Quote of the Day: James McQuivey (Forrester Research)

The paid video download market in its current evolutionary state will soon become extinct, despite the fast growth and the millions being spent today. Television and cable networks will shift the bulk of paid downloading to ad-supported streams where they have control of ads and effective audience measurement. The movie studios, whose content only makes up a fraction of todays paid downloads, will put their weight behind subscription models that imitate premium cable channel services.

Forrester Research Principal Analyst James McQuivey in their newest report “Paid Video Downloads Give Way To Ad Models”

NBC and News Corp. to Partner with “Everyone But Google” to Launch YouTube Killer

(via TechCrunch)

The rumors of a joint venture to counter the perceived Google-YouTube threat, dubbed “Clown Co.” by Google executives, are now confirmed, although the name of the new company is not yet available. In a press release, Peter Chernin (COO News Corp.) and Jeff Zucker (CEO NBC Universal) are announcing “launch the largest Internet video distribution network ever assembled with the most sought-after content from television and film.” Content from at least a dozen TV networks and two major film studios is promised. Initial distribution partners include AOL, MSN, MySpace and Yahoo.

Chernin says they will have access to “the entire U.S. audience” at launch. The service is promised for this summer, with “thousands of hours” of full length televisions shows and movies, as well as shorter clips. Users will have unlimited and free access to content on the site. At launch, full episodes and clips from current hit shows, including Heroes, 24, House, My Name Is Earl, Saturday Night Live, Friday Night Lights, The Riches, 30 Rock, The Simpsons, The Tonight Show, Prison Break, Are You Smarter than a 5th Grader and Top Chef, plus hits from the studios’ vast television libraries, will be available free, on an ad-supported basis, within a rich consumer experience featuring personalized video playlists, mashups, online communities and video search. Plus, the extensive programming lineup will include fan favorite films like Borat, Little Miss Sunshine, Devil Wears Prada, The Bourne Identity and Bourne Supremacy with bonus materials and movie trailers. Post-launch, plans will be considered for acquiring additional content as well as producing and licensing original programming for the new site’s audience.

What it means: Wow! Google seems to be heading to the same penalty box Microsoft sat in for most of the later portion of 1990’s. Remember when Netscape created the “Everyone But Microsoft” league? It sure sounds like TV & movie creators are heading in the same direction by saying “Everyone But Google”. If the thing flies, expect other TV networks and movie companies to join the group. You can also expect a renewed onslaught of copyright lawsuits against YouTube. As TechCrunch asks, I wonder if there will be a delay between the broadcast and the Web posting of a TV show. I also hope they don’t block viewers from other countries via IP detection!

MyOscarSpace: Oscar Winner Was MySpace Film User

Oscar winner “West Bank Story,” a short film directed by Ari Sandel of Los Angeles, was the first film profiled on MySpace Film. “West Bank Story” won the Oscar for best live-action short film Sunday during the Academy Awards in Los Angeles.

Sandal created “West Bank Story” while earning his master’s degree in film production at the University of Southern California, MySpace said. The short film is a musical comedy about David, an Israeli soldier, and Fatima, a Palestinian fast food cashier, who fall in love while their families fight each other for business at their falafel stands in the West Bank.

MySpace said it chose Sandel and “West Bank Story” to be the first featured filmmaker and film on the site a year ago. MySpace said more than 50,000 filmmakers now use MySpace to raise awareness and promote their films through MySpace Film. Two Oscar-nominated documentaries were also recently featured on MySpace Film, “Iraq in Fragments” and “Jesus Camp.”

Via United Press International.

What it means: while everyone is talking about YouTube, MySpace might be emerging as a promotion platform for emerging video artist.

MyOscarSpace: Oscar Winner Was MySpace Film User

Oscar winner “West Bank Story,” a short film directed by Ari Sandel of Los Angeles, was the first film profiled on MySpace Film. “West Bank Story” won the Oscar for best live-action short film Sunday during the Academy Awards in Los Angeles.

Sandal created “West Bank Story” while earning his master’s degree in film production at the University of Southern California, MySpace said. The short film is a musical comedy about David, an Israeli soldier, and Fatima, a Palestinian fast food cashier, who fall in love while their families fight each other for business at their falafel stands in the West Bank.

