BOM Exam 3
amazon studios and amazon television
- "It's a way to drive people to spend more on the rest of their shopping cart... its all about keeping you in their ecosystem:" - "Amazon is the first company to use a golden globe to sell toilet paper" - Originals directly picked up: US streaming rights - Pilot season: The audience plays network executive - USA streaming rights - buying from producers like woody allen, Ron Moore, - top gear was taken off Britain's programming and amazon picked it up changed the name and kept the producer
netflix and the long tail
- "We're fortunate because we have unlimited inventory space. It allows us to value content in more ways than just mass numbers. For a lot of other buyers the threshold is very high for what makes it on the air because they only have so much space they can allocate to programming—there are a finite number of hours in their schedules. In that world, new series usually succeed or fail because of marketing- did they get enough viewers in the right window to make it a success? Again, those windows are way too small. It has little to do with the actual quality of the content" - "Netflix was able to drive traffic to films that didn't have the resources to compete in a media saturated blockbuster driven entertainment market"
google/youtube merger
- Because the monthly visitors to YouTube grows to 19.1 million - Google buys YouTube for $1.65 billion - "The YouTube team has built an exciting and powerful media platform that complements Google's mission to organize the worlds information and make it universally accessible and useful.. our companies share similar values; we both always put our users first and are committed to innovating to improve their experience. Together we are natural partners to offer a compelling media entertainment service to users, content owners and advertiser." - "Google's goal is to organize the world information and make it universally accessible and useful. To do this, the company relies on ADVERTISING to generate revenues." (Google make money by ads)
beginnings of amazon
- Founded in 1994 - Online store began in July 1995, Primarily books - 1997: Becomes a public company - 1998: Starts selling movies and music - 2001: First quarterly profit - 2005: Launches Amazon Prime - 2007: The kindle is launched - 2010: Amazon Studios launched - 2011: The Kindle Fire launched - 2014: The fire phone is launched, also fire TV • Mission statement: "we seek to be earths most customer centric company for four primary customer sets: consumers sellers enterprises and content creators"
Harry Potter Hogwarts Mystery
- Launch date: April 25 - IOS and Android - Free download, but in game purchases - How to build sustainability? • Really difficult with game apps - How do you generate revenue • In app purchases
HQ
- Launched August 2017, 2 founders of vine - Since October, roughly $1.2 million in prizes across over 200 games - Averages over a million players a day - Why has it been so successful? • Live stream aspect • Big name endorsements • Regular scheduling • Social aspect
beginnings of hulu
- Launched March 2007 - NBC Universal, News Corp. and Providence equity partners - Disney became 4th partner in April 2009 - Time warner 5th partner in 2017 - Original model: Free (with ads) - 17 million subscribers (Jan. 2018) - 2017: Lost $920 million - "No sustained profitability yet" - Primarily repurposed content: Limited access - "Hulu quite simply now has the best premium content on the web... With three major networks and over 150 leading content providers providing content, combined with the best video user interface anywhere online video experience available today"
"we don't want to replace the dollars we were making in the analog world with pennies on the digital side"
- NBC think they lose money by selling the TV program's right to Apple digitally. They want to do the digital, but not to the price as iTunes. - Jeff thinks that, apple is, Under valuing content to sell devices
hulu's corportate media partners
- Spotify (college student discount) - NBC Universal, News Corp. and Providence equity partners - Disney became 4th partner in April 2009 - Time warner, silent partner, 5th partner in 2017 - 21st Century Fox, - CBS Corporation, The CW, - 2018 Stanley Cup® Playoffs and Final - Turner Networks, A+E Networks and Scripps Network
algorithmic culture
- a machine that Netflix check audience performance, know what they like, collect these information (big data)
hulu's business models
- hulu eliminated its free ad supported streaming service- 2016 - Have limited commercials and no commercial plan 1. Hulu (June 2010) - Formally known as hulu plus - $9.99 to $7.99 to compete with Netflix - Commercials - Current season episodes - Show depth varies - Movies - Originals 2. HULU ad free (September 2015) - $11.99 per month - Some shows still have ads - Library is the same
Hulu's over the top (OTT) service
- live tv, Challenges cable - Live TV - Launched May 2017 - $39.99/month - 2 simultaneous streams - Skinny Bundle of 50+ channels Includes: Disney owned channels (ESPN), Fox owned channels, Time Warner channels. CBS - Cloud DVR option - Multiple platforms - Jan 2018: 450,000 subscribers
MCN
