Future of TV
Google's Chief Business Officer, Philipp Schindler, sat down with Recode this week to discuss YouTube's ad problem. Schindler gave off the impression that Google realize they have a problem they need to fix, but that reports of it have been greatly overblown.
"It has always been a small problem ... very, very, very small numbers ... And over the last few weeks, someone has decided to put a bit more of a spotlight on the problem."
Despite this, Google have already taken action to increase their detection by 5x. In addition, they've improved their responsiveness when someone reports a video. They've also introduced a change that will require creators to have at least 10,000 lifetime views in order to apply to monetise their videos.
“This new threshold gives us enough information to determine the validity of a channel. It also allows us to confirm if a channel is following our community guidelines and advertiser policies.” - Arial Bardin, YouTube VP of Product Management
Roy Price, the Head of Global Content at Amazon Prime, believes that for content makers there are no global customers and that a ‘multi-local strategy' must be employed in content creation. The success of Amazon Prime's 'We are Wanted', a German original, in Germany is perhaps evidence that this approach pays off. While key shows such as 'The Grand Tour' and 'The Man in the High Castle' help drive global subscriptions, local originals help to regionally complement the service.
Netflix, of course are making international originals with the likes of 'Narcos' and 'Ingobernable'. However unlike Amazon, Netflix do not approach content creation and licensing based on the region their users are in. They discovered their users, no manner where they are, have a global taste in content.
Amazon and Netflix also take very different approaches in movie releases. For Amazon a film is only digitally released after a theatrical release, ie 'Manchester by the Sea'. Price believes this gives a film credibility. Netflix, however, coincide digital and cinematic release ie 'Beasts of No Nation'. The advantage for Amazon Prime is that giving films a cinematic window first means they can take advantage of award season buzz.
Although ESPN's bread and butter has undoubtedly been live sports coverage and highlights, they've also had success with original productions. Their ongoing collection of 30 for 30 episodes has always been highly-praised. Their documentary series, O.J. Simpson: Made In America won an Oscar this year. Now, ESPN are continuing their quest for more original content.
On April 11th they will debut their brand new TV series We The Fans, in which they follow the fandom of Chicago Bears season-ticket holders throughout the 2016-17 season. Given ESPN's record, there is little doubt this series will be great. But ESPN are taking this one step further, to social platforms.
For instance, on Instagram, where ESPN is already popular, the company will create Instagram Stories for each episode of the show in order to profile specific fans in the section. The company will also create short-form videos for ESPN’s sites, apps and social channels, which will often include footage that wasn’t used for the TV episodes.
ESPN are continuing to embrace being a multi-platform company for sports content. They've been successful with CollegeGameday content on Snapchat and other types of digital for shows like SportsCenter. It's likely that if ESPN stick to what they're good at, they can make ventures like this a success.
This deck from Business Insider charts the evolution of TV over the last 8 years. It's a great record of the power shift from cable to digital, and the rise of mobile video and social video platforms.
Lots of pitch deck worthy stats here including these 3 faves.
- Digital ad spend to surpass TV for the first time in 2017 😮
- Netflix has more US subs than Comcast and DirecTV combined 😮
- The number of households with ESPN has fallen by 7.4m in 2 years 😮