The Entertainment Development & Programming Weekly - September 23rd Edition

Here are the most interesting articles that came across this week…

Exclusivity and Control

We analyze platform competition for content in the presence of strategic interactions between content distributors and content providers. We provide a model of bargaining and price competition within these industries, and show that whether or not a piece of content ends up exclusive to one platform depends crucially on whether or not the content provider maintains control over the pricing of its own good. If the content provider sells its content outright and relinquishes control over its price, the content will tend to be exclusive unless there are sufficient market expansion effects. On the other hand, if the content provider maintains control of its pricing, the strategic interaction between prices set by the content provider and by the platforms leads to a non-monotonic relationship between exclusivity and content quality: both high and low quality content will multihome and join both platforms, but there will be a range of content that will maintain exclusivity despite foreclosing itself from selling to a portion of the market. In addition, we show that contrary to standard results on double marginalization and pricing of complementary goods, a platform who already has exclusive access to content may prefer to relinquish control over pricing of that content and the associated revenues to the content provider as a result of the incentive to reduce price competition at the platform level.

http://hbswk.hbs.edu/item/5762.html

http://www.hbs.edu/research/pdf/08-009.pdf

Microsoft to put 'Halo' on TV

Microsoft will hit the tube in a big way to promote next week's launch of its vidgame "Halo 3."

Company's been marketing the Xbox 360 title since December, but the last-minute push emphasizes TV, with Microsoft essentially taking over male-skewing cablers Spike TV, Sci Fi Channel and Comedy Central over the three days leading up to the title's Tuesday bow.

"They're all 'Halo' nights," said Chris Di Cesare, Xbox's director of product marketing. "We're just magnifying the mania."

Move is significant because in addition to the more than $10 million in TV ads that Microsoft will buy, it's also co-producing original programming to get gamers and newcomers interested in not just the next installment of the "Halo" franchise but the Xbox 360 console as well.

http://www.variety.com/article/VR1117972398.html?categoryid=14&cs=1

MySpace Goes Hollywood

Getting some of those people on board has forced MySpace to make concessions. Herskovitz says the News Corp. unit was initially uneasy about his company's plan to have its own social networking site, quarterlife.com. The potential competitor could lure folks from MySpace to a separate site where Herskovitz and Zwick will have links to classes and other tools to help young artists break into show business. "I'm sure they didn't want folks to leave, but we eventually found a compromise where they'd have their own quarterlife site and we'd have ours," Herskovitz says. "And the viewers will go where the viewers want to go." In addition, MySpace won't own the content, and it will be exclusive for only a day before it can be shown on quarterlife.com, says Herskovitz.

What Myspace folks are counting on, however, is keeping folks on their site long enough to sell plenty of ads. Those folks currently stick around an average of more than three hours a month, about 20 minutes more than Facebook. Moreover, News Corp. Chairman Rupert Murdoch has big plans for MySpace as an advertising vehicle, and has said that the unit that owns MySpace will be profitable this year and generate more than $1 billion in revenue next year with "margins well above 20%."

http://www.businessweek.com/technology/content/sep2007/tc20070912_281331.htm?chan=top+news_top+news+index_businessweek+exclusives

Where To Watch Network TV Online

We’ve written before about how these are fast times in the world of online TV. Things seem to change daily. So to keep you up-to-date and informed, we put together this list of where you can watch the full episodes of your favorite network shows online. For the sake of space, it’s limited to the five major networks (all of whom were contacted to ensure no syndication partners were left out, but as of this writing, only NBC responded).

A progamming note — not every TV show shown on the network is available.

Network	Home Page	AOL	iTunes	Amazon Unbox	Xbox Live
ABC	Yes	Yes	Yes	Just The Nine	No
CBS	Yes	Yes	Yes	Yes	Yes
CW	Just Beauty and the Geek	No	Yes	Yes	Yes
FOX	Yes	Yes	Yes (free for now)	Yes	Yes
NBC	Yes	Not Yet	For now	Yes	Yes

http://newteevee.com/2007/09/20/where-to-watch-network-tv-online/

Can Internet Video Deliver A Nielsen Ratings Point?

The delivery of Internet video to your PC and television has changed the way we consume entertainment — but when will the Internet be deemed a successful channel for Hollywood?

