3A's to save the advertising: Audience – Addressable – Advertainment (Webcast: The Conference Board Europe)

 

In a world in which the consumer suffers from advertising fatigue and advertising blindness, Hugues Rey, CEO Havas Media Group BeLux, joins us to discuss how data and dynamic creations enable us to reach the right person at the right moment on the right channel.

Advertising is still a massive budget for corporations and concerns remain on the effectiveness of channels in a fast changing media world. How can companies switch from perceived irrelevant spending to a tangible return on investement and better connect with their consumers in the process?

Key takeaways around the 3A’s

  • Audience – From reach to audience, what are the ways to connect better with the consumer to deliver the relevant content?
  • Addressability – What is the future of the mass media and how to use it in a more accurate targeted approach?
  • Advertainment – How to develop specific and dynamic content that engage, educate and entertain the consumer?

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Vivendi’s innovative vision for mobile TV (Source: Business Insider)

French conglomerate Vivendi hopes to usher in the next era in digital video via a Netflix-like app built specifically for mobile. The service, dubbed Studio+, debuted in Latin America last year, and features International Emmy-nominated short-form episodic content that can be accessed in full with a $4 monthly subscription.
Source: http://www.businessinsider.fr/us/vivendis-innovative-vision-for-mobile-tv-2017-12/?utm_content=bufferbd16c&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
streaming video in public
BI Intelligence

With Studio+, Vivendi aims to seize a sizeable portion of video’s next major battleground — mobile. As time spent with traditional linear TV wanes, and incumbents (chiefly Netflix) continue to dominate long-form digital video, mobile is emerging as the next frontier. Following the trend, media companies, large and small, are pouring resources into developing a mobile video strategy.

  • Studio+ is subscription-based, contrary to most efforts in mobile video which aim at ad dollars. Unlike the majority of moves in mobile video, such as Snapchat Shows and Facebook Watch content, Studio+’s business model is based purely on subscriptions — a largely untested model in the space. Although services like Netflix and HBO can be accessed on mobile, mobile-only variants of subscription video on-demand (SVOD) are non-existent, with the exception of Studio+.
  • Like Netflix, Studio+ seeks to take short-form mobile SVOD mainstream, but with a significant twist. Dominique Delport, chairman of Vivendi content, explained that Studio+ targets the modern “content connoisseur” — someone who is deliberate about the shows they watch and not fully satisfied with the typical slate of digital and social video. This audience, in Studio+’s mind, would revel in high-quality, short-form episodic programming.
  • The app features scripted shows that look and feel like TV programs, but are optimized for mobile. These shows follow an innovative 10×10 format: One season consists of 10 episodes, with each episode lasting a maximum of 10 minutes. A season costs $1 million to produce ($100,000 per episode), and takes a year to develop in full and launch in the app, making Studio+ shows pricier than ordinary digital video to develop, yet much more time- and cost-efficient than TV programs.

Studio+ leans on partnerships with telecoms around the world to distribute its content and grow its audience. The app launched in Brazil in 2016 via Vivo, the country’s largest mobile operator, before arriving in France via Orange and Bouygues Telecom, and Italy via Telecom Italia. Meanwhile, the US version of the app launched in early November. Delport, in conversation with BI Intelligence, said a deal has already been reached with one of the Big Four US telecoms and Studio+ is in ongoing discussions with another two. Thanks to this strategy, Studio+ has grown to more than 5 million paying subscribers globally.

The app taps into synergies across the Vivendi network, namely Canal+, Universal Music Group (UMG), and Havas. Studio+ shows are produced with the help of Canal+, a leading European film and TV producer and distributor, and UMG, the world’s largest record company. Delport also described how Studio+ can be offered to Havas’s advertising clients for branded content opportunities, citing “Farmed and Dangerous,” an original comedy series by Chipotle, as an example of the kind of work he envisages.

The emphasis on high-end scripted shows structured in a 10×10 format and delivered in a mobile-only app makes Studio+ unique. At its core, the product is a bet that consumer behavior is shifting towards watching and paying for high-quality video on mobile, and that people’s preferences for mobile video are maturing beyond short-form, bite-sized content. If Studio+ goes to plan, Delport, and Vivendi, could have the Netflix of the mobile era on their hands.

 

How Netflix, Amazon, Hulu Use Big Data to Change TV Watching

Source: How Netflix, Amazon, Hulu Use Big Data to Change TV Watching

 

To radically change TV-watching habits.

