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
Targeting Asia—along with Europe and later the
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
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
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
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.
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."
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