4k Content, where it is heading.

Comments and analysis

4K or Ultra High Definition TV (UHDTV) refers to the horizontal resolution on the order of 4,000 pixels. The higher the resolution the clearer the picture, current HDTV is about 1k or 1,080 pixels. 4k technology is also design to display a wider range of colours than what is available on the current devices. So not only is 4k clearer but has also more colours, thereby allowing a better representation of the real world especially for big screen TVs (above 50 in).

The movie and TV industry has been producing 4k content since 2004 however there is no standard adopted by the industry yet. Unofficially, the TV industry (not including cinema) has adopted UHDTV as its 4k standard. The adoption of 4k or UHDTV suffers from a lack of industry planning, which HDTV did not. HDTV had standards formalized in 1990 before HDTV hardware was introduced to the mass market. The lack of standards hampers the adoption of 4k, not only in terms of a standardized resolution but other key technical aspects like a standard frame rate, colour gamut and image projection method (progressive scan or interlace). However, the standards for 4k are expected to be out by 2020 but this might come sooner because of the push from the hardware manufacturers. The current push for 4k seems to come from Asia namely Japan and Korea.

Apart from the lack of standardization, there are other complications that plague the adoption of 4k. One which affects the both the platform owners and content creators is that 4k produces a significantly large amount of data. It can be up to 30% to 40% more data than standard HDTV. This puts a strain on all hardware / software currently available throughout the production and distribution chain. Even the production pipeline is affected. The complication includes storage, processing, distribution and the sheer planning required managing such a large amount of data. It is predicted there will only be a handful of broadcasters ready for 4k commercially in the next 5 years.

In Conclusion; 4k is the future but not yet. The cost involved currently may outweigh the benefit of being a pioneer in this medium. So identifying the right content that can only deliver the desired experience in 4k, understanding the additional intrinsic / extrinsic cost and securing the delivery platform early, will be key to deciding if it is worth taking the 4k plunge now.


Salient Points

1. Definition: 4k or Ultra HD TV (UHDTV) refers to the horizontal resolution on the order of 4,000 pixels. This technology is progressive scanning only an does away with interlacing (an old technology required for CRT TV) and can cater for a wider colour gamut (gamut: the entire range of colours available on a particular device).

2. The movie and TV industry has been producing 4k content since 2004. The TV industry has unofficially adopted UHDTV as its 4k standard (3840 x 2160 pixels) which is lower than the 4k industry standard (4096 x 2160 pixels).

3. 4k or UHDTV suffers from a lack of industry planning that HDTV did not. HDTV had standards formalized in 1990 before HDTV was introduced to the markets. The lack of standards hampers the adoption of 4k, not only is the resolution not standardize but more importantly the frame rate of the content and projection of the image (progressive or interlace) has not been decided.

4. However, the standards for 4k are expected to be out by 2020 but this might come sooner because of the push from the hardware manufacturers. The current push for 4k seems to come from Asia because of the hardware manufacturers (Samsung, Sony, LG).

5. The amount of data 4k produces possesses another problem for adoption. It can be up to 30% to 40% more data than standard HDTV. This will cause complication in how it is stored, processed, distributed and the sheer planning required managing such a large amount of data. And there might be a physical limitation in the hardware in distributing 4k content without large amount of compression techniques.

6. It is predicted there will be a handful of broadcaster, in the next 5 years who will be ready for 4k.

Johan Fariz Marzuki Lam

Twitter: the pulse of the heartbeat of the audience

Comments and analysis

Twitter recently won an Emmy award for “fundamentally changing the way we watch TV”. This is because the Millennials, these days, are not only watching more content but they are also twitting as they do it. They are turning the act of watching TV communal again by having conversations but not with someone on the same couch next to you, but with millions of people, up thousands of kilometers away. And because twitter is live, public, conversational and distributed, twitter has become the heartbeat, the nervous system, the pulse of the audience.

