Category Archives: VOD

VOD

The Year of Addressable TV Advertising

dean-black-arrowWired Magazine mentioned it first; 2014 will be the year of addressable TV advertising.

Trials of addressable ads are already taking place in the US. Pay-per-view cable channel Starz, working with cable operator DirecTV, has been using data about which subscribers use video-on-demand, to pitch ads for its shows. More importantly, it also uses the data to avoid streaming ads to existing Starz subscribers, to prevent preaching to the converted. The result is a 49 per cent jump in sales, compared to a control group, from households shown the targeted ads. HBO has been using a similar system to promote Game of Thrones.

Wired Magazine also just predicted that Facebook will own all mobile advertising, Why? How? Because they own a social network and have a wealth of data on consumer preferences and a predictive analytics team that can match ads with what consumers are most likely to click on.

Google and other outfits operate similar mobile ad networks, but Facebook is unique in its ability to target ads based on user demographics, interests, location, and activities involving everything from internet searches to online shopping. That’s the benefit of running a social network.

In this new ecosystem of advertising, its not enough just to own a vast source of data about consumer preferences, the other half of the equation, understanding the myriad of nuances for how best to utilize that data and serve up the best ad, is equally if not more important.

Take for example, the famous case of Target retail stores, who predicted a woman’s pregnancy before she knew it herself. This New York Times Article is one of the best stories out there at describing the trials and tribulations of addressable advertising, and just how Target retail stores, and their big data analytics team has discovered many of the secrets towards deploying effective advertising.

As Pole’s computers crawled through the data, he was able to identify about 25 products that, when analyzed together, allowed him to assign each shopper a “pregnancy prediction” score. More important, he could also estimate her due date to within a small window, so Target could send coupons timed to very specific stages of her pregnancy.

We are at the forefront of a whole new industry; Big Data, or more precisely, “Information Science”. Addressable TV advertising is just one niche of the big data revolution. Harvard Magazine does an excellent job of covering Big Data and how it will shape the future for most industries.

In marketing, familiar uses of big data include “recommendation engines” like those used by companies such as Netflix and Amazon to make purchase suggestions based on the prior interests of one customer as compared to millions of others.

But as of today, most advertising dollars continues to be spent on commercials for the big screen TV at home, and increasingly on ads for the second screen; including mobile phones, tablets, and other connected devices. And with this shift, there is a growing need to provide targeted ads for OTT and VOD content.

A recent deal has been struck between BlackArrow, a leading Dynamic Ad Insertion technology company, and Nielson, the leading television research, analytics and ratings firm, to begin offering on-demand commercial ratings (ODCR).

That’s where BlackArrow comes into play. By allowing the operator to switch out ads in VOD content on the fly, BlackArrow makes every older streaming episode an environment for the same ads that are now airing in CBS’ live broadcasts. As Nielsen’s ODCR scheme is designed to measure VOD deliveries that occur beyond the three-day window, those once-neglected views are now just as valuable as live ratings.

This Newsweek article provides excellent coverage about the BlackArrow Nielsen ODCR partnership and what it means for TV operators and consumers.

The Nielsen-BlackArrow pact comes as the networks increasingly look for ways to help wean viewers off the DVR, which makes commercial-skipping as easy as holding down a button while staring off into space. A far more advertiser-friendly service, VOD promises to add incremental value to linear TV buys. At the same time, viewers needn’t worry about running out of memory or forgetting to record a favorite show.

BlackArrow CEO Dean Denhart discusses this new landscape of addressable TV advertising with Fox News at the LA Cable TV Show.

Television advertising will perhaps reign supreme for quite some time, with relevant addressable targeted TV advertising coming to the forefront as one of the most sought-after technologies for both live as well as pre-recorded TV content. This is indeed the year of addressable TV advertising.

2014 Trends in Online Video

tv-trendsPatrick Hurley of Skytide has put together a work-in-progress whitepaper about the trends in online video viewing that can be expected for 2014. In these trends, he lists #1. Social TV will take off. #3. Quality of experience (QoE) will trump all. We couldn’t agree more on both of these aspects, these indeed are two of the more predominately driving features of bhaalu. Here is the whitepaper:

VOD Versus DVR Industry Discussion

black-arrow-AdWeek-panel-2As the Fall TV season kicks off, several TV industry insiders provide a round-table discussion concerning how the TV landscape has changed over the past year. The event was hosted by MLB Advanced Media. Here are some highlights:

  • Video On Demand is in 60% of households and viewership has grown 40% in the past year.
  • Binge Viewing is an absolute phenomena, we have entered the golden age of serialized dramas.
  • DVR versus VOD: This topic was a big focus of the video. VOD is the preferred technology for monetizing, DVR gives viewers control over the box, which makes it harder to monetize. DVR puts immense pressure on the eco-system, because consumers are capable of zapping through advertising. Healthy advertising revenue stream is a critical component. The way to achieve is through robust on-demand offering.
  • Multiscreen is also changing the landscape, viewers want to consumer their TV content through mobile devices at any location, at any time convenient with their schedule. Video on demand and DVR technology offers that.
  • VOD has been around for a decade, but TV Everywhere is the shiny new toy getting all the attention.