The Internet needs to deliver to the entertainment industry a metric of success that translates into revenues and mindshare –- in other words, a rise in one Nielsen ratings point (approximately one million viewers at the same time). Nielsen ratings points generate advertising revenues and help future advertising sales. That is how the entertainment world brings in dollars and that, as they say, is the bottom line. So when will being delivered over the Internet cause the Nielsen ratings of your favorite show go up by a point? My bet: a lot sooner than anyone thinks.

http://newteevee.com/2007/09/22/can-internet-video-deliver-a-nielsen-ratings-point/

Fox tries new lure for iPod crowd

"What we are seeing is a rather messy and inelegant fumbling into the future of video distribution," said Tim Hanlon, executive vice president of Denuo, a consulting arm of the advertising giant Publicis Groupe.
"It's also an admission that the television networks' time-honored, top-down manner of distribution is not the way that people are watching video anymore," Hanlon said. "Programmers are having an interesting time trying to figure out how to adjust."
Fox's William Bradford, senior vice president of content strategy, said, "I wouldn't call it fumbling around. We are trying a lot of different things and there is a lot of learning that the TV industry is going through."

http://www.latimes.com/technology/la-fi-fox21sep21,1,5242807.story?track=rss

Unbox, Xbox Seeing Starz

Starz Media has completed a set of deals to distribute its library of film, TV and Japanese anime content through Amazon Unbox and Xbox Live.

Under the agreement, Starz, which includes the brands Manga Entertainment and Film Roman, will offer up its anime content, including Ghost in the Shell and Ninja Scroll, through both services, but Unbox will broaden its offerings with classic horror flicks such as The Evil Dead and TV shows like Tripping the Rift. Xbox, adhering to its demographic of young men, will stick with just the Japanese anime, rolling out films like Street Fighter II and Astro Boy.

The move augments Starz’s digital distribution strategy, which includes other partners BitTorrent, Guba, Netflix and others. Between this announcement, NBC going Unboxed and FOX firing a warning shot, one has to wonder when iTunes is going to fight back, or at least do something.

http://newteevee.com/2007/09/19/unbox-xbox-seeing-starz/

What Web Marketers Should Know About Twitter

If you're responsible for the direction of the online strategies for your company or organization, you've probably been hearing buzz about Twitter, a next-generation instant messaging tool. Even if you're new to Twitter, this will—by linking to resources and providing a starting point for your strategy—serve as a guide to educate you and help you make a decision.

Web Strategy Theory to Know Before You Go Forward

If you've not already figured it out, the corporate Web site is becoming less relevant, and web marketing (and support) has spread off your domain and Google results. You also know that prospects trust the opinions of customers (who are "like them") far more than marketers, and Facebook lets these communities of practice assemble: Your brand is decentralized—embrace! (If you don't understand these concepts, it's hard to move forward; so please refer to posts that the above links point to.)

http://www.marketingprofs.com/7/what-web-marketers-should-know-about-twitter-owyang.asp?sp=1#split

Nine Billion Videos Viewed Online in July

Other notable findings from July 2007 include:

• Online viewers watched an average of more than three hours of online video during the month (181 minutes).
• The average online video duration was 2.7 minutes.
• Nearly three out of four (74.2 percent) U.S. Internet users viewed video online.
• More than one out of three (36.7 percent) U.S. Internet users viewed video on YouTube.com.
• The average online video viewer consumed 68 videos, or more than two per day.

http://www.centerformediaresearch.com/cfmr_brief.cfm?fnl=070919

NBC Launching VOD Service — What about Hulu?

NBC said, via an emailed press release, that NBC Direct will offer Heroes, The Office, Life, Bionic Woman, 30 Rock, Friday Night Lights, Late Night with Conan O’Brien, and The Tonight Show with Jay Leno at launch. While at first, ad-supported Windows downloads will be the only option, automatic delivery, Apple (AAPL) and portable device compatibility, download-to-own, rental, and subscription models are also planned. NBC also said it was working on high-resolution versions delivered through a closed peer-to-peer network.

Update: NBC responds to this article via email:

“NBC Direct isn’t competing with Hulu, it’s complimentary and in-line with our strategy of offering consumers multiple ways to access our content. NBC Direct is an extension of NBC.com, so it’s no more of a competitor than NBC.com is today - which focuses on offering a deeper fan experience. Hulu is intended to provide a broad entertainment experience, of which NBC is one part, made available to a massive audience.”

http://newteevee.com/2007/09/19/nbc-launching-vod-service-what-about-hulu/#more-2100

Jack Myers: Ad Spend to Grow 3% in 2007, 7% in 2008, 3% in 2009

Nontraditional media grew nearly 23% in 2006, accounting for $25.2 billion in spend, or 11.3% of total 2006 ad expenditures of almost $223.8 billion, according to Myers.

