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Featured Post | Perspectives | Revenue | Video

Latino audiences translate to revenues

Earlier this year, VIX was acquired by Spanish-language content leader Univision. It was the culmination of a six-year journey, which started out as my effort to disrupt, well, Univision.

Around 2015, I stumbled upon the statistic that Latinos would soon represent 20% of the United States’ population. It spoke to me because my Texas roots meant that Hispanic media had always been a part of my world. Pretty soon, I had decided that my next media venture would be creating a mobile-focused streaming service for what appeared to be a drastically underserved U.S. Latino digital media audience.

By the time that our Pongalo service launched as a $5.99 per month subscription offering for U.S. Latinos, I had rounded-up digital rights to thousands of hours of Spanish-language content. I’d also assembled a group of shareholders and mentors who included some of the smartest people in media. That meant that the Pongalo team could tap into a deep bench of expertise from folks like former MTV Networks Vice Chairman, who has Puerto Rican roots, Herb Scannell, and former Univision digital chief Kevin Conroy.

Like all good success stories, we promptly fell on our face. But we learned. We learned that building a video streaming technology platform is not for the faint of heart. We learned to license not only U.S. content rights, but also long-term international rights. That’s because our eventual expansion across Latin America presented a massive opportunity. And we learned that we absolutely did not want to compete with deep-pocketed players like Apple, who were making noises about coming into the subscription streaming space.

We eventually added Discovery Communications veteran Rick Rodriguez to our team. And, after borrowing a bit from the early playbooks of TubiTV and Pluto, Pongalo quickly evolved into the free, ad-supported streaming space. When it did, every metric went through the roof. Despite our early stumbles, we had clearly found the right model.

The race to scale

By 2019, scale had become the name of the game in media. In a world where Disney needed to buy Fox to gain scale, even a dominant spot atop AVOD in the still-unproven Latino digital media market wasn’t part of the conversation. If Pongalo was ever to be acquired by a larger media organization (and I believed it should be), we needed scale.

So, about a year ago, we combined Pongalo’s streaming service with Rafael Urbina’s VIX. Rafael had built a powerful social media megaphone of almost 100 million Latino Facebook followers. He’d also put together a potent ad sales team of over 50 people stretched across two continents. By the time VIX was acquired by Univision in 2021, our streaming service offered more than 20,000 hours of content that entertained millions upon millions of Latinos each month.

Today, the VIX team, now under the leadership of new Univision CEO Wade Davis, also helps to manage PrendeTV, Univision’s recently launched free, premium ad-supported streaming service. And the results have been spectacular. Early indicators tell us that PrendeTV and VIX are finding eager, content-hungry audiences across platforms.

The still-untapped opportunities

Our success (so far) does beg the question, however, of why no major media company had previously built a standalone service that focused on the free streaming opportunity for U.S. Latinos.

To be fair, Latinos have traditionally been easy to overlook in favor of general population audiences, who have always seemed to capture all the oxygen in the front-page streaming stories. But in a day and age of always-improving data, we now know that that was foolish.

According to the 2020 LDC U.S. Latino GDP Report, if the economic contribution of U.S. Latinos was its own country, it would be the eighth largest in the world. That would exceed even Italy, Brazil, and South Korea. In fact, between 2017 and 2018, the U.S. Latino GDP’s growth exceeded that of non-Latinos in the U.S. by more than 4.5x. Yes, 4.5x! That would make it the single fastest-growing GDP in the world during that period.

With this immense opportunity in mind, media companies need to be thinking about how they can capture a share of these vast U.S. Latino revenues.

Keep moving

Mobile is one of those places. Latinos drastically over-index for having mobile devices, and those devices tend to be their primary connections to the internet. But many media companies seem solely focused on delivering connected TV experiences. And despite PrendeTV and VIX’s many successes, Latinos still remain underserved on mobile. And they will likely continue to be so until the industry can create media products that play by the unique rules of a mobile-first experience – mainly simplicity.

For instance, at one point, most major media companies continued to push TV Everywhere apps that required an engineering degree to authenticate. We were the first to remove registration entirely from the VIX app. That meant that we had to innovate clever ways to build data around our audience. But if the premise of AVOD is to show ads to as many people as possible, why put up barriers?

The payoff for media companies in targeting Latinos is data. The genius of Amazon comes down to, “Since you bought this, you might also like this.” And the opportunity around underserved Latinos and mobile is similar. It’s a treasure trove of data just waiting for companies that are willing to lean in – in-language and in-culture. That data translates into revenues.

Over my six years navigating Pongalo, then VIX, and now Univision, I have heard countless voices encouraging media companies to target Latinos because it creates more diversity in our audiences. Undoubtedly, that’s a true and powerful reason in and of itself. But, with that, you will also make more money. That’s a reason media companies can not only understand, but it’s one that they need to capitalize on.

Abut the Author

Rich Hull is Senior Vice President of Univision, and President of VIX, Univision’s recently acquired digital media subsidiary. As a digital and traditional media company founder, operator and investor, Rich has constantly led the innovation of new ways for delivering content and empowering diverse voices. Rich previously collaborated with DCN Editorial Director, Michelle Manafy, on their multi-award-winning book, Dancing With Digital Natives: Staying in Step With the Generation That’s Transforming the Way Business Is Done.

Advertising | Innovation | Perspectives | Video

Preparing for advanced TV’s 2021 take off

The new year brings new cheer to the advanced TV advertising sector, with an exceptional outlook for 2021. Following months of accelerated change in 2020, a remarkable 84% of marketers across five European markets expect to increase their investment in advanced TV during the next 12 months. This positivity signals a recognition of the channel’s potential to reach highly engaged audiences in premium video environments that are on-demand, connected, and addressable.     

Media owners – whether programmers or distributors – have a golden opportunity to tap into this wave of optimism for a channel that includes multiple interconnected solutions and platforms. This includes video-on-demand (VOD), connected TV (CTV) and over-the-top (OTT), to audience-based linear, programmatic, and addressable. Here are just a few of the trends media owners should be aware of as they prepare for advanced TV’s take off in 2021.    

Unification of linear and digital

Linear TV and digital video have been on a convergent path for some years. However, in 2020 it became perfectly clear that viewers see no difference between the two. People switch effortlessly between channels, platforms, and screens to satisfy their appetite for video content everywhere, any time. Advertisers are adapting to this evolution. They want to deliver seamless experiences across all premium video environments, regardless of whether they are linear or digital.

In 2021, the ability to sell and deliver inventory across all devices and platforms in a unified way will be a top priority for media owners, enabling them to meet advertiser demand. Significant steps are already being taken towards achieving this goal, including the advance of linear schedule optimisation through digital ad decisioning tools. However, more still needs to be done to achieve greater unification over the coming months so media owners can make a greater portion of inventory available for advertisers to buy simply and holistically.

Availability of addressable inventory

Marketers are increasingly keen to target TV advertising at household level through the use of high-quality data insights. Traditional TV advertising is still the most effective option for achieving scale. However, marketers can supplement it with addressable advertising to access niche audiences and achieve incremental reach.

