Big TV's Broadband Blitz Networks Are Launching a Slew Of Web Channels for All Tastes; College Sports and Quilting Tips
By BROOKS BARNES Wall Street Journal August 1, 2006; Page B1 http://online.wsj.com/article/SB115438951538422835.html?mod=hps_us_inside_today Not long ago, video on the Web consisted of pirated TV shows and movies, amateur videos posted on blogs and a scattered array of news and sports programs mostly available by subscription. But suddenly, Web video is exploding -- fueled by high-speed connections, easier downloads and a flood of new entertainment offerings. Advertisers are moving in swiftly with TV-like commercials, feeding more growth. Movie studios are negotiating with big digital platforms such as Apple Computer Inc. and Microsoft Corp. to allow sale of movie downloads. Search companies like MSN and Yahoo Inc. are buying programming and emerging as online video destinations in their own right. TV networks are jockeying for position, determined not to get caught flat-footed like the music industry did by file-sharing piracy. But producers also are wary of releasing too much content and seeing its value collapse. This series explores the implications of the Web video boom for all the major players -- TV networks, film studios, Internet portals and consumer electronics. * * * When it comes to tapping into the boom in Web video, Big TV is in hot pursuit of an utterly foreign strategy: smaller is better. The networks are launching a blitz of broadband channels for decidedly niche audiences. NBC Universal, a unit of General Electric Co., is developing video sites aimed at gay men (OutzoneTV.com), comedy fans (DotComedy.com) and TV junkies (BrilliantButCanceled.com). CBS Corp. operates Innertube, a Web channel with original video for teens and young adults, and theShowbuzz.com, dedicated to entertainment news and gossip. E.W. Scripps Co. is launching 12 video channels devoted to such narrow topics as woodworking, quilting and healthy eating. Using such Internet-video sites is like flipping through channels on a TV with a computer mouse instead of a remote. A menu of programs pop up for on-demand selection. The content ranges from complete shows to clips and extra footage that didn't make a show's original cut. The sites are largely free but carry ads. "We're on the verge of an explosion of these kinds of ultra-focused broadband channels," says Jordan Levin, a former Warner Bros. executive who recently co-founded a production and management company called Generate LLC in part to develop video content for the Web. "Just as television evolved from the broadcast networks to cable channels, now we're seeing another splintering of the audience." TV companies see higher profits from distribution of their prime-time shows online rather than the smaller programming, and over the past year they've been working toward that goal. CBS's move to sell episodes of "CSI" on Google Video and Walt Disney Co.'s decision to hawk episodes of "Lost" on iTunes have been the equivalent of sonic booms in the media industry. But the networks are limited by contracts with affiliated stations and Hollywood unions that restrict the number of prime-time shows the networks can stream over the Internet -- at least until those contracts come up for renewal near the decade's end. The networks also are reluctant to make more shows available online until it is clear whether such a move could hurt their main business. So they are experimenting with niche broadband channels and keeping their options open in part to avoid the damage the music industry has suffered by fighting unauthorized downloading. Another reason for the scramble to launch broadband channels: TV executives are increasingly worried about losing ground to Internet companies such as Google Inc., Yahoo Inc. and Microsoft Corp. that also are chasing online video business. Content creators say they aren't worried that Yahoo or Google will be able to compete soon with the networks' huge prime-time platforms. But they are concerned that Internet companies can outmaneuver them with video sites that aim to attract niche audiences. Specialized content is cheaper and easier to produce than broad entertainment programming because it doesn't rely on scripts, movie-like production values or significant marketing to reach its audience. Indeed, the success of the video-sharing Web site YouTube has shown that a couple of fraternity brothers with a high-end digital camera can create video content that can grab the attention of millions of viewers. Seven-month-old YouTube says it streams 100 million video clips a day, with users uploading about 65,000 new videos daily. "Either we move quickly into this space or we leave it open for others, and that makes us very vulnerable," says John Lansing, president of Scripps Networks. Scripps, which owns such TV properties as DIY Network and Food Network, has so far launched three of its 12 planned broadband channels. Gaining traction online with videos is likely to be a hard road for the networks, media analysts predict. One key reason is that TV companies are still trying to figure out how to market these Web channels. They aren't eager to spend a lot of money to push them because the sites currently aren't generating much profit. Viewers and advertisers have mostly been flocking to entrenched online outlets such as Time Warner Inc.'s AOL or Microsoft's MSN. While on-air TV promos can drive viewers to Web channels -- CBS says traffic on Innertube soars whenever ads for it run during prime time -- networks' limited promo time favors their other shows. Plus, the networks' broadband channels are becoming too numerous to plug. Through its CSTV unit, CBS operates 250 video Web sites dedicated to college sports teams, which will stream 10,000 events during the upcoming school year. To keep costs down, most of the entertainment on these sites is taped on a shoestring budget -- a potential problem when it comes to wooing media-savvy viewers. "You've got to put on content that people want to watch, not just content that wasn't good enough to put on TV," says Generate's Mr. Levin. "Modern viewers can spot those kinds of shortcuts in a second and it weakens your brand." Some content has been blasted by critics. One TV critic recently wrote that NBC's Internet-only mini-episodes of its sitcom "The Office" look like "outtakes swept up from the remainder bin." The segments, which were taped especially for the Internet, do not feature the show's star, Steve Carell, primarily because there was no budget to pay him. Jeff Gaspin, NBC Universal's president of cable entertainment and digital content, says "The Office" webisodes were never intended to be more than snippets to keep the show's fans engaged over the summer hiatus. Mr. Gaspin says Web content doesn't need to mirror TV content to succeed. "This is a new medium with new rules," he says. NBC says about one million streams of "The Office" webisodes were played during their first week on NBC.com. Agents and studio executives say many writers and producers are anxious to develop content for the Web, even if the budgets are small. "These people have great ideas all the time that we can't fit into the format of a network or cable show," says David Stapf, president of CBS's Paramount Network Television studio. "This is an area where they can experiment." ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
