MCNs No More, "MPN" Please"! (or, What's In A "P"?)

As you readers know, I write continuously about MCNs (multi-channel networks).  And, recently, I have been writing about escalating challenges to YouTube.  So, where do the "'twain" meet?  At the nexus of the overall OTT video lexicon, that's where.

You see, several of the leading digital-first video networks formerly known as "MCNs" no longer answer to that name/acronym.  They prefer (justifiably) the new significantly expanded label "MPN" -- as in, multi-platform network.

What's in a name?

In this case, a lot!  "MPN" connotes mass distribution of videos across multiple distribution platforms -- not just YouTube.  While these mobile/millennial-focused new media companies initially birthed and aggregated their videos as channels on YouTube only (hence, the moniker "multi-channel" networks), now YouTube is only one of many (to be sure, still the most critical "one").  The new MPN game for most is to now initially build mass audiences on YouTube, but then take those audiences -- and monetize them -- off YouTube.  That's why these MPNs seek the widest spray of their video programming across the widest array of distribution platforms (including the likes of Facebook, Snapchat, Twitter, Vessel, Xbox -- just to name a few) to create a non-55/45 revenue story.  They just can't drive 55! (a musical reference that is likely lost on several of you ...).

Call it simple evolution in the OTT video world.  Just like Webster's continuously expands to meet the changing language of the times, the OTT video and digital media/tech dictionary expands to more accurately reflect movement in the overall space.

And, significant meaning in that movement there is ....

YouTube's Challengers Mount ... Are Real ... And Are Scary

YouTube -- the 800 pound King Kong video gorilla -- is increasingly under attack at every turn as it struggles to climb to further heights (here is my previous "must read" post, analysis and scorecard of the growing list of challengers).  And, since the last time I wrote at length -- less than 2 months ago -- those challengers mount and become evermore formidable.

Most significantly, Facebook, which is now part of every conversation.  Though focusing in earnest on video only a short time ago, Facebook already now drives more than 3 billion views daily (65% of which are on mobile devices)!  To put a further exclamation point on this eye-popping fact, white-hot "much-more-than-MCN" digital media company Jukin' Media tells me that, "it took 3 months to achieve the same scale on Facebook that took 3 years on YouTube" for its video content.  Just chew on that one a bit ....

And, to fuel continued mass adoption, Facebook just this past week erased one of its leading inhibitors -- its lack of an embeddable video player.  Now check that box -- Facebook has that too.  Make no mistake, Facebook also is fully immersed in the premium video content game, also just announcing major new partnerships with A+ Hollywood players including the likes of ESPN and mega-director JJ Abrams.

But, Facebook is not the only mega-social media threat to YouTube.  Try on both Snapchat and Twitter for size.

Snapchat -- of all major social networks -- appeals the most (by far!) to the demographic that matters most to marketers.  The young and the restless.  71% of Snapchat's U.S. users are 18-34 (45% fall into the 18-24% range) (here's a "must see" chart from Re/Code that lays it all out graphically) -- and those factoids (and its youth-quake reality) don't even capture Snapchat users under the age of 18!  And, I know from personal experience (I am the father of a 15 and 12 year old, after all) that Snapchat -- together with Instagram -- are the social networks of choice.  My two kids -- and the entire population we see -- consume Snapchat feverishly (and increasingly for video).

And then there's Twitter, which increasingly focuses on video and, to that point, just released its own "Meerkat Killer" -- a live video streaming app called Periscope.  Live streaming has become a major new battleground in the video wars (and Meerkat -- a company you definitely should know -- isn't simply standing around as Twitter challenges its recent dominance).

So many other categories of companies -- and mega-players -- who hope to de-throne YouTube.  And, so much time (since we are still in the early innings of OTT video).  Best to review all them via my earlier detailed analysis.

YouTube certainly isn't going away anytime soon.  I fully expect it to be "here to stay" for the long haul and a continuing massive player in the overall wonderful world of video.  But, YouTube certainly isn't the only game in town anymore.