Nontraditional - cinema, mobile, videogame, branded entertainment, satellite radio and custom publishing advertising - is projected to grow 20.3% in 2007, 18.4% in 2008 and 18.5% in 2009.

However,12 traditional media categories, including yellow pages and online, are projected to grow less than 1% in 2007 but driven by political ad spend will jump 5.2% in 2008 then level off in 2009 with just 0.4% growth, Myers forecast.

http://www.marketingcharts.com/television/jack-myers-ad-spend-to-grow-3-in-2007-7-in-2008-3-in-2009-1703/

CW Newsmagazine Is Pitch Within Pitch

When the CW network launched this time last year, it experimented with a new kind of commercial break designed to look like a minishow built around products. The so-called content wraps were such a hit with marketers that the network is going one better this fall, with a half-hour weekly series in which it will promote sponsors' products.

"CW Now," which debuts Sunday, is a newsmagazine-style program aimed at young adults, dishing out segments on what is hot in the worlds of fashion, music, entertainment and technology.

http://online.wsj.com/article/SB119034405597634926.html?mod=googlenews_wsj

The Entertainment Development & Programming Weekly - September 16th Edition

Here are the most interesting articles that came across this week…

At MTV, a New Show That Pushes Deodorant

MTV proved the most open to the idea. The channel had previously worked with Radical Media and advertisers on program development. It also helped that Unilever was already a big advertiser on MTV, spending over $10 million on the network in 2005, according to TNS Media Intelligence.

While it wasn't willing to immediately approve a series, MTV agreed to air a one-hour special, to be financed by Unilever at a cost of about $2 million.

Production began in November 2005. Heavily stylized, with the eccentric feel of a film made by director Wes Anderson, the show followed the travails of Aaron, a recent college graduate trying to woo a young woman in New York named Danielle. Aaron had five dates to succeed, but each encounter is interrupted by a "Gamekiller." In one scene, Aaron is visibly stunned and his jaw drops while an intellectual named "IQ" showed off his abilities to Danielle. A graphic of a meter popped up intermittently on the screen, measuring Aaron's effort to keep "his cool."

http://online.wsj.com/article/SB118963983165125765-email.html

Viacom's plan to be cool again

Will Sumner Redstone ever get over being bested by Rupert Murdoch in the bidding for MySpace two years ago? Maybe.

Fortune has learned of two stealth projects that Redstone's company, Viacom, has in the works for its MTV Networks unit. One is a twist on social networking called Flux, the other involves an investment in upcoming online video site VBS.tv, and both suggest that Redstone's company may actually be on to something.

http://money.cnn.com/2007/09/13/magazines/fortune/siklos_viacom.fortune/index.htm?postversion=2007091322

'Saturday Night Live' Has a New Rival: P&G

Procter's Mr. Gentile said the company is seeking ways to snare attention from viewers who have more power to avoid traditional messages. "The market is so fragmented, and because you have DVRs out there, we know that people are fast-forwarding through the commercials. If you can create something that is interesting and that resonates with the consumer, for Procter & Gamble, that's a pretty big deal."
A program dominated by a single advertiser can offer another fringe benefit: Rivals may stay away. Already, MediaVest has created such a presence for P&G's CoverGirl in "America's Next Top Model" on the CW that "for a rival, it makes no sense to be there," said Brent Poer, a MediaVest senior VP who works in its entertainment division, Connective Tissue. CoverGirl gets placement in the program as well as around commercial breaks, Mr. Poer said. P&G could use its TV show in one of two ways. It could license the program to a particular network and buy ads on it, much as it buys any other program, as it does with its soap operas. Or it could maintain its direct ownership of the program and buy all the ads on it, as it does with its People's Choice Awards. A comedy show would likely appeal to young men, so P&G brands such as Pringles, Old Spice and Gillette would be a good fit.

http://adage.com/mediaworks/article.php?article_id=120329

“Quarterlife” exclusive to MySpaceTV

MySpace has bagged itself some more professionally-produced online video content, to “air” exclusively on the social networking site. “Quarterlife”, a production developed by Marshall Herskovitz and Edward Zwick, creators of the TV shows “My So-Called Life” and “Thirtysomething”, will debut on MySpaceTV on November 11.

