08/22/16: Samsung to shutter Milk Music; Vevo seeks $500 million in funding; Study from Twitter and IPG Mediabrands touts social media video ads



CYNOPSISDIGITAL
08.22.16

Good morning. It’s Monday August 22, and this is your first early morning digital briefing.

TODAY’S CODEBREAKER

Stickiness: Stickiness is a measure used to gauge how effectively a site is retaining individual users. It’s usually measured by the duration of users’ visits.
 

 
TOP NEWS
 

According to a report from the Financial Times, the music video service Vevo is trying to raise a whopping $500 million from investors. The money would go toward Vevo’s planned SVOD service, as well as other international expansions. Earlier this month, Vevo reached a deal to gain the rights to the Warner Music catalogue, enabling the company to distribute content from all three major record labels. The move was essential to Vevo’s efforts to launch its own streaming service. It also made the company’s efforts be less dependent on YouTube and Facebook more urgent: Under the terms of the deal, Vevo can place Warner content on its owned platforms, but not on third party platforms. The company has hired Goldman Sachs to help with its new fundraising, according to the FT report.
 
According to a prediction from BTIG analyst Brandon Ross, Hulu’s upcoming live TV bundle – slated to launch next year – might lose money. That’s based on the service’s subscription price (about $40 per month, according to reports) and on the assumption that Hulu will include CBS content in the bundle. “We are skeptical that the Hulu bundle will meaningfully impact the MVPD landscape from a subscriber standpoint,” Ross wrote in a research note. “We simply wonder whether the price/value will be strong enough to attract customers at $40, with much less content than the current larger bundles….” But Ross also says that if the bundle winds up being successful, it could have a huge effect on the future of the pay TV industry. “The ramifications of success could have an effect that goes far beyond just Hulu’s partners, from MVPDs to cable networks to Netflix,” he wrote.


A CYNOPSIS MESSAGE


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For more information on the winners and/or to register for the event, please click here.


 
 
ADVERTISING
 

According to a study from Twitter and the ad giant IPG Mediabrands, video ads that are viewed within a social media feed are more effective in terms of recall than ads running on non-feed-based video sites like YouTube. The study found that autoplaying Twitter videos led to stronger ad recall in less viewing time.  Half of the study’s participants even said that they remembered video ads that they’d glimpsed after viewing them for just one second.
 
 

VIRTUAL + AUGMENTED REALITY
 

Ford has launched a new virtual reality app featuring immersive stories related to the Ford brand. First up is a behind-the-scenes-look at the 24 Hours of Le Mans, a day-long French sports car race. This year’s winner, Joey Hand, drove in a Ford-sponsored car. Hand serves as narrator in the VR experience, which also shows pit crews at work, and a view from a Ferris wheel at the racetrack.
 

 
OTT + SVOD
 

In-between building and testing new nuclear weapons, North Korea apparently found the time to create a Netflix clone. According to the American site NK News, the country has assembled an on-demand service for movies and TV shows.  The site will only be available to North Koreans who have access to the country’ state-run version of the Internet – which, according to some reports, may be only a few  thousand people. The new service is called Manbang, which translates to “everywhere.”

 
 
CYNOPSIS SPORTS WEBINAR

 
Learn how to reach millennials & tailor your ads to include live game action during our free Sports webinar, “How Building Live Sports Action into Your Ads Delivers Results.” Don’t miss this exciting opportunity to learn on September 14.
 
 

AUDIO
 

In a move that will surprise no one, Samsung announced that it will shutter its Milk Music streaming service on September 22. Samsung’s media efforts have not gone as planned since the 2014 launch of Milk Video, which folded last year. Milk Music, initially envisioned as a major competitor to the likes of Apple Music and Spotify, failed to gain popularity, and has already seen major staff reductions. In July, it was announced that John Pleasants, Samsung’s top media exec, would be leaving the company. One Samsung media venture that seems to be gaining traction is the virtual reality video hub Samsung VR. Samsung VR was called Milk VR when it was launched in December 2014, but the company changed the name in June.
 
The Wall Street Journal reports that Pandora is close to locking up a deal with the three major record labels. The deal would enable the company to launch a new on-demand service, similar to Spotify and Apple Music. The new service – which would cost $10 per month, and would allow users to play individual songs and albums – could launch as early as September. Pandora also plans to improve its $5 subscription plan, which lets users listen to ad-free radio streams. According to the Journal, those improvements might include allowing users to download songs for offline play, and granting users the ability to skip more songs.
 
 

EXECUTIVE MOVES

 
Univision Communications has made a new promotion. Silvia Garcia, who previously served as VP of Media Planning and Multiplatform Media Strategy, has been upped to SVP. She’ll continue to report to Jesse Rodriguez, the company’s EVP and Chief Marketing Officer.
 
 

TRIVIA

 
Who are the two co-founders of Wikipedia? (Email [email protected] with your answer and be sure to include your name, company, city and time zone.)
 
Our Last Trivia Question: Who wrote and performed the opening theme song for the Louis CK web series Horace and Pete? Answer: Paul Simon. Kudos to Andy Pittman-TAMU/TX, Louis Lewow-Lewow Media Group/GA, David Westberg-SAG-AFTRA Federal Credit Union/CA, and Randy Abramson-BBG/Washington, D.C.
 


A CYNOPSIS MESSAGE


Are you using Instagram’s new Stories feature?
Find out how this new feature works, and more importantly, how to make it work for YOU, during our Digital Webinar on 8/31:

Instagram Stories: The New Tool for Connecting with Fans

Hear from our Executive Panel:
David Kraft – ESPN Sales & Marketing
Dan Grossman – Vayner Media

RESERVE YOUR SPOTS!.



 

DIGITAL SPOTLIGHT

 
XOXO
, a new original coming-of-age film about six strangers who meet at an electronic music festival, debuts this Friday, August 26 on Netflix. You can check out the trailer here.
 
Watcheroo Premieres and Tune-in Alerts for the week of August 22-28:
People Now at People.com, Monday-Friday at 8:30a ET and 11:30a ET: Guests include TV personality and former U.S. soldier Noah Galloway (ABC’s Dancing with the Stars), actress Sabrina Carpenter, (Disney Channel’s Girl Meets World), and actress Elizabeth Mitchell (Freeform’s Dead of Summer)
Acorn TV: The 2015 BBC One drama series The Syndicate, All or Nothing, premieres on the streaming service today, August 22
Snapchat: A short-form series based on NBC’s The Voice debuts today, August 22
YouTube: Smosh Live!, a live variety and sketch comedy special from Defy Media’s Smosh duo, will stream on August 26
Netflix: Jeff Foxworthy and Larry the Cable Guy: We’ve Been Thinking…, a new comedy special, debuts August 26
Netflix: XOXO, a new original coming-of-age film about six strangers who meet at an electronic music festival, debuts August 26
Watcheroo
is Cynopsis Digital’s tune-in guide, categorized alphabetically by platform or network. Programming includes digital premieres, ongoing shows, live-streamed events and linear TV digital integrated series.

See you on tomorrow,
David Teich
08.22.16

Roberta Caploe: Publisher @robertacaploe
Diane K Schwartz: Senior Vice President, Media Communications Group

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