Traditional television viewership is on the decline, and fewer people are actually going to the movies. Meanwhile, streaming video services like Netflix, Amazon’s Instant Video, and Hulu keep adding subscribers and original programming.

It’s getting harder and harder to deny that digital content providers are dramatically altering the entertainment industry. So, how did they do it—and what will be required for traditional networks and studios to stay in the game?

Michael Smith and Rahul Telang—two professors at Carnegie Mellon University’s Heinz College of Public Policy and Management—explore these questions in their new book, Streaming, Sharing, Stealing: Big Data and the Future of Entertainment, published by MIT Press last month. In an interview with Fortune, Smith discussed the new book, Netflix’s hit, House of Cards, and the future of entertainment.

The following conversation has been edited and condensed for clarity.

Fortune: Your book describes the success of Netflix’sHouse of Cards as a turning point for the entertainment industry and digital content. Why was that such a big deal?

Smith: The making of House of Cards illustrates how a bunch of different changes coming together at the same time can be really disruptive to the traditional industry. The thing that Netflix had that nobody else in the industry had was they didn’t just know that there were a bunch of [fans of the House of Cards‘ lead actor, Kevin Spacey] in the abstract, they knew exactly who those Kevin Spacey fans were and they could use the platform to target them directly. So, Netflix went out and created nine separate trailers for House of Cards and targeted them directly to those users. So, I think part of the story is the power of detailed customer data to help you do a better job of marketing the content.

Has the thinking among traditional media giants—who have frequently downplayed the competition they face from services like Netflix—evolved at all in recent years?

There are a lot of very smart, very capable people, who I respect, saying we’re in a content bubble [and] there’s way too much content being made right now for what’s economically feasible. And, what we’re trying to gently push back in the book is the economics of the large-scale bundled subscription model that Netflix is pursuing, [where what the] economic theory says is you can profitably make things in a bundle that wouldn’t be profitable if you sold them separately. I think it’s just as likely that what we’re seeing is the new economics of what’s possible in a Netflix-style bundle. This isn’t a bubble of content production; this is the new normal of what’s possible.

What’s the biggest reason streaming services have a leg up over traditional media companies?

Netflix, Amazon, and Google all own their own data and they don’t share it with anybody in the entertainment industry.

People have made a big deal about the idea of “binge-watching” as the embodiment of the changing way weconsume media. But, what about the tailored content, based on users’ tracked habits? Which is more important?

Both. It’s understanding at a detailed level how individual consumers are accessing the content, and then using the platform to help them discover and find exactly the right content that’s going to meet their tastes. What the academic literature says is that consumers get an incredible amount of value from being able to find exactly the kind of content that meets their unique tastes—and that consumers’ tastes are incredibly varied, more so than what you can find with traditional broadcast channels.

So, what’s the future of entertainment? What will the industry look like in a decade?

We try not to prognosticate too much in the book. What I do think is true is, because of the nature of the data and consumer behavior, a lot of these channels become winner-take-all or winner-take-most-all kind of markets. I think we’re going to have a small number of very powerful players. Now, we’ve always had a small number of very powerful players—what we’re saying in the book is there’s a very high likelihood that it could be a different set of players if the traditional industry folks don’t move quickly.

Could there be consolidation among some of the big companies operating Hulu?

It’s possible. I honestly think that’s their best strategy, to come up with a separate platform. The separate platforms are certainly a good start. The problem is I have no idea what it CBS content versus ABC content, and even less so for movies. Both for marketing reasons and pure economic reasons, it’s much better to go with a common platform that brings together content from a bunch of different players than to try to go with individual platforms for all the different players.

Subscription Business Models Are Great for Some Businesses and Terrible for Others

How to tell the difference.

Source: Subscription Business Models Are Great for Some Businesses and Terrible for Others

Today it seems like everyone is rushing to join the digital membership economy. Two of the most popular tactics are online communities and subscriptions.

For example, you can now subscribe to razor blades, underwear, groceries, clothes, toiletries, even dog toys. Or you can join a premium community for advice, guidance, and connections with like-minded people on topics ranging from healthcare to entrepreneurship to art lessons.

Lots of companies would love to implement a subscription model, especiallyone with a sticky online community component. This allows firms to build long-term, profitable relationships with customers – seemingly the perfect solution to the era of digital disruption.

