10/20/16: Snapchat wants Discover’s ad revenue all to itself



CYNOPSISDIGITAL
10.20.16

Good morning. It’s Thursday October 20, and this is your first early morning digital briefing.

TODAY’S CODEBREAKER
 

Packet: A Packet is a unit of data that is sent cross a network, such a LAN or the internet. A packet consists of a block of data bits, along with control information that helps with the packet’s routing, and with its reassembly in its original form when it reaches its destination. Anytime you’re on the internet viewing content that’s been sent from an original source, you’re looking at data that came through in the form of packets.

 
 
TOP NEWS
 

LeEco is open for business in the U.S. The Chinese electronics company has debuted new smartphones, smart TVs, a VR headset, and even a new connected bicycle. LeEco also announced a plan for a new digital video service. The service is slated to include content from partners including Seeso, Vice, Mitu, Cinedigm, and Lionsgate. LeEco’s U.S. subscription video offerings will be available for free via LeEco’s app, but the company also plans to sell a subscription plan giving subs access to Fandor’s library of content, as well as content from an as-yet unnamed partner. The latter plan will be called EcoPass.
 
Snapchat wants its Discover channels to function a little bit more like TV networks…Namely, it wants to keep all the ad money. CEO Evan Spiegel now says that he’d prefer for Snapchat to pay Discover’s content partners a flat licensing free, ending its rev-sharing arrangements. Like with linear TV, content providers would stop selling their own ads, and Snapchat’s sales team would take over entirely. According to sources who spoke to Recode, some Discover partners like the proposed terms – and others really, really don’t. Looks like Snapchat will have to do some convincing. Want a deep dive into all things Snapchat? Register for next week’s Snapchat Boot Camp: http://www.cynopsis.com/events/2016-snapchat-bootcamp/.
 

OTT + SVOD
 

A new OTT service has hit the scene. Recursor.TV, a video platform devoted entirely to modern indie science fiction, launches with an array of curated shorts and series from indie filmmakers, as well as Nina_Unlocked, a new original web series staring actress and YouTuber Lana McKissack. Entirely ad-supported at the moment, Recursor ultimately aims to introduce an SVOD tier with premium content. Cynopsis Digital asked Recursor Founder and CEO E.J. Kavounas about his decision to launch a science fiction service, and about the challenges Recursor might face in the future. Check out what he had to say here here.
 
In 2010, Relativity Media cut a major deal to produce films for Netflix…Things went downhill after that. A very public feud developed between the two companies when Relativity’s catastrophic financial struggles prevented it from producing the number of films it had promised. Then came a bankruptcy filing. Netflix wound up trying to void its agreement with Relativity, only to be shot down by California judge. But a new lawsuit from Relativity contends that Netflix has nonetheless made efforts to breach their contract, forcing the studio to be put up for sale. Netflix, naturally, intends to fight the suit.
 


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ADVERTISING
 

The programmatic video inventory management platform SpotX announced a new partnership with BrightLine, a connected TV ad provider. Under the new integration, BrightLine’s technology will be activated across the connected TV inventory that’s available on the SpotX platform. The integration is designed to let advertisers buy on Roku, Apple TV, and Amazon Fire, as well as on smart TVs, gaming consoles, and other connected TV platforms.
 
The IAB’s tech lab is out to increase the relevance of ads delivered across digital platforms. The trade group has released its new Dynamic Content Ad Standard for public comment. The new standard is designed to allow digital ads to render differently depending on who the viewer is; different ad assets would come through to viewers in real time depending on various data triggers. The public comment period ends November 28. Afterwards, the IAB Tech Lab will make revisions and unveil a final version.
 
Of all the industries that are out to get in on the live-streaming trend, radio may seem like the least likely. But the allure of video ad dollars appears to be irresistible, at least for New York’s WABC Radio. The Wall Street Journal reports that the station has begun live-streaming video of its broadcasts three nights a week. By the end of the month, the plan is to stream the broadcasts every day. And the station soon plans to run video ads against its content – and even produce some of those ads. It’ll be instructive to see whether the experiment pays off. If it does, it’s safe to say that other radio stations will follow suit.
 
 

RESEARCH
 

MediaRadar, the ad sales intelligence company that tracks how ad dollars are spent, took a look at how the big four networks promoted their programming from September through last week. Here are their key findings:

– Since September 4, NBC Network has had three shows consistently remain in their top 10: The Voice, This Is Us, and The Good Place. Together these shows represent 25% of NBC’s promotional spots each week since September 4.
– It’s October and Fox Network is getting into the Halloween spirit. From October 2-8, the network heavily promoted The Rocky Horror Picture Show, using 10% of all promo spots on Fox. The new version of the cult classic is set to air today, October 20.
– The only week Fox used more spots to promote one show was from September 4-9 when they used 17% of all promo spots on to promote Harry, their new daytime talk show hosted by Harry Connick Jr., which launched on September 12. This pre-launch push represented 32% of all promotional space that has been dedicated to Harry.
CBS Network continues to push their reboot of the 80’s series, MacGyver. Since the beginning of September, this new program has remained in the top two most promoted shows each week on CBS.
 
[] 
 
@Silverlight54: Packers got me messed up
Canvs, the language analytics company that measures emotions around content, analyzed tweets about TV and streaming programming from October 12-18 using Twitter data from Nielsen. Insights from the 3,316,278 tweets expressing a specific Emotional Reaction (ER) include:
– 6.3% of viewers who said they just watched something funny on TV were watching FX, with most of those reactions driven by Atlanta.
– 11.3% of viewers who said they were excited about what they were watching were tuned into Fox, with nearly half that excitement prompted by NFL Football (specifically Cowboys vs. Packers).
– 4.1% of viewers who said what they were watching on TV made them feel sad were tuned into Lifetime, with Surviving Compton: Dre, Suge & Michel’le driving most of that emotion.
– 8.2% of people who said they felt afraid while watching TV were tuned into FX, with most of that fear prompted by American Horror Story.
– Canvs
 
 

TRIVIA
 

Some decades back, the U.S. Department of Defense funded the creation of a network that served as the internet’s predecessor. What was it called? (Email [email protected] with your answer and be sure to include your name, company, city and state.)
 
Our Last Trivia Question: After Blockbuster filed for bankruptcy in 2010, it was acquired by which company in 2011? Answer: Dish Network. Kudos to Andy Pittman-TAMU/TX, Harvey Seslowsky/Transmedia Corporation, Tim Morrison-Home Team Sports/NY, Matthew Vogrin-PBS/VA, Susan Nessanbaum-Goldberg-Generate/CA, David Westberg-SAG-AFTRA Federal Credit Union/CA, Leo Londoño-NBCUniversal Digital/IL, Les Garland-AfterPlay Entertainment/FL, Shane Marquette-Disney ABC TV/TX.
 


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DIGITAL SPOTLIGHT
 

The Netflix drama Black Mirror makes its season 3 debut tomorrow. Check out the trailer here.

See you on tomorrow,
David Teich
10.20.16

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