Much like the relentless stalking character in the new movie "It Follows" (which I hope to see later today), Facebook and some other players are closing in ... and are downright frightening ....

San Diego IndieFest -- Images From A Festival That Matters

Yesterday, my family and I attended our second San Diego IndieFest music festival - the 9th in a continuing annual series.  The festival -- with hot headlining indie band Bear Hands -- is a "labor of love" (literally) born by Alicia Champion (someone I have come to know and deeply respect) and spouse (and featured artist) Daneille Lopresti.  And it matters.  It matters to the community (this time City Heights, at the perfect intimate, open and family-friendly venue).  It matters to musicians and fans alike.  And it matters in terms of its message -- which is "Rock to Stop Violence."  Here are some scenes early in the day on another glorious San Diego day.

Images from top to bottom -- (1) my wife Luisa and I are captured at the festival's photo booth and asked to write "what matters" to us, (2) Luisa and festival co-creator Alicia Champion discuss the festival's roots and impact, (3) an image from early in the day, (4) my daughter, Hunter (with the braids) and her friend Izzy at the photo wall, (5) my son, Luca, at the art tent, and (6) Hunter and Izzy's photo of meaning (note the consistent theme of family and music ... and Hunter's "shout out" to indie band (and obsession) Warpaint, whom she has seen 3 times already and whom we will see again soon headlining Desert Daze in early May).

Steve Jobs Revisited - USA Today RADIO Tech Roundtable - My Thoughts

This past week, USA Today's resident guru of "all things tech" -- Jefferson Graham -- led a roundtable discussion revisiting the legacy of Steve Jobs in light of the new "kinder, gentler" image portrayed in the new biography "Becoming Steve Jobs" that is making the rounds. I was one of Jeff's "panelists" for this discussion -- and here is the full audio interview (below) in which I and others give our candid thoughts about the "man" (both professionally as a visionary, and as a man "wholly").

Apple v. Netflix & The LA Tech Scene - My Radio Interview with USA Today

NEVERMIND the picture, PLEASE! (I had nothing to do with it, believe me)!  Here below is my AUDIO interview with USA Today's leading tech expert Jefferson Graham (and posted by him) in which we discuss (1) Apple v. Netflix (and who will win the "cord cutting wars"), (2) the LA Tech Scene (and why I find it to be both vibrant and extremely gratifying), and (3) Manatt Digital Media (and why I think we can do what others cannot).  Jeff's a great guy -- and asks lots of good questions.  Hope you enjoy it.

Tastemade - Scenes From the MCN's Exclusive Event

Last night, leading food & travel MCN Tastemade (headquartered just down the street from us here at Manatt Digital Media in Santa Monica, CA) held an exclusive invite-only event announcing its new partnership with Apple TV (a big coup which gives the MCN great visibility and distribution).  As expected, great food.  Great drink.  And video creators all around.  Here are some images of the event.  (Below, in order of appearance top to bottom, (i) deconstructing steak with a blow-torch ... yes, a blow-torch), (ii) the overall scene in the Tastemade studios, and (iii) pouring home-made Old Fashions.

Apple's iTV With Rollable Display This Fall? 4 Tantalizing Clues ...

5 years ago I was one of the first to predict that Apple would invade your living room in the form of an all-in-one beautiful, integrated "iTV" -- which is definitely NOT the Apple TV you know (and 25 million of you love) today.  It would be the real deal.

Yes, I was early (way early!) - but, content was always the problem (not the hardware/tech) and timing is finally right for this to happen later this year (just in time for the Xmas season).  Several things lead me to this conclusion:

(1) Apple's "hallmark" is seamlessly marrying compelling software/services with beautiful hardware, with the effect being to create what the Apple faithful consider to be the best customer experiences out there.  That's why the Apple brand means so much.  So, as I have always written, Apple could not enter the real iTV game without first having the compelling content package (including live/linear TV like ESPN and HBO) necessary to pull that kind of user experience off.