“Quarterlife” will follow the lives of six twenty-somethings and “chart the sometimes excruciating, sometimes comic, often emotional experiences that comprise coming of age as a part of the digital generation.” In classic post-modernist fashion, the lead character, Dylan, is a video blogger (in the trailer she coughs on camera, as if to demonstrate her authenticity).

“Quarterlife” provides yet more evidence of News Corp.’s strategy to make MySpace a home where user-generated and professionally-produced content can live side-by-side and with both benefiting from the online communities that blossom as a result.

paidContent, however, picks up on one curious aspect of the “Quarterlife” partnership. A separate social network will exist for the show, away from MySpace.

http://blogs.zdnet.com/social/?p=309

Once Considered a YouTube Rival, MTV Does Away With IFilm.com

Instead, Viacom bundled iFilm.com under MTV Networks' newly formed entertainment group last December, which also includes Spike TV and Comedy Central as well as gaming properties such as Xfire and GameTrailers.com. IFilm's core audience of young males seemed to perfectly align it with the target demo for Viacom's Spike network, prompting Erik Flannigan, MTVN's exec VP-digital media, to suggest the two brands merge under one umbrella.
The result: SpikeTV.com and iFilm.com will be no more by first-quarter 2008, forever rebranded together under the name Spike.com.
"We're going to concentrate on it being its own men's destination," said Jon Slussser, senior VP of newly formed Spike Digital Media Entertainment Group, which is being launched in conjunction with the new site. "It needs to be an entity to exist where guys want to go to the site regardless of the channel."

http://adage.com/digital/article?article_id=120354

TNS: TV Ad Spending Slides 2.4% in First Half of 2007

Advertising spending in television dropped 2.4% in the first half of 2007 versus the same period in 2006, according to TNS Media Intelligence, a research group specializing in advertising and marketing information.

Within television advertising, network TV slipped 3.6% to $11.8 billion in the first half, while cable TV rose 2.8% to $8.4 billion. Cable’s growth was attributed to a strong first quarter, tempered by soft results in the second quarter.

“General-interest and sports networks were slack in the second quarter,” said Jon Swallen, senior vice president and director of research at TNS. “The growth came from niche networks that are cannibalizing audience from the larger networks.”

http://www.broadcastingcable.com/article/CA6477515.html?nid=3345

Warner Shifts Web Course, Shouldering Video Costs

The studio says that a half-dozen more video projects are in development, including an animated offshoot of “The Wizard of Oz” and an online dating game produced by Lauren Graham of “Gilmore Girls.” Joseph McGinty Nichol, a director of the “Charlie’s Angels” movies who is known as McG, also has a project in the works.

Although Warner is spending more cash up front, executives point out that the combined budget for the 24 projects is less than $3 million, or the approximate cost of one episode of a high-end television drama.

And Mr. Rosenblum has distribution plans for most of its new digital entertainment. RealNetworks has agreed to distribute the Jim Henson project. With other projects, Mr. Hunegs said, programming will appear on Joost and other video portals. Warner plans to sell its digital projects to advertisers through its own media sales unit.

http://www.nytimes.com/2007/09/10/business/media/10warner.html?ex=1347076800&en=03f4fa6d6e4647b3&ei=5088&partner=rssnyt&emc=rss

Think Big

Alternatively, big companies may believe that an emerging subcategory will be too small to materially affect their business. Such thinking held Coca-Cola and PepsiCo back while the new health- and sport-drink categories were blossoming.

Innovators need to be aware that their challenge is not only to create an offering and brand, but to create, manage and protect the perception of the new subcategory.

The ideal way is to make the brand synonymous with the subcategory. The assumption should be that competitors are irrelevant because they lack visibility, credibility and authenticity.

The inevitable result will be that the innovator is also considered the most relevant brand -- perhaps the only relevant brand -- for the subcategory.

http://online.wsj.com/article/SB118841644146412501.html?mod=todays_us_the_journal_report

Together We Innovate

After studying networks in more than 20 organizations, we've found three problems that stifle innovation. They share a couple of common themes: the failure to effectively leverage the expertise of employees (or their peers in partner organizations) and the failure to react effectively when new ideas do arise. But we've also found five steps companies can take to clear those barriers and start producing big ideas.