Across Europe, over three-quarters of marketers expect to increase investment in addressable advertising next year, with a 9% growth predicted overall. This does vary however, according to the maturity of individual markets, the technology capabilities and the availability of addressable inventory. Spain has the most optimistic outlook, forecasting a 13% increase in addressable advertising, while France is the most cautious at just 4% growth.

To take advantage of increased investment in addressable advertising, media owners should focus on making more of their inventory addressable. This will mean breaking down silos between TV and digital teams. It also requires exploring how they can effectively use first-party and second-party data – while complying with data privacy regulations – to enable richer targeting.

Preparing for addressable advertising will require a degree of collaboration and European media companies can take inspiration from the U.S. Across the Atlantic, industry initiatives such as On Addressability are driving progress towards simple, scalable addressable capabilities across TV formats. And project OAR (Open Addressable Ready) is establishing a common technology for dynamic, addressable advertising management.

Collaboration with competitors

The trend for cross-industry collaboration doesn’t just apply to addressable advertising, but to advanced TV as a whole. Advertisers demand more streamlined solutions that allow them to buy across channels, platforms, and devices. So, media owners will need to put aside traditional rivalries and take a collaborative approach. In this case, working with competitors well help them gain mutual advantage.

There are already examples of successful collaborations around addressable TV within European markets, including partnerships between FranceTV and both Bouygues Telecom and Orange, as well as the LOVEStv platform in Spain. In the U.K., Sky, Virgin Media and Channel 4 are all partnering on AdSmart. ITV has extended an open invitation to broadcasters to join its Planet V platform. More established cross-market collaborations are also in place, such as the European Broadcaster Exchange, which was established in 2017 between Mediaset, ProSiebensat.1, TF1 and Channel 4 to enable programmatic video advertising across multiple countries.    

Over the coming year, more media companies will form partnerships or join existing collaborations. This will allow them strengthen inventory offerings to allow advertisers to access premium, brand-safe advanced TV environments at scale.

After a turbulent year all round, the next 12 months look extremely promising for the TV and video ecosystem. Media executives will be poised to maximize the opportunity by embracing the unification of linear and digital and making more of their inventory addressable. If they also find ways to collaborate with partners and competitors across the industry, media companies can put themselves in the best position to make the most of advanced TV’s 2021 take off. 

Perspectives | Video

What the future looks like for OTT

In 2020, the over-the-top (OTT) landscape shifted greatly, ushering in a new era for subscription-based OTT video streaming services. New players like HBO Max, Disney+, and Peacock joined the scene. All the while, service providers like Netflix, Hulu, and Amazon Prime Video continued to dominate the market. 

So, what is next? OTT services are predicted to generate just over $158 billion in ad revenue by 2024. 

As OTT experiences these major growths and investments, it brings about some key advertising questions – What are the best practices for selling advertising in this emerging channel? Which channels have the best measurement? How is OTT different from linear TV? And, more. With that, MediaRadar hosted a virtual panel to explore these recent and upcoming changes in OTT, plus what the future holds for this type of advertising.

Los Angeles Times reporter Wendy Lee moderated the discussion. And panelists included Bill Condon of Xumo, Justin Gutschmidt of Premion, and Matt Graham of Acorn TV, as well as myself. Here is a recap of some of the key insights discussed. 

Ad innovation 

While TV advertising has been largely the same for decades, OTT platforms are changing the game, offering new ways for advertisers to get their messages across. Hulu, for example, has a choose‐your‐own‐adventure‐type ad option, allowing viewers to select which of multiple ad options they would like to watch. Hulu also uses interstitial and binge ad options, a format where viewers can watch all their ads at once so they don’t have to be interrupted later. 

After a lifetime of seeing TV ads presented in one way, these new, more creative ad options feel refreshing. They also help keep audiences engaged. With more of a change in what they’re watching, most people are much less likely to get bored. In fact, Hulu claims that the options provided by their platform lead to a 150% increase in brand recall.

Targeting 

OTT advertising offers many advantages to brands looking to get more for their money, as well as more views, more click‐throughs, and more sales, and provides opportunities to get a message in front of the right people at the right time. Leveraging the audience data that OTT channels provide, advertisers are able to produce highly targeted campaigns. They can segment audiences based on geographic location, demographics, preferred content, and much more. Advertisers can also capture impression data for guiding future ad buys.

By narrowing down an ad’s audience to include only those to whom it is relevant and applicable, brands drive awareness. They also save money by not showing ads to obvious dead ends. Audiences also appreciate not being shown ads that don’t apply to them.

Consolidation 

As OTT content becomes more popular, the industry is starting to consolidate. For example, Xumo was acquired by Comcast in February 2020. According to Bill Condon of Xumo, being tied to a larger company has boded well for them. 

“Right before the pandemic hit, we were doing well. But, being tied to a larger company has been really beneficial. I’d say there’s four key areas in terms of what has been helpful to Xumo,” Condon explained.

Condon shared that distribution, discoverability, content, and data were four primary benefits of the merger for Xumo. With Comcast’s help, Xumo now reaches a wider audience and is easier for potential audience members to find. It has also seen a large increase in the content acquisition budget, and has access to more data and data processing tools. Other companies are likely to undergo similar merges and find similar benefits, moving forward. 

The number of unique OTT providers will likely decrease, now that all of the major players have introduced their OTT platforms. The average OTT consumer is willing to pay for about 3.2 platforms. Past this threshold, they are willing to accept ad-supported OTT, which major leaders already offer (i.e. Peacock and HBO Max starting next year).

What’s Next? 

At MediaRadar we track what happens to our customers and, out of those 2,400 customers we track, there was more M&A activity last quarter than any single quarter in our ten years of doing this. As for the number of OTT platforms, this consolidation is a strong sign that the industry is maturing. As the platforms band together for various benefits, we will soon learn what else they can offer. 

With many big name players already on the scene, the future of OTT advertising will be interesting. As advertisers continue to capitalize on the benefits of OTT, it is only a matter of time before we begin seeing even more of its potential and profitability play out. 

Featured Post | Innovation | Video

How NowThis’ new channel plans to tackle climate in a crowded video ecosystem

When you’re launching a new brand amidst multiple global crises, it helps to hone your focus and target audience. That’s part of the thinking behind NowThis Earth. The new channel from Group Nine Media’s mobile-first news publisher NowThis will address the impact of human actions on the Earth’s climate.

NowThis Earth launched in partnership with a coalition of climate-focused non-profits, research organizations, and NGO’s. The new channel will offer daily coverage of science-based coverage of the changing climate, as well as stories that focus on sustainable living. According to NowThis President Athan Stephanopoulos, climate change is a topic around which the NowThis audience is already highly engaged.

