01/14/16: Goldman Sachs predicts $80 billion VR market by 2025; PewDiePie and Maker Studios launch digital network; Turner Broadcasting to launch Ad Lab



CYNOPSISDIGITAL
01.14.16

Good morning. It’s Thursday January 14, 2016, and this is your first early morning digital briefing.

TOP NEWS

 
So just how big will the virtual and augmented reality market get? In a series of charts, Goldman Sachs Global Investment Research lays out its thoughts on the subject. Here’s the upshot: Goldman thinks the VR/AR market will grow significantly more slowly than the market for smartphones and tablets initially did. But: Once things take off, boy will they take off. Goldman sees a potential $80 billion industry for VR and AR by 2025. And the firm arrived at that conclusion using a pretty sophisticated methodology. There’s a lot to dive into – take a closer look here
 
We should have known that a single YouTube channel couldn’t contain the PewDiePie juggernaut. The YouTube megastar (he of the 41 million subscribers) is teaming up with the Disney-owned MCN Maker Studios to launch Revelmode, a new gaming and pop culture-focused digital network. (The partnership with Maker is merely an extension of an existing relationship: PewDiePie’s YouTube channel operates under Maker’s Polaris network). Revelmode will feature numerous YouTube stars in addition to PewDie Pie, including Markiplier and JackSepticEye. Revelmode is still being built up, but you can find its bare-bones website here.

NEW PROGRAMMING + DEALS

 
What happens when gunpowder meets the heavens? We’re about to find out. Former Viacom exec Van Toffler has partnered with Otter Media (the digital video-focused venture between AT&T and The Chernin Group) and former Endemol exec Floris Bauer to form Gunpowder & Sky, a new digital studio that will work on both feature-length films and short content. The studio has already inked partnership deals with several other producers and studios, including Realm Pictures and Supergravity Pictures. (Otter Media owns a stake in the latter.) You can learn more here.
 
If the movie hadn’t sold them, the hairstyle would have. Amazon Studios has signed on to distribute Paterson, the new film from writer/director Jim Jarmusch (Only Lovers Left Alive, Broken Flowers). The film stars Star Wars VII’s Adam Driver. (Living up to his surname, he plays a bus driver.) Paterson is expected to hit theaters later this year. This isn’t the first time that Amazon has partnered with a high profile director on a theatrical release: Last year, the company gained the rights to Chi-Raq, the newest film from Spike Lee.
 
Olly olly…Well, you know. Oxenfree, a new supernaturally-themed video game from developer Night School Studio, is getting its own making-of docu-series. Skybound Entertainment, the entertainment company launched by Walking Dead creator Robert Kirkman, has partnered with Night School on merchandising and – perhaps most significantly – film-adaptation efforts. The docu-series debuted on Skybound’s YouTube channel earlier this week, with one new episode being added daily. (New episodes will stop debuting after the game’s premiere, which happens to be tomorrow.) Oxenfree will be available for PC and Xbox One.
 
The video platform Dailymotion has partnered with the demand-side platform Adform. According to a release, Adform’s clients will now be able to use Dailymotion Exchange (Dailymotion’s video advertising platform) to buy in-stream inventory and “create customized, private deals tailored to [companies’] business objectives." Dailymotion’s other DSP partners include Google’s DoubleClick, Tremor Video, and several others.

 

CONTENT PROGRAMMING

 
If you’ve ever felt torn between watching a savage NFL game and seeing ‘Matilda’ on Broadway, you’re in luck: Thanks to The Kicker, you won’t have to choose. The sports-centric digital comedy channel, launched by Above Average in October 2015, is set to debut Sports…The Musical. The new series, which was made in partnership with NBC Sports and uses real Broadway talent, reimagines recent sports stories as Broadway productions. (Humble suggestion: Turn Blair Walsh’s missed field goal into a gothic, ‘Sweeney Todd’-esque tragedy.) The series, which will run for five episodes, premieres tomorrow. The four remaining episodes will debut on successive Tuesdays.


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ADVERTISING

 
How can media companies fight ad-skipping? Turner Broadcasting wants to find out. The company is founding an Ad Lab devoted to testing ways to improve consumer experiences. Turner will staff the Lab, but it’s inviting outside figures to join its advisory board. (The board will be finalized this month, according to Turner.) The Lab will initially focus on creative executions and commercial pod structures, and could potentially look into branded content and native advertising as well. Learn more here.