Here's a look at the network problems and how to solve them.

http://online.wsj.com/article/SB118841662730312486.html?mod=todays_us_the_journal_report

Selling P&G

The stakes are high for P&G, which has built its $200 billion market cap in large part on superior marketing. So far, Stengel has met the challenge. He has been P&G's chief marketer for six years; the average tenure of a chief marketing officer is less than two, according to recruiting firm Spencer Stuart.

Before an invited audience at the Time & Life Building in Manhattan, Stengel sat down recently with Fortune's Geoff Colvin to talk about consumer power, the value of brands, the decline of mass media and who needs chief marketing officers. Edited excerpts follow.

http://money.cnn.com/magazines/fortune/fortune_archive/2007/09/17/100258870/?postversion=2007090511

G4 Aims to Cash In on Halo 3 Launch

As an example of G4’s immersive “Multiplex” sales strategy, Game Fuel will be integrated into the night’s programming, and the logo will be featured in bumpers, tune-ins and various digital permutations. “We take the consumer and we put him in a bear hug,” said Dave Cassaro, president of Comcast Networks ad sales. “We can do plain vanilla, but the tutti-frutti approach is a prerequisite if you want to reach our demo.”
Specials have become a significant ratings driver at G4, so much so that its live coverage of last year’s E3 Expo drew 2.5 million total viewers over the course of three days.
“We’re not going to do the kind of ratings American Idol does, but it’ll hit the demo and resonate with our audience,” Cassaro said.

http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=1003637079

Singer Spears Ratings For VMA

Evidence comes from the network's surprisingly high-rated "Video Music Awards," which soared in viewership 23% over last year's numbers, giving the show 7.08 million viewers. It was the highest-rated cable show among 12-34 viewers--5.0 million--this year.

Moreover, MTV.com set records. On Monday, the day after the event, MTV posted its best daily traffic ever--2.6 million unique visitors--40% higher than a year ago. Yesterday's numbers were also 32% higher than last year's MTV.com unique visitor numbers.

MTV also noted there were 6 million streams on Monday for its "2007 MTV Video Music Awards On-Demand" area.

http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=67271&Nid=34224&p=334375

Networks Differ With Respect to Previews

It's all a brave new world for the networks, who are still operating on guesswork about whether the Internet can help make hits.

"The new world order demands a distribution that is anywhere, anytime, anyhow," said Vivi Zigler, executive vice president of NBC Digital Entertainment.

That's one theory. Coming off a couple of fourth-place finishes in the ratings, NBC arguably has the least to lose in exposing their four new dramas to as many people as possible.

http://www.forbes.com/feeds/ap/2007/09/16/ap4122046.html

Cable Takes A Ratings Hit

The switch to the new ratings system reflects a frustration that advertisers have long had with TV: Every time a show went to a commercial break, a chunk of viewers would click away to another channel. Since shows were rated based on how many people tuned in, advertisers had to pay for what often amounted to phantom eyeballs. Knowing that the changes roiling the media world had put more power in their hands, advertisers played rough this year. "We made it clear," says Rino Scanzoni, who, as chief investment officer for media agency GroupM, spearheaded the move. "We were not going to be negotiating on anything but commercial ratings."

http://www.businessweek.com/magazine/content/07_39/b4051050.htm

Capture teens in a mobile web

As the mobile web reaches maturity, major brands are scrambling to stake their claim on the new frontier. Targeting the teen audience is a logical step; they are the fastest to adopt new mobile technologies, and the immediacy of the mobile web is an intrinsic part of their culture. However, the marketer venturing into the mobile space to pursue this demographic must be careful. Success depends on an understanding of how teens want to be spoken to, as well as how they will perceive the message. Failure is often very costly, and controversy is quite public given the media attention focused on the topic. The time is right, the rewards are great, but the risk is real.

