Cynopsis: DIGITAL
10/25/12

Good morning. It’s Thursday, October 25, 2012, and this is your first early morning digital briefing.

Google’s Android is poised to overtake Windows to become the dominant operating system/software by the end of 2016, according to a new forecast from Gartner, per a report from Reuters. The research firm projects that by the end of 2016, 2.3 billion computers, smartphones, and tablets will be powered by Android, versus 2.27 billion devices running on Windows. Gartner’s predictions for 2012 include 1.5 billion devices running on Windows and 608 Android-powered devices by the end of this year. A lot of this shift over the next four years can then be attributed to the decline of the PC and the rise of smartphones and tablets as the premier computing devices. According to report, global shipments of personal computers slipped by more than 8% in Q3 2012, the biggest decline since 2001. When you compare this with the revolving door of data highlighting the growing popularity of smartphones and tablets, the Gartner forecast doesn’t seem as surprising. Of course, this doesn’t mean Microsoft plans to go down with a fight, seeing as it’s on the precipice of launching new software that aims to combine the Windows experience across computers, smartphones, and tablets.

The New York Television Festival (NYTVF) has unveiled the first four partners of its 2013 development slate. Among those, which include a deal with NBC for a drama series, History for an unscripted show, and Comedy Central for a comedy series, CW Digital has signed on as an award sponsor for the NYTVF’s 2013 Independent Pilot Competition. What this entails is that CW Digital is guaranteeing a development deal to an “outstanding digital series” submitted to this particular competition. More details on this award and the 2013 competition will be announced in January.

According to Netflix’s Q3 earnings letter to shareholders, the company’s global streaming subscriber base grew by nearly 2 million during the third quarter, with global subscriptions now standing at over 29 million. Overall, Netflix says members enjoyed over 3 billion hours of TV shows and movies during Q3 2012. (For what it’s worth, domestic DVD subscriptions have fallen from 13.93 million in Q3 2011 to 8.61 million in Q3 2012.) Other highlights from the report include:

• Netflix says two-thirds of viewing on the service is of episodic content, while about one third is of movies.
• In a slight shot against EPIX, Netflix said EPIX titles account for only 5% of viewing on the service. Therefore, it made more sense to let those exclusive rights go and better invest those freed up funds in things like “high profile TV titles.”
• In its first week of availability in the Nordic region, Netflix signed up more free trials than it did during the first week it launched in Canada. These Nordic numbers are not in the Q3 results.
• Netflix believes HBO will eventually offer HBO Go directly to consumers in the US, going as far as to say that it’s already operating under that assumption. If/when HBO does do this, Netflix thinks many consumers will likely subscribe to both, effectively making both services competing networks like you see on TV.
• Four original shows coming in 2013: House of Cards (from David Fincher, starring Kevin Spacey), Arrested Development (fourth season), Hemlock Grove (from Eli Roth, starring Famke Janssen), and Orange is the New Black (from Weeds’ creator Jenji Kohan, starring Jason Biggs). The second season of Lilyhammer is also scheduled.

NBCUniversal’s iVillage continues its Guest Editor series with Grammy-winning musician Alicia Keys joining the women’s site for a week, beginning yesterday. As part of the program, iVillage’s Chief Correspondent conducted a video interview with Keys, which will be integrated across the site during Keys’ tenure as Guest Editor. iVillage will also feature an exclusive lyric video of an original song from Keys, titled “Unlock Yourself.” This video will be a part of a new app from the musician, The Journals of Mama Mae and LeeLee, which launches today.

Mnet America plans to live stream a sneak preview party for Angry Little Asian Girl, a new animated TV series from the network, this Friday, October 26, at 10pm ET. The live stream will be available on Mnet’s recently launched MCube digital portal. The party will feature a panel discussion with the show’s creator Lela Lee about stereotypes and other topics relevant to the Asian American experience. Angry Little Asian Girl, which is officially set to debut sometime in 2013, follows a modern Asian girl who is growing up with traditional parents, and being forced to deal with stereotypes, injustices, and everyday annoyances. Following the live stream of the sneak preview party, Mnet also plans to air a sneak preview of the first two episodes of the show, beginning at 11pm ET. These episodes will be available both on-air and online.

A CYNOPSIS MESSAGE

Video ad solutions provider YuMe is joining the Kaltura Exchange to offer publishers in that marketplace the ability to insert in-stream video ads to monetize their content. Kaltura is a provider of an open-source online video platform (the first ever), which is currently being used by a range of publishers, including the Edge Music Network. To make this work, YuMe has developed a plug-in that is now available in the Kaltura Exchange. The ad company says the plug-in brings all of the functionality of its advertising SDKs, including custom ad units, advanced reporting, and brand safety controls, to the Kaltura Video Player. It enables instant access to YuMe’s ACE for Publishers 4.0 ad management system as well as connecting publishers with advertisers on YuMe’s Connected Audience Network.

Google AdWords is now capable of tracking iOS app downloads driven by in-app display ad campaigns. This option has already been available for the measurement of Android app downloads. “To set up iOS conversion tracking, advertisers need to create a single code snippet in their AdWords account and install it in their app,” said Google in a blog post.

14% of Facebook’s ad revenue now comes from mobile, according to the social networking company’s Q3 earnings report. What’s more, the company reports that its monthly active users on mobile now stand at 604 million, an increase of 28% year-over-year. This is a significant chunk of Facebook’s overall monthly active users, which amount to 1.007 billion worldwide. With Facebook’s ability to monetize on mobile, a huge concern among the ad and investment community, this news should be viewed in a favorable light – at least, according to CEO Mark Zuckerberg. In the company’s conference call with analysts, Zuckerberg framed that 14% mobile ad figure in the context of how the company has been offering the ability to monetize on mobile for only six months. In addition, Facebook CFO David Ebersmann said that Facebook’s Sponsored Story ads in the mobile news feed account for three-quarters of the daily news feed ad revenue (which he said is bringing in $4 million every day). Overall ad revenue rose 36% to $1.086 billion, up from 28% in Q2 2012.

