On Top of TV take a closer look a innovation and disruptive phenomena in the TV industry. Linear is the king, but Over The Top distribution and Transmedia storytelling is here and will have a promising future.
The future of TV is here. It's just not evenly distributed. If it doesn't seem like the American television industry is in the middle of a dramatic transformation, that's simply because the pieces are scattered all over the place. But they are starting to come together.
One transformative piece arrived earlier this week, when Dish Network secured the rights to include ABC, ESPN, and other popular channels owned by Disney in a TV service delivered entirely over the internet. Negotiating deals like that one has generally been the biggest impediment to internet TV in the United States.
Others aren’t far behind. DirecTV is likely to strike a similar deal with Disney. Sonyhas internet rights to Viacom’s channels, which include MTV and Nickelodeon. Verizon recently bought crucial technology from Intel. And technology companies like Apple and Amazon are in the mix, too.
Comcast and Netflix have agreed what they describe as “a mutually beneficial” interconnection agreement that will provide Comcast’s broadband customers with a high-quality Netflix video experience for years to come.
The pair say that working collaboratively over many months, they have established a more direct connection between Netflix and Comcast, similar to other networks, that is already delivering an even better user experience to consumers, while also allowing for future growth in Netflix traffic. Netflix receives no preferential network treatment under the multi-year agreement, terms of which are not being disclosed.
Online video advertising has some serious hurdles to overcome if it's going to attract TV dollars, says one forecasting expert. There are two main reasons for that, says Keith Camoosa, managing director for research and analytics at forecast and insight firm Magna Global. Responding to a question about online video advertising hurdles during the recent Streaming Media West conference, he said the biggest were measurement and performance.
Netflix and other subscription video-on-demand (SVOD) services are gaining on HBO and its subscription-based TV channel peers according to a new study from NPD Group. The company compiled data based on 450,000 digital video transactions and answers from 7,500 respondents. The results show a 6% decline over the past 18 months in the percentage of U.S. homes subscribing to premium TV channels, from 38% of homes in March 2012 to 32% in August 2013. Subscription to Netflix, Hulu Plus, Amazon Prime, and other SVOD services was up from 23% to 27% during the same time period.
Innovation hasn’t stopped piracy yet, and content is still key to success in the TV industry. Game of Thrones’ makers may not be bothered by the fact that their series is the most downloaded TV-show for the second year in a row, TorrentFreak points out, but the topic is still very sensitive among executives. In that regard, one of the latest episodes of The Simpsons (photo) is “an absolute goldmine for anyone interested in the file-sharing phenomenon”, according to the same source: after downloading from “The Bootleg Bay”, tracked by the FBI, Homer learns that “when Hollywood is the victim, no stone is left unturned”!
Kristian Bruarøy's insight:
Netflix vs. Broadcast industy: "What is left for other broadcasters in the midst of this red tsunami?"
The TV viewing audience of The Blacklist on NBC increased by nearly 7.8 million viewers from the live audience with time-shifted viewing, according to Nielsen's Tops of 2013 list, which also includes social ranking via Twitter.
The Following was number two on Nielsen's list of the most time-shifted TV shows, getting a boost of around 5.6 million viewers with time shifting. Under the Dome followed with 5.44 million, Marvel's Agents of S.H.I.E.L.D. with 5.34 million and Sleepy Hollow with 5.33 million. Rounding out the top 10 are, in order, The Big Bang Theory, Grey's Anatomy, Survivor, The Voice and Revolution.
Kristian Bruarøy's insight:
And Quality Drama makes the buzz in social media:
A first for Nielsen's Top 10 list is the inclusion of social ranks, with Nielsen Twitter TV Ratings (NTTR) Top Series of Fall 2013. The ratings, which began in September, place AMC’s Breaking Bad at the top of the list, with an average of 6 million people viewing Tweets about each new episode of the program. Another AMC series, The Walking Dead, was number two, with activity of around 4.9 million people. American Horror Story: Coven and Scandal also generated significant buzz via Twitter.
Sky Deutschland has launched a new TV and movie OTT offering, called Snap, which is available to existing customers, as well as non-Sky subscribers.