We'll explore the teen market and how their use of mobile technologies shapes a pragmatic approach to reaching them with a positive, resonant message.

http://www.imediaconnection.com/content/16555.asp

The Entertainment Development & Programming Weekly - September 9th Edition

Here are the most interesting articles that came across this week…

HBO Purchases Rights to Machinima Vid

It’s the highest profile example of an SL-to-RL rights deal so far, leveraging Linden Lab’s policy in which Residents retain the underlying intellectual property rights to content they create in-world. (It far eclipses Tringo’s SL-to-Nintendo Gameboy deal of a couple years ago.) It’s the first SL machinima to sell to a major TV broadcaster. (Longtime SL auteur Pierce Portocarrero recently landed a well-deserved development deal with NBC on the strength of his Second Life machinima like this one, but to my knowledge, the network didn’t purchase the broadcast rights to Pierce’s existing works.) It’s also the first time SL-based content has landed someone a Hollywood agent, for in the acquisition process, Gayeton secured representation with UTA, among the industry’s "big five" firms, which also counts Johnny Depp, Harrison Ford, and the Coen Brothers as clients. I suspect some non-Second Life superlatives are in order too, though I’m less sure here: it’s probably the biggest Hollywood purchase of a video which first aired on YouTube, and the most prominent distribution deal for a machinima project made in any 3D platform.

http://newteevee.com/2007/09/04/hbo-purchases-rights-to-machinima-vid/

Sony Bets Big on Video Downloads

Undaunted, Sony, under the aegis of its CEO & Chairman Howard Stringer, has developed a new strategy to revive its rapidly declining fortunes. The Wall Street Journal reports (citing unnamed sources) that the new video download strategy revolves around PlayStation, PlayStation Portable and other Sony brands, such as Bravia televisions. The news of such service had first surfaced in December 2006.

Given the mixed fortunes of the PlayStation 3 gaming console, it seems like a wishful thinking. Nevertheless, the company seems to be hopeful about its chances, thanks to new products like devices that allow users to download content to their Sony televisions. It also recently announced DVR functionality for its PS3 devices.

Sony’s new strategy is inspired by the Japanese giant’s fear of Apple, the company that has used the iPod to become the premier consumer electronics company, making Sony seem like a hausfrau. According to the BusinessWeek Top 100 Global Brands Survey, Apple is within striking distance of Sony, despite having a limited array of offerings. Both companies trail newer rivals like Samsung.

http://newteevee.com/2007/09/03/sony-bets-big-on-video-downloads/

Babelgum's Contrarian Approach to Web TV

Take a look at how the Internet TV market is developing and you can bet that Babelgum, a free, global Internet TV and video-on-demand service, will be taking the opposite approach. While competitors such as Joost concentrate on U.S. and European markets, Babelgum is looking east, with plans to add Chinese-language original content in the first quarter of next year.

Targeting Asia—along with Europe and later the U.S.—isn't the only thing that distinguishes Babelgum. While competitors like Joost—started by European entrepreneurs Niklas Zennstrom and Janus Friis—or BitTorrent—created by U.S. peer-to-peer pioneer Bram Cohen—have snagged high-profile deals with some of the biggest names in entertainment to redistribute TV and films over the Internet, Babelgum, which is headquartered in Ireland and has offices in Italy, France, and Britain, has no deals with the majors and says it doesn't care.

http://www.businessweek.com/globalbiz/content/sep2007/gb2007094_157643.htm?chan=globalbiz_europe+index+page_top+stories

The Music Man

At the end of their paid internships, the students took part in focus groups that were closely observed by Steve Barnett, Rubin's co-head at the label, and Mark DiDia, whom Rubin brought in as head of operations, as well as by other Columbia executives. The focus groups may have been the real point of Big Red — Barnett and the New York executives, especially those who had been at Sony for years, wanted to try to take the pulse of the elusive music audience. "The Big Red focus groups were both depressing and informative, and they confirmed what I — and Rick — already knew," DiDia told me afterward. "The kids all said that a) no one listens to the radio anymore, b) they mostly steal music, but they don't consider it stealing, and c) they get most of their music from iTunes on their iPod. They told us that MySpace is over, it's just not cool anymore; Facebook is still cool, but that might not last much longer; and the biggest thing in their life is word of mouth. That's how they hear about music, bands, everything."

Few of the kids knew that record companies participate only in the profits from records — that they derive no income from a band's merchandising or touring revenues. And they all thought that the Columbia logo stood for something prestigious, except in the hip-hop world. There it was deemed too commercial and corporate, but anywhere else it still represented a kind of impressive imprimatur. "Which was good news," DiDia continued. "It means we still have a brand that commands respect."

http://www.nytimes.com/2007/09/02/magazine/02rubin.t.html?_r=2&adxnnl=1&oref=slogin&ref=magazine&adxnnlx=1188705763-JuA1ajdKKEqxRSxA9VJTzQ&pagewanted=print&oref=slogin

What Constitutes an Online Hit?

