Is owning media the wrong model?

It's no surprise that retail entertainment outlets have been in trouble for a long time. I have not bought a CD myself in over 4 years. So, what do HMV, Virgin, Tower & Blockbuster have in common with iTunes? You still buy stuff.

Why own anything? It's not like we are buying a car that we could recoup our cost on in a few years. The hurdle we have to get over here is purely psychological. Think about it. If I said that you could play any song in the world whenever you wanted via a simple subscription, would you do it? Of course it depends on how much that subscription is. Rhapsody does that now for $9.99 a month with access to over 2 million songs. For music lovers, meaning those of us who buy some music once a month, this will save you money provided the song you want is hosted. It is just a matter of time before the major labels work through the growing pains, along with the digital rights technology enabling us to take our music with us on mobile devices like iPods & cell phones.

I was thinking about all this as I was starting to write about the move to make full movies available for purchase online via download. Aside from the headache of waiting for a file that size to download, the headache of playing some formats on any device will prove challenging for most of us. And then why would I want to buy one movie online for $19.99 anyway, when I can get an unlimited amount of movies from Netflix for the same amount every month? Netflix has it right for the most part, now if they can only figure out a way to not have to ship all those pesky DVD's. Imagine if Netflix had Video on Demand technology to stream movies right to your laptop or TV. Now we're talking! Subscription combined with VOD.

If you can stream something, you do away with the whole rights management issue unless you want to take something with you on a portable device that is not connected to the internet. But it will only be a matter of time before all portable devices are connected via WiFi or WiMax anyway. Imagine never having to store your media? To be able to play it wherever or whenever you want, with or without a Slingbox? How about never having to physically loan something out to a friend, to never get it back?

From the consumer standpoint, engagement should rise as the affordability comes down, while the hard costs of manufacturing, shipping and the realities of retail come down on the corporate side. Unfortunately this will kill the current digital rights management business, as all media will only reside on the servers of those that own it - not necessarily a bad thing.

So, what's my point? My point is, buying anything is the wrong model moving forward. It makes no sense financially for either the consumer or the manufacturer.

If only Netflix was into Music too......if only you could get it online......if only......

Check out these sites if you don't know of them already for some interesting twists on the current model:

http://www.rhapsody.com/
http://www.pandora.com/
http://www.urge.com

Branded Entertainment Update...

...and the BIG news is of course seeing a major brand take matters into their own hands as Anheuser-Busch moves into the content creation business. They are not simply contracting it out through one of their agencies or other strategic partners, but are actually launching a full service, in-house film & TV production company.

They will focus on producing humorous shorts and sitcom-type programs to be broadcast over the internet and to cellphones that could branch into full-length films.

While they have dabbled in content before -- particularly in sports TV, where its Bud Productions division recently produced National Football League preseason games for the St. Louis Rams -- this initiative is the brewer's most ambitious by far. They have the money, with funds being drawn from their $1.56 billion marketing budget.
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Paris Hilton launched the video single from her debut album on a special YouTube channel. In a twist, News Corp paid to advertise a new TV series next to the video of Hilton cavorting in the surf, producing revenue shared between her label, Warner Brothers, and YouTube. Within days, Hilton's song had been watched a million times and her album is climbing the charts.
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Walt Disney Company's new cellular offering, Disney Mobile, is designed to rein in your kids' cell phone use and abuse. But you might not know about the many other parent-friendly features it offers. After all, you can only communicate so much in 30 seconds.
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Southern Comfort has produced eight short films that tell the personal stories of musicians living in New Orleans, the city of its origin. The project will benefit theSouthern Comfort Music Fund.
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OfficeMax, trying to stand out in the pivotal back-to-school selling season, is shunning traditional TV advertising in favor of a branded-entertainment project called "Schooled" that plays a "Punk'd"-style prank on a class of eighth graders. They will be Partnering With Google & Disney for the Upcoming Back-to-School Special.
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Wall Mart have given the green light to a new quasi-social online network for teens designed to let them "express themselves." It's called "School My Way," but it's nothing like MySpace, which is clearly hopes to imitate. All content is screened, parents are alerted once their kids join, and users, called "hubsters," are forbidden from e-mailing each another. Wal-Mart wants teens to create MySpace-like profiles that let them post pages about themselves and their favorite Wal-Mart clothes, as well as personal videos.
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Food Brands Lure Kids With Games & Web Sites
Kids find online games like Pop-Tart Slalom and Chips Ahoy Soccer Shootout fun. The traffic to game sites is huge. The Kaiser Family Foundation, a food-industry watchdog, singles out such games that make kids the subject of marketing efforts to sell food. Marketers hope that by playing their so-called "advergames," kids will remember their brands the next time they feel like having a snack.
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For NBC, YouTube & Nobody's Watching, it was a win-win all round.
To the established media industry, YouTube has proved itself as a place to test new ideas. In July, the pilot episode of new US sitcom Nobody's Watching was offered online. The show, which had failed to find a national US broadcaster, has now been resurrected by NBC.
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...and so, apologies for those of you expecting a story on Victoria's Secret, maybe next time...

