A CYNOPSIS MESSAGE FROM SONY PICTURES TELEVISION

Cynopsis: DIGITAL
06.26.13

Good morning. It’s Wednesday, June 26, 2013, and this is your first early morning digital briefing.

The sale of Hulu is getting closer and PandoDaily has it that DirectTV will be declared the winner, thanks to the slightly more than a billion dollars it will pay for the streaming-video on demand site. Talks are “very advanced” and a deal could happen before July, if everything works out.
In other words: If DirecTV wins, it will have beaten out such major players as Time Warner Cable, Yahoo!, and KKR while simultaneously giving itself the online presence that it has so far lacked.

Two Bernstein analysts have downgraded their ratings on Netflix from “market perform” to “underperform.” The analysts noted that Netflix’s current stock price encourages “unrealistic expectations.” The current stock price, they said, indicates an expectation of at least 50 million streaming subscribers domestically by 2020 and the analysts expect that number to be closer to 43 million at that point… In other Netflix news, the streaming-video site is adding about 20,000 new film and television shows in the next few months thanks to a new multiyear deal with Cinedigm Digital Cinema Corporation. According to Slashgear.com, Netflix paid out eight figures to complete the transaction. This comes on the heels of adding 300 hours of content from DreamWorks last week. Cinedigm, like Netflix, is also interested in creating original content.

The Hallmark Channel launches its TV Everywhere services today that will allow subscribers of Time Warner Cable, Verizon FIOS, Cablevision’s Optimum TV, and Bright House Networks to watch the channel’s content on demand. Authenticated subscribers can also access selected shows and Hallmark Channel movies from the channel’s website. The channel’s first-ever scripted show, Cedar Cove, will also be available on the site two days after it premieres on the channel itself. Now anyone who needs to weep will have access to Hallmark 24/7 to help them along.

Jared Fogle’s 15 minutes of fame has now stretched into 15 years. The guy made famous for losing more than 200 lbs. fifteen years ago by changing his main food source to Subway is now celebrating his anniversary with a web series, sponsored by Subway, of course. Called “Jared’s Journey,” the series features him interviewing celebs. His first target? Mario Lopez.

The seven-game NBA Finals between the Miami Heat and San Antonio Spurs garnered the largest audience ever for NBA Mobile, NBA.com, and NBA TV’s pre- and post-game coverage. NBA Digital, which is jointly managed by the NBA and Turner Sports, brought in more than 138 million page views domestically, up 91% over last year, on NBA.com while NBA Mobile saw a total of 4.5 million video streams during the Finals, up 126% over last year. Looks like it wasn’t just the Heat that won this year’s Finals.

For those seeking major viewership on Google’s YouTube, the site has some advice for you: Check out the new YouTube Pro Series on the site’s Partner Support channel. Some folks who have captured huge hit counts on the site – such as Hannah Hart, ShayCarl, and WhatsUpElle – are scheduled to share their strategies and secrets as well as engage in some Q&As.

Dish Network is putting some energy behind collecting more hotel-related business. The company has launched a new video-distribution system – SMARTbox – that’s designed to offer a larger range of high-definition and standard definition TV channels to hotel rooms. The boxes can deliver between 36 and 96 HD and SD channels, much higher than the current industry standard of 12-24 HD channels. The box takes up far less space and uses less power than current box designs.

A CYNOPSIS MESSAGE

PricewaterhouseCooper‘s annual Entertainment & Media Outlook has some good news for digital marketers. Internet advertising brought in $100.2 billion in 2012, good for 20% of the global advertising market, and it’s expected to get up to $185.4 billion in 2017 (29% of the global ad market). That puts it behind only television as the second-largest advertising medium.
Other key findings:
* Online video advertising grew by about $1 billion in 2012 and that growth rate is expected to increase to $12 billion by 2017.
* Mobile advertising is forecasted to grow 27% over the next five years, bringing the total revenue to a more than $27 billion in 2017. At that point, it will account for 15% of Internet advertising revenues.
* Search is the dominant form of online advertising, though its expected share in 2017 fell two percentage points to 41%, due to more money being spent in mobile and video advertising.

