VideoInk Interview - My 2015 Reflections/2016 Predictions

(VideoInk originally published this interview on December 21st -- thanks to Todd Longwell of VideoInk to permit me to republish it fully -- here is the link to the original post).

To close out 2015, VideoInk is calling on some of the top execs in the online video business to give us their take on the most significant developments in the industry in the past year, as well as where it might be going in 2016..
First up is Peter Csathy. As the CEO of business consulting and legal services firm Manatt Digital Media, Csathy has been an agent of change and passionate proponent of digital transformation and opportunity. He’s also been keen a keen observer of the rapid changes in the streaming space, offering up regular industry analysis in his Digital Media Update blog.

What was the most important trend in the online video industry in 2015?
The push of “traditional” media companies to place big bets in digital-first media. A seemingly endless array of standalone subscription-based OTT services (including NBCUniversal’s upcoming Seeso) followed HBO Now’s path and launched or announced this past year. NBCU made other significant moves – investing $200 million each in BuzzFeed and Vox Media – and parent company Comcast launched its mobile-first video service Watchable.
What single deal, launch or failure in 2015 was the biggest game-changer for the industry?
Facebook’s focus on video changed the online video game this year, in one stroke transforming the “YouTube Economy” into a “Multi-Platform Video Economy.” Now, for the first time, YouTube has real competition and creators have choice. On the flip-side, Yahoo!’s failure to launch its YouTube “killer” service earlier this year and it’s recent exit from premium video represent a cautionary tale about the need for focus and speed.  Yahoo!’s assets, together with focused media aspirations, could be impactful.
What surprised you the most in terms of hits or misses?
VR was the biggest surprise hit this year in terms of sheer audacity and investment. While I expected VR to be a significant story in 2015, the speed at which that market is growing and in the minds of business is remarkable. 2016 will see the early mainstreaming of VR with millions of premium headsets sold. The biggest “miss” – if you can call it that – is that the MCN/MPN M&A market slowed this year. Things will heat up again in 2016, and we will see several M&A exits for those remaining MPNs with scale.
What’s the most common mistake you saw this year in the biz, whether they were made by studios or individuals?
To underestimate the speed at which everything is moving – and the need for focused action in this brave new digital world order.  This is no time to churn endless spreadsheets.  The world has changed.  You see it all around you.  For millennials in particular (the bodies marketers need to reach), media is mobile and social-first.  So, a central focus on mobile and social are necessary … yesterday.  No time to overthink it. It’s time to act.
Is there a sector of the streaming industry that you feel is chronically undervalued or ignored?Yes, those companies and technologies that can help consumers find precisely what they want and navigate intelligently through the endless and expanding flood of content.
What do you think will be the big story for the streaming space in 2016?
If you consider VR as part of your coverage, then the early mainstreaming of VR will be a massive story in 2016.  Separately, on the streaming/digital media side, significant M&A and consolidation will grab headlines throughout the year. Be prepared to be unprepared for the news to come. Everyone is scheming as we speak.
Virtual reality/360-degree video – fad or future? Why?
VR is no fad.  Virtual reality is actual reality here and now – a transformative technology that facilitates entirely new experiences, most of which we have yet to even imagine. The sheer billions already invested to date – and will continue to be invested at an accelerating pace in 2016 – will make it so. If they build it (VR), we will come. And we will be amazed.
Mobile-first distribution – overhyped or undervalued? Why?
Mobile is the first screen for millennials, plain and simple. Look around you. That’s where the kids are. And that means that all media and marketing companies need to be there, right here, right now. And not timidly, either.

Digital Media 2015 -- My Recap For TechCrunch

(A modified version of this post originally appeared in TechCrunch yesterday under the title "Scorecard: 2015 Digital Media Predictions.")

It's that time of year again.  No, not the holidays!  It's nostalgia time -- taking a look at this past year and taking stock of our lives (both business and personal).  This post focuses on the former -- strictly business.  Here I look back at the 8 predictions I made in TechCrunch nearly one year ago in an article not-so-creatively titled "The Future Of Digital Media 2015."  This post compares those predictions to the reality that is digital media in 2015 (understanding that we have a few more weeks to go).

I.  PREDICTION (1) -- The mobile-driven, premium, short-form video economy “grows up,” and traditional media companies finally take notice on a mass scale ... International also becomes a major new battleground for these borderless video opportunities. 

REALITY CHECK (1) -- This one can't be denied.  2015 was the year when the media world's new digital realities hit home on a mass scale.  Too many data points to mention -- but, on the domestic front, I'll focus on one -- Comcast/NBCUniversal.  This multi-tentacled media behemoth had barely made a digital move in 2014 -- but, in the second half of this year, it was practically on fire.  First, it invested $200 million into Vox Media.  Then, in less than one week, another cool $200 million in BuzzFeed.  Then, it launched its mobile first short-form video platform "Watchable."  And, in case that wasn't enough, it separately announced its longer-form stand-alone subscription OTT companion to Watchable -- i.e., "SeeSo."  SeeSo launches January 7th -- just in time for CES.  Now THAT's making a digital statement (which Comcast/NBCUniversal finally -- and smartly -- did).  Bravo! (a network NBCUniversal owns, by the way).