But for every LinkedIn or Amazon that’s pulling it off, there are dozens who have failed. What separates the leaders from the stragglers?

Leaders…

Make sure they have a market/service fit before investing in on-boarding customers. Start at the bottom of the funnel. Before investing a nickel in developing your message or turning on the loudspeaker, you need to be sure that once target buyers try your offering, they will love it and will want to continue paying you forever. Until you are confident in that fit, focus your investment on designing the right offering.

Identify the right metrics. In the transactional economy, the most important measures are new customer acquisition and sales. In the digital membership economy, the metrics best apt to indicate success are more likely to be around member churn and engagement. In other words, how long they stay is more critical than how many walk through the front door.

Invest in building a culture of membership. Subscription is a pricing structure. Membership is a mindset. Successful membership businesses focus on the long-term relationship. This has implications across the organization.

  • For sales, the moment of transaction is the start, not the finish line.
  • For finance, short-term revenue gains do not justify poor treatment of members.
  • For product development, the offering needs to evolve constantly to meet members’ needs – changes only every year or two won’t cut it.

Love their members more than their products. When I joined Netflix, it was for three-DVDs-out-at-a-time. Today, streaming is a more efficient way for me to access professionally created video content, and Netflix provides me with streaming. And they are using what they’ve learned about my behavior and preferences to actually create much of the content that I watch. I didn’t join Netflix because I wanted DVDs. I joined Netflix for access to great content in an efficient way. Netflix isn’t in the DVD business, although for some period of time they will continue to offer DVD subscriptions.

I don’t join a gym for a specific class or workout machine. I expect my gym to provide me with a range of equipment, classes and learning opportunities to optimize my fitness. This means that they need to swap in better offerings as they emerge. No one piece of equipment or delivery platform is as important as the overarching goal of your members. It’s the members’ mission that should be your guiding star, not your products, whether you offer DVDs or workouts.

You have to be willing to sunset the old and bring in the new to honor your side of the bargain.

Stragglers…

Create a membership model just because they want recurring revenue.Organizations sometimes move to membership purely to generate more revenue. They aren’t thinking about the value-add for members. Kate Hudson has a lovely line of yogawear available through subscription, which is great, but some people thought they were buying a single outfit and were surprised to find themselves being auto-charged. Not everyone needs a new outfit every month. In building a formal long-term relationship, trust is critical.

 Let the members determine the direction of the business. While you do need to put your members at the center of everything you do, you can’t let them (or their online discussions) drive your strategic direction. Often, today’s members are less likely to be willing to transition to the new. As a result, they might send you in a direction that doesn’t appeal to incoming members.

Let’s say you run an online community. By default, the longtime members are comfortable with your web interface. And switching costs might be high. So it might seem like you don’t need to invest in new platforms. But new members, who are in evaluation mode, might be more likely to want a mobile app option, and may not join without it. Inertia can keep members from canceling, but don’t fall into the trap of confusing it with love.

Inertia isn’t love, and feedback isn’t strategy.

Some members’ input may be more valuable than other’s depending on their vintage (i.e. the future over the past) but preferences are their domain and strategy is yours. Listen most to the members who are most representative of your future, but remember to spend some time studying the market and prospects as well in order to get a full picture.

Give it away, hoping to make it up in volume. I love freemium, the idea of combining a premium paid membership with a free membership that provides value forever. But freemium needs to work in service to a larger business strategy. Freemium works best in three scenarios:

  • As a means of trial. Many people who have a free subscription to Dropbox get all of the online storage they need. But for others, as they make Dropbox part of their daily routine, they find they need more storage and greater functionality. As a result, they upgrade to the premium service.
  • To create a networked effect. Each new member that joins LinkedIn for free creates additional value for the recruiters, salespeople and jobseekers paying for LinkedIn subscriptions. And if no one used the free version of LinkedIn, there’d be little reason for those people to pay at all.
  • To serve as a marketing channel. Some people never pay for a SurveyMonkey subscription, because they only need small surveys sent to a few people, with limited analytics. But when those people send out their surveys, they are advertising for SurveyMonkey to everyone who receives the survey. If one of those survey recipients subscribes to the premium offering, the sender (who’s a free member) becomes a marketing channel for attracting and converting new members.

If you aren’t using your free subscription for one of these purposes, there is no reason to offer your membership for free. And note that it is very hard to charge for something that used to be free, as What’sApp, Napster, and many other companies have learned the hard way.