- multichannel networks - intermediary service provider - aggregate multiple YouTube channels - Maker: 60,000 creators (Disney buys Maker Studio later) MCNs are attempting to provide value-added services superior to basic YouTube analytics, with programmatics and pioneering attempts at management of scale and volume. An MCN is a Google/YouTube-approved intermediary aggregating, affiliated with, and/or managing YouTube channels by 'offering their assistance in diverse areas, ranging from production to monetisation, inexchange for a percentage of the ad revenue'
crowdsourcing
-taking something out and having crowd contribute to it (users as co-developmers)
methods of monetizing digital content
1. Advertising-based: Similar to TV and radio model • Embedded ads • Pre-roll ads • Overlay ads • Sponsored series 2. Transaction-based: One payment/ one service & Merchandizing • Episode • Season • Rental 3. Subscription-based: Regular payment to access library of content i.e., Spotify, hulu, Netflix, amazon prime
beginnings of youtube
1. Founded Feb. 2005 by Chad Hurley, Steve Chen, and Jawed Karim They former employees at PayPal 2. First video posted: Me at the Zoo on 4/23/2005 - Remains in Beta form until December 2005 3. August 2005 - Article in St. Paul Pioneer Press - Paraphrases Jawed Karim with this basic idea: "making it brain-dead-simple for average computer users to upload, store and share the video clips shop with their digital cameras or recent-model cell phones." 4. November 2005, funding - Secure $3,5 million equity funding from Sequoia Capital - 200,000 registered users 5. December 2005 - Official launch of YouTube - Moving 16 terabytes of data per day (equivalent of 2 Blockbuster stores) - "Lazy Sunday" skit on SNL (12/17/2005) 6. Spring 2006 - 30 million videos streamed per day - Another $8 million investment from Sequoia Capital Eg: Evolution of dance 7. October 2006: the merger 8. December 2006 - Time, person of the year: "You" - Reason: it's story about community and collaboration on a scale never seen before. People start to create content 9. March 2007 - Viacom sues YouTube for copyright infringement (the first major lawsuit) - Ask for $1 billion in damages - Other companies soon follow suit (Premier League, TF1, Mediaset) - The lawsuit spent 7 years 10. May 2007 - Launch of partnership program - Sharing of ad revenues between YouTube and producer 11. August 2009: Individual video partnership launches
beginnings of netflix
1. Founded in 1997 2. DVD rental service 3. 1999: stated subscription service: Unlimited rentals for monthly fee 4. 2000: started recommendation service 5. 2007: streaming service started (2011: Netflix tried to separate streaming from DVD and were going to call DVD Qwikster. Within 3 months they put them back together because people hated it) 6. 125 million subscribers globally in march 2018: 190 countries; US subscribers are 57 million 7. Global streaming revenue in 2017: $11.6 billion
business model for apps
1. Free - Usually ad-supported 2. Freemium - Demo is free - Additional content costs - In app purchases 3. Paid 4 Subscription - Ex: world of war craft, Xbox game pass 5. Franchising - i.e., Lego minecraft, Cut the rope comic book series
HBO and streaming models
1. HBO Go- Cable Offshoot - Launched in 2010 - Subscribed to the premium cable network - Mobile app - Multiple platforms - Thousands of available titles - Additional content - "Traditional HBO on Demand on steroids" 2. HBO Now - HBO's stand alone streaming service - Announced October 2014 - Launched April 2015, Week before game of thrones came out that season - $14.99/ month • All you need is the internet - First on Apple (then rolled out to other venues) - Feb 2018: More than 5 million US subscribers: Available in a handful of international markets 3. HBO via Other Channels - Deals with other streaming companies - Additive experience for the streamers (HULU, Amazon)
key elements of the long tail
1. Make everything available • Provide consumers with familiar points of entry • All types of content available 2. Make it affordable • Further down the tail= cheaper • Lower the price to reflect digital rather than physical costs 3. Make it easy to move down the tail • Netflix originals and other obscure items 4. How does it work • (previous purchases and recommending other item • Captian America Civil war, > look different places imdb find another movie of his bc you like him so you watch snowpiercer)
youtube and copyright issues
1. March 2007: - Viacom sues YouTube for copyright infringement (the first major lawsuit) - Asks for $1 billion in damages - Other companies soon follow suit (Premier League, TF1, Mediaset) - Setting in court in 2014 (7years) 2. Lazy Sunday: - Second digital short created for SNL - Within 10 days of its NBC airing "lazy Sunday" had been viewed ½ million times on YouTube - In 45 days, 5 million views on YouTube - In Feb 2006: NBC Universal demands clip come off of the site - You tube had to take it off
impact of iphone on gaming
1. Non-gamers - Ex: Pokemon Go- wide range of people playing it 2. Indie Developers - Now a section in the app store for indie games. They now promote them
amazon and film release
1. Plan to release 10-12 films annually 2. Budgets of $5-50 million 3. Amazon theatrical releases: - partners with distributors - 30~90 days release - then available in pri
similarities between key digital distribution networks
1. Platform agnosticism: accessible on any device, don't favor one device 2. Controlled consumption: Only give you some of the content 3. Geoblocking: All are available in some places and not others 4. Film and TV properties 5. Move to original content: reliance on repurposed content: Reliance on repurposed content