Moviepilot.com, a social discovery platform for movies, has launched a social media agency unit designed specifically to help studios market movies and TV shows to targeted audiences by using social data and analytics. Moviepilot.com currently operates 15 themed entertainment pages on Facebook, which all together have a reach of over 10 million users. The company says it has already run marketing campaigns for studios like Paramount, Universal, Disney, Warner, and Twentieth Century Fox. With this new unit, Moviepilot will offer major and independent studios social media marketing services via its Q audience insights tool and other data gathered from its community of users. The audience data will be used to target social campaigns across all of the major networks — which, in this case, means Facebook, Twitter, and YouTube.

CPG consumers are nearly 1.5 times more likely than the average internet user to watch online video. In fact, consumption of online video among CPG consumers spiked 44% from Q2 to Q3 of this year. This is according to the Brand Graph Q3 2012 Category Insights Report from social and interest graph operator 33Across. Per the report, CPG advertisers are also generating on average 49% brand lift and 20% lower cost-per-acquisition. 33Across says that the top interests within the CPG category include online gaming, movies, and travel. The company’s quarterly report analyzes category-specific social behaviors on the web, such as video, sharing, and search, as well as top interests like news and media, online gaming, and movies, among others. The results were pulled in from 114 ad campaigns from 85 brands across 8 verticals from July to September 2012.

An Adobe survey of 1,250 US adults, ages 18 and older (comprising 1,000 general population members and 250 “Marketing Decision Makers”), shows that 68% of consumers find online ads “annoying.” In addition, 53% of respondents agreed that “most marketing is a bunch of B.S.”Which types of advertising actually seem to work? Among the respondents, print magazines (consumers: 45%; marketers: 55%) and while watching their TV show (consumers: 23%; marketers: 21%) are the two most preferred places to look at an ad. In fact, 66% of consumers and 49% of marketers in the survey believe TV commercials are more effective than online advertising. On the social media front:

• 69% of consumers and 83% of marketers said they use social media.
• 57% of consumer respondents said they have “liked” something on social media on behalf of a brand or product they enjoy (66% of marketing respondents).
• When asked if they wished there was a “dislike” button on social media sites, 53% of consumers and 54% of marketers selected “Yes, very much.”
• When asked what they would do if they saw a friend like a product on a social media site, 29% of consumers said they’d “check out the product,” while only 2% picked that they’d “purchase the product.”

The Verizon FiOS Innovation Index is a survey of US consumers that looks to examine trends in connectivity, device adoption, and user experiences, and how advances in technology are leading consumers to live more connected and “borderless” lives. It defines “borderless consumers” as those who own a laptop or desktop, a smartphone or tablet, usually have a device with internet access on hand, are motivated to make technology and connectivity upgrades, and are interested in the benefits of a connected home. Per its findings, borderless consumers currently constitute 39% of US adults, and that number is growing. In addition, 53% of these consumers are female, 48% make over $75,000, 51% are college graduates, 46% are millennials, 47% belong to Gen-X, and 40% are baby boomers. In terms of how borderless consumers feel about connected devices, 82% want to access their files and content on any device, at any time, from any place (versus 64% of non-borderless consumers). Furthermore, 61% want to control their TV/DVR using a tablet or smartphone (versus 23%). And yet, 89% still love watching live shows on TV (versus 90%).

MeFeedia, an independent online video aggregator and search platform, released an analysis comparing user engagement on 10-inch tablets versus seven-inch tablets, finding that there is a 35% increase in videos viewed and a 22% rise in time-spent watching on 10-inch tablets versus seven-inch tablets. Looking only at seven-inch tablets, MeFeedia says that the Kindle Fire and Google Nexus account for 90% of the usage in its data. The company examined the following seven-inch tablets in its analysis: Kindle Fire HD, Kindle Fire, Google Nexus 7, Samsung Galaxy Tab, and the Acer Iconia Tab. The numbers from MeFeedia are based on its analytics across its own video apps as well as those using its Beachfront Builder video app tools.

The Cynopsis Digital Video Measurement Summit is less than a month away, scheduled to take place on November 14 in NYC. REGISTER HERE to see executives from the likes of Adap.tv, AOL, Media Behavior Institute, Rhythm NewMedia, Starcom MediaVest Group, VideoHub, Videology, Vuguru, and many more discussing the all-important topic of digital video measurement and monetization.

A CYNOPSIS MESSAGE

Pheed is a new social media platform with a specific wrinkle: It wants to help you monetize your social presence. Launched worldwide on October 12, Pheed lets you set up a personal channel on which you can publish and share text, photos, and videos — features you’re already accustomed to — as well as other forms of media like voice-notes, audio clips, and even live broadcasts. The social network lets you monetize this channel by giving you the option to add a monthly subscription fee to your channel, or set a pay-per-view live broadcast event. You have full control over pricing. Will this model breed success? Easy to say it’s going to be difficult with the obvious behemoths Pheed is going up against — Facebook, Twitter, and YouTube aren’t exactly lightweights here. But if it sounds like an interesting enough option, give it a try. You might make a buck or two.

Later – Sahil
Sahil Patel, Associate Editor for Cynopsis Digital
10.25.12

Denise O’Connor: Group Publisher, Media Entertainment
Diane K Schwartz: Senior Vice President, Media Communications Group

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