The Interview and Simultaneous VOD and Theatrical Release

By CASBAA in Media, OTT, TV 0 Comment

The Interview, starring Seth Rogen and James Franco, has received more attention than anyone could have ever predicted. The relatively absurd political comedy was always meant to provoke, but few could have anticipated it would turn into a full-scale international scandal with real geo-political implications.   The entire affair may also be remembered as a tipping point that raised the awareness of corporate hacking and cyber-crime – two issues that every company, regardless of their industry, will have to deal with going forward.

From a commercial perspective, The Interview also became a high-profile test case in releasing films simultaneously on digital platforms and theatrically. Although it was not a true worldwide release, platforms originally limited the digital release to North America, the movie became a cause célèbre for freedom of speech and received an inordinate amount of press coverage. The box office and VOD figures are still being calculated, but will The Interview change how films are released?

Vietnam in View 2014 Monetizing OTT – Is Free the Best Price?

By CASBAA in Media, OTT, Technology, TV 0 Comment

 

With: •Benjamin Yun, VP Business Development SEA, Movideo •Nguyen Nguyet Phuong, Project Director, MyTV •Esther Nguyen, Founder & CEO, POPS Worldwide • Do Viet Hung, CEO, VTVlive

With: Benjamin Yun, VP Business Development SEA, Movideo; Nguyen Nguyet Phuong, Project Director, MyTV; Esther Nguyen, Founder & CEO, POPS Worldwide; Do Viet Hung, CEO, VTVlive

matt-kurlanzik

Matt Kurlanzik

21st Century Fox

Director, Government Relations Asia

 On September 11, 2014, CASBAA conducted its Vietnam in View summit in Hanoi that gathered many of the leaders of the TV and media industry to discuss the current state and future prospects of the Vietnamese market.    From market development and regulatory frameworks to TV production, the event was a great success and touched on many crucial issues.  One of the more provocative subjects was the future of distribution and consumption of Vietnamese content, and a panel of four industry professionals focused on over the top (OTT) video and attempts to monetize this content in Vietnam.The four speakers represented a variety of interests – from Movideo  an online video delivery platform, to traditional cable platforms entering the OTT space like My TV and VTV, to POPS Worldwide a multichannel network focusing on local Vietnamese content.   All the speakers agreed that OTT video is a tremendous opportunity and stressed that OTT video may allow “non-traditional” players to enter the video production and distribution business.The panelists also focused on the need for Vietnam to update its technological infrastructure to allow for high quality content and delivery in order to prevent buffering and a poor user experience.  Expanding 4G was cited as crucial to the development of OTT in Vietnam, but fixed internet connections also need to be improved before widespread OTT adoption may be possible.  According to Akamai, Vietnam’s average connection speed was 1.8mbps for Q4 2013, placing it at 113th place worldwide – and well below the 3.0mbps that American streaming device maker Roku recommends for HD quality content streams.

In concluding remarks, the panelists expressed that OTT in Vietnam:

  • will allow consumers to choose to watch on a number of devices
  • is still “chaotic at the moment”
  • will allow traditional pay TV operators to increase ARPU
  • is something media companies need to learn more about and join in

The Commoditization of Media: The Unspoken Elephant in the Room of Media

By CASBAA in Media 0 Comment

elephant-in-the-room

(Photo by: David Blackwell)

Nick Binns

GroupM

Deputy Head of Trading APAC

 

 

 Moving from conflict to partnerships with media providers 

A traditional article or blog from an agency trader on media commoditization would typically be a fantastic opportunity to showcase the industries general frustration with our clients laser focus on media price and savings.  We moan and grumble about the situation collectively internally as an industry, but very little is conveyed outside of the industry or explained to our partners and suppliers about this change.   The reality is this is now old news; this focus has been in the APAC region for up to five years and won’t naturally disappear for the foreseeable future.   The art for the industry is embracing and managing the change, or as the Chinese say 危机 or wēijī…where there is danger there is also opportunity, we just need to see it.

Let’s take a step back, whilst outside of the industry we read about how exciting media and change is now and what superb time it is to work in media, the hard unspoken taboo is this is the hardest and demanding time to work in a media agency.   All main media platforms have been commoditized down into laborious pricing excel templates, most key decisions on agencies are based on their ability to offer price improvements whereas new innovative media is deprioritized over traditional media dollar savings year on year.    On average most agencies have to complete over 1,000+ cells or pricing data to enter an advertiser’s pitch process across a limited timeframe.   Whilst fragmentation of media has creating excitement around choice, the rise of advertising budgets in Asia has also raised the importance of ROI and accountability of media to deliver tangible value or globally reported savings.  Sadly this value is largely determined as media rate improvements by our customers, in a region where inflation is prevalent across all traditional procured commodity types.