Mobilizing the brand

That’s one way in which NowThis differs from some legacy publishers. Many have struggled to find a way to cover climate change comprehensively. They cite limited consumer appetite for science-based coverage and the risk of fatigue with the sometimes-dire stakes of the issue. Attitudes toward and interest in the issue has started to shift among the public at large. However, Stephanopoulos is confident that NowThis’ young audience, primarily composed of Millennials and Generation Z, is more than ready for a sharper editorial focus on the issue many see as the defining challenge of their age.

“When we’ve covered issues of climate and sustainability in the past we’ve seen those stories over-index in terms of engagement, particularly with our younger audience,” says Stephanopoulos. In fact, NowThis viewers are five times more likely to engage with climate and sustainability content than with any other topic. This engagement has produced a reported 600 million views across NowThis’ existing news and politics channels. Clearly, its native audience is ready to see the topic take center stage.

Audience engagement

Of course, even with signs of growing consumer interest, launching a new mobile-first news channel in a crowded ecosystem presents challenges. That’s why NowThis is leveraging some of its existing assets to give the new brand a boost. NowThis Earth will take over the channel previously occupied by NowThis Future, a science and technology vertical that was one of NowThis’ most frequent homes for sustainability-driven content. Taking over an existing channel with a built-in audience will give Earth a leg up as it aims to break into an increasingly competitive mobile video market. NowThis can seamlessly connect new brand’s content directly with the segment of the audience most primed to receive it.

The channel also enjoyed a boost from science educator, climate activist, and occasional NowThis collaborator Bill Nye. He gave the launch a boost with the introduction of a live climate tracker. The new channel is open to partnerships with relevant voices in the climate conversation. However, Stephanoulos stays that bringing Nye into the launch has more to do with foregrounding future collaborations with the brand than a concerted influencer strategy for the channel. “It was mostly about the fact that we’ve done work with Bill in the past. And we’re talking about things we can do with him now under the NowThis Earth umbrella.”

Strategic partnerships

The new channel will also leverage an array of non-profit partnerships that will play a key role in informing its editorial coverage and helping it to connect with new audiences. NowThis has teamed with the Global Commons Alliance, a coalition of climate-focused organizations including research, business, and philanthropy. According to Stephanopoulos, the partnership will help NowThis Earth to identify stories on the frontlines of climate coverage. IT will also provide access experts who can provide additional context. GCA member organizations will also contribute local reporting from journalists and NGO employees involved in conservation efforts around the world.

The Global Commons Alliance will also help support the new channel through funding that will allow it to remain, at least initially, ad-free. In the near-term, the focus for Stephanopoulos and his team is on building an editorial brand that can motivate its viewers to take the kind of actions that help to address the global climate crisis. This could be by donating to preferred causes, following tips for more sustainable living, or engaging in activism.

NowThis has successfully partnered with commercial brands in the past. However, Stephanopolous thinks it’s important to avoid any potential conflicts at launch. He remains optimistic about the long-term potential of traditional advertisers to support sustainability-driven content both on NowThis Earth at large.

“We’ve seen a lot of brands and advertisers who want to be in this space, particularly content around sustainability,” says Stephanopoulos. “There are a number of companies that are driving themselves to be more sustainable as brands. I believe there will be even more opportunities in the future.”

Lessons to repeat

For publishers looking to launch a new video brand into today’s highly competitive market, there are some valuable lessons in the NowThis approach. NowThis Earth isn’t so much a new vertical, as a distillation of coverage that was previously spread across multiple channels in the NowThis portfolio.

With close attention to user engagement, the NowThis team was able to identify an area of opportunity that it was already well-positioned to develop based on its existing network of partners and to grow based on its established cross-channel audiences. The topic is timely, but as Stephanopoulos pointed out, NowThis has been nurturing this audience across several of its brands for years already.

Advertising | Industry-Research | Perspectives | Video

Get your ad message right so that new TV audiences tune in

In a world turned upside down, TV – in all its current forms – serves as a vital anchor. It is a trusted provider of news and information, as well as a continual source of entertainment and comfort. It unifies families and friends through shared viewing experiences – even when they are in different locations. And it facilitates new routines, which helps people through these testing times.  

TV consumption has spiked, with a Thinkbox.tv weekly viewing report from May 2020 revealing UK viewing is up 21% year-on-year. Even as the country begins to return to a socially distanced version of normal, staying home will be the default position for many. And this will prolong consumers’ reliance on TV.

This trend is positive for advertisers. This is particularly true as 54% of consumers are paying as much or more attention to ads than they were before lockdown began, according to a recent FreeWheel survey. But to make the most of these larger audiences, advertisers need to understand the changing habits, preferences, and expectations of consumers. This will allow them to make informed decisions around messaging, tone, and delivery channel.   

Match the messaging to the moment

Ad messaging needs to relate to what is happening during current times, to be contextually relevant and to resonate with consumers.

Our survey revealed that the vast majority of UK consumers want advertising to be relevant. Three quarters of respondents feel that brands should acknowledge the present situation in their ads. Ads can be used to reinforce preventative measures such as social distancing and hand washing. They can also show customers that brands are there to help them with lockdown related challenges.   

From Nationwide to NatWest, financial services businesses are recognizing the current situation in their advertising. They are reinforcing their support for customers and outlining how they can still access services from home. Supermarkets have also brought the current context into their messaging, such as the Co-op’s campaign to support food redistribution charity FareShare.       

Set the right tone for the vertical   

Just because consumers want ads to relate to the current situation in some way, that doesn’t mean messaging needs to be sad or negative. In fact, humor should play a central role in advertising. True to form – the majority of Brits (58%) say they want to see ads that make them laugh. Many brands have taken a fun and light-hearted approach to messaging such as Maltesers with its “Look on the light side” campaign and Hotels.com with its humorous “Just stay home”’ messaging.   

Setting the right tone often depends on the vertical in which a brand operates. Despite ongoing uncertainty, a quarter of consumers want to see TV ads relating to travel. They also want emotive ads that make them dream, providing beacons of positivity in challenging times. Just because viewers can’t go to their dream destination right now doesn’t mean travel brands shouldn’t maintain awareness and advertisements.

Online search data reveals that millions of travelers are in escapism mode, discovering and dreaming of life without restrictions. So, reaching out to these consumers now can make all the difference in the medium to long-term. Sandals Resorts is one travel brand continuing to spend on TV ads. They acknowledge the reality of the current situation, but remind viewers that their holiday havens are ready and waiting.

Choose the right delivery channels

The term “TV” now encompasses a wide range of delivery channels. These include traditional linear TV, broadcaster video-on-demand (BVOD), and subscription streaming services. Much media attention is currently given to the rise of video streaming. However, FreeWheel’s survey found that linear TV is still the most watched type of platform, with 34% of consumers selecting this as their first choice compared with 26% for paid streaming services and 14% for catch-up TV.