On the international front, check again.  International media giants -- particularly in Europe -- moved even more swiftly than their Yank compatriots.  Cases in point include Scandinavian media company MTG buying leading UK MCN/MPN Zoomin.TV for a deal valued at nearly $100 million; and German media giant ProSieben's acquisition of leading U.S. MCN/MPN Collective Digital Studio -- which it combined with its existing Euro-based Studio71 MCN to create a truly global digital, mobile-first and millennial-driven media company (valued at approximately $240 million, including ProSieben's cash infusion).




II.  PREDICTION (2) -- Major consumer brands follow suit and act in earnest.  Massive marketing dollars shift from traditional media to more measurable digital platforms in the form of branded content (not just ads), cannibalizing the former for the first time.  

REALITY CHECK (2) -- Check, again.  Ad dollars shifted from "traditional" to digital/mobile in real, eye-opening ways, the magnitude of which is still not fully appreciated.  Even ESPN -- THE traditional media world's cash cow -- was not immune.  ESPN is the proverbial canary in the coal-mine.  If it had to shed 4% of its work-force in light of new digital marketing, OTT, and consumer behavioral realities (which it recently did), then you know (or better know) that the times are a' changin.'  Even Viacom -- what most pundits consider to be amongst the slowest major U.S. media company to act upon new digital realities -- made noises about placing major bets amidst these new realities.  Specifically, it is reported to be developing its own Nielsen audience measurement "killer" -- a new digital measuring platform it calls "Project Gemini."  But, many ask, why build slowly when you can buy or rent right now?  Speed is at a premium in this brave new digital world.  My vote is "buy!"  Deep tech expertise is not a natural element of traditional media DNA.




III.  PREDICTION (3) -- YouTube comes under siege by new competing video platforms like Facebook and Vessel. 

REALITY CHECK (3) -- Check again -- with a major exclamation point this time. YouTube no longer stands alone at mass scale in this digital video world.  I have written about this several times over the course of this past year.  "The force" is with Facebook already in a very big way (the first of my "Star Wars" references) -- it is a behemoth alternative platform that increasingly matters to video creators (just ask major MCNs/MPNs like Whistle Sports and Mitu Networks).  Same with Snapchat, which is now a bonafide media company and not just your kids' communication platform.  Then, there is an ever-increasing cast of thousands, including still-very-stealth-like Vessel (would love to see some metrics/conversion rates posted by Vessel, by the way).  


YouTube's competition is real, very real for the first time -- and that's precisely why it recently reacted to these competing forces (and resulting expanded consumer choice) by launching its YouTube Red ad-free paid subscription service.  Even the mother of them all smartly concluded that it can't stand still (even if it had to break a few creator eggs in the process).  I applauded YouTube at the time for acting, because no media company of any size should be doing anything but.  Your actions may not always work, but it's experimentation time.  You simply must be in the game -- and, as they say, you cannot be afraid to fail.  Failure is an option in this context, because inaction simply is not.



IV.  PREDICTION (4) -- Traditional pay TV packages likewise come under fire in the “Great Unbundling” that began in 2014.  

REALITY CHECK (4) -- Check again -- let me count the ways!  Where to begin?  Virtually every media company has now (again, smartly) either launched or has announced that it is launching its own stand-alone paid subscription OTT service (NBCUniversal's "SeeSo," CBS's "All Access," ABC's "WatchABC," Univision's just-announced "Univision Now," "HBO NOW," Showtime, Nickelodeon, Comcast "Watchable," Dish's "Sling TV" ... the list goes on and on) -- not to mention all the others out there focused on particular vertical/niche programming (how about the WWE's chair-smashing pseudo-wrestling focused streaming service?  It is killing it).  There's gold in those vertical hills populated by a particularly rabid and underserved customer base.  But, in this era of the "Great Unbundling" (which again directly impacts even media stalwart ESPN), how many of these paid subscription services can the market take?  The market "noise" is great -- so there will be blood.  But, in the immortal words of Yoda (who is sure to be oft quoted this holiday season), "try you must!"




V.  PREDICTION (5) -- Media and tech companies will literally converge. 

REALITY CHECK (5) -- "Convergence" can mean many things in this context.  But, candidly, I was thinking primarily of M&A when I wrote this one (although strategically partnering counts -- and we do see media companies increasingly venturing into tech -- case in point Warner Bros' and Sony's hoped-for "Netflix Killer" OTT joint venture with SingTel in Asia named "HOOQ").  No mega-acquisitions have happened yet.  Neither Google, Amazon, nor Apple (nor Alibaba!, which just bought Chinese YouTube Youku Tudou for $4.8 billion) has bought any of the major U.S. media companies.  But all easily have the cash to do it.  Will we see that happen in 2016?  Stay tuned for my 2016 predictions near year-end.  