As long as your success depends on connecting with buyers who have choices, you can differentiate your business by joining the digital membership economy. But success depends on more than just changing your pricing structure. By changing each piece of your business model to focus on maintaining a long-term relationship rather than on quick acquisition of new customers, you can enjoy higher profitability, more predictable cash flow and customers who are your ambassadors.

Frank and Claire Underwood have one option: fight to stay on top. New episodes February 27. (Netflix)

The third season of House of Cards will be out February 27th, and Netflix just released the first trailer. It looks like things are just going to get more tense for the Underwood family and the people they’ve torched along the way. In rhythm with Kevin Spacey’s on-the-nose monologues, Netflix set the new trailer to A Perfect Circle song titled (actually) “Counting bodies like sheep to the rhythm of the war drums.”

Here are some of the lyrics to “Counting bodies like sheep to the rhythm of the war drums.”

Go back to sleep
Go back to sleep
Countin’ bodies like sheep to the rhythm of the war drums
Go back to sleep
Go back to sleep
Countin’ bodies like sheep to the rhythm of the war drums
Go back to sleep
Go back to sleep
Countin’ bodies like sheeps (Like sheeps…)
Go back to sleep…

“We’re murderers, Francis,” Claire says in the trailer. Yep.

“La télé ? Un iPad géant où Netflix, beIN Sports et Canal+ se battent pour votre temps” – Le Point

Source: AFP

“La télé ? Un iPad géant où Netflix, beIN Sports et Canal+ se battent pour votre temps” – Le Point.

Le patron et fondateur de Netflix, qui lance sa plateforme de vidéos illimitées en France ce lundi, raconte la télévision de demain. Interview.

“Imaginez la télévision comme un iPad géant où les applications Netflix, beIN Sports et Canal+ se battent pour votre temps”, raconte le patron et fondateur de l’américain Netflix Reed Hastingsqui lance sa plateforme de vidéos illimitées lundi en France, avant cinq autres pays européens cette semaine.

Quel est votre objectif sur le marché français ? Ne risque-t-il pas d’y avoir une déception pour ceux qui s’attendent à trouver sur Netflix des films récents ?

Reed Hastings : Sur le long terme, dans cinq à dix ans, nous visons un tiers des foyers français abonnés à Netflix, comme c’est le cas aux États-Unis. Mais à court terme, durant la première année, la réputation sera notre priorité. Arriverons-nous à avoir une bonne réputation auprès des utilisateurs français grâce au service que nous offrons ? Le travail sur la plateforme, la qualité et la définition, la sélection, la facilité d’utilisation… La clé d’un succès sur le long terme, c’est la première année. Sans se focaliser sur le nombre d’abonnés, mais sur leur satisfaction. Sur Netflix, nous proposons des nouvelles séries originales et en provenance du monde entier, mais, en France, nous sommes tenus par la chronologie des médias (qui empêche les services de vidéo à la demande par abonnement, comme Netflix, de diffuser des films sortis au cinéma il y a moins de 36 mois, NDLR) qui nous empêche d’avoir des films récents. Il n’y a rien que nous puissions y faire. Les gens veulent avoir accès à tout, mais chaque pays a ses propres lois. En Belgique, en Allemagne ou aux Pays-Bas, nous pouvons diffuser des films récents. Je ne pense pas que nous aurons un jour un impact sur la chronologie des médias, seuls les consommateurs français pourront un jour en avoir un. Le danger, c’est que, sans cette évolution, le piratage va continuer de croître. Au Canada, depuis notre arrivée, nous avons observé une baisse du piratage, comme sur BitTorrent, qui est passé de 30 % à 10 % du trafic sur Internet. Le piratage est notre plus grand concurrent.

Après cette étape d’expansion européenne, quels sont les plans pour Netflix ? Pour maintenir vos prix bas, ne devez-vous pas accroître en permanence le nombre de vos utilisateurs ?

Cette semaine, nous allons lancer Netflix en Allemagne, en Belgique, en Suisse, en Autriche et au Luxembourg. L’année prochaine, nous allons probablement continuer à nous étendre en Europe. Nous allons aussi commencer à regarder le marché asiatique. Nous voulons que Netflix soit disponible pour tout un chacun, partout dans le monde. Quand nous produisons une série comme Marseille (la série française attendue pour 2015, NDLR) ou Orange Is the New Black, ça devient accessible à tout le monde au même moment. Il n’y a pas de chronologie des médias ou de fenêtre diffusion avec nos propres séries. C’est vrai qu’avec nos prix bas nous devons continuer de nous développer. C’est pourquoi nous nous concentrons là-dessus. Et avec nos prix bas et le mois d’essai gratuit, tout le monde peut nous rejoindre facilement.