MySpace said it chose Sandel and “West Bank Story” to be the first featured filmmaker and film on the site a year ago. MySpace said more than 50,000 filmmakers now use MySpace to raise awareness and promote their films through MySpace Film. Two Oscar-nominated documentaries were also recently featured on MySpace Film, “Iraq in Fragments” and “Jesus Camp.”

Via United Press International.

What it means: while everyone is talking about YouTube, MySpace might be emerging as a promotion platform for emerging video artist.

Meta-Praized: Google & Outdoor Advertising, 100M IE7 Installs, DRM isn’t about Piracy, The Future of Telephony, Newspaper blogs, and more

Meta-Praized is a collection of links & stories we’ve “dugg” on Digg.com in the last few weeks. By clicking on that link, you can always follow what’s currently on our mind:

  • “Google plans street advertising presence” via Engadget
  • “Google Talk to Interoperate with AIM This Year” via the Google Operating System blog
  • “Microsoft Hits 100 Million IE7 Installs” via BetaNews
  • “Privately, Hollywood admits DRM isn’t about piracy” via Ars Technica
  • “Small Town News Station Heads to YouTube” via SplashCast Media
  • “MTV to buy RateMyProfessors.com” in News.com
  • “Asterisk: The Future of Telephony” via linux.inet.hr
  • “Google (Google Checkout) breaks ceasefire with eBay” via Valleywag
  • “Big Media’s Crush on Social Networking” in the New York Times
  • “Google Inc. is currently in negotiations to purchase Adscape Media (videogame advertising)” in CNN Money
  • “Traffic to newspaper blogs soars” via MarketWatch

Meta-Praized: Google & Outdoor Advertising, 100M IE7 Installs, DRM isn’t about Piracy, The Future of Telephony, Newspaper blogs, and more

Meta-Praized is a collection of links & stories we’ve “dugg” on Digg.com in the last few weeks. By clicking on that link, you can always follow what’s currently on our mind:

  • “Google plans street advertising presence” via Engadget
  • “Google Talk to Interoperate with AIM This Year” via the Google Operating System blog
  • “Microsoft Hits 100 Million IE7 Installs” via BetaNews
  • “Privately, Hollywood admits DRM isn’t about piracy” via Ars Technica
  • “Small Town News Station Heads to YouTube” via SplashCast Media
  • “MTV to buy RateMyProfessors.com” in News.com
  • “Asterisk: The Future of Telephony” via linux.inet.hr
  • “Google (Google Checkout) breaks ceasefire with eBay” via Valleywag
  • “Big Media’s Crush on Social Networking” in the New York Times
  • “Google Inc. is currently in negotiations to purchase Adscape Media (videogame advertising)” in CNN Money
  • “Traffic to newspaper blogs soars” via MarketWatch

What the Adult Industry Could Teach Traditional Media

You often hear about how the adult industry is an early adopter of new technologies and new business models but you rarely can read serious business articles that talk about how it could influence traditional media. I’ve recently read an interesting one in Revenue Magazine.

Here’s an excerpt:

“In the adult world, the profits are in the video content, and affiliates lure and hook customers by showing image galleries (often thumbnails) of naked people, and then directing them to the publishers who sell unlimited access accounts. Collins (Shawn Collins, co-founder of the Affiliate Summit conference) says video, audio or print media companies could greatly expand their conversions by using affiliates to distribute free samples of their content.

For example, the television networks or movie sellers could distribute clips from their sitcoms or films to affiliates to pique consumer interest, which enables customers to realize the value of the content, according to Collins. Media companies have yet to exploit the power of distributing content through affiliates, Collins says, and were slow to team up with video search engines such as YouTube.com to increase their exposure.

This strategy of partnering with large search engines and requiring users to register is the opposite of the niche marketing that has been critical to the adult industry’s success. Video search engine sites have too much content to successfully promote niches (such as British comedy or period-piece dramas) that would convert well as independent affiliate sites.

“Showing teaser videos and allowing them to be distributed virally” could boost the sales of online video, Collins says. Online music stores should allow affiliates to host and play select songs for free, and Amazon should share its technology for previewing a few pages of a book with affiliates. Reuter’s news is one of the video services that allow affiliates to display its content, but the company keeps all of the revenue from its pre-roll ads, which takes away the incentive from affiliates.”

What it means: excellent insights on how to build a network of affiliate sites to promote traditional media content online. This clearly fits with the Verticalization trend I identified earlier this year. I wonder if there’s not a revenue model there for affiliate TV stations?