Similar to Sky UK’s Now TV service, Snap will be available to non-Sky subscribers for €9.90 per month with only a month-to-month commitment.
Existing Sky customers can also access the service for an additional €4.90 per-month, acting as a compliment to Sky Deutschland’s existing Sky Go and Sky Anytime VOD offerings.
Snap, which went live this week, is a VOD library that Sky Deutschland said will include thousands of titles – including TV season box-sets, HBO library content, movies and children’s programmes – including Disney content.
Content available at launch includes shows like Boardwalk Empire, True Blood, The Sopranos, 24, How I Met Your Mother and films including The Hangover and Happy Feet – with Sky promising to extend the content library daily.
“Sky pioneered the concept of a content rich, live and on demand entertainment service with Sky Go, and as a result today Sky is the largest OTT pay-TV service in Germany and Austria. With Snap, we’re taking the next step, giving Sky customers and all entertainment fans the chance to enjoy a new selection of top quality content from the Sky Collection,” said Brian Sullivan, CEO Sky Deutschland.
“Snap will bring Sky’s extensive editorial experience, outstanding programming quality and comprehensive partnerships with the world’s leading providers – such as HBO, Warner, Fox, Paramount and Disney – to a whole new audience.”
The Snap catalogue of content will be available on demand via the web, iPad and Samsung Smart TVs.
Sky said the iPhone will be “added soon”, with Samsung Galaxy products and other platforms and devices to follow afterwards.
Of course the digital network has its original hits like House of Cards and Orange is The New Black, but for years it’s been trying to buy washed-up series it can rebuild at little financial risk and that guarantee new subscribers through fan support. It worked with Arrested Development, they tried it with Terra Nova, The River and Jericho, and now they’ve just closed a deal on AMC’s recently cancelled The Killing to bring the (now twice cancelled) series back to life for a 6-episode final season that will air exclusively on the digital platform.
With the necessary recording equipment becoming increasingly commonplace in the country, the UK is set to see time-shifting gain majority status in homes. According to data released by Kantar Media’s futurePROOF study on the ownership and use of digital technologies and media in Britain, live TV is just about remaining the preferred viewing option for most people (51%), followed by recording to watch on PVR (34%) and then viewing on-demand (10%).
We have now reached a point in the growth of the business in Japan where we feel the best path forward is to sell the company to a strategic buyer. I’m announcing today that Hulu’s Japan businessis to be acquired by Nippon Television Network Corporation (Nippon TV), who will assume the day-to-day operations and management of the business at the closing of the transaction.
The effect of Netflix is narrowing the gap between US and international premieres of series, a new study has revealed.
The gap between US and UK TV premieres is now 95 days, and 84 days from the US to international markets in general. However broadcasters, unlike the SVoD platform, want to wait and see how successful a new show is in the US before committing to schedule it.
Kristian Bruarøy's insight:
The study also showed that of the 54 new scripted TV drama and comedy series aired by US broadcast and cable networks in 2013, 14 remain unsold in any of the key territories of Australia, France, Germany and the UK.
Hulu revamped its Hulu Plus UI on some connected devices last year, and viewers responded by sticking around a lot longer. Hulu started to revamp its connected TV apps last spring, rolling out the new UI on Roku boxes and the Wii U in May, and then bringing it to Samsung smart TVs and Blu-ray players in June. The new design introduced a number of so-called “trays” that correspond to the ways Hulu Plus presents its content on its mobile apps, and also offer easier access to the shows users regularly watch.
The takeover could shake up pay TV, by bringing more competition to cable companies that dominate geographies. Verizon Communications, the second-largest U.S. communications company, has agreed to acquire Intel Corp.'s pay-TV startup to extend its offerings of internet-based TV services. The acquisition of Intel Media, along with its about 350 employees, will accelerate the availability of next-generation video services, New York-based Verizon and Santa Clara, Calif.-based Intel said in a joint statement today. Financial details weren't disclosed. Intel, which developed the service called OnCue, began looking for a buyer last year rather than invest in the programming and bring it to market on its own. The takeover could shake up pay TV, by bringing more competition to cable companies that dominate territories, as well as satellite companies with wide coverage that lack the interactive capability of the Web.