In the current climate, audiences rely on broadcast TV for important updates, with over 27 million viewers watching the Prime Minister’s “road map to recovery” announcement on Sunday 10th May 2020 and almost 13 million viewers watching the Queen’s VE day address. Primetime remains a significant moment for people to connect with others. In France, primetime audiences broke the all-time viewers record on Monday 13th April 2020: 36.7 million watched French President Emmanuel Macron’s speech, on TV and online. That represents a 94.4% market share according to Mediamétrie.

Advertisers can make use of multiple channels to reach consumers when they are fully engaged in TV content. And they can use different platforms to reach different audiences or demographics. As TV content across all channels becomes more addressable, advertisers will be able to target audience segments defined by specific criteria, regardless of the platform they are using or the content they are watching.    

Tune in

In these unprecedented times, consumers are turning to TV – in all its forms – for information, entertainment, and routine. And they want to hear from brands; only 8% say that it should be a priority for brands to stop advertising. Armed with important consumer insights, brands can make use of a boom in media consumption to reach and engage TV audiences with useful, appropriate and contextually relevant messaging. Media and brands have an important role to play, they have demonstrated that they can be agile, reinvent themselves and be creative. In future, companies that listen to viewers are more likely to better match viewers’ user journey, expectations, and needs.

Featured Post | Innovation | Video

With a new live LinkedIn show, HBR connects with readers on coping in the wake of Covid-19

As the world adjusts to the “new normal” of remote working life, forward-thinking publishers have been coming up with new ways to connect with their audiences and help them through the crisis. In a matter of weeks, Harvard Business Review has spun up its own live video offering: HBR Quarantined. 

HBR’s new weekly LinkedIn Live show focuses on how businesses are coping with the consequences of coronavirus. The show, co-hosted by Editor in Chief Adi Ignatius and Chief Product and Innovation Officer Joshua Macht, debuted on April 27 with Pulitzer Prize-winning columnist Thomas Friedman as a special guest.

Ignatius, Macht and HBR’s Senior Multimedia Editor Scott LaPierre talked to DCN about what prompted the launch, how the first show went, and where they plan to take it in the future.

Evolving an idea

The initial concept for HBR Quarantined stemmed from Ignatius and Macht wanting to explore their dynamic in different formats. “Adi and I go way back together. We’ve grown accustomed to taking chances together and inventing things,” Macht said, explaining that a podcast was initially on the table. “Within weeks we went from, ‘Maybe we should launch a podcast,’ to ‘We’re going to do a live television show on a platform that’s pretty new.’ Then, all of a sudden, we had a show.” 

Ignatius said that the genesis of the idea came from a desire to connect with the millions of their audience who are now working from home. “They, like us, are wondering, ‘When do we get to go back to work, and what will work look like when we do?’” he explained. “We’re always talking about these issues. So we figured we could do a service delivering insight on COVID-19 and how it affects businesses and the economy.”

But unlike other HBR products, the show is designed to have a very different tone. “Harvard Business Review tends to be a brand that speaks to a very high altitude. That’s our secret sauce: high-level pieces that are based on research,” Ignatius emphasized.

“This show is something different. It’s meant to be warmer, really connecting in the moment. We’re all in the same boat and trying to figure this out together. So, it’s certainly an experimentation with a different kind of voice for us.”

Viability in quarantine

Under normal circumstances, a product like this would be resource-intensive. But LaPierre highlighted that quarantine has actually lowered the bar for everyone in terms of production values and expectations. 

“The way a lot of video producers are seeing the COVID-19 crisis, perversely, is as an opportunity to try new things,” he said. “HBR is not a TV station. We only have a small video team. So it would be hard for us to launch a true broadcast live video series. But now, everyone’s been equalized in terms of what they’re capable of doing. It’s a chance for us to make a viable series that doesn’t look that different from what others are doing.”

LinkedIn’s Live tool is just over a year old, and the platform was relatively late to the video space compared to its competitors. But for HBR, their vast social following on LinkedIn – 10.2 million followers – made it an obvious choice to debut this type of show. 

The team began by testing out a high-level broadcast tool. However, that was proving problematic as it wasn’t suited to their purposes. “We pivoted to something called StreamYard, which is a ‘prosumer’ grade software that allows you to stream live, but is a lot more lightweight,” explained LaPierre.

Live streaming can be risky in terms of technical hitches. But HBR’s first show went smoothly, attracting 35,000 live viewers and thousands of comments during the stream. Ignatius highlighted the long-tail benefits of the video as well, with total views doubling in just a few days.

The biggest surprise for the team was the lack of drop-offs. “Everyone was saying we would have these spikes in viewers. But actually, people showed up for the whole thing, and it just kept growing,” Macht explained. 

HBR Quarantined post-quarantine

When it comes to the future of HBR Quarantined, the team is remaining flexible. They have a total of six episodes planned so far. However, they will be constantly reviewing what the response is to them and what their audience needs going forward.

“I was pleasantly surprised that it went off as well as it did. But it will be interesting to see where it goes,” commented Ignatius. “I think there is something of a service that we can provide for our readers. There’s knowledge and insight about what’s going on, and we want to see what that means post-quarantine.”

HBR is also scouting out potential sponsors. They believe the show offers a timely opportunity for advertisers to reach their audience with messaging related to the moment. “There is not a lot of sponsorship money out there these day. And part of our experiment was to find a new medium that was of the moment,” explained Ignatius. 

But sponsorship aside, future episodes will be focused on trying to engage people with the brand, and with the wider goals of bringing people into HBR’s subscription funnel. “The show is good for getting people to engage with our brand, and we want to continue to grow the number of people visiting the site,” Macht concluded. 

Featured Post | Innovation | Video

Complex Networks is making the most out of staying at home

These days, the new normal involves a whole lot of not going anywhere, and it’s a situation that’s wreaked havoc on businesses of all kinds. Yes, that includes streaming programming, too, particularly those of the scripted variety. While viewers abound, production shutdowns have placed the future of many programs on uncertain footing. Some shows have decided that they can –and will – go on, COVID-19 be damned. However, the inability to film within a standard studio environment has necessitated some serious outside-the-box thinking and a whole lot of making the most of what one has at hand.

For Complex Networks, this sort of thing is old hat. Some of their most successful series to date have emerged as a result of being scrappy in the face of budgetary and situational constraints.

Wings and chill

Take Hot Ones as one tasty example. It all started when Chris Schoenberger, GM of Complex Networks’ First We Feast, and host Sean Evans were setting up to interview a guest. After spying some hot sauce in the company kitchen, they came up with the idea of interviewing people while serving them hot wings.

“I think the wings have probably improved in quality since the first time around,” says Justin Killion, laughing. “And the sauce has certainly improved! But it came out of being as opportunistic as possible, given the limited resources that the company had at the time.”

If anyone would know, it’s Killion. He’s GM of Complex Networks and EVP of Operations and Content, and he knows everything there is to know about Complex programming. As such, when he suggests that a few semi-new series in Complex’s programming lineup have the potential to be an heir apparent to Hot Ones, you may want to add them to your “what to watch” list.

