more resistant to change than any other form of media. Change will come, but it won’t happen as quickly as it is with music, news, or books."

Continue to read Erick Schonfeld, techcrunch.com

September 02 2011

20:04

Poll: What's Your Favorite Video Streaming Service?

This has been a busy week in the world of video streaming services. The new higher rate for Netflix streaming and DVDs just went into effect, just as Starz broke off negotiations with Netflix (meaning, perhaps, less selection of movies on the service). Hulu also made noise by launching a streaming service in Japan that costs more but has no ads. And Amazon has its own streaming service and could be in the running to buy Hulu. And let's not forget about competing services from Vudu and even YouTube.

So which streaming video service is your current favorite? Are you a Netflix fan or Hulu lover? Vote in our poll and explain why in the comments below.

(And listen to this week's Mediatwits podcast for a discussion on the video streaming wars.)


What's your favorite streaming video service?

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