Twitter will get twice the emotional connection to the audience. US viewer tends to tune out less when they are twitting compared to when they are not twitting. Tweets from actors or cast members are the favorites, followed by friends and family. So much so it is recognized that celebrities and cast members who tweet are the most influential ambassadors of content creators and are TVs greatest assets.

Live event especially benefit from Twitter. In total, 672 million tweets were sent in relation to the world cup, the highest figure Twitter has ever been able to associate with an even as it happens.

Twitter and TV gives you a unique way for you to find your audience and to increase engagement around shows. The bond last during the episode, between the episodes or for the whole season. And if you are a talent, it can last your entire career. The first screen – the TV - is only the first screen for one hour a week. Twitter is the channel you are always on.

In Conclusion, incorporating twitter strategy in all development process and platform delivery is now a must. Initiatives to educate the existing content producers to add this element of social interaction is crucial. This also includes the platform owners (broadcasters) and the talent. Once traction is obtain with the general consumers, twitter can be another source of monetization of content.


Salient Point

1. Wikipedia: Twitter is an online social networking service that enables users to send and read short 140-characters messages called “tweets”. Registered users can read and post tweets, but unregistered users can only read them.

2. Recently won an Emmy for “fundamentally changing the way we watch TV”

3. Twitter is the heartbeat, the nervous system, the pulse of the audience.

4. Twitter will get twice the emotional connection to your audience.

5. The success of Twitter can be attributed to the following:

     a. Twitter is live, there is no delay.

     b. Twitter is public, there is no filter. What you tweet will be seen by the public.

     c. Twitter is conversational, people talk to other people on twitter and the conversation carries-on            on twitter

     d. Twitter is distributed, tweets are seen on advertisements, newspapers, on TV and on mobile


6. 95% of the public conversation about TV happens on Twitter and 70% of tweets happens during the broadcast window.

7. US Viewers watching only TV will tune out 17% of the time. Add mobile activity to that TV watching and they will tune out 13% of the time. But people using Twitter while watching TV only tune out 85 of the time.

8. 61% of people prefer show-related tweets coming form an actor or cast member, versus 46% who prefer their friends and family, 35% who prefer the official show handle eg @HouseofCards and 24% who like reading tweets from the judges or hosts.

9. Overall, celebrities and cast members are the most influential ambassadors of your content and conversation. “Variety (Magazine) published an article saying actors tweeting are TV’s greatest assets.

10. Live moment especially benefit from Twitter. During the World Cup, Brazil witnessed a 37% decrease in traditional digital ads impressions. At the same time, there was 33% uplift in tweets, and an 85% increase in impressions. In total, 672 million Tweets were sent in relation to the world cup, the highest figure Twitter has ever been able to associate with an event as it happens.

11. Twitter allow you to make money from the conversation about the content you put up. Twitter Amplify allows you to do this. Amplify represents “a true partnership between Twitter content owners and advertisers. You create content; Twitter enables you to extends its distribution and make money. Amplify is in now in 10 different countries with over 100 different content partners and over 95 different brand sponsors http://www.youtube.com/watch?v=vv-8_HNP758

12. Twitter and TV gives you a unique way for you to find your audience and to increase engagement around shows. The bond last during the episode, between episodes or for the whole season. And if you are talent, it can last your entire career. The first screen – the TV – is only the first screen for one hour a week. Twitter is the channel you are always on.

Johan Fariz Marzuki Lam

Short form video, the new breed of content creators and consumers

Comments and analysis

The growth of the traditional long form video is flat and on the decline. However, short form video is growing at a double digit rate. What began as a “phenomenon of self-expressions” – user generated content (UGC) of grandmothers doing summersaults – is now mainstream, a real business. Epic Rap Battles: Final episode, garnered over 30 million views and the series itself garnered 2 billion views. These numbers challenges the vast majority of top TV shows and every TV network in prime time television. And short form videos are growing shorter as the Millennials attention span grows shorter.

A lot of people make the mistake and say short form is like long form but shorter. Short form is a medium and the way you produce it, consume it, monetize it, market it and share it, is as different from TV as TV is from movie. Many short form creators start small but grow very vast. Some mature and become a global phenomenon with subscribers the size of countries.