This week, we’ve seen stories come across hailing 3 million plays of a show in one month a hit (KateModern) and 2 million views in three months for a whole site a success (Slate V). It begs the question: When is online content considered a hit? When should it be considered a hit?

Even with all the fetishization of the long tail these days, it’s important to remember that entertainment (and therefore online video entertainment) is a hit-driven business. People flock to hits, advertisers flock to people.

But agreeing on criteria is not so easy. The easiest measuring stick is, of course, the play count. But since content online never really goes away, does it matter if it takes a week or a month to reach a million plays?

http://newteevee.com/2007/09/06/when-is-an-online-hit-a-hit/#more-2005

Jobs is Dell as warp speed

But now the process is instantaneous. Apple could see the reaction in not only the emails Jobs refers to in his apology but also, obviously, in blog posts and forum discussions (not to mention the stock price). All you have to do is listen. And act quickly.

It’s the same lesson that Dell learned about the customer in control. Only now add the element of speed. (Amplified by the fanaticism of the Apple customer cult.) I think we are seeing a permanent change in customer relations and our empowerment: If enough customers think you made the wrong move and you hear them quickly enough, the cusotmers will win. If you’re smart.

http://www.buzzmachine.com/2007/09/07/jobs-is-dell-as-warp-speed/

How companies can make the most of user-generated content

Technologies that foster online collaboration and participation—for example, blogs that solicit customer feedback and wikis that allow employees to work together on documents—are gaining traction throughout the corporate world.¹ Few companies, however, have a clear understanding of what inspires users to contribute to such sites. Executives might start by looking to the world of online video sharing, another fast-growing test bed for participation. McKinsey research conducted in Germany finds that motives such as a desire for fame and a feeling of identification with a community encourage collaboration and participation. Such findings, we believe, offer insights into the way companies might tailor their Web 2.0 offerings.

http://www.mckinseyquarterly.com/article_page.aspx?ar=2041&l2=16&l3=16

Apple seeks TV price cut

If cooler heads prevail, it seems possible Apple and the nets will come to a settlement in which shows are sold via tiered pricing, perhaps 99¢ for library titles, $1.99 for current hits and $2.99 for megahits or shows on premium cablers such as HBO or Showtime.

While big networks and studios seem to be scoffing at Apple's proposal, some nets could welcome the idea. Cablers such as MTV or A&E may welcome the chance to sell their reality shows at a lower price, particularly since Apple would likely reward them with greater promotion on iTunes.

And some industry observers believe ABC -- which has already extended its deal with Apple -- may also be open to the idea of charging less for shows. Disney was the first conglom to join iTunes, and Jobs is on the Disney board.

http://www.variety.com/article/VR1117971505.html?categoryid=14&cs=1

Consumers To Advertisers: Benefit Us Or Else!

Umair Haque, principal consultant at Bubblegeneration, wrote this week on his blog, "Marketers have to figure out how to make 'ads' that benefit consumers - not impose nuisance costs on them. Either marketers discover how to benefit consumers, directly, vitally, tangibly, visibly - or they will go the way of record labels and film studios. This is strategy decay moving inexorably through the value chain - sweeping along the rusting, moribund, industrial media value chain like a tsunami. First, it was retailers. Then, it was publishers. Now, it's the turn of marketers."
Let me be clear, I'm an evangelist for interactive marketing and advertising. It's what I'm passionate about. It's also what pays the bills. My interest is in its long-term viability. I also believe in the ability of publishers and content creators to make a fair living.

http://blogs.mediapost.com/spin/?p=1121

Cookies ‘N’ Scream

Well, as the big thinkers in the crowd recognize, the demands of the agencies are not quantitative, they're qualitative. Nobody really needs to take an already too small sample, and divide it into 15 smaller, one-minute slices. We can argue about the definition of a commercial minute at another time, but the issue at hand is that in order for commercial ratings to even approach the fuzzy accuracy of 15-minute ratings, the sample size needs to increase -- exponentially.