Well, now it appears that Apple may have finally cracked that inhibiting code -- with rumors abounding that Apple's "Netflix-Killer" will launch this fall (here's my separate 5-reason analysis why Apple's OTT video service will be a smash hit at launch).  As soon as I heard that news, I immediately concluded in my own mind the next logical step -- time was right for the iTV to finally see the light of day.

(2) Giving more credence to me, I was told by a credible source (who, in turn, heard from a credible source -- yes, I concede this is indirect) that the iTV is being manufactured right now and will feature a rollable display -- which truly would revolutionize the mass-market "TV" business.  And, Apple generally doesn't release anything -- especially when it is as late as it is here in this TV game -- unless it believes it has a marketing story that is untouchable.  And this "hardware as software" headline would be pretty damn good:

THE NEW PORTABLE "ANYWHERE" ITV, WITH ROLLABLE DISPLAY, ESPN & HBO

(3) Steve Jobs always called the current Apple TV a "hobby" -- implying that it was only the prequel to the main event.  And, Walter Isaacson's authorized biography of Steve Jobs' put an exclamation on this point, underscoring, in Jobs' own words, that he absolutely was going there to build a full-fledged integrated "TV":

“I’d like to create an integrated television set that is completely easy to use ... It would be seamlessly synced with all of your devices and with iCloud.  No longer would users have to fiddle with complex remotes for DVD players and cable channels. It will have the simplest user interface you could imagine. I finally cracked it."

(4) And, finally, at Apple's latest major press event a few weeks back, CEO Tim Cook expressly teased about even more compelling things to come later this year -- and he wasn't talking about the Apple Watch.  And, it makes sense to me that he drops the price of the current "hobby" Apple TV by $30 in advance of the main event -- think of it as being the Nano-ization of the TV ecosystem.  You have a mass market, extremely inexpensive Nano-ized Apple TV (the current one) -- and then you have the fully-featured, fully-priced iPod-like iTV (the coming one).

Yes, the television game is one of historical low margins.  But, if Apple has demonstrated anything, it is that consumers are willing to pay significantly higher prices (with significantly higher margins) for its products.  The mass market PC (v. Mac) is one prime example.  And, don't forget this additional critical piece -- an iTV with an integrated OTT streaming service gives Apple immediate access to a treasure trove of our personal data (viewing habits, etc.) that, in turn, offers the potential to accelerate sales of all Apple products (not just iTVs).  In other words, it could be a powerful driver of the entire Apple eco-system.

If true, is Apple done dominating our world wherever we are?  Where else can the Cupertino crew take us in its quest for hardware world domination?

On the road, naturally.

Apple's iCar -- Apple buying Tesla -- something I first speculated (and analyzed the logic of) nearly two years ago (well before those rumors abounded).

Apple v. Netflix - Who Wins? 5-Factor Analysis

Yesterday, I laid out 5 reasons why Apple's newly-rumored "Netflix-Killer" will be an immediate smash hit when it launches.

But, in a direct battle royale, who wins?  Let's analyze 5 individual battles that define the war.

(1) Content/Programming -- Let's take Apple first.  Apple will offer (i) both VOD and live/linear TV (Netflix only offers VOD), and (ii) both ESPN and HBO, the two premium channels that matter most (Netflix doesn't).  How does Netflix counter this attack?  In two ways (i) exclusive original "must have" programming like House of Cards and Orange Is the New Black (although you can bet Apple will get into that game as well - perhaps even buy a studio?), and (ii) a significant depth of content that Apple will not have ... at least for a long time.  Advantage Apple.

(2) Distribution -- Apple's ecosystem is closed.  Netflix's is open.  That means that Apple's OTT video service will be bundled only into Apple products, whereas Netflix comes with virtually everyone else (including Apple TV -- although you can bet that Apple's Netflix-Killer will be front and center and free (at least for a while) on Apple TV's when it launches).  So, Netflix's sheer reach significantly outdistances Apple.  Oh yes, and Netflix already has built a massive customer base -- and is growing fast internationally.  Advantage Netflix.