LONDON: More than 40 brands are on board for Sky's new tailored advertising service Sky AdSmart, which is now live following a six-month trial.
Sky AdSmart, which is available in more than a fifth of U.K. households, tailors what is shown in TV ad breaks according to a household’s profile and location. By enabling advertisers to target their campaigns more accurately, Sky AdSmart is working to increase the size of the TV advertising market by attracting new brands to advertising on TV, notably local businesses that may have previously concluded advertising on TV.
Eschewing decades of tradition, Fox chairman Kevin Reilly announced at the Television Critics Association press tour that the network is done with a common practice in television. “RIP pilot season,” Reilly said in the opening remarks on Monday (Jan. 13). According to the exec, current scheduling and pilot procedure is the product of a bygone era. "It’s nothing short of a miracle that talent is able to produce anything of quality in that environment," he said. Instead, Reilly indicated that Fox will be placing orders for new shows throughout the year -- shifting focus to pick up series rather than just order pilots -- and producing them on a wider schedule as well.
DVR manufacturer TiVo has spent most of the last 15 years building hardware that would allow consumers to record their favorite TV shows and watch them later. Now the company is working toward building products that would let consumers save their favorite shows not on a hard drive in a box, but up in the cloud. With the network DVR, TiVo will be able to deliver the same consistent UI to users without having to have a hard drive in its set-top boxes. That will dramatically lower the cost of producing hardware, and it offers all sorts of new pricing and business models on top of its service. It’s important to note that TiVo’s network DVR won’t be offered directly to consumers. Instead the company is planning to partner with cable, satellite, and IPTV providers to roll out the new service. And those partners will, in turn, will make the cloud-enabled network DVR service available to their subscribers.
Consumers are increasingly using connected TV devices to consume TV and film content, giving rise to innovative opportunities for brands to engage the growing group of content viewers and purchasers of goods that are currently not addressable via linear TV.
Research commissioned from Nielsen by adRise shows new demographics that can be targeted with more interactive brand engagement approaches. And as evidence that 'traditional' TV viewing habits are changing, it shows that adRise apps are being viewed 33% of the time during prime time TV hours.
In a peer-reviewed scientific paper accepted by the IEEE (Institute of Electrical and Electronics Engineers) International Conference on Data Mining, “A High-Dimensional Set Top Box Ad Targeting Algorithm including Experimental Comparisons to Traditional TV Algorithms,” three data scientists from the TV targeting company PrecisionDemand have found that targeting consumers with advanced data sets, including set top box data, generates significant sales lift and less wasted spending for TV advertisers, compared to “traditional” age and gender targeting.
Traditionally, TV advertisers have used simple age and gender demographic information to buy media and target their viewers. The study found that while this practice of “audience” targeting can help advertisers reach their potential buyers and scores positively in terms of relevance, set top box targeting, or “buyer” targeting, delivers significantly more buyers per million viewers. The results show that set top box targeting is significantly stronger for TV advertisers as it is based on a broader set of variables.
The online video site Hulu once had ambitions of ushering in the future of television by shaking up the status quo. But under its new management, the site will throw off its old mantle of TV disrupter as it seeks to work in partnership with cable and satellite companies. Veteran Fox television executive Mike Hopkins took over as chief executive less than a month ago, an appointment that signaled the media companies that control Hulu wanted to turn the popular service into a feature offered through pay-TV distributors. Such a move would preserve existing business relationships between pay-TV operators and Hulu's owners — 21st Century Fox, Walt Disney Co. and NBCUniversal parent Comcast Corp. — that funnel billions of dollars a year into corporate coffers, and perhaps even play a hand in shaping the dramatic changes to the television industry that some see as inevitable.
Explore key findings for TMT companies from PwC’s Global Innovation Survey. Learn how TMT companies can harness breakthrough innovation to grow revenue. Our analysis will include best practices and case studies of the most innovative TMT companies.