VI.  PREDICTION (6) -- On the music side, businesses move away from stand-alone services.

REALITY CHECK (6) -- Why?  Because as massive as both Spotify and Pandora are (and they are), they are not even remotely profitable based on subscription revenues alone.  That's why Pandora just recently (and smartly) announced two major strategic moves to diversify its singularly challenged business model.  First, acquiring Ticketmaster's mini-me -- Ticketfly -- for $450 million in order to add a major new revenue stream.  And now, buying soon-to-be-defunct competing service Rdio for $75 million in order to add on-demand functionality and compete head-on with Spotify and others.  That last move does little to change its pre-Ticketfly one-dimensional business model.  But, it is a major reaction to its long market slide over the past two years.  Spotify also hears the music -- and just partnered with Songkick to add its new "Concerts" feature that gives it a hoped-for major new revenue stream.  I applaud those efforts to diversify, because all stand-alone services must (as I have written several times previously).  But will these moves be enough?  I still don't rule out M&A (as in being eaten by even bigger fish -- in this regard, the "usual suspects" in Prediction 5 above apply here too).  This could happen in 2016.  Pandora is becoming cheaper by the day.  


Speaking of digital music-focused M&A, Tidal has been in the news of late about secret potential M&A discussions with Samsung.  But, isn't being controlled by a behemoth (rather than being independent and controlling your own destiny) everything against what Tidal is all about?  I could see Jay Z wanting to partner with Samsung, but not selling.  And, speaking of Samsung, don't forget that it already features its own "Milk Music" service that is powered by Slacker, the streaming service that quietly has built a significant customer base (you may be listening to it in your car right now) but is generally overlooked because it is more humbly tucked away here where I live in soft-spoken San Diego.  If anything, Samsung should just buy Slacker.  But, will it?  Doubtful.  Samsung just recently shuttered its "Milk Video" service and is exiting, not entering, the content space (except in the area of VR where it has placed a huge bet with Samsung Gear VR) (more on VR below).  Of course, Samsung's overall content strategy could change again -- since the company has embodied "change" on the content side over the past couple years).


In any event, Pandora and Spotify -- the two indie mega-music services -- satisfy this Prediction #6 in my book.  Let me know if you agree.




VII.  PREDICTION (7) -- Gamers see real action too.

REALITY CHECK (7) -- This prediction focused on game developers increasingly transforming themselves into multi-platform media story-tellers a la Rovio.  Certainly we are seeing accelerating moves and investments to that end -- and I conferred with games expert and Manatt Digital Media colleague Patrick Sweeney to get his thoughts.  He pointed out that for game developers, it's not just about original IP for their stories.  He gave me several examples based on existing properties -- including "Laura Craft Go" (a mobile strategy game based on Tomb Raider), "Fallout Shelter" (an interesting resource gathering twist on a classic game console title), and Pac-Man 256 (a new mobile spin on one of the most classic game titles).  Based on all this action -- and Patrick Sweeney's outside objective confirmation -- I'll mark this prediction off as being a "yes."




VIII.  PREDICTION (8)  -- Gamers take to wearables ... we see an Oculus under every hard core gamer's tree.

REALITY CHECK (8) -- I massively undersold this one.  Prediction #8 was all about virtual reality (VR) and how it stands to radically transform the gamer experience.  But, 2015 represents so much more than "just games" in the fast-transforming immersive world of VR and AR.  This is the year where massive bets were made (significantly more than I anticipated) to accelerate mass VR adoption in not only games, but in live "experiences" and story-telling in general (not to mention other remarkable use cases I touched upon in a recent blog post where I interviewed VR/AR thought leader Mike Rothenberg).  (NOTE:  My team at Manatt Digital Media recently published a highly informative VR/AR Infographic -- accessible via this link -- that lays out the overall VR/AR eco-system (and the players within it); think you may find it to be extremely useful).


No, we will not see an Oculus under every hard core gamer's tree this Xmas.  I was a bit premature on that one.  But not by much.  Those premium VR headsets from Oculus (as well as the growing list of others including behemoths Samsung, HTC, Sony) are coming in Conehead-inspired mass quantities early 2016 (I particularly like what I see ... er, "experience" ... with the HTC Vive (which I review in this blog post after demo-ing it last week at the Slush conference in Europe)).  Much like the analogous early days of game consoles, we will see millions of those premium headsets (not just Google Cardboards) sold in 2016.  That means mass adoption and mainstreaming of VR much earlier than most expect.

You can take that early 2016 prediction to the bank!  More coming on that front soon ....

VIDEO - 2015 - The Year In Online Video and M&A



We at Manatt Digital Media summed up 2015 -- the year in online video/digital media and M&A -- in the only way that made sense to us.  Via a video that captures the year's frenetic activity -- and the video world's overall frenetic pace -- in less than 60 seconds.  Sit back and enjoy.  And, by the way, those "swipes" you see of one company logo over another are no accident.  Those swipes either connote (i) major strategic investment, or (ii) M&A by the company whose logo overlays and envelopes the other.  Expect many more such swipes in 2016.  Oh, and one more thing.  YouTube's logo starts it all off (just like YouTube birthed the online/digital video eco-system in the first place).  But, as this video underscores, YouTube is not alone anymore.  And, 2015 was a pivotal year in that regard, as Facebook, Snapchat and a countless and accelerating string of "others" boldly announced themselves as being alternative platforms and urged us to check them out.  Which ones did you check out?