(3) User Experience -- Virtually everyone on the planet has Netflix.  It's part of our Zeitgeist and its UI is practically burned into our brains.  So, it is easy to use.  But, Apple's hallmark is user experience -- a UI/UX that is both "pretty" (yes, that matters) and intuitive/easy.  And -- and this is a critical "and" -- Apple can do (and does) what Netflix and others can't.  It seamlessly integrates software/services with its hardware (including Apple TV).  That means that Apple's new OTT video service will be front and center and easier to use.  Advantage Apple.

(4) Price -- Netflix charges $8.99 monthly for new users, whereas Apple's "killer" service inevitably will cost significantly more.  ESPN alone costs cable/satellite operators about $6 monthly per sub.  Advantage Netflix.

So, we have a draw here, right?

Well, here's the ultimate rub.  The companies' fundamentally divergent business models.

Neflix is a pure-play video service.  The company monetizes its service only.  That is its business model -- and that means that it must be profitable based on subscription revenues alone (unless and until it finds a way to effectively mine its treasure trove of customer data).

Apple's business model is fundamentally different.  For Apple, its "coming soon" OTT video service can be (and likely will be) a loss leader -- a losing proposition that ultimately wins.  You see, Apple's core DNA is unlike Netflix's.  It is hardware pure and simple.  Apple makes money (boatloads of it) by selling "cool" metal -- iPhones, iPads, Apple Watches, Apple TVs (and ultimately the iTV?).  That means that Apple's new video service is essentially a "marketing" expense that drives incremental hardware sales.  That also means that Apple can (and will) subsidize its content licensing costs in order to keep its subscription pricing down.

How does Netflix match that? 

5 Reasons Apple's Netflix-Killer Will Be a Smash Hit

The worst-kept secret is very much alive again -- i.e., Apple hopes to launch its long-anticipated (overdue?) OTT video service by fall.  To be clear -- with Apple, it has always been a question of "when," not "if" (I wrote about this about one month ago in a detailed overview of the entire OTT space).

Here are 5 reasons Apple's "Netflix killer" will be a massive hit when the inevitable becomes reality:

(1) It's Apple!  That's all many of you need to know.  You will immediately sign up in droves just like you line up in droves anytime Apple launches a new hardware product.  No product reviews are necessary for you.  You just trust that it will be good.  It's downright Pavlov-ian -- you can't help yourselves.

(2) Many of you will ditch Netflix.  Yes, you and the rest of the planet already have Netflix subscriptions.  But, unlike Netflix, Apple will offer both VOD AND live/linear TV (Netflix's Achilles heel).  And, switching costs are low (essentially non-existent -- with two important caveats below).  All you need to do is go online and cancel. That's the beauty of Netflix and other non-linear TV OTT services for you.  (But, that's certainly not beautiful for Netflix, Amazon Prime, and Hulu.  That's a real problem that can be countered only with two things: (i) content -- both (a) kick-ass original content like House of Cards, and (b) content depth that Apple will not have for a long time; and (ii) price -- Netflix's price will be lower (although Apple can do what Netflix can't -- subsidize content licensing costs via hardware sales -- a fundamentally different business model)).

(3) Millions of you already have Apple TV's.  That means one software upgrade and BAM!, you got your iTV!  Netflix doesn't have that seamless "hardware/software" advantage (an Apple hallmark).  Of course Apple will place its new OTT video service front and center and give it to you for free (for several months).  The user experience will be compelling.  You will try it!  And, then you will let your credit card auto-renew.

