03/04/24: Cynopsis Media Tech Update

Medias First Morning Read
Monday March 4, 2024

X owner Elon Musk is suing OpenAI and its CEO Sam Altman for breach of contract, claiming a perversion of the initial mission to develop technology for the benefit of humanity rather than for profit. “This case is filed to compel OpenAI to adhere to the Founding Agreement and return to its mission to develop AGI for the benefit of humanity, not to personally benefit the individual Defendants,” reads the suit. As for Microsoft, a major OpenAI investor, the suit says, “OpenAI, Inc. has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft. Under its new board, it is not just developing but is actually refining an AGI to maximize profits for Microsoft, rather than for the benefit of humanity.” Musk, who co-founded OpenAI in 2015 and contributed over $44 million to it between 2016 and 2020, is seeking a full accounting and return of funds to donors who were supporting a non-profit.

Elon’s not alone. The Intercept, and Raw Media and AlterNet have filed copyright infringement suits against OpenAI and Microsoft, with The Intercept alleging OpenAI “intentionally removed author, title, copyright notice, and terms of use information from Plaintiff’s copyrighted works in creating ChatGPT training sets.” Raw Media and AlterNet also note that OpenAI and Microsoft “had reason to know that ChatGPT would be less popular and generate less revenue if users believed that ChatGPT responses violated third-party copyrights,” and offer legal cover to customers who get sued for copyright violations using Copilot or ChatGPT Enterprise.

Also facing a lawsuit is Google. Thirty-two European media companies have filed a $2.3 billion suit against the tech giant tied to its digital advertising practices. “Without Google’s abuse of its dominant position, the media companies would have received significantly higher revenues from advertising and paid lower fees for ad tech services,” lawyers from Geradin Partners and Stek said in a statement. Media groups include Axel Springer, Norway-based Schibsted, and Benelux groups such as DPG Media and Mediahuis. The lawsuit was filed in a Dutch court.

Apple has abandoned its efforts to build an electric car. Last week, the teams working on decade-long project Titan were informed that it was winding down, with many employees moving to Apple’s AI division. The move comes amid delays, investor concerns about profit margins on the vehicles and a cooling of the EV market.

As the use of biometric data increases, President Biden issued an executive order asking the Department of Justice to prevent Americans’ personal data from being transferred to China, Cuba, Iran, North Korea, Russia and Venezuela. The order focuses on information including genomic data, biometric retail data, personal health data, geolocation data, financial data, and “certain kinds of personally identifiable information,” said the White House. “Companies are collecting more of Americans’ data than ever before, and it is often legally sold and resold through data brokers,” noted the statement. “Commercial data brokers and other companies can sell this data to countries of concern, or entities controlled by those countries, and it can land in the hands of foreign intelligence services, militaries, or companies controlled by foreign governments.”

Sony is laying off 8% of its PlayStation workforce, or about 900 employees, in a restructuring aimed at streamlining the business. While acknowledging “challenging times,” in an email to employees, Jim Ryan, President and CEO of Sony Entertainment Interactive, said the restructuring “is not indicative of a lack of strength of our company, our brand, or our industry. Our goal is to remain agile and adaptable and to continue to focus on delivering the best gaming experiences possible now and in the future.”

CTV Connect 2024, March 13-14th in NYC

The countdown is ON…

…and we can hardly wait! Join us (and hundreds of attendees) next week at the industry’s connected TV summit, bringing together the full ecosystem to explore opportunities in the dynamic landscape of CTV. It’s not too late to join – what are you doing March 13-14th?

SECURE MY SPOT

ADVERTISING

FreeWheel announced the introduction of Allocation Module, enabling marketers to manage the totality of their upfront ad spend commitments across various transaction types, spanning direct sold, programmatic guaranteed, and, for the first time, biddable programmatic deals. In addition, FreeWheel’s corporate cousin Comcast Advertising announced the launch of its Signal Authentication Service, an offering aiming to improve the accuracy of cross-screen measurement and attribution of TV advertising. “Our motivation for launching Signal Authentication is to provide advertisers with a way to better understand which parts of their media mix are actually providing value, especially with the added catalyst of signal loss and desire to accurately report on reach/frequency,” said Larry Allen, VP & GM, Data & Addressable Enablement, Comcast Advertising.