OTT + SVOD

 
Will CW go over-the-top? CBS and Time Warner, which jointly own the network, might just make it happen, according to sources who spoke to Bloomberg. The companies are weighing the possibility of creating an SVOD service for CW content. The launch would come after the expiration of current CW content partnerships with station owner Tribute Media, as well as Netflix and Hulu. The service, which would cost somewhere from $2 to $4 monthly, would include on demand programming, as well as a live-feed of CW shows.

 

VC FUNDING + INVESTORS

 
Do you think investment dollars are important? Mitu! (Rimshot!) Mitu, the digital media company aimed at young Latinos, announced that it has raised $27 million in Series C funding. Investors include AwesomenessTV, WPP, and Verizon. The company, which relies on a network of Latino content creators, delivers video across YouTube, Facebook, and other digital platforms.

 

RESEARCH

 
As reported by Adweek, the research firm YouGov is out with its latest annual BrandIndex survey, ranking the best-perceived brands heading into 2016. Several digital brands place on the list, including Apple (sixth), Google (fourth), YouTube (third), Netflix (second), and Amazon (first). For each BrandIndex survey, YouGov asks respondents about 1,400 brands; respondents rate the brands based on what they’ve heard about them in the previous two weeks. You can learn more about the survey here.  
 
The ad tech company Unruly ranked the ten most-shared Super Bowl ads of all time. Some of Unruly’s findings:
 
– 51% of Super Bowl ads were seen online, NOT on TV.
– Data from Unruly Analytics shows that 30% of YouTube video shares occur in the first two days following launch, whereas 70% of shares occur in the same time period on Facebook.
– While Volskwagen’s ‘The Force’ tops the list with 5.3 million shares, Unruly says that shares of auto ads have actually steadily decreased over the past 3 years
 
You can view the 10 ads here.
 
Some notable Twitter data from last night’s State of the Union Address, courtesy of analytics company Amobee Brand Intelligence:
– There were 3,018,771 Tweets specifically mentioning The State of The Union address between 8pm-11pm Eastern Time on January 12, 2015. That included 2,923,335 Tweets around the hashtag #SOTU; 45,873 Tweets around the phrase State of the Union Address; and 34,299 Tweets around the hashtag #StateofTheUnion.
- Barack Obama’s speech was widely seen as a rebuke of Donald Trump-style rhetoric. There were 122,211 Tweets mentioning Donald Trump or Trump related hashtags between 8pm-11pm Eastern Time on January 12; which was 303% more Tweets than Bernie Sanders got in the same time period, the presidential candidate with the next most Tweets. In the same three hours, Ted Cruz generated 28,296 Tweets; Hillary Clinton came up in 12,933 Tweets; and Jeb Bush came up in 12,294 Tweets.
– Twitter sentiment for Donald Trump during the address was 19% Positive, 62% Neutral, and 19% Negative.
Methodology: Digital content engagement is a measure of what people are seeing, reading, interacting and engaging with on over 600,000 sites on mobile, video, web and social.
 

WEBINAR: PROGRAMMATIC TV 2016

 
Programmatic has grown increasingly alluring to brand marketers – but mining and interpreting data and measurement is key to successfully utilizing this fast-growing, sometimes maddeningly complex buying method. Get the tools you need in 90 minutes on January 28 during our latest webinar: http://www.cynopsis.com/webinar/programmatic-tv-2016-keys-mining-data-measurement/
 
 

DIGITAL SPOTLIGHT

 
After the success of The Man in the High Castle, it’s pretty clear that Amazon Studios knows how to wring digital success out of seemingly unfilmable source material. But still – The New Yorker? Talk about literary. And yet here comes The New Yorker Presents, a new nonfiction series based on the magazine’s content, set to debut February 16. Co-produced by Conde Nast Entertainment and Alex Gibney’s Jigsaw Productions, the series’ trailer actually makes it look pretty exciting. (Granted, that score sure helps.) Check it out here.

See you tomorrow,
David Teich
01.14.16

Roberta Caploe: Associate Publisher @robertacaploe
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