(4) Millions more will buy new Apple TV's.  Heck, those crafty Cupertino-ians are practically giving them away now -- dropping the price to $69.  That's just two weeks of Starbuck lattes!  (And here's a tantalizing thought.  What if Apple's New "Netflix killer" is just the app-e-teaser for the main event -- its launch of the long-anticipated all-in-one real iTV -- something about which I first wrote 5 years ago?  'Tis a real possibility.  After all, Steve Jobs always called the current little Apple TV black box a "hobby."  This could be time for the real thing).

(5) It will feature ESPN and HBO.  This is the programming 1-2 punch.  Apple TV already is alone with HBO's new stand-alone HBO Now service (a 90 day exclusive).  And, Dish's Sling TV already cracked the code with ESPN, so the door is wide open for Apple so long as it pays just like the other Pay TV guys (which it absolutely will for ESPN, the most necessary programming ingredient).  Netflix, of course, doesn't have either.  (One more little detail -- don't forget that ESPN is owned by Disney, and Disney's Chairman & CEO Bob Iger sits on Apple's board.)

Apple's "Netflix killer" -- it came, we saw, they conquered!

SXSW in Pictures ...

Just returned from SXSW (here is my earlier post).  Images from a weekend of great meetings, meet-ups, events, and characters ....

(Below -- with the king of social media, Erik Qualman, and a rising STEM-focused YouTube personality at the Fullscreen party; below right -- Manatt Digital Media's Tara Church joins me at the Hulu event).

(Above -- at Facebook's Open House; below -- the Manatt Digital Media crew hosts hundreds at our annual event with Siemer at Pesce, and the scene at Pesce).

(Above -- discussing November's SLUSH startup/tech conference in Helsinki, Finland with Event Leader, Petri Villen (FYI - major digital media track this year); below -- the scene at Fullscreen's afternoon session with CEO George Strompolos).

 (Left -- meeting with SLUSH media organizer and digital media futurist Pauli Kopu, Manatt Digital Media's Tara Church, and Life Is Good's Tyler Wakstein; right -- a new friend of MDM; below -- with Alex Byrd of BofA and Marc Sternberg of Brand Innovators at CAA's party).

VIDEO - Is YouTube in Trouble? My Interview on Canada AM

Earlier today (very early - 4:30 am Pacific) Canada's "Good Morning America" ("Canada AM") posed the provocative question, "Is YouTube in Trouble? to me on the live morning show.  Don't have the embed code, but here is the link to the full interview.  (Clearly a bit groggy, but slowly woke up ....).

LA Mayor Garcetti at SXSW - VIDEO - "If You Really Want to Know What Tech Looks Like, Come to LA!"

Proud to feature LA Mayor Eric Garcetti as our special guest at SXSW yesterday -- where Manatt Digital Media hosted a special private digital media/tech event with boutique investment bank/VC firm Siemer/Wavemaker.  He is one smart and charismatic guy -- and a true champion of LA's fast-growing and impactful tech scene.  Watch the video -- and here is a choice "cut" from his impromptu speech:

"This morning I was asked by a reporter on the way here, 'so what do you do to become the next Silicon Valley?'  And, I said, we don't want to be the next Silicon Valley.  We love Silicon Valley, but we're LA .... We disrupt space.  We disrupt fashion.  We disrupt content.  We disrupt so many things, that I tell people, 'if you really want to know what tech looks like, come to LA.'  And, that's before I start talking about our superior weather, our superior diverse people, our amazing geography ...."

Well said, Mr. Mayor, well said.  A great meetup it was ....

Disney/Maker, 1 Year Later -- Your "Must Read" for SXSW (or, "Studios, Do Not Go Gentle Into That Good Night ...")

It's SXSW time.  Are you ready?

Well, I'm here to help.  Here's some easy prep for the endless conversations you will face while clutching your drink.  Here's my SXSW digital media ice-breaker.

TOPIC?  Disney/Maker Studios.

CONTEXT?  It's been almost exactly one year since Disney snapped up mega-MCN Maker Studios for a mega-price-tag ranging from $500 Million to $950 Million.