Quelle est votre vision de la télévision du futur ? Les cinémas existeront-ils encore dans 20 ans ?

Oui. Je pense que les cinémas sont comme les restaurants : un endroit où aller pour s’amuser. Vous pouvez toujours cuisiner à la maison, mais vous aimez sortir aussi ! Aller dans un cinéma est une vraie expérience, c’est un endroit fabuleux pour se détendre, tout comme les restaurants. À la maison, imaginez la télévision comme un iPad géant où les applications Netflix, beIN Sports et Canal+ se battent pour votre temps, innovent et sont régulièrement mises à jour, comme les applications sur votre téléphone. Téléphones, tablettes et télévisions : trois écrans, mais avec un seul usage et des applications.

 

Fire TV: Amazon’s Television Set-Top Box Revealed | TIME.com

Fire TV: Amazon’s Television Set-Top Box Revealed | TIME.com.

The online giant’s small television set-top box, which costs $99 and begins shipping today, will stream movies, TV shows and music from users’ Amazon libraries, services like Netflix and Hulu, and apps like Pandora and iHeartRadio

Amazon has announced the Fire TV, a small television set-top box for streaming movies, TV shows and music.

The box is slimmer than a dime (standing up, that is), and can either sit in an entertainment center or mount behind the television. A small Bluetooth remote has a handful of buttons for media playback and navigation, similar to an Apple TV remote, but it also has a microphone for voice search.

As with Amazon’s Kindle Fire tablets, the software is partly based on Android, but it also uses HTML to support easy porting of apps from other television platforms. Apps for Netflix, Hulu Plus, YouTube, WatchESPN, MLB.tv, NBA, Crackle, Bloomberg TV and others will be supported at launch, and of course Amazon will have its own services on board, such as Amazon Prime Instant video and a store for purchasing and renting videos.

Doug Aamoth—TIME

Beyond video, Fire TV will stream music from users’ Amazon libraries and from streaming apps such as Pandora, iHeartRadio and TuneIn. Users can view photos as well, as long as they’re stored in Amazon’s Cloud Drive services.

Kindle Fire users can see information about what’s on the TV using Amazon’s “X-Ray” feature. Users will get a notification on their tablets, letting them tap to learn about actors and other information on a video, and see lyrics for music. Amazon’s FreeTime Unlimited service is supported as well, allowing parents to set time limits for their children and get recommendations on kid-friendly content.

As rumored, Fire TV will have a gaming component, and Amazon lists Disney, Gameloft, 2K, Ubisoft and Double Fine as some of the publishers that are on board. An optional Fire Game Controller will sell for $40, but users can also play games through the remote control or with a companion phone and tablet app. The games are mostly adaptations of mobile titles, such as Gameloft’s Asphalt 8, Minecraft Pocket Edition and Disney’s Monsters University; many are free to play, and the average price of a paid game is around $1.85.

Doug Aamoth—TIME

Amazon did recently acquire a game studio, Double Helix, and Amazon is now building games specifically for the Fire TV and Kindle Fire tablets. One example Amazon demonstrated is Sev Zero, a third-person shooter that includes some tower defense elements. (Amazon’s website shows how a second player can use a Kindle Fire tablet to view the map, collect resources and launch air strikes.)

Fire TV’s components are similar to that of a smartphone or tablet, with a quad-core processor, a dedicated graphics processor, 2 GB of RAM and dual-band Wi-Fi. It supports 1080p video and offers Dolby Digital Plus Surround Sound via HDMI or optical output.

Amazon says it set out to fix a few common complaints with existing TV boxes: Performance can be laggy, search is too difficult on a typical remote control, and closed ecosystems don’t always offer the services users want. The Fire TV’s powerful specs and remote control microphone may solve the first two problems, but with the exception of Apple TV, many other set-top boxes are open to competing music and video services. Still, the gaming element is a unique feature, and the focus on a simple, speedy interface could help Amazon stand out.

Amazon’s Fire TV costs $99—same as an Apple TV, but twice the price of the cheapest Roku device—and is shipping today.