Whether media savings and commoditization is right or not is not for us to say unilaterally, what is more important to debate is whether this is a sustainable focus for the long term.   The hard reality is purchasing low cost Television spots (or any media) for advertisers can be achieved (thanks to GroupM), but more importantly how this ‘economy or budget media’ buy option contributing to a client’s business performance success is a vital bigger question to ask.    A dynamic contemporary agency should by default offer a plethora of services, and cheap budget media is one of those, but how important this is for the client needs to be relooked at on a yearly basis.

As an industry, working with platforms and publishers, what do we need to do differently?  Putting it simply, we need to sell more effectively (dirty word for some, insert ‘promote’)  We need to sell with a balanced focus on pricing and performance, equally selling various value types to advertisers beyond just ‘budget media’ options.   Selling bespoke research, selling content opportunities sell new media metrics and measures of success and also sell harder the true impact of internet and data fuelled media – i.e. selling performance with the right data, not just the of absolute cost media.  Whilst we think we have the trusted advisor relationship with clients, the hard reality is there is no perfect solution to an advertiser’s media brief; there are multiple solutions – some with classical and contemporary media routes, some with just classical media.   We need to sell in these contemporary media opportunities and their contribution to an advertiser’s business performance success, not just the unit cost of this contribution.    Increasingly, advertiser agents will have to start working collaboratively with media partners and suppliers in delivering and determining this measured success for advertisers, accessing and evaluating relevant new and existing data and not agriculturally just horse trading with media vendors on media unit costs and rates.

In terms of commoditization of media, we have to accept this change has happened and is here to stay in some form.   Agents and suppliers need to work together in demonstrating there is value in everything we plan and buy, not just around cost savings and pricing.    As an industry we need to change what we promote and how we effectively sell it to our customers and advertisers, if we don’t the existing ‘show me the savings’ dichotomy will remain a constant.   The elephant is there, it’s time to work with it and not try and hide.

In a nutshell, time to change the measures of success and performance within media investment.  There is a clear need for a focus on new reporting currencies and working even closer with partners and suppliers for more proven effectiveness research, appraising relevant data points and nurturing ‘lightning strike’ implementation strategies and tactics.

Actually, sounds like an exciting time to work in media after all…

 

Views expressed on CASBAA 20 | 20 are those of the authors and not those of the organizations they represent, CASBAA itself or any of CASBAA’s members.

 

The Media Disruptors: 5 stories from CES 2014 and their impact on the media industry

By CASBAA in Media 2 Comments

(Photo: SamsungTomorrow)

matt-pollins

Matt Pollins

Olswang

Associate

 

khush-kundi

Khush Kundi

Ericsson

Head of Compression Solutions, APAC

 By Matt Pollins and Khush Kundi

For the media industry, CES 2014 was one of the most interesting in years. As always, the gadgets made the headlines. We saw everything from connected toothbrushes to 100inch curved screen TVs – and the implications for the consumer electronics industry have been well-covered.But beneath the gadget buzz, we saw some trends that could have a real and, in some cases, immediate impact on the media industry. Here are the top 5 “Media Disruptors” observed by ‘2020.

 

1.  The year of wearables and connected things

First and foremost, this was the year of wearables and connected things at CES.  We saw everything from connected toothbrushes and fridges to wearable devices that monitor user movements and fitness.The opportunities this could open up for media companies are exciting, albeit that the focus so far has been on the implications for the consumer electronics industry rather than the media industry.

One thing we do know is that devices that hold (or send to the cloud) a huge amount of user data will enable an even greater level of interactivity between user, screen and content, and that has to be good news for advertisers and the TV industry alike.

Could a user’s TV check with their fridge as to whether they have the ingredients for a recipe the user has just seen on Jamie Oliver’s latest show? Could users receive customised advertisements based on how long they brush their teeth for or what time they tend to go to bed?

Scary or cool? Of course, media companies and advertisers (like everyone else) will need to tread carefully and bear in mind the privacy and data security concerns that these developments give rise to. But managed properly, the ability to merchandise, sell through and in general create more immersive content experiences for realising the true value of ad dollars becomes more realistic than ever before.

 

2.  The 4K revolution

4K was all the rage, with the major TV manufacturers touting their latest line-up of 4K sets.  But 4K wasn’t new – last year there was also a lot of 4K hype. So what was different in 2014? We can think of three things: affordability, proposition and content.

Things are looking positive for consumers in terms of affordability – we already saw sub $1000 sets being launched and we know that prices will continue to come down.

The bigger question is about the customer proposition. To succeed, 4K needs to be pitched as more than just “resolution”. Services that bring together several technologies like high frame-rates, high dynamic range and multichannel audio to create a truly differentiated service offering are, in our view, far more likely to succeed than those that devalue the proposition by presenting something that is perceived to be HD with an expensive badge on it.

