TV’s future is here, but it probably arrived differently than you think. Lets look at the stories from last week and then talk about what they mean to marketers.
AppleTV Embraces MVPD Apps, as Cable Industry Shifts to Consumer-Owned Hardware & Cloud DVRs Satellite and Cable are rolling out to 3rd party interface manufacturers. TV viewing will come through an AppleTV, Roku, SmartTV, Xbox, etc. This changes the equality of networks. For now consumers will have to access their favorite content or networks via authenticated logins to MVPD apps. But that won’t last forever and if you watch the BTIG video of Time Warner’s Roku App demo you will see why. In case you blinked you might have missed it; before the TWC demo starts the user is on this home screen:
The AppleTV will be similar. This is the new MVPD. Crackle, HBO Go, and Netflix were more prominent than ABC, NBC, Turner, ESPN, AMC. Networks will have to (heck, want to) feature their networks on the home screen. Especially when they see Vice, Yahoo, and YouTube there waiting for them. Don’t believe me about Yahoo as TV network? They are readying their video business for advertising dollars: CES 2014: Yahoo unveils new ad platforms. Remember late last year when AOL did the same thing by spinning out Global Video and buying adapt.tv? Rejoice advertisers, you are going to have more and more options. For more info: Yahoo’s Mayer Looking for TV-Sized Hit Company talking to top Hollywood studios and agents.
Samsung is following this trend and betting its future growth on integrating these new consumer habits across its product line, and video is clearly at its core.
In related but non CES news:
- During the first half of 2013 Time Warner Cable becomes the first major cable company to have more broadband subscribers than video subscribers
- Online Video Could Get a Boost From Proposed Laws
- Aereo Raises Another $34 Million to Drive Expansion & the Supreme Court Agrees to Hear Aereo Case in Brawl Over Broadcast TV”
Finally, watch what Jeff Minsky, Director of Emerging Media, OMD Ignition Factory has to say about these changes (full video below).
“…as millennials are consuming 60-70% of their video content on mobile devices are developing habits and it will be interesting to see in the long term what that truly means although I do believe in the best screen available will be the end result. I think that we are going to have to learn about the fragmentation of choices that they are making and the new brands that they are going to become loyal to…”
So what does this mean for advertisers?
- Video is and will remain the most powerful medium for reaching consumers.
- Traditional networks will create new advertising partnerships as they leverage their legacy and new programming.
- Online heavy weights like AOL & Yahoo will become (TV) networks in their own right.
- Fragmented viewing from the Buzzfeeds, MCNs/YouTubes, and College Humors of this world will only increase.
- Automation and RTP-based audience targeting will be come much more important as fragmentation grows.
- Branded content will rise to the level of TV network as apps migrate to the big (living room) screen. Imagine Kraft Recipes right next to the FoodNetwork channel.
Jeff Minsky: Director, Emerging Media at OMD Ignition Factory talks Cross Platform Metrics
Jarvis Mak: SVP, Customer Success at Rocket Fuel – Programmatic Buying & New Fronts