The New Syndicators...Googled again?

Google sent shock waves through the media industry last week with its announcement that it would begin to syndicate MTV content to hundreds of Web sites. Under the MTV partnership, Google will distribute MTV clips from Laguna Beach, Nickelodeon's SpongeBob SquarePants and other shows to hundreds of targeted Web sites in Google's AdSense network.

Now, to those of you not familiar with the developments in online syndication, that's a brand new approach to online video. The syndication strategy relies on a three-way revenue split between Google, the content owner and the Web site. It also expands the number of options Google offers TV networks and content providers because the online giant already offers ad-supported video clips and lets users buy videos for download.

It is a HUGE move for online video distribution as new players position themselves for the eventual internet/televsion convergence - possibly leaving the traditional players in broadcast out in the cold.

Top of that syndication list is:
Brightcove: http://www.brightcove.com/
Dovetail: http://www.dovetail.tv/
Mochilla: http://www.mochila.com/
Clip Syndicate: http://www.clipsyndicate.com/web/index.php

Syndication of online video also has HUGE ramifications for traditional broadcast and content developers. Take the three-way syndication deal for "Arrested Development". The critically-acclaimed but low-rated former Fox show sold syndicated rights to HDNet, G4 and MSN, marking one of the first syndication deals to include a high-definition network, a standard definition network and an online service.

This model speaks to both the tough sell the show faced and also to the opportunities content owners now enjoy with multiple distribution venues. With only 53 episodes and a small, though loyal, following, "Arrested Development" would have faced a steep hill in traditional broadcast station syndication.   While the deal is unique to the show's particular quirks, it is also a precursor of what's to come with syndication not being as narrowly defined as it may have been in the past.

Other examples include "Entertainment Tonight" providing clips for Yahoo and cell phone providers and Warner Bros. Domestic Television Distribution deal to let local TV stations stream episodes of "Two and a Half Men" on their web sites.

Once again, this spells out as a great opportunity for all content developers & website (webchannel) owners to challenge the networks. (Publishing companies - wake up already!)

As for Google, my guess is that they will service the niche that caters to automation. When it comes to syndication of creative and the political barriers & competitive disadvantages that often go along with that - portals will want a more hands on approach when carving up the online territory they aim to own.

Niche by the Millions...

In 2005, 1.1 million people in the U.S. purchased mobile video content. That number is expected to grow to more than 30 million people by 2010, according to research firm In-Stat.
As impressive as that number is, it is a very low estimate. Consider how fast YouTube has grown in just the past year. They have surpassed 100 million videos served per day. For now, they are the runaway leader in online video, each lasting two to five minutes. YouTube commands 29 percent of that market and its videos account for 60 percent of all video watched online. MySpace lies second behind YouTube in the online video market, with a 19 percent share. In June, 2.5 billion videos were watched on YouTube. More than 65,000 videos are uploaded to the site daily, while about 20 million unique users visit the site each month, according to Nielsen//NetRatings.
So, how about we up that 2010 figure?

For those of you that have not read The Long Tail by Chris Anderson, I recommend you do. With this many people accessing and participating in the generation of video content, what he has to say will take on staggering perspective.

Niche channels like MAC Experience will become market forces with access to numbers like these (NO, that is not short for Macintosh, but is the premier, global martial arts inspired multi-channel broadband video destination).
http://www.macexperience.com/

Also check out the G-Living Network for some great programming on a contemporary green lifestyle.
http://gliving.tv/

Channels like these are taking off and will most likely splinter the networks at some point. There are many nice channels out there like them, but these are great attempts.

The big networks are also participating in a big way along with all of the Mobile carriers.

All this spells out real opportunities for anyone with a web-presence, especially those with a large subscriber base. (Leaving me with a lot less time to write this blog :-)

ABC adding shows to broadband service
http://news.com.com/ABC+adding+shows+to+broadband+service/2100-1026_3-6102245.html?tag=st_lh
MobiTV expands to Windows Mobile
http://news.com.com/MobiTV+expands+to+Windows+Mobile/2100-1025_3-6089568.html?tag=nl

Gaming - The Perfect Foil!

There has been plenty of debate over whether gaming can be a legitimate venue for brands to communicate.