manchester by the sea
1. Purchased at Sundance in 2016 for $10 million - 2nd highest pickup of the festival - Also purchased 5 other films 2. Outbid fox searchlight and Sony pictures classics among others 3. Partnered with roadside attractions for distribution
types of digital content
1. Repurposed • Taken from original window and repurposed and put somewhere else • Ex: ABC episodes on their app 2. Promotional (enhancement) • Little segments of shows to get people to watch them • Ex: Jimmy Falon talk show 3. Original
advantages and disadvantages to netflix
1. advantages - Netflix is about personalization 2.disadvantages - Increasing content costs - Competition: with other streaming service and their original - Growing and maintaining subscribers - Prestige brad limits programming
advantages and disadvantages to hulu
1. advantages - recent episodes, different plans, original content - Close to 20 million subscribers (up 18% in last four months) 2. disadvantages: - Us focus only (cannot access hulu outside the us) - Impact of fox-disney deal (60% share of the company)
Me and the zoo
4/23/05 first video uploaded to youtube
"amazon is the first company to use a golden globe to sell toilet paper"
Amazon studios (improve image of the brand) i.e., Manchester by the sea
netflix's focus on originals
Brings people in and has new seasons so people stay subscribed Netflix original advertise at the top of the website. Don't have to pay for outside production, in house money 1. Exclusivity to the service • Stranger things o Merchandise, in house becomes in house money o Only get it here 2. Branding • Growing content costs are a necessary available for Netflix • Library for American content that they can't get anywhere else • Not international license for, for international it is important to • create original 3. International licensing • Netflix is investing European content, $1B Black mirror > British content o 3% Brazilian show > dystopian, high production value, o known starts Drawbacks Increasing content costs Competition Growing & maintaining subscribers Prestige brand limits programming
tangerine and shooting on an iphone
Can shoot and movie and edit it on the iPhone, facilitation of art
"hollywood believes in pixie dust. sillicon valley believes in data... today's entertainment has to be a combination of both"
It's about how Hollywood is used to doing things (gut feelings, guesses and hunches) versus the Silicon Valley-based company that use extreme amounts of data. He believes a blend of the two are needed for media to succeed
enhancement (promotional) content
Little segments of shows to get people to watch them Ex: Jimmy Falon talk show
youtube partner program (creators and individual videos)
May 2007: - Launch of partnership program - Sharing of ad revenues between YouTube and producer - August 2009: Individual video partnership launches
"An era of scarcity of audience data to an era of overabundance"
Netflix big data
"netflix is about personalization"
Netflix big data
transaction-based model
One payment/ one service • Episode • Season • Rental Merchandizing
subscription based model
Regular payment to access library of content • Spotify, hulu, Netflix, amazon prime
repurposed content
Taken from original window and repurposed and put somewhere else • Ex: ABC episodes on their app (rerun the show online)
amazon pilot season
The audience plays network executive (amazon does a survey to who votes on the most)
youtube television
The service is essentially a cable replacement, offering live TV to your phone, tablet and television without a costly cable subscription and contract. Partners Seattle sounders Pro tv Exclusive streaming, Coachella 2018 • People like "us" The cord cutting audience
windowing
The successive media that films are released through over time - digital platforms, changing how tv is being viewed - sequencial released windows, different effect scarcity and build demand for products - production costs are high but the reproduction costs are low or to 0. - segment audience is being disturbed bc of the new windows - new distibution strategies, exploiting content values
platform agnosticism
When a specific app or service such as Netflix is available on laptops, Smart TVs, mobile phones, tablets and the like Accessible on all devices, pick up on any device Don't favor one or the other device
evolution of dance
Youtube Spring 2006 - 30 million videos streamed per day - Another $8 million investment from - Sequoia Capital i.e., Evolution of dance
ultimate expedition
Youtube original show can use youtube red to watch the whole series
advantages and disadvantages of MCNs
advantages: sponsors, removal of copyright strikes, collaboration, protect content. disadvantages: revenue split, fake promises, period of contract, lack of trust
youtubes move into professional content
alienates amateurs and youtube is making less money, pewdiepie millions on youtube but anti-sematic things - Advantage over Hulu Available internationally From me at the zoo to wedding show to now, LAFC - soccer
geoblocking
available in some places and not others
cord cutting
cancelling cable subscribtions
function os MCNs
check the term 12
the app economy
collection of interlocking innovative ecosystems. each ecosystem consists of a core company, which creates and maintains a platform and an app marketplace, plus msall and large companies that produce apps and or mobile devices for that platform.