However, the CPM (cost per thousand) for online video is still lagging when compared to TV. Media advertisers are still not willing to pay very much for advertising on short form online videos. CPM for short form online videos is still nascent in the cycle but it is way ahead when compared to social media and blogging in terms of monetizing. This is changing rapidly and is catching up with the rates enjoyed by traditional TV. Credit goes to YouTube which created what is effectively, the largest cable company in the world, driven by Google, with a sales force of over 12,000 people monetizing it. YouTube reaches the millennials more than any other cable network. Companies like Maker Studios (and Disney) are taking the quality of short form videos to another level.

In Conclusion, this is another target segment that cannot be ignored. The good thing is that it is still in the early stages of commercialization but maturing. Now is a good time to invest resources in this segment as most of the content developers in this segment are normally amateurs and independent producers. Professionally produced content for this segment is far and few. And there is a willing market, the Millennials, who will soon demand more quality content. Traditional content creators should also explore on how to exploit their existing IPs through this segment.


Salient Points

1. Definition: Short form video is content that is short in length, such as video clips. Short-form content can appeal to internet surfer’s limited attention span.

2. The growth of the traditional long form videos is flat and on the decline. Short form video is growing at a double digit rate.

3. Short form is getting shorter. The average short form video is less than 4 minutes, which is 25% then last year which was 5 minutes. Mobile is even shorter, Netflix says long form content consumed on mobile is shorter than 10 minutes.

4. Many short form creators start small but grow very fast. Some mature and become global phenomenon with subscribers the size of countries. PewDiePie has 30 million subscribers generating 450 million views per month.

5. However the CPM (Cost Per thousand (the M represent 1,000 in roman numerals)) for online video is not on par with TV. On average is still behind TV but the growth is staggering, also in the double digit at this stage and is catching up. CPM for short form video is still nascent in the cycle but is way ahead when compared to social media and blogging in terms of monetizing.

6. Credit goes to YouTube which created what is effectively, the largest cable company in the world, driven by Google, with a sales force of over 12,000 people monetizing it. YouTube reaches the millennials more than any other cable network.

7. CEO of Omnicom Media Group (Advertising Company) the largest media buying company in the world – advising (Visa, Pepsi, McD) to move 10% to 25% of their TV budget to online video advertising.

8. Other ways to monetize apart from ad sales includes sponsorship, band integration and branded entertainment.

9. BRIEF ON INDUSTRY PLAYER: MAKER STUDIO

a. YouTube stars came together to form Maker Studios for the purpose quality content and reaching their audience with new technology.

b. Maker Studios was acquired by Disney for USD 950 million. The rational for the acquisition was to combine the no1 media company in the world with the largest short-form online internet company. This is a powerful match that will have a huge impact on this market.

c. The acquisition of Maker by Disney, according to COMSCORE, in terms of combine reach is just behind Google and Facebook.

d. For Maker Studios, the acquisition by Disney gives them potential access to IP from the likes of Lucas Films (Star Wars), Marvel (Guardians of the Galaxy, The Avengers), ESPN, PIXAR (Frozen, Toy Story) and ABC.

e. Maker garners 9 billion monthly views from 550 million global subscribers. It network comprises of 55,000 creators

f. Now Maker is moving into selling their short videos in blocks for long form format to traditional broadcasters.

Johan Fariz Marzuki Lam

Over The Top (OTT): a delivery platform to stay?

Comments and analysis

With the Millennials, more and more of them are choosing OTT as their preferred choice of consuming long form content. OTT companies like Netflix, Hulu, Amazon’s Fire TV and Crackle are leading the way. OTT services are normally accessed through smart TVs, computers, tablets and mobile. Sony and Microsoft are now providing an option to OTT providers to provide their service through game consoles, like the PS4 and the Xbox One. Smart TV manufacturers are also building in OTT services in their TVs prior to shipping it out to the consumers.