Leveraging a portion of ad dollars for addressable TV advertising, in addition to linear TV, in the majority of cases results in increased campaign reach, according to a study from CIMM and Go Addressable. “A Guide to Best Practices in Planning and Buying Addressable Television Advertising” reports that incorporating addressable TV advertising into a brand’s media mix consistently garners about 40% reach, regardless of a marketer’s target audience penetration. Low-penetration brands, which the report defines as under 20%, achieved target audience reach of between 37% and 45%, on average. High-penetration brands (those over 70%) saw an incremental target audience reach of between 37% and 44%, on average. “The TV ad market is clearly changing, with viewing becoming far more widely distributed over a growing range of linear and non-linear services,” said Jon Watts, Managing Director, CIMM. “Addressable TV advertising has become an increasingly critical capability for the industry, helping advertisers to cost effectively build out the reach and frequency of their campaigns, including for larger target audience segments. Linear and addressable are better together.”

AdRoll’s Q1 2024 edition of its State of Digital Marketing Report notes that in 4Q23, advertising CPM experienced a 23% decrease compared to the previous year, marking the smallest year-over-year decline since 2Q23. December witnessed a 7% uptick in CPM from November, signaling heightened advertiser confidence and campaign effectiveness toward the end of the year. The survey indicates a significant uptick in advertising spend for 2024, with 40% of marketers planning to increase their budgets and 30% planning to maintain budgets similar to 2023. “2024 will witness a substantial surge in advertising spend, inevitably leading to increased CPM rates. However, the extent of this rise will differ significantly across various advertising channels,” said Vibhor Kapoor, President of AdRoll. “To maximize return on investment, marketers must prioritize audience targeting and engagement throughout the customer journey.”

TransUnion marketing solutions division, TruAudience™, and Samooha, a native data clean room solution on Snowflake, are teaming on a privacy-first identity resolution and audience segmentation for brands and publishers in the advertising industry. Through the integration, clients can access TransUnion’s marketing identity graph within Samooha’s clean room environment on Snowflake, enabling them to collaborate and share customer data without compromising privacy or exposing sensitive information to third parties.

LiveRamp has expanded its relationship with Microsoft Advertising to enhance CTV measurement using the LiveRamp Clean Room, powered by Habu. The integration enables connectivity and the ability for joint customers to seamlessly connect their first, second, and third-party data across Microsoft properties.

Viamedia announced the renewal and expansion of its partnership with TDS Telecommunications. Viamedia will represent the advertising sales for TDS video services in its new television markets of Green Bay, Eau Claire, Milwaukee, and Wausau while continuing in its established markets of Madison and Charlotte. TDS Telecom offers advanced solutions to a mix of small to mid-sized urban, suburban and rural communities in 32 states.

TELUS announced a new partnership with Vevo to become its direct ad sales representative nationally, enabling Vevo to bring its extensive music video content and enhanced advertising opportunities to the Canadian market.

Penthera’s cloud-based 2nd Look, enhancing Server-Side Ad Insertion, is now available in AWS Marketplace. The solution grows revenue by deferring ad pod construction to immediately before the pod is played instead of all at the beginning of the VOD session, as SSAI requires.

Streaming technology company Brightcove is entering into a strategic partnership with Google Ad Manager to enhance its Ad Monetization service. The collaboration supports Brightcove customers that leverage Google Ad Manager’s digital advertising sales platform for their digital ad operations. “Forging this partnership with Google Ad Manager allows Brightcove to increase support and service options to ultimately help customers monetize their video content and drive more revenue from their sites and apps,” said Brightcove CEO Marc DeBevoise.

DoubleVerify unveiled its latest innovation in brand safety and suitability with the introduction of tiered “Made for Advertising” (MFA) brand suitability categories for pre-bid avoidance. The innovation, integrated into DV Authentic Brand Suitability, complements DV’s existing post-bid offering and provides advertisers with a solution to maximize ad effectiveness throughout the media transaction.