pay per click
commodity is presented to users and sold to ad clients when the ad is clicked
pay per view
commodity is presented to users and sold to ad clients when the ad is presented
bridge content
connecting the gap between seasons with a game or something to keep the audience interested
increasing focus on original content by streaming companies
dont have to pay for streaming rights. bring people to their site, can't find it anywhere else
user generated content
easy to upload made by the consumer
advantages and disadvantages to HBO go and HBO now
entire both in HBO library, sopranos, the wire, HBO GO platform agnostic, disadvantage is the price, just HBO content, HBO Now have to have cable plus the app
lazy sunday
first piracy - Second digital short created for SNL - Within 10 days of its NBC airing "lazy Sunday" had been viewed ½ million times on YouTube - In 45 days, 5 million views on YouTube - In Feb 2006: NBC Universal demands clip come off of the site - You tube had to take it off
"Popularity no longer has a monopoly on profitability"
impact of long tail i.e. 1, Retailer hit like barnes and noble because of lack of physical space to carry everything i.e. 2, Freaks and geeks 8-10 episodes, people still watch it and talk about it, but didn't get the rating that's why it was canceled
CBS all access
is an over-the-top subscription streaming video on demand service owned and operated by CBS Interactive
facebook and revenue
makes most money from advertising and some from payments and fees
spreadable
o Content meant to be shared o Dissemination of content across media o Consumer interaction
sticky
o Encouragement of longer engagement on a site or brand Ex: Netflix starting the next show o Facilitating frequent returns to the site or brand Ex: deal of the day, Snapchat streaks
advertising based model
o Similar to TV and radio model • Embedded ads • Pre-roll ads:Watch ad before you watch show • Overlay ads:Have to click out of the ad to see the content • Sponsored series
netflix's business model
only revenue is from subscriptions
youtube red
paid streaming subscription service exclusively to youtube in the US - Ultimate Expedition (YouTube RED original content) - Offline, kids add on too, original series
industry lifestyle
refer to the the ways in which computers, running complex mathematical formulae, engage in what's often considered to be the traditional work of culture: the sorting, classifying, and hierarchizing of people, places, objects, and ideas.
industry lifecycle
stages of an industry life cycle are: introduction, growth, maturity, and decline - Sales typically begin slowly at the introduction phase, then take off rapidly during the growth phase. - After leveling out at maturity, sales then begin a gradual decline. In contrast, profits generally continue to increase throughout the life cycle, as companies in an industry take advantage of expertise and economies of scale and scope to reduce unit costs over time.
"The ability to sell devices depends on the availability of media content
the importance of digital media (service also depend on the content) A device will not revolutionize any consumers tv habits or industry's fundamental operations. ie - second apple tv: sales low on release date mainly because of lack of hollywood content
the development of house of cards
the production process is not as same as the traditional broadcast network. They analyze their big data and know how popular the Kevin Spacey's movie and political thriller film/tv show are popular on Netflix and gave a green light to it directly.
app economy
the range of economic activity surrounding mobile applications
web 2.0
world wide web website that emphasize user generated content the web as platform
Battle Royale and the long tail
• About a group of high school students where they have to participate in a game where they had to kill each other • Banned because of 9/11 • DVD released in December 2011 • DVD sales went up after the hunger games was released in march 2012 • "There's a core fan base that has been looking for this movie and that's who were targeting. But with the hunger games coming out, there's also a while new market of people who probably didn't know battle royale existed."
freemium
• Demo is free • Additional content costs • In app purchases
JK wedding entrance dance
• Feb 2009: Christ Brown's assault on Rihanna • 7/19/09: Video up on YouTube • 7/26/09: Forever is #4 on iTunes • 7/28/09: video hits 12 million views • Oct 2009: The office version of the dance o New spike of interest • Rights holder (Sony) works with YouTube o Click-to-buy links • 2 times the normal click-through rate o Brown's music video experiences 2/5% increase in traffic
challenges and opportunities posed by youtube
• Moving away from UGC to professional content • Challenging traditional television models • From "broadcast yourself" to broadcaster
Characteristics of web 2.0
• No licensing or sale, just usage: Services not a product • Service is a continued relationship, product is something finished • The intermediary between the user and their online experience • Leveraging the long tail • Interoperability • Flexible and dynamic • Users as co-developers: Harnessing collective intelligence (i.e., Crowdsourcing: Taking something out and having crowd contribute to it
long tail
• our culture and economy is increasingly shifting away from a focus on a relatively small number of "hits" (mainstream products and markets) at the head of the demand curve and toward a huge number of niches in the tail • Broadcasting "[wa]s the world of scarcity. Now, with online distribution and retail, we are entering a world of abundance"