It is very costly to become a true multi-platform broadcaster because acquiring the rights to broadcast for all platforms is very expensive. This presents a natural barrier for traditional broadcasters to enter into the space of OTTs. Short form video providers like YouTube and social media services like Facebook, have embarked to offer OTT like services to their subscribers but have not been very successful yet. The industry is beginning to believe, for service providers who are experts of and rely on technology to deliver their services, must obtain the “broadcasters” DNA to successfully deliver long form content. This can be done by hiring people from broadcasting or partnering with broadcasters themselves. This has been proven as most of the OTT providers have senior management who are from the broadcasting industry.

In conclusion, OTT is here to stay which is a good opportunity as now content developers have another avenue to distribute and monetize their content. Relationships need to be built with the OTT providers just as relationships have been built with traditional broadcasters and buyers. Needless to say understanding what type of content OTT providers want is key and may differ from what traditional broadcasters want.

                             
Salient Points

1. Definition: OTT (Over-The-Top) refers to deliver of audio, video and other media over the internet without multiple-system operators being involved in the control or distribution of the content.

2. Examples of OTT service providers includes Netflix, Hulu, Amazon’s Fire TV and Crackle.

3. OTT content can be accessed via PC, set-top boxes and smart phones and smart TVs.

4. Currently, game consoles namely, PS4 and XboxOne are becoming another platform OTT can be accessed from. Netflix and Hulu are some of the services offered by these game consoles.

5. Amazon Fire TV are looking at using games to drive people to adopt their OTT http://www.cnet.com/news/amazon-fire-tv-world-domination-through-video-games/

6. Cable and traditional TV are resistant to move into providing OTT services because to become a true multi-platform broadcaster is very expensive. This is mainly due to the licenses they have to acquire. If you are a global player, once you buy the rights, you will have difficulty in splitting the rights with different customers in different countries.

7. BRIEF ON INDUSTRY PLAYER: NETFLIX (http://www.foxbusiness.com/economy-policy/2013/08/19/why-netflix-works/)

a. They have 50 million members worldwide in 40 countries

b. They were credited to

    i. killing the video stores.

    ii. revolutionizing the TV industry with new form of consumption. People are accessing Netflix on     many second screen devices.

    iii. Developing original programming, whereby like in the series house of cards, all 16 episodes           were launched in the same day.

    iv. attacking the old windows system, by funding their own movie content so that they can launch       both the cinema release and on their own Netflix platform on the same day. Original Netflix               production includes House of Cards, Orange is the new black, Hemlock Grove, Lily Hammer, and     Marco Polo.

    v. Globalizing content by making content from a specific locale available around the world.

c. They are basically a tech company, using technology to deliver content.

d. For Netflix content, 70% are TV content and 30% are movies, which is also reflective of the consumption of Netflix users.

e. In a new country, Netflix launches with half the content for the year. The rest of the content are slowly acquired and introduced based on user consumption.

f. Netflix also co-produces with countries they are launching in.

g. Netflix uses the analytics to decide on the quantum to invest but never to change the creative content of the show. Analytics is based on

    i. the take rate for the recommended movies suggested by Netflix

    ii. how frequently a movie is completed

    iii. how people rate the movie.

                             

Johan Fariz Marzuki Lam 

The Millennials, who are they and how do we get to them?

Comments and analysis

There is a group of consumers who are beginning to be a very important target demographic. They are the Millennials, also known as Gen Y or Generation Me. Born between the years of 1980s to early 2000. They know how to make use of current technology. Millennials consume more content from the internet, effectively changing the consumption habits of the average consumers. We are seeing a massive shift from Linear TV to online video in general and short form video in particular. They watch 1/3 less linear TV then the previous generations. And it is not because they watch more Linear TV as they grow older; it is because they watch less as they grow younger. They are the largest consumers of short form videos and watch most of their TV shows on OTT either on TV, tablet or mobile.

Gone are the days, when you can tell people what to watch and when to watch. Not only do the Millennials control what they watch but also when, how and why. This is a demographic that is very valuable but very hard to reach at the same time hard to find. Thus becoming a big challenge for content developers and platform owners.