Madhive has launched a local CTV marketplace for political advertising, aimed at helping buyers combat fragmentation, streamline activation and navigate inventory scarcity for the 2024 election season. Fox Television Stations will be first-to-market as one of the pioneer clients leveraging Madhive’s political offering. “Our ability to target every congressional district in the country using the combination of FLX’s scale and Madhive’s award-winning technology provides an excellent opportunity for campaigns of all sizes to target potential voters,” said Michael Page, SVP of Digital Sales for FOX Television Stations.

MEASUREMENT

Comscore and TEGNA have reached a multi-year agreement on cross-platform audience measurement, extending Comscore’s relationship with TEGNA as a key measurement partner in all 51 TEGNA markets. “The combination of our local linear TV data, and our groundbreaking cross-platform solutions will help TEGNA measure the value of their content and deliver outsized value for their advertisers across linear and digital,” said Jon Carpenter, CEO, Comscore.

Playground xyz, an attention measurement and optimization platform, has unveiled an attention framework, to help brands find their Optimal Attention, defined as the minimum target Attention Time required to deliver increases in brand outcomes. “Attention is a critical, real-time indicator for campaign management and optimization,” stated Rob Hall, CEO of Playground xyz. “By introducing Optimal Attention, we’re providing a more comprehensive way for brands to understand what Attention Time actually means for them. We’re not just measuring attention — we’re setting a new standard for leveraging it in digital advertising across key environments like Display, OLV, YouTube, Meta and more.”

BlueZoo announced it has delivered its impressions measurement software for worldwide deployment of BrightSign’s new Series-5 digital media players. The incorporation of BlueZoo technology in software form enables BrightSign to offer in-store digital signage that includes measurement of audience reach, dwell time, flow, and related analytics in real time without the need to purchase, install and maintain multiple hardware sensors throughout each location as part of retailers’ in-store Retail Media Networks.

VideoAmp unveiled its big data and technology engine, VALID (VideoAmp Linked Identity & Data). VALID aims to measure and reach cross-platform audiences with increased precision and accuracy. “The VALID identity graph, coupled with our clean room technology, connect disparate online and offline datasets giving advertisers a full picture of how their campaigns drive outcomes in the real world,” said Josh Hudgins, Chief Product Officer at VideoAmp.

STREAMING

MHz Choice and Topic are merging into one service, reports parent company Kino Lorber. Existing MHz Choice and Topic subscribers will transition to the new service, with the combined libraries available to them at the current MHz Choice price of $7.99/month, including “Babylon Berlin,” which previously aired on Netflix. “MHz Choice is now the ultimate destination for those who love international series, and especially European mysteries and Nordic noir,” said Ed Carroll, President, Kino Lorber Media Group. “’Babylon Berlin’ is one of the crown jewels of television, a period drama whose timeless themes transcend geography and language.”

ThinkAnalytics and UK public service streamer Channel 4 have extended their partnership, after using ThinkAnalytics Think360’s viewer behavior insights and AI to pioneer personalized recommendations on Channel 4’s streaming service and across marketing and CRM campaigns. Channel 4 and ThinkAnalytics have been working on A/B testing customer journeys across Channel 4 streaming, resulting in notable uplifts in engagement in high impact customer areas of the app.

Subscriber churn for premium streaming subscriptions rose 0.8 percentage points, to an average 5.5% year-over-year, in 2023, according to Antenna. Netflix’s churn rate of 2% was the lowest, while Starz and Apple TV+ – 11% and 10% – were the highest. Overall, premium streaming subscriptions slowed to a growth rate of 10.1%, with total subscriptions of 242.9 million at year’s end.

Subscribers of Netflix’s basic tier who are on Apple’s iTunes billing plan are being told they will have to find another way to pay Netflix. Affected customers will have to either deal with a higher monthly price, or a lower price with ads.

Mansa, showcasing the best global Black culture, has launched on Amazon Freevee. “Reign by Mansa” is a live TV channel offering a curated selection of films, documentaries, and television series.

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