Borrowing from Thompson's observations, in our desire to break things down into the visible pixel, there is a real, even natural tendency to miss the big picture. Are we so anxious to break it down to the single minute, that we will abandon the benefit we can all derive when the entire TV experience can be far more accurately measured as a whole, by combining the actions of 25 million -- or more?

http://blogs.mediapost.com/tv_board/?p=156

NBC Bolts From iTunes, Links Up With Amazon

According to analysts, NBC's decision to leave iTunes signals that it wants to consolidate some of its program distribution, making it more exclusive and special to advertisers. The net's new Hulu.com--its TV program/Net destination site, done in partnership with News Corp.--is a platform to build a central major location for video consumers. This tactic differs from the CBS strategy of syndicating its content to virtually all viable digital video platforms.

Central to the iTunes deal for NBC has been driving more business to the table--to package, say, an NBC Universal movie with an NBC TV show. Then, offering such packages at a discount to drive overall revenues higher. That hasn't happened. "We have seen what kind of revenue [NBC] gets for $1.99," says Schulman. "And it's not a lot."

NBC believed it was in a strong position to negotiate for new iTunes deals, accounting for a reported 40% of all iTunes video downloads, the No. 1 supplier of digital video to the service. But iTunes, which holds a gigantic 76% of the market, wasn't interested, believing it would create a confused marketplace when it comes to pricing. The retail price of an iTunes TV show, as it has been since the service's launch, is still $1.99. For movies, iTunes users pay $9.99.

http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=66789&Nid=33879&p=334375

MTV likes playing on the ad team

John Shea, executive vp integrated marketing and brand partnerships for the MTVN Music and Logo Group, has been at the forefront of MTV Networks' innovative branded entertainment and programming solutions for advertisers. MTV has been one of the most aggressive and prolific networks in creating original programming for advertisers rather than just integrating brands into pre-existing shows. Among some of the more recent programming initiatives MTV has produced and/or aired for advertisers are "It's a Mall World" for American Eagle Outfitters, "Gamekillers" for Unilever's Axe Dry, "Meet or Delete" for Hewlett-Packard, Dew Circuit Breakout for PepsiCo.'s Mountain Dew and "Money Plays Madden NFL '08" for Electronic Arts. For its Video Music Awards premiering Sunday, MTV has also created out-of-the-box marketing tie-ins for several advertising partners including Taco Bell, Herbal Essences, Neutrogena and Pepsi. MTV has also recently started producing more shortform serialized content running as commercial pod takeovers for advertisers like Nike, which is airing the finale of its six-part series about the U.S. women's national soccer team during the VMAs. The Hollywood Reporter's marketing reporter Gail Schiller recently spoke with Shea about MTV's branded entertainment strategy for its advertiser clients.

http://www.insidebrandedentertainment.com/bep/article_display.jsp?vnu_content_id=1003634892

That whole TV thing is just so yesterday

"So you don't ever have the desire to watch any television?" I asked, my incredulity reaching a crescendo, certain that my synapses were suffering a brief misfiring episode.

"What I want to watch, I download onto my laptop," he said, adding for emphasis, "and it's all free."

Well, OK then, Mr. Television Programmer -- what now? It may be high time for you to start brainstorming that new financial model, no? Unless my kid is a huge anomaly, it seems that ever-increasing numbers of America's teens and twentysomethings are in the process of rendering your current one hopelessly dated, if not already dead.

http://www.hollywoodreporter.com/hr/content_display/features/columns/pulse/e3idae648b19a12ff1383eeb2038cfc943e

Viacom's MTV and Nickelodeon facing challenges

“What you're seeing in cable is that some brand names [like MTV] are getting kind of old," said Derek Baine, an analyst at SNL Kagan. "A lot of these channels that once dominated a particular niche are dealing with stiffer competition. They're facing heavier competition from online media, and that's reflected in some of the numbers."

The ever-present challenge posed by the Web has been made more difficult with the popularity of the streaming of popular shows by broadcast and cable networks, especially among younger viewers, Erlich said.

"We are working hard to address the soft spots at some of our networks," said Philippe Dauman, chief executive of Viacom, during the company's call to discuss second quarter results. "We had terrific results with the MTV Movie Awards, which aired to more than 20 million viewers in June and was the No. 1 rated program on all television in its timeslot. We are just starting to roll out new original programming and we are encouraged by the early results."

http://www.marketwatch.com/news/story/viacoms-mtv-nickelodeon-facing-challenges/story.aspx?guid=%7BB0DA023A%2D410B%2D4CF6%2D80FA%2D2A7C11EAB7E1%7D