The death of the networks...and what is a channel anyway?

To start off, the evolution of the internet & television convergence is happening even faster than I, or most of us in the industry ever imagined. Combine the ability for anyone to be able to publish & broadcast via the internet, with the power of traditional television and anyone can now start a channel. But what is that?

The answer lies within the history (or lack thereof) of the internet itself. (If you are not interested in this, skip the next two paragraphs!) The internet experience for most of us is not that old. Maybe 10-15 years at best. Even if you go back to it's invention as a network of computers in the late 60's. The first node went live at UCLA on October 29, 1969 on what would be called the ARPANET, one of the "eve" networks of today's Internet. Following on from this, the British Post Office, Western Union International and Tymnet collaborated to create the first international packet switched network, referred to as the International Packet Switched Service (IPSS), in 1978. This network grew from Europe and the US to cover Canada, Hong Kong and Australia by 1981. The network gained a public face in the 1990s. On August 6th, 1991 CERN, which straddles the border between France and Switzerland publicized the new World Wide Web project, two years after Tim Berners-Lee had begun creating HTML, HTTP and the first few Web pages at CERN.

Contrary to some common usage, the Internet and the World Wide Web are not synonymous: the Internet is a collection of interconnected computer networks, linked by copper wires, fiber-optic cables, wireless connections, etc.; the Web is a collection of interconnected documents and other resources, linked by hyperlinks and URLs. The World Wide Web is accessible via the Internet, as are many other services including e-mail, file sharing, and access to countless amounts of data & services that are now common to us all.

So it all started as a way to get at information. From an evolutionary standpoint things are still young here. Web 2.0 is just now being mined and the benefits both financial & information-ally are allowing us to leave the crash of 1.0 behind us. 3.0 is already being discussed as a piece of Artificial Intelligence which may allow the connectivity of all of this connected information via the internet to be able to make decisions for us, prompted or not. Yes, your TV will know what it is you want to watch even before you do - and it will never be wrong - we are creatures of habit. Scary or not, it will happen.

So what does this have to do with the networks, the creation of channels and the old boob tube? Lots!

First off, the internet has evolved from a text based medium to one that delivers sound, images and now video. When it comes to watching video, 'TV', like the internet, will no longer be a linear experience. Video sites have taken off because we can now search and watch whatever we want (provided we can find what we want) whenever we want to watch it. From this point forward the concept of there never being anything to watch on TV will disappear. Search will also evolve to be something very different than it is now with new technologies that are able to tag video content automatically by scanning the content for the spoken word along with optical character recognition. Traditional broadcast platforms are scrambling to deliver a larger choice of PPV and VOD products in an attempt to compete or catch up. The bad news is, they never will and the survivors will have to figure this out soon and migrate their platforms over to web based initiatives in order to survive.

So, what is a channel? For this discussion lets define that as a destination with the predominance of video content. Basically any website has the ability to be able to serve video, and thus any web address has the ability to be a channel. I also believe that the phenomenon that started with YouTube and users posting professional, albeit stolen content is the tip of the iceberg and will actually become the norm. That's right, the networks that are trying so hard to stop this flow of stolen content are merely sticking their finger in the hole of the dam. If you take the evolution that I so painfully described above as any indication of what is about to happen, it is also painfully clear that channels or the networks as we know them may in fact disappear. As the web evolves, we will be served content that is relevant to us on channels that are branded by and for us. In other words we will NOT go to ABC to watch Lost, Lost will come to us or our home-page for us to watch. That does not say that Lost will not be branded as being brought to us from ABC as a distribution network or that there will be no commercials...but the rules we are used to will no longer apply.

We are already seeing this, as the networks start to legally license their content out to other destinations like iTunes or MSN for download or streaming. But as I said, this is the tip of the iceberg and the start of something big...the death of the Networks as destinations...as we currently know them...has begun.

For non-believers, a few relevant articles from this weeks news:

Coming Soon via Your TiVo: Internet Video on Television
http://www.nytimes.com/2006/11/14/technology/14tivo.html

With a Dish, Broadband Goes Rural
http://www.nytimes.com/2006/11/14/technology/14satellite.html

MSNBC.com Offers Video Podcasts of News Shows
On Nov. 14, MSNBC.com will begin offering video podcasts of two of NBC's top new shows. The site will begin offering podcasts of both NBC Nightly News along with Meet the Press at podcasts.msnbc.com. Each weekday starting at 10 p.m., Web users can access the full-length version of that day's Nightly News broadcast at podcasts.msnbc.com. In addition, each week's broadcast of Meet the Press will be downloadable starting on Sunday nights at 10 p.m.

ESPN.com Announces Local Podcast Net 
To bring new content to ESPN.com and broaden the audience for local programming that airs on local ESPN radio stations, ESPN Monday announced the launch of a local podcasting network. For the first time, local ESPN radio shows that air on five ESPN owned-and-operated stations in markets such as Pittsburgh and New York will now be available for downloading at the ESPN.com PodCenter and via Apple’s iTunes Music Store.

InStyle.com Unveils Parties Channel 
Time Inc.'s In Style is boosting its celebrity coverage with its launch today of a Parties channel on its Web site, Instyle.com. The channel features daily updates of Hollywood parties and events with photos and video, which will be open to advertising sponsorships. Other features on the channel include photo galleries of partying celebrities, an events calendar, a party scene blog, and party and style news feeds from various sources.