Fun and franchises

“If you’re talking about new franchises, Tacos Con Todo, which First We Feast just put out, that show is excellent, and we also did another one called Gochi Gang,” said Killion. “I think both of those are franchises that you’re going to see us double-down on and potentially do more of. But if you want to talk about a breakout show, Full Size Run is right on the cusp. It’s a little bit of an in-the-weeds sneaker show, for true sneakerheads. But it’s edited in a fashion not that dissimilar to what you see on Adult Swim. I’ve never really seen anything quite like it. I really don’t think there is anything quite like it!”

Killion knows all too well how much of a whirlwind the business of streaming entertainment has become in the face of the Coronavirus outbreak – and how much of a boost everyone’s numbers have gotten with people being stuck inside.

“Truth be told, we’re up 35 percent in engagement on our YouTube shows over the last two, two-and-a-half weeks,” said Killion. “That’s just incredible. Our dot.com is up over 20 percent. Our social is up significantly. We’ve seen a massive spike in Tik Tok. We’re doing about five times the daily views that we were doing prior to the quarantine.”

Thirst and lemonade

Looking at these numbers is one of the few ways to make lemonade out of the lemons everyone’s being handed lately. (And by “lemons,” of course, we mean “stay-at-home orders.”) But the public’s thirst for entertainment has also resulted in a certain degree of forgiveness from the viewership, which puts Complex in a position to try some things that they might never have risked doing before.

“The quality of the content still needs to be there. But we’re at a moment in time where no one’s getting dragged for putting out content that isn’t exactly up to their usual standards of polish,” said Killion. “That allows us to take chances that we otherwise wouldn’t be able to take. So, there’s been a lot of experimentation.”

Case and point: Life at Complex. In the pre-coronavirus world, the series involved host Tony Mui wandering around the Complex offices, interviewing staff members. Killion describes the show as “a look-how-cool-it-is-to-work-here kind of thing.” However, when everyone is suddenly working at home, you’re looking at some retooling.

Sole-ful solutions

“What Tony’s turned the show into is almost like an incubator each week for a different format that we’re gonna try,” explained Killion. “One episode is him checking in with all of [Complex’s] different deputy editors… Just kind of getting a sense of what their home life is like in general and getting to know them a little. Then, he did something called ‘Sneaker Battles,’ where he took Brendan Dunne, our host of Full Size Run, and paired him with someone from our editing team. They were comparing sneakers from their own personal closet, and had it judged by one of our directors of photography from Sneaker Shopping.”

Killion says that it’s a fun format that they were able to quickly pull together. However, he points out that, if they’d been producing the show prior to their current ad-hoc situation, “the level of polish on it would have to be significantly higher. We would’ve been shooting with a crew at four different locations to make that happen. Instead, it’s just turning on a computer monitor at four different locations!”

Featured Post | Perspectives | Video

Audience expectations are critical in DCN’s 2020 vision

We’ve just returned from our annual summit where a couple hundred senior executives gather in a closed-door meeting to discuss the most pressing issues and exciting opportunities that we, as an industry, have before us. It was my sixth year of having the honor of setting the table to open the executive summit, after more than a dozen years listening from the audience.  

Everyone in the room is a premium publisher – with the exception of a handful of supporting sponsors, speakers, and invited guests. The attendees at the DCN Next: Summit are among the most knowledgeable people in the business of digital media anywhere. It is a daunting task to capture the proper sentiment for the direction of our industry at a gathering of such key leaders. That said, here are the main points from my kickoff remarks this year.  

This new year also marks the start of a new decade, 2020.  

2020. Yes, perfect vision. Optimal focus. As we begin this decade, I believe that DCN’s members are uniquely positioned. As a group focused on creating premium content experiences, we have never lost sight of the importance of our audiences. We’ve remained steadfast in their trust and our direct relationships. 

I see three key facets to this 2020 vision: 

First, we find ourselves rightly renewing our resolution to put the expectations of our audiences first. To meet, to exceed, their expectations. To be their trusted ally. 

Second, we’ve defeated the myth content has to be free and finally defined what it means to be premium. It simply means to have real value worth paying for whether by distributors or consumers. 

Third, given too many years of platform dominance – in which they have indiscriminately hidden the real costs to their services and vacuumed up as much consumer data as possible while, at times abusing trust – we find ourselves in the best position to align with new user expectations. To believe that data is the lifeblood of the Internet is to look past the trust and audience expectations which underpin it now, and in the future.  

Audience first 

Unlike some of those who seek to cravenly capitalize on consumer attention merely to collect data and target ads, we celebrate an unwavering focus on the wants, needs, and expectations of our audiences. The experience across platforms can be rich and elegant. But even more importantly, digital allows us to use multimedia to tell stories in ever more engaging ways, better informing the public – something that has never been more important.  

In this case bringing it altogether, I’d like to point to the brilliant Wall Street Journal report on Google’s ad tech business. It informed a public conversation and made its way not just across the industry but into meetings of regulators investigating Google – this is true impact in journalism. 

Storytelling at its best 

As technology enables us to better tell our stories, it also becomes more deeply embedded and entwined with every aspect of our audiences’ lives. The New York Times 1619 Project was one amazing example featured at a DCN Storytelling Member Day. It not only brilliantly told the story; it reexamined the legacy of slavery and made its way into other media – not just audio and video but it also found its rightful place in classrooms and libraries as educational material – this is true impact in journalism. 

Revenue revived 

The past couple of years have been particularly promising around subscription-based and other Direct-to-consumer (DTC) models. While ad vendors chase “DTC”, the latest acronym in their alphabet soup, DCN’s members have always focused on direct, trusted relationships with their audiences.  

While concerns have loomed around subscription fatigue, recent DCN research found the opposite. In fact, consumers aren’t even aware how much they are spending on subscription products. (DCN’s research shows an average of $54 per month across 4.3 products). So, it’s clear there’s room for more! And we now see that younger audiences who grew up in digital are willing to pay for satisfying experiences. The DCN research backs this up showing that they see value well beyond their cost. 

As we build our subscription-based offerings, and optimize ad experiences across platforms, we must keep these audience experiences top of mind. We serve neither our audiences, nor advertising partners, if we do any less.  

Video views 

Our members – and the industry as a whole – are seeing a hearty appetite for audio and video content. We see robust revenue around licensing of our content and IP, which also allows us to impact ever widening audiences. This is backed up by a renewed effort to preserve copyright over their art, notably including last year in the EU.  

We are also seeing true diversification in our busiess models.  

Where desktop display eroded over the past years, mobile display has offset it. And other forms of advertising including native, sponsored content and leads have helped drive growth. Video advertising, where inventory can be created, continues to carry the highest price and growth in advertising.  And arguably the most important growth of all, we’re seeing direct audience revenues grow more than 20% per year where content companies are being paid directly for their content recognizing its premium value. 