Happy Video Holidays from your friends at MDM!

VR/AR - The Year In Review (& Resources You Can Use)

2015 set the stage for VR/AR.  As Digi-Capital just reported, $1B+ was invested in VR/AR this year.  And, that's only the beginning.  2016 will be VR's break-out year -- with millions of premium (not just Google Cardboard) headsets being sold and consumer adoption I predict to be significantly greater than what most expect.  My recent panel of VR experts at the Siemer Summit all agreed on that fact.  In addition to the Digi-Capital report, this Analyst Report from PitchBook is worth reading.  And, here's our own Manatt Digital Media summary of the year in VR & AR -- in the form of an Infographic that lays out the relevant landscape (and both identifies and categorizes most of the major players within it).  Worthwhile perusing if you haven't already when we first published it a couple months back.  Here's to a very Immersive New Year!


Yahoo! Selling Its Core Internet Business? Today's Massive Wake-Up Call

What a wake-up call for all of us in the digital media business.  The Wall Street Journal reports that Yahoo!'s board is considering selling off its core U.S.-based internet business, which the market values at LESS than $0 of its $31 billion market cap (yes, that's correct according to the Journal).  If this happens, what would be left?  Yahoo!'s 15% stake in Alibaba (currently worth $32 billion) and its stake in 35% stake in Yahoo! Japan (currently worth another $8.5 billion) -- in addition to cash and other investments.

What happened here?  How can this be?

Well, Yahoo!'s media strategy certainly didn't help.  It has failed, plain and simple.  I wrote a detailed post about this back in April (titled "Yahoo Kills Its YouTube Killer - So What's Still Alive?") when Yahoo! threw up the white flag to its long-rumored, but not-to-be, YouTube "killer."

That move, as I wrote then, "demonstrat[ed] Yahoo!'s continued indecision and overall flailing (failing?) in the OTT video content space.  And, this certainly is not an opportune time for flailing -- for an unfocused/scattered/disrupted (you choose the word) video strategy (or complete lack thereof?) when the video focus/strategy/execution of others (behemoths like Facebook and Snapchat and others like Vessel) are ever more sharp, precise, resourced, abundantly clear ... and, with some, massively successful (by all accounts, Facebook is killing it)."

Sad indeed.  After all, Yahoo! had every opportunity to massively succeed -- it controlled uniquely compelling resources and ingredients (that I discussed long ago in a blog post from 2013) that gave Yahoo! the potential to drive real success as an alternative to YouTube and in the burgeoning OTT world.  But months (now years) ticked by and, alas, little came (except a revolving door of new execs and departing frustrated execs).  Yes, there was significant video activity, but no recognizable strategy to it all (nor any real reported success in those efforts).  As I reported back in April, many senior execs with whom I have spoken confirmed overall frustration time and time again.
"Yahoo!'s video "strategy" has been overtaken by confusing multiple layers of decision-making, internal conflict, and what some even called "chaos.""  Nor did it help that Yahoo! failed in its attempt to buy a controlling stake in Dailymotion, Europe's YouTube.  Not its fault (French regulators killed that deal), but still failure to launch.

Meanwhile, as Yahoo! flailed, the video world radically changed.  What once was, in essence, a YouTube-only video world for creators is now, of course, a world of multiple competing video platforms with massive competing players like Facebook, Snapchat, Netflix, Amazon, Hulu, Sling TV (and the burgeoning number of stand-alone OTTs like HBO Now).  So, as I wrote in April, and faced with those realities, "Yahoo! is running out of time amidst the current great OTT video land grab of 2015."

But, back in April, I still felt that Yahoo!'s media strategy was potentially salvage-able if it "ha[d] a major Dailymotion-like acquisition trick up its sleeve that will soon come to light and finally catapult it into the OTT video big leagues (where it absolutely could belong if it had the will and focus)."

Sadly, if The Wall Street Journal report becomes reality, that simply was not to be ...

although it could have been ....

5 Questions with Wattpad Head of Business Candice Faktor -- Exclusive Q&A

Wattpad is a free app that lets people discover and share stories about the things they love.  Wattpad stories are serialized -- and the entire community participates in the storytelling process through comments, messages, and multimedia. The app offers stories in over 50 languages and works on mobile and web. I recently spent time with Head of Business Candice Faktor of this Canadian-based company who tells me that more than 40 million people have used it. Compelling. And, makes it a digital media company you should know -- including you, major marketers. Here are my 5 questions for Candice -- and her unedited answers.

(1) What is the reason your company exists (and what problem(s) are you looking to solve)?
Wattpad was originally created so people could read stories on their phones. One of the key features of the platform seven years ago was that anybody could create stories. Fast forward to today, thanks to that decision, 150 million original story uploads have been shared on the platform.  