Cable TV will still rule the roost by the end of 2014, but digital TV will continue to grow rapidly and should surpass 1 billion homes by then. Research from Strategy Analytics shows that if the current growth rate holds, the digital TV sector should have a six-year compound annual growth rate of 10.7% by the end of next year. The added benefit of digital subscribers is that they typically pay a little extra for a basic subscription and also help boost video-on-demand sales.

Analysts at Piper Jaffray & Co. studied the amount of TV and movie programming available from Amazon, Netflix, and Hulu and declared Netflix to be the deepest and most varied while Hulu had the most popular content. Of the top 75 TV shows available for streaming, Hulu had 44 percent, Netflix claimed 33 percent, and Amazon trailed far behind with 7 percent. As for the top 50 movies, Netflix led the way with 14 percent, Amazon had 11 percent, and Hulu finished with zero.

The mobile app market will be worth $27 billion in 2013 with the growth of tablet revenue, according to a new study by ABI Research. Apple and Android lead the way by far in app sales while BlackBerry and Windows battle for third place. Smartphone app sales have overshadowed tablet app sales so far but the expectation is that tablet apps will overtake Smartphone apps by 2017.

Microsoft is releasing one of its more popular games, “Age of Empires,” for Apple’s iPhone and other Smartphones. The game will be made in conjunction with Japan’s KLab and should be available by the end of next March, according to ITWeb.
In Other Words: Microsoft isn’t big on allowing its games to be played on systems that they don’t support, but the mobile-games market is growing so quickly that the company is shortchanging itself on revenue by keeping almost all of its products on its own systems.

Livestream launched a mobile app Tuesday that allows anyone to watch and broadcast live, ad-free video via iPhone. It follows the release of the Livestream for Producers app for Android devices. The new app allows for users to search and discover the day’s most popular live events, watch and chat live events with friends, and instantly go live when users want to, among other features.

Target is aiming to bring in new customers by placing its Cartwheel mobile app that offers “exclusive discounts” on Facebook. The hope is for consumers to share the deals they like with their pals on the social-media site. The discounts range from 5 percent to 30 percent and they do not work like coupons; instead, a deal can be used repeatedly until its expiration date. The app also provides a bit of personalization, offering up discounts for the things particular consumers buy most often.

Richard Bertodatti, Jr., has been named senior executive director of Conde Nast Entertainment digital video ad sales. Bertodatti comes from Google, Inc., where he led client and agency conversations for YouTube and Google TV ads. Before that, he spent 12 years at NBCUniversal selling across network, cable, and digital properties.

A CYNOPSIS MESSAGE

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Netflix is continuing its efforts to create more original content and has announced that on July 26 it will launch the first 13 episodes of “Mako Mermaids,” an offering from the creators of Australian teen series “H20  Just Add Water,” which built up a large following across the globe. Rather than releasing the entire series at once as it did with House of Cards, Hemlock Grove, and Arrested Development. Netflix’s original-content offerings continue to fascinate as the company attempts to find the best market for it to serve.

See you tomorrow,
Mark Miller
06.26.13

Roberta Caploe: Editorial Director
Diane K Schwartz: Senior Vice President, Media Communications Group

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JOB OPENING: DIR PRICING & PLANNING-ADDRESSABLE, DIG’L AND NAT’L/NYC: Pricing strat for individual & cross-platform. Min. 10 yrs TV / Media exp. Must have agency buying / sales planning. Resumes to: http://bit.ly/11ew0kk (7/10)

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INTERNSHIPS – These positions are for credit only – nobody gets paid here. These ads are always posted for free, and students work for school credit only. For more information on the specs for posting an Internship ad, email Trish at [email protected].

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