Gary Arlen
Multichannel News

Online Video Is What We'll Watch

April 11, 2012

http://www.multichannel.com/blog/As_I_Was_Saying/33238-Online_Video_Is_What_We_ll_Watch.php


Between Yahoo’s renewal of five online video series last week, Hearst’s 
plan to create two online video channels this week and the “Digital 
Content New Fronts” ad sales pitches starting next week, April’s array 
of activities underscore the emergence and immense validation of 
broadband video.

Let’s also include the announcement late last month that IFC (AMC 
Networks’ Independent Film Channel) will carry the long-anticipated next 
arc of R. Kelly’s “hip hopera” “Trapped in the Closet” music drama, 
which was originally a made-for-Web video series. Inevitably, the cult 
webisodes will be available online and trigger reviewing of the original 
22 chilling chapters.

And I haven’t even mentioned the Google/YouTube $100 million original 
video juggernaut, which is just coming to screen. Add in the data from 
the Arbitron/Edison Research “Infinite Dial 2012? study, which came out 
on Tuesday and you have an avalanche of evidence that broadband video’s 
day has arrived.

Hearst’s announcement is in ways the most revealing since it marks an 
effort by a strong media company to extend its demographic magazine 
franchises into the digital landscape. Hearst will launch two YouTube 
channels (with $10 million of Google funding); basically it will bundle 
female and male content clusters (sorry to sound sexist, but that’s what 
it looks like). The former will become “Hello Style” channel, with 
content drawn from five of Hearst’s titles, including Cosmopolitan, 
Harpers Bazaar and Marie Clair; it will debut on April 15. The “Car and 
Driver” channel, which will show up on May 1, includes content from 
Hearst’s auto-focused titles.

Look at this as a late - but very aggressive - effort (underwritten by 
Google) to avoid what happened to Sports Illustrated 30 years ago. Why 
didn’t Time Inc., already immersed in cable TV and programming, extend 
its legendary “Sports Illustrated” brand into a full-time cable sports 
channel, rather than cede that big niche to start-up ESPN? Hearst, like 
other publishers, is staking its video claim now and will exploit its 
brands.

Meanwhile, Yahoo Screen - which has often been overlooked as 
Google/YouTube escalates its visibility - has also beefed up its video 
lineup. It has okayed second-season renewals for its slate of women’s 
series such as “Let’s Talk About Love,” “Reluctantly Healthy,” and “Chow 
Ciao!” Yahoo says its video line-up currently reaches 61 million unique 
visitors per month and in February, had 21 of the top 25 original online 
video programs. One of its women’s shows, “omg! NOW,” drew nearly 13 
million unique visitors per month.

Against this background, findings from the 20th annual Arbitron/Edison 
study - now labeled “Navigating Digital Platforms” solidifies data we’ve 
seen often about online video habits. The study’s “Nontraditional TV 
Viewing” section notes that more than 27% percent of us (a far higher 
41% in the 12 to 34 year old age bracket) have watched TV by streaming 
or downloading shows during the past month. It points out the impact of 
smartphones and tablet, with more than half of respondents saying that 
such devices, especially the iPhone, have had a “big impact on their 
lives.” Broadband access ranked up there, too, with 43% citing its “big 
impact” factor.

While such data will help us keep track of the growing importance of 
online viewing, the creative landscape is an even more exciting gauge. 
The torrent of new content and advertising initiatives reminds me of the 
cable programming nirvana in the early ‘80s, when each week seemed to 
bring forth new channels and programs (we didn’t call it content back then).

Which brings us to the Digital Content New Fronts (DCNF) - Silicon 
Alley’s alternative to the broadcast and cable network upfronts. Hulu, 
Microsoft, Aol, Yahoo and Google/YouTube will be strutting their video 
lineup to potential advertisers. Digitas, the integrated ad agency and 
another sponsor of the DCNF, has already teased the process with its own 
research showing how online vide engages viewers. Among the highlights: 
Digitas says that 53% of viewers would follow their favorite celebrity 
to a Web or online video series if the star skipped away from linear TV; 
58% said they would watch a favorite TV show online if it posted 
exclusive videos.

The Digitas data also reveals fascinating generation issues - or lack 
thereof. Nearly half (47%) of older baby boomers - age 55-plus - say 
they want to see exclusive online content from their favorite TV shows. 
Among the 18-34 age cohort, about 69% expressed interest.

Data like that - along with the bigger issue of more online video - are 
reminders of why advertisers are looking at how and how much of their 
spending they want to shift to online video. This month’s deluge of data 
and drama suggest that it will be a lot.

At the expense of … whom do you think?

-- 
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George Antunes          Voice (713) 743-3923
Associate Professor     Fax   (713) 743-3927
Political Science       Mail: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011

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