Wattpad solves a few key problems:
1) Mobile first entertainment - It is a reading and entertainment experience designed for mobile devices and social engagement. Many stories are serialized, with short chapters perfect for mobile interaction and long addictive serialized narratives that notify people when the next chapter is ready to discover. Most story platforms that exist were not designed for mobile first experiences.
2) Democratizes publishing - Wattpad gives voice to many people in many markets whose stories would otherwise never been told and Wattpad gives free access to stories in over 50 languages.  Our library of 150 million stories have been written by young people for young people making them highly relevant and engaging for the millennial and gen z generations.
3) Finding a fan base - One of the hardest aspects of being a creator is the challenge of finding an audience. On Wattpad, we have 40 million readers every month that crave new stories.  Our writers love being able to build an audience, nurture fans and interact with them in real time.

(2) How are you different from your competitors?
Wattpad is a very unique product, and as such we view our competition as the other 27 spots on the homescreen of your mobile device. We are different, in that in a world of 7 second attention spans on mobile/social, our users spend an average of 30 minutes per session highly engaged in this form of entertainment.
(3) Why will you succeed (and what is your single most important ingredient for success)?
We will succeed because we let our community create stories that matter to them and we let the community access and vote for the stories they want to rise to fame. We don’t try prescribing what the best content should be, rather we act as an enabler and democratizer. The single most important ingredient is our community so creating an amazing platform and keeping them happy is our most important ingredient for success.

(4) What makes your company unique (and what do you enjoy most outside of building your business)?
It truly is a unique form of entertainment – mobile, social, serial and multimedia. Our 150 million original stories can’t be found anywhere else and our community is highly invested in interaction, feedback and co-creation.  


Outside of building Wattpad, I enjoy being curious and experiencing and learning new things. I have 2 boys (3 and 6), and unbridled curiosity lives in these little human beings. Discovering, inventing and experiencing new things with them is one of my greatest joys.

(5) What digital media trend is most interesting to you (and what is the least)?
I am excited to see how next generation media experiences such as virtual reality (Oculus), digital live experiences (Periscope) and rich messaging (Messenger, Snapchat) will shape new narratives and entertainment formats. We see these trends as exciting new ways to tell stories.
Least interesting to me is adtech for display ads.  

Instagram + Oculus = Facebook's New Compelling Math

Instagram made headlines in our digital media world late last week when CTO Mike Krieger marveled at the possibilities of bringing its users visual content into the VR world of Oculus to, among other things, transport them immersively all around the world.

That's smart.  Rather obvious.  And will happen sooner than you think.


Think about it.  While Facebook -- owner of both Instagram and Oculus of course -- is primarily a communications medium, Instagram is first and foremost a visual medium.  Both complement each other (and more kids use Facebook -- and vice versa -- than you think).  And, Facebook's natural progression always has been its evolution first from text, then to still images, then to video, then to 360 video (just this past year), and then ultimately deeply immersive into VR.  While Facebook publicly keeps our expectations low -- saying that the mass marketing of Oculus VR will take 10 years -- don't believe it.  Consumer Oculuses (Oculi?) soon hit the market at a price point familiar to gamers and their consoles.  They will be snatched up.  And, all the other major players hit the market with millions of premium headsets soon, very soon (I just saw another Samsung Gear VR commercial last night).  Make no mistake, those VR buyers too are Instagram users.


VR's "travel around the world" possibilities (and soon-to-be realities) are a natural immersive fit for Instagram.  And, they will connect us and immerse our kids (and us too) into other cultures -- which could be a very good thing.


Amidst all the divisive hatred and tragedies around the world, VR's "empathy machine" capabilities (about which I wrote previously) may be exactly what we need.


Oculus -- in the hands (and on the faces) of Instagram users -- has that kind of power and potential.  


Facebook ... unleash it!

MDM's November Newsletter - VR/AR, Siemer Summit, Slush

Manatt Digital Media – November Newsletter

This month's newsletter features highlights from the Siemer Summit in Beverly Hills, the SLUSH conference in Helsinki and conversations with the founders of emerging tech start-ups in sensor data technology and virtual reality.

MDM Supports the Start-up Community in LA; Siemer Summit Round up

The 5th annual Siemer Summit, MDM's biggest sponsored event, was held in Beverly Hills last month. During this invite-only event, over a thousand digital media and technology leaders gathered to network and to hear from 114 start-ups who are driving the innovation around us. Day one of the summit concluded with the 2015 Wavemaker Awards, which featured 11 awards across industry and overall achievement categories. Read more

Exclusive Q&A with Sense360 CEO Eli Portnoy

Sense360, a sensor intelligence start-up that launched in October 2014, empowers app developers to create more personalized and relevant experiences for consumers based on the vast amount of data (mostly untapped) generated by smartphones and other smart devices. In the latest of our Q&A series, Sense360 CEO Eli Portnoy shares his insights into sensor technologies and their applications in everyday life. Read more

