09/01/16: CBS All Access gets ad-free tier; Twitter stocks rally when co-creator won’t rule out sale; MTV VMAs’ Snapchat viewership tripled that of TV



CYNOPSISDIGITAL
09.01.16

Good morning. It’s Thursday September 1, and this is your first early morning digital briefing.

TODAY’S CODEBREAKER

 
End-to-End Solution: In tech, the phrase end-to-end solution refers to when the supplier of an application, system, or program provides all the hardware and/or software components and resources necessary to meet the customer’s needs. When a supplier provides a truly end-to-end solution, no other supplier needs to be involved.
 
 

TOP NEWS
 

In a Wednesday interview, Twitter co-founder and board member Ev Williams said that when it comes to considering a sale, the company must “consider the right options.” He initially declined to flatly promise that Twitter would remain an independent company. Wall Street had no complaints: Twitter stock closed up 4.5% on Wednesday.
 
The CBS All Access streaming service is adding an ad-free tier…sort of. Priced at $9.99 per month, the new pricing option will cut commercials out of CBS’s classic content. But live TV content from CBS’s local TV stations will still feature ads. And, CBS says, select on-demand shows will include “promotional interruptions.” The service’s existing plan costs $5.99-per-month.
 
 

PROGRAMMATIC ADVERTISING

 
The programmatic TV advertising platform AdMore has partnered with the multi-screen ad delivery and measurement platform Extreme Reach. The companies say that, as a result of the partnership, agencies and clients using Extreme Reach’s Video Asset API will have access to technology that speeds the activation of campaigns and guarantees asset quality across AdMore’s platform. “This API integration with Extreme Reach creates efficiency in the workflow process and validates our ongoing commitment to having machine-to-machine exchanges in place across our platforms,” said Brendan Condon, President of AdMore and REVshare, in a statement.
 


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PROGRAMMING + CONTENT ACQUISITIONS
 

DramaFever, the Warner Bros.-owned streaming service for Asian content, is getting some new original programming. Under a three-year deal with Warner, Studio Dragon, a production subsidiary of Korean media giant CJ E&M, will co-produce a new slate of original shows for DramaFever. More specifically, the deal calls for Studio Dragon and DramaFever to co-develop and produce two original dramas. In addition, the companies will consider remaking existing TV series and movies. The new content will be geared toward an international audience.

 
 
OTT + SVOD
 

The video technology provider Kaltura announced that it has partnered with Azure, Microsoft’s cloud computing platform, to offer a new cloud-based OTT platform. Kaltura says that it has integrated with Microsoft Azure to encode, store, and deliver OTT TV content from the cloud. “The global scale of Microsoft Azure, combined with Kaltura’s industry expertise, offer our mutual customers the cloud scale services needed to maximize their content reach and monetization,” said Sudheer Sirivara, GM of Microsoft Corp.’s Azure Media Services, in a statement.

 
 
PLATFORMS + DEVICES
 

MTV’s VMAs lost 34% of their TV viewership compared to 2015 awards, drawing 6.5 million users across networks. But on digital platforms, things were different. The Viacom-owned network served 173 million video streams during the event, including 21 million unduplicated global unique viewers on Snapchat. (That’s more than three times the program’s TV audience, in case you weren’t keeping score.) MTV’s Snapchat efforts covered both the awards show itself and behind-the-scenes content. On MTV’s Snapchat channel, VMA-related content delivered 30.5 million video views. Last year, the number was 25 million.

 
 
RESEARCH
 

@zack_thedude: Stranger Things gonna give me some nightmares
Canvs, the language analytics company that measures emotions around content, analyzed tweets about TV and streaming programming for Aug. 24-30 using Twitter data from Nielsen. Trends and insights from the 4,235,917 tweets expressing a specific Emotional Reaction (ER) include:
MTV knocked it out of the park across multiple categories of emotion – for example, grabbing 44% of all “brilliant” ERs across all networks – driven overwhelmingly by (you guessed it) the  2016 MTV Video Music Awards telecast.
Netflix was the home of fear, prompting 8.5% of all “afraid” ERs, thanks mostly to its hit Stranger Things.
Fox was the home of harsh, inspiring 6.1% of all “brutal” ERs, prompted largely by UFC Fight Night: Maia vs. Condit.
MTV was also the home of tears, prompting 77.6 of all “cried” ERs, thanks, again, to the VMAs.
 
Netflix
is currently increasing the price for its standard subscription plan to $10 per month. So now seems like a good time to ask: How high could the price go before Netflix started losing an excessive number of subscribers?  According to Tivo’s Digitalsmith research firm, a lot of consumers would draw the line at about $15. Digitalsmith’s latest study, which surveyed over 3,000 individuals in the U.S. and Candada, finds that 39.1% of consumers say they’d pay $12-$15, tops, for Netflix service. (29.3% of respondents said they wouldn’t pay any more than they do now.) Past the $15 mark, the drop is precipitous: 8.4% would pay $16-$19, $6.5% would pay $20-$23. And 1.4% of respondents really love them some Netflix; that’s how many said they’d pay 32 bucks or more.
 
A number of agencies aren’t confident about their abilities to meet their clients’ digital needs. That’s according to 2,000 agency employees surveyed in The State of Advertising Talent report from the management consultant smith & beta. 62% of respondents said that their clients are requesting more advanced digital work – but 43% said that agencies feel they’re not prepared. Only 7% said that they’re surpassing their clients’ expectations when it comes to digital work.  
 
 

EXECUTIVE MOVES
 

The California-based content studio Portal A has named George Woolley as its new Head of Originals. Woolley, who formerly served as VP of Programming at Disney’s Maker Studios, will oversee the creation, development, and sale of Portal A’s original scripted and non-scripted content.
 
 

TRIVIA

 
Our Last Trivia Question: Actress Julia Stiles is the star of which web series? Answer: WIGS’ ‘Blue.’ Kudos to Andy Pittman-TAMU/TX, Susan Nessanbaum-Goldberg-Generate/CA, David Westberg-SAG-AFTRA Federal Credit Union/CA, Steve Siegel-FreeWheel/NY, Tracey Lincoln Company-Paramount Pictures/CA, and Marilyn Gill-MGillProductions, Inc./GA
 
Follow-up to yesterday’s trivia question: Rodrigo García, who created Blue, also developed an HBO series (which itself was based on an Israeli series called BeTipul). Which series was it? (Email [email protected] with your answer and be sure to include your name, company, city and time zone.)
 


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DIGITAL SPOTLIGHT

Stranger Things, the (extremely awesome) sci-fi series that debuted on Netflix in July, has gotten renewed for a second season. (Side note: It took too long!) Netflix is out with an enigmatic little Season 2 promo. Check it out here.

See you on tomorrow,
David Teich
09.01.16

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