In Conclusion, the Millennials is a very important demographic and has a very big market now and in the future. Developing the skills to create and deliver content for this demographic need to be done. This requires specific programs and initiatives. Quite possibly a whole new breed of content developers need to be grown and developed.


Salient Points

1. Definition: Millennials are the generation after Gen X also known as Gen Y of Generation Me. Born between the years of 1980s to early 2000.

2. They are born adapt, 74% increased online usage of tablet, 94% use connected TV and 83% use online video services weekly to watch TV.

3. They know how to get the most out of technology. They look for tools to help them make choices but still want to feel empowered and in control. 72% do not care what screen or where the sources come from, as long as they can watch their shows. 66% have different device and sources for different programs.

4. 12 to 24 year old watch 1/3 less Linear TV then adults aged 35 – 49 and less than half of the 50 to 65 year old. And it is not because they watch more as they grow older but they watch less Linear TV as they grow younger.

5. Gone are the days when you can tell people what to watch and when. Millennials also have more choices than previous generations. The millennials control what they watch, when, where, how and why. They also watch 50% more online videos than any other users.

Johan Fariz Marzuki Lam 

The rise and fall of Linear and Non-Linear TV

Comments and Analysis

Not too long ago many predicted the fall of Television, as more and more of the younger generation watched YouTube rather than traditional TV. However this did not turn out to be. Many now are coining these years as the Golden Age of Television. The digital explosion pretty much doubled the number of buyers we have around the world, just by the sheer number of platforms and the quality of content available. The dominance of OTT (Over-The-Top) platform is on the rise with Netflix leading the way and new services like Kindle Fire TV catching on. Quality of TV shows are also on the rise with big budgeted and highly credited shows like Game of Thrones a HBO original series and House of Cards a Netflix original series. Orange is the new black by Netflix is currently continuing the resurgence of high quality TV content.

What is happening is consumption habits are changing i.e. where and how people want to watch TV shows or movies. The change is brought about in the advancement of technology. No longer are we restricted to the time slots given by the broadcasters. With video-on-demand like services, we can now choose when we want to watch our favorite TV shows. We are currently at the tipping point of the move towards non-linear TV as Saturday morning cartoons have just recently been a thing of the pass. Consumers seem to be more willing to pay for connection, the convenience of where and how the content is to be consumed, rather than the content itself.

However, Linear TV is not disappearing. Its role is being more defined, with Linear TV gravitating towards live TV events (like sports, reality TV and concerts) and communal watching (i.e. watching with family and friends). In other words, Linear TV is more we while Non Linear TV is more me.

In conclusion, content developer must be aware of the changing consumption habits. They not only have to be mindful of what content is in demand in 2 years’ time but also the platform it is being consumed on. Both answers play an important role on what content needs to be developed and in what form. This includes the skills and the knowledge required to create content on the said delivery platform i.e. creating for YouTube is different from creating for Netflix or the BBC.

Salient Points

1. Definition: Linear TV is television that a viewer has to watch scheduled TV programs at the particular time it is offered. Non-Linear is everything else for example video on demand (VOD). However, consumers are converting the Linear TV experience into non-linear via catch-up TV or time shift functions.

2. Non-linear TV are on the rise with services offered by OTT, catch –up TV, short form video (YouTube, Vimeo) and etc.

3. Consumption habits are changing to non-linear TV. Currently we are at the tipping point, in the US this week, the last mainstream channel stop showing children’s programming on Saturday morning. Kids now prefer to consume cartoons on demand via OTT services.

4. Linear TV is now gravitating towards live TV and events like sports, reality TV and concerts. The role of Linear TV is more defined, 64% watch Linear TV to watch live events or live reality shows, 70% watch to zone out and not take active decision what to watch and 73% watch for communal purposes i.e. watching with the family.

5. Consumers seem to be more willing to pay for connection (i.e. convenience of where and how the content is to be consumed) rather than the content. Example, people are more likely to sign-up to Netflix more so that they can watch content whenever they want rather than what content was on Netflix.

                               

Johan Fariz Marzuki Lam