VR to Reach Mass-Market Status in 2016: MDM's VR/AR Panel at the Siemer Summit

At this year's Siemer Summit, MDM's Peter Csathy moderated a VR/AR panel with industry experts (including senior execs from Jaunt, Rothenberg's River Accelerator/Studios, CryWorks, New Deal Studios, and VNTANA—all of whom are pictured here after the panel, except for Ashley Crowder of VNTANA). Read more

Increasing Momentum in VR Content Distribution

The VR movement continues to gain momentum, particularly in the media and entertainment realm, as we approach the release of more premium headsets in the coming months. Recent months have been particularly exciting as a number of the major video and social platforms have either debuted new features or indicated expansion into the VR sphere. Facebook recently enabled 360-degree video viewing on its newsfeed. YouTube unveiled a new brand of videos called "VR Videos" and enabled Cardboard viewing for all existing YouTube content. Hulu plans to launch a VR app this month, while the Netflix VR app is already available on Samsung Gear VR. Apple released a 360-degree U2 music video on the VRSE app as part of a larger experiential partnership with the band. These developments have provided us with a captivating glimpse into what the future holds in relation to the distribution of virtual content. Read more

MDM Supports the European Digital Media/Tech Community at SLUSH

SLUSH—which has emerged as one of Europe's leading tech/digital media conferences—took place earlier this month in Helsinki, Finland. MDM attended for its second year amidst the Helsinki November slush and was featured. CEO Peter Csathy moderated an MCN/MPN/OTT video panel that featured Urs Cete (of leading video-focused investor Bertelsmann Digital Media) and Christian Meinberger (who leads ProSieben-backed MCN Studio71 which recently merged with U.S.-based Collective Digital Studio). Csathy also hosted a "transformation of media" roundtable with seven entrepreneurs who signed up to learn more about how technology and mobile have forever changed the media and entertainment landscape. Read more

SLUSH 2015 - My Review & Highlights (& Why You Should Attend)


Just wrapping up my second SLUSH tech/digital media conference in Helsinki, Finland -- and, because of the continuing unusual (the new usual?) warm weather, there was no slush in sight (something that the very intrepid Slush organizers noted themselves as you entered the doors on day 1 - see picture to the left).  Rather, good old-fashioned rain was sprinkled amidst the November Helsinki sunshine (yes, even the sun revealed itself to me this time).

Amidst the cacophony of digital media/tech conferences that increasingly populate the globe, SLUSH stands out and rises above the din.  That's what makes it an event definitely worth attending -- even from the distant shores of the U.S. (for reasons I laid out length last year after my first SLUSH experience).  Organizers do it right.  Everything is quality.  Deep attention to detail.  Focus on making SLUSH a true "experience" with a rich sense of style (real style ... euro style ... and that's a great thing that U.S. conferences should heed).  And, the SLUSH support team -- which is comprised of literally every college student in the city of Helsinki -- is amazingly gracious, helpful, and friendly.  They picked me up when I landed from my flight.  They picked me up at my hotel for events.  They said "yes" -- and those efforts matter.  They matter a lot.  The full weight of this beautiful city -- and the country itself -- is behind this one.  And, you can both see and "feel" that.  What other conference can say that?


This year's SLUSH -- its 8th -- was even bigger than last.  15,000 attendees (it was sold out).  1,700 startups.  Over 800 investors representing 250 VCs.  And, well over 50% of the world's nations represented.  And you could feel it (physically).  Much rubbing of shoulders took place as one walked the halls.  Let's hope Slush organizers don't expand that number further ....

I spoke this year -- briefly laying out the fundamental transformation of the media and entertainment business before an audience of 1000+ (as a result of digital, mobile, social, and new millennial behavior) (that was my stage in the picture to the right) and moderating a related panel that featured Urs Cete, Managing Director of Bertelsmann Digital Media Investments and Malte Andraessen, CEO of leading Nordic-focused MCN United Screens.  The feedback was excellent -- the panel's messages resonated.  Earlier, I was honored to serve as a VC "jury" member to judge the startup pitch-fest competition.  I also led a small informal Roundtable that dug deeper into new opportunities amidst digital's transformation of media.

HIGHLIGHTS?

(1) BEST PRODUCT EXPERIENCE -- demo-ing HTC's Vive VR headset (that's the 5-component Vive set-up to the right, minus the two stand-up room sensors).  One word -- Epic!  I have tried many VR headsets, but this one is the leader so long as HTC stays committed to it and eradicates its bugs.  Even before I tried the Vive, its buzz in VR circles -- even amongst the competition -- was hot.  Now I know why.  You are immersed of course.  But, you aren't forced to just stand there in your immersion -- you can actually move around the room  ... safely! ... with a rather ingenious guiding system HTC calls its "Chaperon System."  What else?  Unlike the other guys, you get two hand controllers when you buy your system (which you will) -- hand controllers that enable you to pick up and control virtual objects, something it calls "job simulation."  I used this intriguing "click and pick" feature to pick up food in my virtual kitchen, which was one of the 4 demos I "experienced."  Yes, this early stage "hand control" experience was fairly rudimentary, but it reveals future possibilities.  But, my single most compelling experience was "The Blue" -- where I was fully immersed underwater and literally looked a whale in the eye (and, remember, I was free to move about as I did it).  A close second experience is called "Tilt Brush" -- in which you as the artist select your virtual palette and paint tools to, among other things, create amazing immersive 3D graffiti art in which you find yourself within the picture (something you must experience to fully grasp, because my explanation doesn't do it justice).  I am told the Vive will be available Q1 2016 -- but no price point has yet been revealed.  Nonetheless, many of you will buy it.  And, I understand why.  It is mind-blowing.