UBS estimates that a combination of 16 media firms will spend $100 billion to produce content in 2020.  In fact, it has been predicted that more than $35 billion will be spent on streaming video content alone.  And with over 60 media companies among the DCN membership, we know that the total investment will be much higher. And rightly so. Hulu has been investing in premium content for its streaming video platform. So is CBS All Access. Disney+ launched in the last few months with an absolutely gorgeous experience. Peacock will launch in April and then HBO MAX a month later. And those are only a few examples. 

Engaging experiences 

While we continue to monitor the power of platforms, their own investment in content demonstrates that information and entertainment are the lifeblood of social experiences online. And now the platforms are starting to pay for it. No DCN member is surprised that film, television, news, sports and other topics engage audiences and ignite conversation, debate, and discussion across platforms.  

Be it delivered on the big screen, small screens, smart speakers, or the myriad delivery channels in the digital content ecosystem, the work our members do forms a nexus of cultural impact. We have reached new heights of digital storytelling. And, undoubtedly our craft, the art of storytelling, will continue to surprise and delight as its evolution continues in the decade to come. 

And, while we face challenges like broad-swath and blunt keyword blacklisting masquerading as “brand safety” and the ease of data-driven scale, we also see signs that marketers too are shifting their focus to quality contexts and making genuine customer connections.  

Yes, it is “easier” to pull a series of data-driven levers and reach purportedly targeted audiences with generic messaging. However, as a growing number of consumers opt out of advertising and intro tracking prevention, savvy marketers too are reviving the art of storytelling. They have a renewed understanding of the power of delivering compelling messages in trusted, engaging, inspiring environments and an appreciation for the cost to their brand when it’s associated with experiences that abuse customers’ expectations. They see that being part of exceptional experiences creates the kind of cultural resonance and relevance that a click cannot compare to.  

Data diligence 

Don’t get me wrong. Certainly, data is a powerful tool for understanding audiences. It is also critical for storytelling and we see it leveraged in stunning executions to create vivid narratives built on numbers. 

But user expectations around data collection and use are of critical concern. With increasing consumer awareness around data practices online and looming enforcement when they’re abused, we must continue to focus in on what’s best for our audiences and only then for our marketing partners. The ability to micro-target, to force an action with a digital ad is not the same as engaging audiences around trusted content. It is not the way to build long-term customer relationships. 

Fans and friction 

It up to us to keep our customer focus razor sharp as we embark on this 2020 vision. We need to minimize complexity and reduce friction while continuing to innovate and enhance experiences for our audiences. Certainly, challenges abound including news deserts impacting local communities, anti-press rhetoric from none other than our own President which sends dangerous signals globally, and continued platform competition and unequitable marketplace control now under investigation by Congress, FTC, DOJ, states, the EU among others.  

I’m feeling good this year about where things are headed. I’m feeling really good.  And I’m thrilled at the programming lineup we assembled for our annual summit to talk about it.  

What I’ve seen in my time in digital, particularly the years I’ve been fortunate enough to spend on the team at DCN, has taught me is that we are at the forefront of something great here. We are on the frontlines of storytelling and communication. We have the power to shape minds, to touch hearts, to fill the world with laughter and tears. Here’s to 2020 bringing the roar of the crowd as we focus on what matters most: the audiences we serve. 

Advertising | Innovation | Video

Publishers focus on the evolution of the business at the annual DCN: Next Summit

At the dawn of the new decade of 2020, DCN members gathered at the Mandarin Oriental Miami January 16 and 17 to network, discuss victories and challenges as media companies evolve, and explore industry predictions.

The new decade calls for a perfect ‘20/20’ vision, said Jason Kint, CEO, Digital Content Next as he kicked off the closed-door, off-the-record gathering. That encompasses continued focus on audience desires, pushback against the myth that all content has to be free, and the elevation of trust and transparency in an era marked by ‘fake news’.

The European Union’s recently enacted copyright law is a win for the industry, with similar discussions expected this year in the U.S, noted Kint. Federal and state investigations as well as emerging regulations are all good signals toward protecting consumer privacy, regulating data use and anti-trust concerns, notes Kint.

We can also expect a steady rise in content investments. UBS estimates that in 2020, a combined 16 media firms will spend $100 billion to produce content. More than $35 billion will allocated on streaming video content, as new players such as Disney Plus and NBC’s Peacock emerge.

“I’m feeling really good this year about where things are headed,” said Kint.

Platforms and policy

Jim Bankoff, CEO, Vox Media said he valued being at the DCN Summit. He described it as a place where premium publishers come together to “find ways to partner and to check our healthy, competitive impulses … and figure out ways to work together” in the wake of ceding ground to third party big tech platform and ad network “that have proven time and again not to have our best interests in mind.”

Investigative journalist Carole Cadwalladr

Investigative journalist Carole Cadwalladr, who freelances for the Guardian and Observer, captivated the audience by recounting her experiences unearthing the activities of Cambridge Analytica and Facebook. She was nominated for a Pulitzer Prize for her work, which sparked international investigations as well as inspiring the Netflix documentary, ‘The Great Hack’.

“This was my introduction to this world of creepy disinformation, but also complete reluctance from the platforms to even acknowledge the problem, let alone deal with it,” she noted. She was instead subjected to legal pushback from Google and Facebook as well as online bullying.

She also called for media companies to not compete against each other. Instead, she encouraged those in the room to join together to “compete against lies and falsehoods. We’ve seen it in Britain and you’re next,” said Cadwalladr.

Monopolies

Scott Galloway, professor, NYU Stern School of Business, said he believes that the big tech companies on the antitrust radar should be broken up. Monopolies kill economic growth and are a “key step to tyranny,” he contended, adding a co-opted government can’t serve as a dominating force for protection.

Galloway pointed out that efforts to regulate the behavior of big tech fines have been largely ineffectual. To date, the fines haven’t been punitive enough to dissuade the big tech companies to modify behavior, he said. He also criticized the federal government for being slow to act.

Money matters

Monetization and concerns about subscription fatigue were recurring themes at the summit. Yet DCN research shows that younger audiences in particular appreciate the value of a subscription and finds that there is still consumer appetite for subscription products.

Jonah Peretti, founder and CEO of Buzzfeed

Jonah Peretti, founder and CEO, Buzzfeed noted that over the course of a few short years, the company has begun to generate significant revenue from Facebook, Google, Amazon, and Netflix from licensing.

“I don’t think Facebook or Google wants to buy news companies,” said Peretti. Of the platforms movement toward paying for content, he said that “They get the benefit of sharing some of the costs of the production of that content. News is a great way to direct repeat visitors and to build trust in the platform to avoid some of the problems of misinformation.”

Media shifts

Kevin Turpin II, president, National Journal, noted his longstanding publication adapted to the changing media landscape by transforming itself from a media company to government research and consulting services company for which subscribers are willing to pay premium prices.

Jim VandeHei, co-founder and CEO, Axios; Executive Producer, AXIOS on HBO said, “you have to deliver content in a way that I would deliver in a conversation with you over a drink, like what is new.” However, to create value, “Tell me why it matters. Give me some context. Give me the power to go deeper.”

