Quantcast

New-Media Players Challenge Broadcast Nets During Upfront Season

Discussion in 'Off-Topic Discussion' started by CatfishRivers, May 12, 2012.

  1. CatfishRivers

    CatfishRivers Well-Known Member

    Joined:
    Apr 5, 2011
    Messages:
    14,604
    Likes Received:
    877
    Trophy Points:
    113
    MediaPost Publications New-Media Players Challenge Broadcast Nets During Upfront Season 05/14/2012 (click for full article)

    "The question for the traditional broadcast TV networks this upfront season is, how do you compete with 25 hours of original programming on YouTube's Awesomeness TV, and Netflix's ever-popular replays of entertainment, kids and even sports cable programs?


    While the typical upfront advertising market of predictable rivals is becoming a thing of the past, still the arsenal broadcast networks will rely on to retain viewer ratings and advertising revenues looks a lot like their old bag of tricks. Just how long can that go on while Google, Netflix, Microsoft, Yahoo and other new-media players aggressively take their case to Madison Avenue?


    While it may take years for digital and online media to make a sizable collective dent in broadcast and cable networks' roughly $20 billion upfront spending patterns, the process is clearly underway. Martin Sorrell, CEO of WPP Group, indicated in a recent CNBC interview that the global advertising agency will likely spend more than $2 billion on Google this year, which could exceed the $2 billion of advertising it buys from News Corp. media properties annually.


    The situation in some ways parallels the early days of cable's inroads on broadcast television's then-dominance in advertising.This year cable's upfront ad spend will eclipse last year's upfront broadcast TV networks commitments, which ABC, CBS, NBC and Fox will be hard pressed to collectively top.


    But the new-media challenge is not a simple case of us versus them, according to data analysis by Bernstein analysts Todd Juenger and Carlos Kirjner. "We think the inevitable collision course between ubiquitous on demand, ad free content on Netflix, versus consumption of traditional linear TV, is starting to create fractures in the now infamous pay-TV ecosystem," the analysts said in a recent note. "
     
    Last edited: May 12, 2012
  2. CatfishRivers

    CatfishRivers Well-Known Member

    Joined:
    Apr 5, 2011
    Messages:
    14,604
    Likes Received:
    877
    Trophy Points:
    113
    Think Web Video Can Challenge Upfronts and TV? Fuhgeddaboudit! | Special: Digital Content Guide - Advertising Age (click for full article)

    "Google, Microsoft and AOL are hoping that their web video offerings and NewFront presentations will help them extract a healthy slice of the TV industry's upfront money this year. Unfortunately, as the "Leaving Brooklyn" billboard on the Gowanus Expressway tells us, they can "Fuhgeddaboudit."


    That all-too-familiar annual rite of spring is upon us. The trades are full of prenegotiation rhetoric. Industry conferences are dotted with panels of shadow-boxing buyers and sellers. Every day it seems we get reports from industry equity analysts telling us which networks will see pricing growth and which holding companies are best situated to hold the line.


    This year, however, we have a new dynamic. A group of would-be interlopers are trying to nudge their way into the TV advertising futures market, where advertisers and their agencies make billions of dollars in commitments to lock up the best inventory and, they hope, best pricing.


    No, it's not the cable networks. They've been trying to crash the party for years, and some have even gotten their own seats at the table. These crashers are the web folks: Google, Microsoft, Hulu, AOL and others hoping to reframe the upfront conversation from "just about TV" to "all about video."
     
  3. CatfishRivers

    CatfishRivers Well-Known Member

    Joined:
    Apr 5, 2011
    Messages:
    14,604
    Likes Received:
    877
    Trophy Points:
    113
    TV nets wrap upfront week: "The biz still goes through us" — paidContent (click for full article)

    "What, me, worry?


    Those three words broadly sum up the attitude of the broadcast TV network chiefs regarding the encroachment on their turf by digital media companies, as they conducted their traditional springtime dog and pony shows for advertisers in New York this week.


    Two weeks earlier, Google, Yahoo, AOL, Microsoft and other big digital media companies closed out their "Newfront" presentations to the same constituency, appealing for a portion of traditional TV's annual $70 billion market share.


    But as this week's upfront presentations revealed, the linear video guys still have lots of swagger.


    "Not Google, Netflix, Yahoo or, YouTube can compete with our scale," Fox Broadcasting entertainment chairman Peter Rice told advertisers and their agencies Tuesday. "They're now buying shows - good for them. In reality they're going to find they're in the NFL. It takes a lot to make a show that people want to watch across all media."


    "Everyone is still talking about the first screen, the TV screen," CBS Corp. chief Les Moonves told the Carnegie Hall audience Wednesday. "The first screen must come first, and there's no second screen without it."


    For now, the money seems to backing up these claims. "
     
    Last edited: May 18, 2012
  4. CatfishRivers

    CatfishRivers Well-Known Member

    Joined:
    Apr 5, 2011
    Messages:
    14,604
    Likes Received:
    877
    Trophy Points:
    113
    Analyst: Digital Newfronts will fail to take TV dollars — paidContent (click for full article)

    "Will the major digital media companies succeed in creating a springtime advertising sales market on par with TV's long-dominant upfront? At least one prominent research firm doesn't believe so.


    In his firm's weekly briefing to media investors, Sanford Bernstein senior analyst Todd Juenger said premium-video-focused companies like Google, Yahoo and AOL lack the essential ingredients to sell out big portions of their commercial inventory at one time, a la traditional TV's upfront."
     
    Last edited: May 24, 2012
  5. CatfishRivers

    CatfishRivers Well-Known Member

    Joined:
    Apr 5, 2011
    Messages:
    14,604
    Likes Received:
    877
    Trophy Points:
    113
    Ovum: OTT TV not yet rival to traditional services | Advanced Television (click for full article)

    "Despite their ever-increasing momentum, over-the-top (OTT) TV services are not yet an adequate alternative to traditional pay-TV, according to analyst firm Ovum. However, operators should not rest easy, warns the company; besides enjoying significant brand equity, a handful of key OTT players, such as LOVEFiLM and YouTube, can also leverage the financial strength and assets of their parent companies
    (Amazon and Google, respectively) to substantially improve their positioning.


    The first iteration of Ovum's OTT TV Player Positioning research - a dynamic tool objectively assessing key players within the Internet TV space - reveals that although OTT TV services now more closely resemble those of their network-based competitors, they have a long way to go before they can match the quality and breadth of content of traditional pay-TV offerings.


    "While we expect OTT to become increasingly integral to the home video entertainment mix, there's little evidence yet of consumers dropping their pay-TV subscriptions in favour of purely operator-independent solutions," says Jonathan Doran, principal analyst at Ovum. "For the time being, OTT will remain a complement rather than an alternative to pay-TV."
     
    Last edited: May 29, 2012

Share This Page