(2) BEST AUTHENTIC FINNISH "EXPERIENCE" -- this one's easy -- being an honorary member of the Finnish Sauna Society for a second straight year (at least for one day) and trying out 6 of its saunas before jumping and swimming into the frigid Baltic Sea three separate times (okay, we Americans must applaud ourselves -- as I do on the right -- when we believe 40-45 degrees qualifies as frigid; but our Finnish hosts take us down a peg or two when they mock that notion and consider those temperatures to be downright balmy). I proudly used all mental powers I could muster to hit the one minute mark (okay, maybe closer to 30-45 seconds) on each submersion (and that qualifies as being more than a dip).  Our generous hosts also submersed us in the authentic history of Finnish saunas -- and sauna etiquette (i.e., act as you would in church, meaning no business talk!).  Music consultant -- and overall great person, Andie Simon, BDMI's Urs Cete, Slush's own Petri Vilen, and PTTOW!'s Ryan Brenner, among others, joined me for this authentic experience.  All of us agreed that this was the personal highlight of the trip.  (Taking a distant second place -- but still very much worth mentioning -- is experiencing Finland's award-winning Gin called "Napue" -- pictured below -- that is not yet available in the States.  That is downright criminal).


(3) COMPANIES TO WATCH -- so many to mention, so little time.  But, here goes -- here is my list of "must know" companies featured at this year's SLUSH:

(i) Kiosked -- a company I have known for quite some time -- and for good reason.  I spent considerable time with uber-connected CEO/Founder and Finn entrepreneur Micke Paqvalen and learned much that you should know (and now do) (the picture below the Gin shows their Helsinki offices).  This ad-tech company, with Rovio roots, merges marketing and advertising together on a global scale and on a single 100% programmatic advertising platform.  Publishers and advertisers unite indeed!  The company now has an eye-opening $50 million revenue run rate and will hit $100 million in revenues in 2016.  Micke tells me that its only true competitor is Facebook -- but, remember, Facebook is a walled garden and only takes care of its own.  THAT -- ladies and gentlemen -- is a fundamental difference.

(ii) Candela -- Micke is associated with this one as well (as an investor), but that's not the only reason I like it.  Candela is "Tesla for boats"-- a beautiful fully electric motorboat that upends the boating industry just like Tesla continues to disrupt the automobile market.  Candela's team is comprised of a "who's who" of engineering and design.  I am a believer.  Silicon Valley, you should invest in this one.  Certainly not as massive as the automobile market -- but massive all the same.  You'll be happy with the inevitable return.  The first fully functional prototype hits the water early next year -- but full first year production already is sold out.  Get your ticket now if you like the high seas.

(iii) Velmenni -- I learned about this one from the Slush 100 pitch-fest (it was one of the companies I judged -- and voted for).  If the CEO's claims are true -- and the technology from this Indian company works as advertised -- then all of us soon may have a new option for high speed wi-fi in crowded venues (concerts, conventions), airplanes and other notoriously challenging wi-fi zones.  Velemnni uses light to accomplish this -- call it "Li-Fi" (they do).  Don't ask "how."  Just hope that it's all true -- that now you can transfer your data at the speed of light (their slogan) -- which I have no reason to doubt.  Exciting.

(iv) Pop Dash -- not a separate company, but rather a cool new game launched at SLUSH by MaxPlay (and from the minds of Andie Simon and CEO Sinjin Bain).  Just check it out.

SLUSH 2015 -- in the books -- in the mind.  Another unforgettable experience that, once again, underscores that Americans MUST travel outside their borders (and comfort zones) to see and "feel" what the rest of the world is doing ... how they are innovating ... and what they are using to innovate.  (Case in point, as I left the venue on this last day, I first learned about "Slack", a new more efficient communication platform that apparently is the new "WhatsApp" -- worth checking out itself).

(Final pictures -- to the right, that's VR innovator and thought leader Mike Rothenberg of Rothenberg Ventures, who hosted a cocktail/dinner reception for others like me who are focused on the immersive space (as all of us should be); and below that picture is Nokia's new "Ozo" 360 degree camera that was proudly displayed on its home turf as either a work of art or a museum piece -- consumers will make that decision.)

Introducing A New (THE) KIND of Cannabis-Focused Lifestyle Media Company

Cannabis.  No matter how you feel about it, no one can deny that it is deeply ingrained in the daily lives of a significant portion of the population ... and in our overall culture (perhaps even more so than alcohol).  For many, it is simply part of their lifestyle.  And, the times, as we know, are a changing' as more and more states are recognizing that reality, changing their laws, and enabling new forms of related business (and benefiting from the revenues generated by those businesses).