The last hurdle for 4K is content. This year saw the emergence of genuine content providers coming to the market with content shot and/or mastered in 4K.  Netflix made the biggest splash with Reed Hastings appearing with several vendors promoting the launch of House of Cards Season 2 in 4K along with a slew of other titles.  Sony, Amazon and several others did the same. What’s also quite astonishing is that it’s the OTT players like Netflix that are making the biggest noise about this, rather than the traditional delivery platforms. Whilst this is great PR for OTT services, it also brings to mind a potential problem in the Asian market: BANDWIDTH. Netflix says it will deliver 4K at 15Mbps. This is fine for the Asian countries that have high broadband speeds (South Korea, Japan, Hong Kong, Singapore) but the rest of Asia will struggle to get broadband speeds anywhere near this level. Of course, Netflix isn’t in Asia yet but it’s certainly an important consideration for OTT services in the region who are considering 4K streaming.

 

3. Curved to fall flat?

If 4K felt like it had some momentum behind it for 2014, curved screens got a bit of a bashing.

Nonetheless, both Korean electronics manufacturers, Samsung and LG, seem to be investing big in this technology. Both released large, curved screens intended to “wrap around” users and provide a “uniquely immersive viewing experience”. Although some of those who experienced curved screens at 100inches pointed to a “cinema-like” experience, those who experienced it on smaller sets generally complained about image distortion.

The biggest challenge will be in convincing customers who have grown up with “flat” to learn to live with “curved”. If it was difficult to convince customers that 3D was the future of TV, it will be equally difficult (if not more so) to convince them to replace the flat screen they’ve known and loved for one that’s, well, curved.

Our feeling is that if there is a market for this, it will exist at about 100 inches and above – in other words, it’s something of a niche play for now.

 

4.  Smart TVs are getting smarter – and easier to use

Smart TVs continue to get smarter.  2014 saw all the major manufacturers announce re-imagined remote controls, voice and gesture controls and new UIs which are slicker and more in-line with consumer expectations.

But why is all this important?  The answer is user experience. Smart TVs have typically had less-than intuitive UIs and users have voted with their feet, either by not plugging in their Smart TVs in the first place or in just using them as “dumb screens”. For years, the devices that were touted as the “set-top box killers” have somewhat missed the mark by being notoriously bad to use.

LG took a lot of the headlines by demonstrating a new PalmOS-based interface that was slicker and cooler than anything it had launched previously. The use of a platform that was originally built for mobile devices is an interesting choice. It raises the question of whether we will see more offerings incorporating operating systems that users are already familiar with.

If users really do start using smart TVs as much as the manufacturers hope they will, content owners will need to build this into their distribution and marketing strategies. For now, content offerings on smart TV are pitched as a “value add” service – in other words, “you can also watch this great content on smart TVs”. That may change over time if smart TVs become a more primary viewing habit. And in terms of distribution, we expect to see more content owners pushing for platform exclusivity (or at least platform perks, like preferential UI positioning) on the devices that really nail the user experience, as a way to further differentiate their content propositions.

 

5. Content meets the cloud

There were two developments to underline the fact that “content and cloud” is a partnership that is here to stay.

First, WWE announced the launch of “the world’s first 24/7 streaming network”, offering a range of live and on-demand content over-the-top. It is of course not the only content owner looking to take its content direct-to-market – we have seen a proliferation of these services over the last couple of years with a range of business models, from bundling OTT offerings with platform subscriptions through to making them available on a stand-alone basis. Time will tell whether WWE’s move away from its trusted cable pay-per-view model will succeed.

Second, Sony announced that it is testing a cloud DVR service. These services aren’t new (in fact they have been around for many years) but have so far struggled to achieve the level of mainstream take-up that many predicted – in no small part because of the copyright issues that the services tend to give rise to. Nonetheless, with the likes of TiVo pushing its Roamio service and now Sony getting involved in the cloud DVR space, some very big operators are clearly  exploring the opportunities that these platforms give rise to. The biggest challenge will be in respect of content rights. Cloud DVR operators and content owners have historically not seen eye-to-eye and have been generally unable to do content deals that appropriately reward both parties. If that changes, and with the biggest players getting involved, these services could be finally set to take off.

 

Conclusions – it’s not (just) about the gadgets

CES is first and foremost a consumer electronics show. Put simply, it’s about cool gadgets. But CES 2014 further underlined the fact that great gadgets are nothing without great content. Yes, 4K looks great, but people also wanted to know what content they could get in 4K and how it would be delivered to their devices. Reed Hastings’ headline-stealing performance confirmed that the worlds of content and consumer electronics are now inextricably linked. So amongst the 37 football fields worth of “game-changers” on display at the 2014 show, the media industry might just have had an insight into some of the challenges and opportunities that are coming next.