Lycos Cinema Rolls Out Classic Shows 
Web portal Lycos, which is in the midst of an attempted reinvention as an online entertainment hub, has launched a new product that combines streaming video and chat. The new Lycos Cinema allows Web users to gather virtually to watch old TV and movies online and chat in real time using a proprietary technology.

VH1 to Launch Home Purchasing Club on VSPOT 
VH1 has announced plans to launch an original series for its broadband platform VSPOT while at the same time unveiling an initiative to distribute VSPOT content across the Web. On Nov. 27, the cable network's online video hub will begin streaming Home Purchasing Club, a short-form spoof of home shopping TV shows. The new eight-episode weekly series comes from a pair of writers/performers who have worked on several comedic TV series, such as Jimmy Kimmel Live and the Drew Carey Show.

Is YouTube a $1.65 billion flash in the pan?

Dare I say it? A $1.65 billion snafu? Ouch!

Don't get me wrong, I am a big fan (I own Google stock!), and have been tracking YouTube since their inception. The funny thing is that they were not the only players back then, but they were the only ones with a singular focus....and so they amassed market share. Now there are many players in the space, all of them focusing on User Generated Content (UGC). I have listed the URL's of the most prominent players at the end of this blog. It's a looooong list.

So what is the draw of User Generated Content in the first place and why did it take off? Like most things there is not one answer, but I narrow it down to this:

1. Sociology: We are social beings, and we want to share. Websites that make that easy, reap the benefits.

2. Democratization: The internet has democratized many things and video is no exception. Now that the general public has easy access to the tools that make creation of video possible, they want to share them.

3. Non-Linear Experience (VOD): Unlike TV, this is a non-linear, on-demand, streaming experience that technology could finally deliver and we were ready for. Now traditional TV is playing catch up, with technology that will enable that same experience. In the near future we will most likely watch very little programming at the scheduled time of 'release'.

3. Short Format: With little time these days, the short, 'snack-like' experience of UGC fills a need. It is in its early stages and will probably breed a whole new art form before all is said and done.

4. No Advertising: Not that this will last long, but entertainment without advertising appeals to us. Perhaps advertisers will get a clue and deliver content of value as a result.

But is all of this enough to keep sites like YouTube & UGC in the public eye? Long term, I don't think it is. Today it is a novelty, because for the first time since the invention of big media, the common man can publish his thoughts and point of view for free - for everyone to see. The power of that is huge, but the fact remains that the content that is most watched, even on sites like YouTube, has to be...well...you know...good...and most if it is not. In fact, most the videos on YouTube that are the most watched, are professionally produced or disguised as such like lonelygirl15 . Now under Google's corporate monicker, YouTube is playing nice and making significant strides to remove content that is not owned by them. Read this article as Viacom trial lawyers ask YouTube to take down copies of the Colbert Report. The irony is that it is no secret that the Colbert Report's ratings grew in popularity because of circulation on YouTube. http://www.pbs.org/mediashift/2006/10/open_letterstephen_colbert_don.html

But the big deal here is that the networks and other professional content producers are catching on. It won't be long before short format programming produced by professionals is able to be streamed and eclipses most UGC. I'm not saying that there are not some very talented filmmakers out there that will not rise to the top, but I am saying that the days where we are willing to wade through crappy video are numbered. Even AOL's has built a professional online video portal to compliment its UGC site: http://video.aol.com/

UGC will also not be able to compete with the amount of media dollars placed behind the promotion of professionally produced content. 1/3 of commercials on TV today are for shows on TV.

So what is a 'YouTube' to do? I don't have an answer, but in order to be able to sell ad space which, we assume they will start doing given the Google relationship and the need to get a return on that $1.65BB, they will need to keep the eyeballs on their site. In order to do that, they will need to make sure the stuff on the site is good, and right now all they are doing is having to remove most of the good stuff.

What will happen here is anyone's guess, but it ain't going to stay like it is!

Take a look at two articles from this week from two of the largest, independent players in media and how they are making big strides into this territory.

Barry Diller & Co.
http://www.nytimes.com/2006/10/31/business/media/31jackson.html

Turner Broadcasting
http://www.hollywoodreporter.com/hr/content_display/news/e3iSvX2Mh9HIlLBrE13tEdDEg%3D%3D
What Comes After YouTube
http://www.businessweek.com/magazine/content/06_44/b4007052.htm

'Short List' of competitive sites to YouTube (UGC)
SelfMadeTV.com
Current TV
The Yahoo! Current Network
AddictingClips
IFILM
FireANT | Not TV
C H A N N E L B L A S T :: the future of internet television
GUBA - Usenet Search - Easy access to Usenet Pictures and Videos
Revver
Google Video
Yahoo! Video - Featured Videos
Channel101 - The Unavoidable Future of Entertainment
Official Google Video Blog
Welcome to Vimeo!
Myspace-Film
Break.com - Funny Pics, Hot Chicks, & Cool Flicks
GoFish - Watch videos, upload your own and share with friends
Metacafe: Funny Movies & Videos
Zango – You’re Good to Go. Unlimited Free Games, Free Videos and Free Downloads.
Veoh - The First Internet Television Peercasting Network
AOL UnCut Video
blip.tv (beta)
ClipShack
Dailymotion - Share Your Videos
Jumpcut [Make Amazing Movies Online]
Ourmedia Homepage | Ourmedia
Streamload - Free Online Storage - Share Videos and Photos - Online MP3 Storage and Access
vSocial - The Video Clip Sharing Community
motionbox
PodShow
Jumpcut [Make Amazing Movies Online]
eyespot
Grouper Video - Watch. Share. Create.