For Complex, the path to success hasn’t been simple. Rich Antoniello, CEO and founder, Complex Networks said, “we call ourselves a brand that happens to monetize through media.” He said his company shifted from an ad-dependent model in 2016, ahead of the curve.

One example is the wild success of its “Hot Ones” program. It features10 questions of its celebrity guests that get progressively more personal along with the consumption of hot sauce that gets progressively hotter. And the business model is based not on advertising, but on the sales of high-margin hot sauce.  

Antoniello also outlined the success of ComplexCon, the company’s flagship event, which connects cultural icons with fans who spend $100 to $700 for VIP tickets, with hundreds of thousands sold. Fans also snap up merchandise from Complex and its app-based vendors such as Nike and Adidas.

The power of fandom arose again when Howard Mittman, CEO, Bleacher Report spoke of how his company’s app and successful franchises attract sports fans. He described how individual athletes hold more sway in their fandom habits than sports franchises.

Nearly 10 million fans have signed up for alerts and the app accounts for half of the company’s user engagement. Bleacher Report’s focus is not on breaking sports news, but creating engagement on its own platforms, according to Mittman.

Her story

Media continues to go through cultural shifts toward diversity both in company staffing and in targeting readership such as women. “Women are generally not seeing themselves in media and advertising to the extent that they should be,” said Catherine Levene, president, chief digital officer, Meredith National Media Group.

“We have been the first to support #SeeHer, a national organization committed to accurate representation of women in media and advertising,” she said. She added that’s not only good for supporting women, but also for the bottom line. Women who see themselves in media and advertising are 45% more likely to recommend a product to a friend and purchase it, said Levene.

Elise Loehnen, chief content officer, Goop

Despite the controversy it has attracted by those who question the veracity of its science, Gwyneth Paltrow’s Goop brand is growing, noted Elise Loehnen, chief content officer. The platform embraces several media forms and covers topics from relationships to health, including alternative therapies. She said that the controversy has been good for keeping the brand at the forefront of popular discussions.

“We’re tired of being talked down to,” said Loehnen. “We’re a strong female brand undisturbed by the chaos.”

Adapt or die

Rishad Tobaccowala, chief growth officer, Publicis Group,noted that the only way to get ahead as a legacy company is to “kill your core. You have to rethink your entire business.”

Levene from Meredith believes that the mobile world and 5G will create an even greater market for video. And, with 50% of searches conducted on the more than 200 million voice-enabled devices in U.S. homes, opportunities and challenges will arise.

Google’s action to purge third-party cookies against the backdrop of GDPR and CCPA will impact the entire digital ecosystem, Levene noted.

“Data is going to be the currency of the future. Those who have it at scale and the ability to drive a lot of insights from it are going to win,” she added.

Kindness matters

In a social media environment that is being blamed for everything from decreasing personal contact to radicalizing disaffected youth and intensifying suicide rates among girls, Tatyana Mamut, head of product, Nextdoor, made the case that her platform is creating connections on a micro-level in a neighborhood at a time when people hardly know their neighbors

“I believe that kindness is the next big thing in tech,” she added.

Palo Alto journalism educator Esther Wojcicki made the case that helicopter parenting has impacted the workforce and its ability to embrace risk and innovation. She calls for parenting – and management – to embrace trust, respect, independence, collaboration and kindness. She also promotes the idea that every student should take a journalism course to build media literacy skills.

The future will be fraught with change. And as Tobaccowala pointed out, “human beings know how difficult change is.” But to survive, media companies must continue to evolve.

“We have the power to shape minds and hearts, to fill the world with laughter and tears to inform the truth,” said Kint. “Here’s to 2020 bringing the roar of the crowd as we focus on what matters most: the audiences we serve.”

Advertising | Industry-Research | Video

Premium context and 30-second spots dominate video advertising right now

It’s shaping up to be a defining year for the video advertising landscape. Notably, 2019 was marked by the primacy of connected TV, an embrace of the value of premium content adjacency, and a return of the good old 30-second ad for brand storytelling.

We will reserve full judgement for our year-in-review report after the close of 2019. However, our Q3 report — based on video ads served from our asset management platform, AdBridge— reveals relatively stable trends this year in how marketers are using digital video to build business. This absence of wild swings indicates that the industry is settling into its new, CTV-based reality.

Perhaps what’s old is new again? And by this we mean that maybe things we always believed to be true are still true but in new and better ways.

Here are some noteworthy video trends:  

CTV Delivers the Big Screen TV-like Experience But with Consumer Choice & Control

In Q3 2019, it happened. CTV became the majority destination for impressions served, tallying in at 51%. Sure, this may fluctuate a bit quarter to quarter based on the supply of inventory. But it’s striking to see that figure relative to where we landed in 2018 at 38% of impressions being served to connected TV destinations. The steady march in CTV share from Q1 (49%) to Q2 (50%) to Q3 (51%) leads us to believe this is a true, predictable trend and not another shiny object phenomenon.

Premium Content Adjacency Clearly Works for Brands

All three quarters of 2019 showed a strong embrace of premium content destinations vs. media aggregators. In fact, the average mix in 2019 to-date is 81% premium/19% aggregators. This is certainly driven in part by the rush to leverage CTV but there is also a solid increase in impressions going to premium online content as well.

Spoiler alert: Direct-to-Consumer (DTC) brands really like premium content as evidenced by the vertical specific data in that category. In Q3, DTC brands delivered 93% of their impressions to premium inventory. But a preference for aggregators is one way in which auto advertisers show markedly different trends from the broader group. The 57% of impressions served to media aggregators in Q3 is a 10 percent increase from the prior quarter and nearly triple the overall rate.

Brands Need 30 Seconds to Grab Us by the Hearts and Minds

Brands need all shapes and sizes of ad formats to truly navigate the consumer media landscape today. And while that portfolio will surely include experimentation in the super short category (:06 ads for example), we saw a move back to more :30’s in 2018 and 2019 after a move to go shorter in years prior. For example, the share of :30’s served in 2015 was 41%.

That dipped to 38% in 2016 and hit an all-time low of 33% in 2017. In 2018, :30s jumped to 54% and in Q3 of this year, they accounted for 66% of ads served. Perhaps short stories can become too short to be effective and a mix is what’s needed to affect consumer behavior today. This seems to be especially true in the Auto and DTC verticals, which both showed an even larger investment in longer ads. For auto, 30-second spots accounted for 84% while in the DTC category they rose to a whopping 97% of impressions by length.

Our research, which has tracked video advertising trends quarterly for almost four years, finds that despite the innovative nature of the streaming wars, many video industry fundamentals still apply, or are back in style.  Context matters, both in the sense that premium placements are popular and longer ad formats provide more in-depth messaging. The heating wars are heating up and its critical to keep a close eye on the emerging trends and opportunities in this market.

Featured Post | Innovation | Video

How People and Entertainment Weekly grow audiences with video

It’s a brand people have known and loved for four and a half decades – as a magazine. Now People is focused on video, determined to grow the brand and bring its content to new, and larger, audiences.