For more perspective visit this article at the Black Arrow website, and/or watch the full video below.

M1 MiBox Displaces 1Box

M1, the third largest Telco in Singapore after SingTel and StarHub has announced its successor to  the softly received television platform 1Box. The new TV device is called MiBox, and it doubles the amount of paid online content previously offered.
mibox-448x198

The MiBox Set-Top box TV device allows customers to stream online content to their TV. MiBox will replace the telco’s current service 1box, which was released back in 2010.

MiBox offers 18,000 videos-on-demand, 116 TV channels, 1,200 e-books and 370 apps, some of which are free. The service is priced at S$8 (US$6.33) a month with a two-year contract for M1 fiber customers, bundled with an Android set-top box, a selection of free shows and other content. For non-fiber customers, the service is priced at S$12 (US$9.50) per month.

“Media consumption habits are shifting towards an on-demand, a-la-carte model. M1′s MiBox aims to enhance this experience by delivering convenient and affordable access to an exciting library of entertainment, e-learning, and gaming content optimised for the TV screen,” P. Subramaniam, M1′s chief marketing officer, said in the release.

Full story at ZDnet.

Demand TV Growth Driven by Asia Pacific

The Asia Pacific region is driving growth in on-demand TV. Based on the forecasts of 97 countries, on-demand TV revenues from movies and TV programs (excluding sports, adult, SVOD packages, online TV and OTT) will reach $6.0 billion in 2018, up by 44% from $4.2 billion in 2012.

On-demand TV generated just 2.3% of the $184 billion total pay TV revenues in 2012. However, the on-demand proportion will grow to 2.9% of the $203 billion total in 2018. Growth in on-demand TV revenues in some mature markets will not be enough to compensate for falling subscription revenues. The US accounted for 37% of global on-demand TV revenues in 2012, but this proportion will fall to 30% by 2018 – despite its revenues climbing by 16%.on-demand-tv-growth

View the full report on Demand TV Growth in the Asia Pacific region provided by Digital TV Research.

 

 

Singapore Based Viki Acquired by Rakuten

viki_logo_500Rakuten, the Japan based e-commerce giant, acquired Viki, a Singapore based global streaming video platform that crowd sources foreign language translated subtitles, for a reported $200 million.

Based in Singapore, Viki operates similarly to Hulu.com by offering premium content such as primetime TV shows and movies. Its advantage over other on-demand video services is crowdsourced subtitles from 22 million users in more than 160 languages, which allows Viki’s content providers to quickly enter new markets.

Rakuten has acquired Kobo, an Android based tablet e-reader services provider that competes with Amazon Kindle, and Wauki.tv, a European streaming video platform that competes with Amazon’s LOVEFiLM.

Full story at TechCrunch

Netflix Doesn’t “Cannibalize” Regular TV

Netflix Norway

Source: Huffington Post

The rising popularity of cord-cutting has got pay TV providers worried about their customer base and scrambling to give their viewers a reason to stay.  Netflix seems to be growing into traditional TV’s main competitor for video content.

However, a new study by TiVo Research and Analytics (TRA) shows that most viewers use the subscription VOD service as a supplement to, and not a substitute for, regular TV.

Collecting data from nearly 10,000 respondents, the study showed that there was “no significant difference” in amount of regular TV watched between those who subscribe to Netflix and those who do not.  And with over half (57%) of the respondents saying that they subscribed to the VOD platform, Netflix may not yet pose as big of a cord-cutting threat as cable/satellite companies think.

Mark Lieberman, CEO of TRA, says that the study’s results are clear and positive, but do not necessarily bode well for the future of traditional TV:

“Our data show that Netflix is not currently a substitute for traditional television, but offers a way for TV lovers to watch more of the kinds of programs they love. The future of television may tell a different story, but as of today we’ve found that the Netflix subscribers in our study are not watching less traditional TV.”

The future may indeed tell a different story, as another study showed that 20% of Netflix users in the US have already cut the cord.  However, as much of a concern cord-cutting OTT users are for pay TV companies, it’s not time for them to go into crisis mode just yet.  Traditional TV providers still have broadcasting rights to major, one-time events – most notably sports.  As long as they can keep hold of those rights, they always have a chance.

Referenced from RapidTVNews and WebProNews