Amidst this reality -- and amidst the fundamental transformation of the media world in which we all sit (and about which I regularly write) -- it is no surprise that new lifestyle multi-platform media companies (MPNs) have formed to address this "vertical" market (much in the same way that leading MPN Tastemade hits the food/travel vertical, Whistle Sports hits the sports vertical, DanceOn hits the dance/music vertical, and Machinima hits the gamer vertical).  Best known to date is Snoop Dogg's recently launched Merry Jane.

Now, as of yesterday, a new cannabis-focused lifestyle media company has launched.  It is called THE KIND.  It is founded by an A-Team of players, including Phil Shalala, who worked with cannabis-focused Privateer Holdings and previously worked as long-time CMO of Hard Rock Hotel in Las Vegas (so they know their brand and how to differentiate it).  And, on that note, it is different from Merry Jane and others by focusing more on the lifestyle of those who have made cannabis part of their lives, rather than focusing on the cannabis itself.  THE KIND boldly announced itself yesterday with a "Manifesto" -- in which it proclaims that it "is a website about marijuana like how Victoria's Secret is a catalog about sex.  We're not here to sell anything that everybody doesn't want already ... THE KIND recognizes the burgeoning cannabis movement as a mindful, likeminded community unusually attuned to all the world's wonders -- cultural and natural, small and large."

THE KIND is creative.  THE KIND is authentic.  THE KIND is passionate about its mission (hence announcing itself with its Manifesto).  And, unlike others, The Kind is not mostly about celebrity.  THE KIND features real journalism by real respected journalists -- and will leverage all forms of engagement including video of course -- but not forgetting that all of us still enjoy (and always will enjoy) the written word and compelling story-telling.  I know all this because I work closely with THE KIND team as they enter our brave new multi-platform digital world that offers new forms of (and deeper) engagement than ever before possible.  Multi-platform media is, as most of you know, a central area of focus for me and my team at Manatt Digital Media.

We believe in THE KIND as a potentially highly scalable and impactful differentiated voice and business.  And, we absolutely believe the times are right for new major cannabis-focused lifestyle media companies (just like they are and have been for other vertically-focused lifestyle MPNs).  Whether or not cannabis is a part of your life (or the lives of others around you), all of you in digital media should definitely check it out.

Here is THE KIND's full Manifesto:

THE KIND is a website about marijuana like how Victoria’s Secret is a catalog about sex. We’re not here to sell anything that everybody doesn’t want already.
If you’re reading this, chances are it’s because you’re part of a shared cannabis mindset that is expanding across all demographics, spreading even faster than weed laws are changing. We are men, women, old and young, across all racial and income and education brackets, encompassing every spectrum of politics, sexuality, and religious attitude.
We have all arrived at one common core understanding—that cannabis offers a quality-of-life enhancement both individually and to our society collectively.
From the business point of view, this revolutionary confluence signals the birth of an industry. A ton of smart money is betting on legalized weed creating a bonanza of billion-dollar buyouts. The trick is to get in on the early adopter floor, and leverage to cash out when the wave of consumer demand reaches peak swell.

THE KIND RECOGNIZES THIS BURGEONING CANNABIS MOVEMENT AS A MINDFUL, LIKEMINDED COMMUNITY UNUSUALLY ATTUNED TO ALL THE WORLD’S WONDERS—CULTURAL AND NATURAL, SMALL AND LARGE.

All of us at THE KIND are fully cognizant that without a marketplace, our online publication would be launching into a void.
Our biz-dev consultants have strongly urged The Kind to position itself—in a list of branded bullet points—as the singular voice of authority presiding over a Wild West of profit frenzy. The site has been advised to trumpet its intention to impose best practices, raise industry standards, influence outcomes, craft a glowing future of weed abundance.
Maybe we will become the Forbes of THC profiteering. We’re open to it.
But looking beyond the limitless dollar horizon, THE KIND recognizes this burgeoning cannabis movement as a mindful, likeminded community unusually attuned to all the world’s wonders—cultural and natural, small and large. 
Our editors and artists are more comfortable advocating the entertain-and-enlighten route. THE KIND creative staff (in short, everybody on the team) is most credible when promising all the latest news and cultural developmentsdelivered daily in a tone that is not snarky or dumb, that is rich in surprise and delight, that is informed and motivated by curiosity and a sincere desire to share cool shit with people who appreciate cool shit.



If forced to pledge, we commit to keeping the burgeoning cannabis nation abreast of the surges in entertainment, products, tech, the whole business hustle, whatever that turns out to be, and as those surges happen.
Some days, don’t be surprised when THE KIND does exactly that, providing unique perspectives and incisive viewpoints peppered with hilarious video, trip-worthy photo galleries, enchanting personalities, and deep reporting on under-covered narratives.
Other days, the site may circle out for wider views. So relax, drift along with the flow. We’re going your way.