Given our relationships with brands, I can think of no better place. Think about it? Brands are ingrained in our lives in ways we do not care to admit.  It is why we buy the cars we buy, travel to the places we travel to, and desire who we desire...Why else would be be embarrassed to be seen wearing one thing, while proud of another?

The Walter Mitty in us emulates what we associate ourselves with. Anyone who spends any time playing video games knows that in the game we do exactly the same thing with one exception. We do it sans-disguise. In other words, video games help us come out of the closet. In these worlds, we openly pretend to be what we are not. We will overtly and admittedly associate ourselves with the brands that fit our alter egos.

Games are a perfect marriage of the two worlds (real & brand worlds).  A place for the alter ego & subconscious we do not want to admit to, to be able to roam freely...

For brands that play with authenticity, they can become the drivers.

They are our avatars - the perfect foil!

Longer is better...

Contrary to popular opinion, longer ads are more effective.

In preparation for the eventual convergence of television & online video (the only thing holding us back is bigger bandwidth), the media powers are battling it out online, trying to figure out 'the standard' & 'the model'.

When it comes to advertising in video form, pre-roll, mid-roll or signature 'spots' are being placed within online content giving the consumer no choice but to watch it as the video loads. Many brands have been repurposing their existing 30-second TV spots for these platforms, with the consensus being that 15, 10, or even 5 second ads will become the norm down the road, as advertisers work to capture the short attention spans common to these media - along with Bad Consumer Karma (BCK) in the process.

This thinking is flawed. As bandwidth increases, computers will become the new DVR's alongside your big screen. One will simply need to wait for the video to load, before being able to skip through all pre or mid-roll commercials much like we do with Tivo today. In other words, technology will always afford us the opportunity to skip what we do not want to see. So why keep producing stuff people do not want to see - especially when they are able to skip past it? What is emerging, is proof that people will seek out content produced by a brand if it offers value and fulfills something they are interested in - especially if it is longer. See my article on 'Brands...The New Executive Producers' and Nike's endless soccer chain.

In fact, a new report - 'Introduction to Brand Exposure Duration', finds that viewers of both video on-demand content delivered via cable boxes and video delivered on the Web actually gravitate to longer ad spots, and that advertisers have more to gain by producing longer form creative executions. The white-paper was presented at the Advertising Research Foundation's Audience Measurement Symposium in New York by The Atlas Institute, a division of aQuantive if you want to find out more info.

So, in many cases, while longer spots might drive down the raw number of users who are willing to sit through such ads, the total amount of viewing by those that do chose to watch actually increases with longer spots, since the most engaged viewers end up watching multiple times. Remember, this is on demand - the consumers has chosen to see it, which inherently leads to a better relationship and more purchasing power between a brand and its consumer.

Once again, creative quality is more important than ever, with authentic, valuable experiences boding well for brands that look to entertain first and brand second.

Publishers - The Next Networks - Part 2

WIth the FCC out of the way & the internet giving the ability to anyone to start a web-channel, in Part 1 (Publishing companies...the next networks?) I wrote about the advantages that traditional publishers have in doing so. By adding proprietary video content, with captive, worldwide audiences - they are poised to becoming the new niche networks. Competing with the networks we know today.

When talking to publishers about the evolution of print, I mention talk about technology that will help to push this all forward. Prototypes for flexible screens are making their way around technology circles. In the not too distant future, we will not print on paper, but carry a flexible screen that we can fold up in our briefcases or purses. These screens will accept a signal similar to WiFi or WiMax in order to be able to download the latest edition of any of the 'publications' we subscribe to. The look and feel will be very similar to paper, except for the fact that there will only be one page. No more problems with the Sunday Times blowing away in the breeze while we idle our time away on a park bench...and think of all those trees being saved!

The main point is, these screens will be a window into a new world. A world that is carving itself up right now via our computer screens. The big publishers that embrace the online channel concept now and stake a claim along with the networks online, will surely win (meaning you are no longer a printed publication surviving on just the written word - so wake up!). The laggers will be left behind as younger, more agile, start-up 'publications' produce intriguing content - for pennies on the dollar.

Most people have never seen or heard of this, and I often come across as an alien when describing the concept. One of the most layman friendly articles I have read on the subject is below. Read it, then stop looking at me as if I were E.T.

Nanocrystal Displays & Flexible Screens
Using quantum dots to make vibrant, flexible screens.
This is the stage of development for flexible screens.  These will eventually build out as screens we can roll up like a newspaper to receive any magazine or newspaper wirelessly - saving our trees and forests.  Books will all be on subscriptions and the world's libraries will all move online.

http://www.technologyreview.com/printer_friendly_article.aspx?id=16830