“The most important thing is that the brand has to have a voice to begin with,” said Will Lee, SVP of Digital for the Entertainment Group of Meredith Corp., a role he’s held for two years, which coincides with Meredith’s acquisition of Time, Inc. “People has a very strong brand voice that it’s cultivated over 45 years. We know what the consumer expects from us. We have a very well-developed playbook for how the brand should sound and look.”

People’s emotional DNA

That means sticking to the brand’s core emotional DNA when showing work on Snapchat, for example. “We don’t say snarky, mean things about celebrities. It’s not what we do.” So, even if Snap viewers prefer things a little salty, People stays true to its own style, regardless of medium. “We get a lot of data from Snapchat,” Lee said, “and that audience has evolved. It’s very different from what it was three years ago.”

People’s video content focuses on what Lee called “the three R’s, the content their readers just can’t get enough of: reality TV, the British Royal family, and the red carpet. “Streaming is a different level of engagement. The really passionate audience comes from reality TV.” So, Lee’s team of 60 to 80 staffers produce a reality-based video show four nights a week and a Royals show once a week. “Reality TV is a conversation starter,” said Lee, of the genre’s powerful appeal.

Reality check

The numbers back him up. “We’ve done 100 episodes of ‘Reality Check.’ And after four episodes, we already had the second most viewed show on people.com, with 2 to 3 million views of show clips in a week. That is a pretty good debut for us.”

Pivoting constantly is key and Lee knows how hard his team works to keep up. “All the parts of video work closely together because we’re constantly iterating product on a daily basis. It’s a very special kind of producer who can do three or four formats and keep it all together.”

“What’s interesting about our model is that we’re not tied to 26-week orders so we can adjust. We have a lot of flexibility which differentiates us from cable. We can iterate and improve the product.”

Brand building

But, when deciding which next steps to take, “we have to be very thoughtful, as a media brand with a history and the brand equity we’ve built,” Lee added. “Where is the growth? How do we amplify the brand and move into new markets?” Newer platforms like TikTok , he said, are “the solar power. That’s where the future lies. We have a great brand, but that is no guarantee of future growth.”

However, Lee feels confident that streaming is essential to their success. “That’s why we’ve made such a big bet on it. If we’re not in that space, we’re going to be left behind.”

Lee’s team also partners with Meredith Local Media Group , which has 17 TV stations across the country, which Meredith will leverage when it launches a new daily syndicated television show in September 2020. “That will be the centerpiece of our overall video product.” Lee acknowledged how ambitious this new product is: “Thirty minutes of daily broadcast level TV is a huge amount of work.” The magazine-style show, with “all new and original material really represents a pretty important next step for this iconic brand. It brings us more markets, and more audience. There aren’t a lot of media brands that will have this as part of their media ecosystem. In a company already producing print, digital and video, “this is going to be another evolution of how we all work together,” he said.

Entertaining audiences

When it comes to his other responsibility, Entertainment Weekly, Lee says a new launch is imminent as well. “We’re really trying to amplify the brand. We want to go to where the audience is, in local markets. It’s important for us to reach those audiences.”

EW has announced that it will be working with Jeffrey Katzenberg’s short form mobile video platform Quibi, slated to launch in April 2020. The morning show, which will recap late-night TV, will take a similar strategic approach to the Lee he employs with People. However, he emphasizes that the brands are quite distinct, and that EW is “known as a cultural curator.” That should play well on Quibi, which offers a new audience that Lee is excited to reach.    

Innovation | Video

OTT distribution channels are changing. Be ready

OTT players and channels are changing faster than the seasons. The spring will bring a crop of new streaming entrants, joining an already crowded market. Still dominated by Netflix, a growing number of major players are drawing video viewers.

In the publishing industry, a remarkable level of transformation is happening by way of mergers that are driven, in part, by capacity to produce video. Recently, Vox Media and New York Media joined forces. This followed close on the heels of the recent tie ups of Group Nine Media and PopSugar along with Vice Media and Refinery29. An underlying theme is upping the production of quality video programming for seeking OTT platforms and rising streaming channels battling for subscribers. So, the question is: How will consumers be watching?

Get SmartTV

The answer is on a Smart TV—whether a Vizio with WatchFree powered by Pluto TV or an LG with LG Channels powered by Xumo—the CTV universe is made up of a growing number of streaming channels (or so-called FAST services). Now, major OTT platforms are following suit with Fire TV’s IMDb TV and Roku’s The Roku Channel.

In this dynamic, programming from media companies is produced in a seller’s market as FAST services look to differentiate with new and, if possible, exclusive content. The goal is to set themselves apart from aggregated CTV ad budgets. The result is that programming is starting to be distributed on 24/7 streaming channels (like the advent of cable news). The end game is to develop an audience that can be channeled to an owned and operated network/app.

Streaming channels that take form of the lean back TV world are also coming over-the-top via leading cable/MVPD companies. For example, Spectrum recently released a skinny bundle that allows viewers to choose what they actually want to watch. And that’s for approximately the same price as an SVOD service like Netflix. The skinny bundle is trending.

Netflix vs. niche

So, here we are. We find ourselves at an interesting intersection of an on-demand world (with active content discovery and viewing) and a programmed channel world with passive watching of round-the-clock streaming content. The king of OTT and SVOD, Netflix, is ad-free. It also set a high bar with premium content licensing and quality original shows as it outspends the competition.

However, we see an emerging universe fueled by advertising/AVOD and channels that run 24/7 content of essentially any genre of choice as an expanding orbit of media publishers become producers of OTT programming. On the sidelines, streaming sports and leagues are expanding their own OTT plus channels. This delivers their content straight to fans or through digital upstarts that make sports the core of their offerings, like Fubo and DAZN.

The best of the bunch

The pendulum is going to swing in a direction that improves the TV experience the most. At the heart of it all is content discovery and recommendation. The next show you’re going to watch is still the biggest unknown. According to the State of Viewing and Streaming study released by Horowitz Research last year, just over one-third (36%) of viewers consider personalized recommendation algorithms helpful in discovering shows. Whereas TV ads, word-of-mouth, and social media are attributed with 35%, 34% and 26%, respectively in frequency of new discovery. The better the content recommendation, the more that will be watched on-demand.

From there, the more “connected” your TV experience, the more it will look like a digital network versus a TV network. It will become a more social and shareable experience. The advertising that puts the A in AVOD will increase in value as it becomes more data driven complying with user privacy and better in targeting viewers. The better the social integration, the more that will be watched on constant programmed channels.

The lessons have been learned by media companies is that they must maintain their own brand and operated environments in the world of platforms. However, they must continue to experiment with publishing channels to direct audiences and own distribution (and monetization). In the grand experiment of OTT programming, content is being produced and distributed in 24/7 streams to start up on platforms that garner the greatest audience for the brand. The future of OTT is here, flipping your favorite channel.

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