THOUGHT-PROVOKING 2-PART QUESTION?  Too high, too low?  Smart deal, dumb deal?

I know, I know, the vast majority of you will immediately dismiss the question itself -- undermining its essence by refusing to give it any semblance of merit.  In other words, most of you will now excuse yourselves, find the nearest bartender, and ask for your next drink.

But, hold on there Cowboy.  Not so fast.  Lots of reasons for Disney to do that Maker deal.  Lots of good reasons.  In fact, lots of excellent reasons (I wrote these down in my year-ending Variety piece titled "3 Digital Media Mega-Deals That Defined the Year").

So, here we are, one year later.  SXSW-ing.  How are things different now in the video world from where we were one year ago when we last partied in Austin?

Alas, how do I count the ways?

Just think about the last 12 months.  Just think about the pure exhaustion you felt (and continue to feel) every time you checked your favorite digital media publication -- only to find yet another mega-deal or mega-investment in the MCN/YouTube economy.  Since Disney/Maker, we have heard a steady -- and accelerating -- drumbeat of hundreds of millions of dollars of investment and hundreds of millions of dollars of M&A in connection with new digital-first video companies (my company, Manatt Digital Media, laid these out in this year-ending Infographic -- and also in this MCN "Score Card").  I recently discussed related themes in this recent post where I laid out some of the most recent deals in this space.  Consider these you relevant "cheat sheets" for plane reading as you fly to Austin.

But, here's the main point of all of this -- IT IS HAPPENING!  MCNs are "happening."  MCNs are real.  Very real and very now.  They are not a fad.  Why?  Because an MCN represents so much more than its frequently dismissed and limiting acronym suggests.  An MCN symbolizes the fundamental transformation of the media and entertainment business in which we find ourselves today -- a transformation fueled by mobile-first, millennial-focused video content that is significantly more advanced today than it was when we found ourselves in Austin one year ago.  The pace of this transformation, in fact, is incredible.  And this breakneck pace demands bold actions that may make or break companies.  Companies big and small.  Including major media and entertainment companies.  It is "go" time.  Time to take action.  There is little time to study.  Get smart, fast!  It's time for all-nighters -- and grab your favorite study-buddy.

We are seeing (nay, feeling!) this sense of urgency at real scale for the very first time in the "traditional" media and entertainment business.  I hear it in virtually all of my conversations with industry insiders.  Only one year ago, the vast majority of senior level studio execs (I'd peg the number at 90% or more) had one of 4 reactions to news of the Disney/Maker deal: (1) "who is Maker and what is an MCN?"; (2) "why do I care about Maker and MCNs when I have a real media business to run?"; (3) "why would anyone pay anything for an MCN (let alone what Disney paid)? - they aren't profitable, after all, are they?", or -- at best -- (4) "interesting, let's see how things play out and learn from the other guys' mistakes."

Well, my friends, that ain't the case today.  Now, FOMO is in the air.  It is pervasive.  Disney/Maker and its endless MCN progeny of mega-M&A and mega-strategic investment have flipped the media and entertainment reality (or at least perception of it) on its head.  Now, the MCN alphabet is required learning in the studio classroom.  And now, it's not so much a question of "if" we should get into the mobile-focused, digital-first, millennial-fueled MCN/video game (after all, the majority of thoughtful studio execs now truly believe they are living in transformative times).  Rather, the questions are "how" and "when."  And, many of them now correctly fear that others will take the remaining MCN crown jewels sooner rather than later.  A smell of scarcity is very much in the air (as it should be).

So, my fundamental advice to all who listen -- advice which I pontificate passionately in virtually every conversation -- is this.  TAKE ACTION!  And take it now!  Make your moves -- or at least, a move (perhaps a significant strategic investment at a minimum).  Don't have the business model figured out?  Understand this -- NO ONE DOES!  Business models are evolving as fast as the media landscape is.  But, that doesn't change the fact that you just gotta be there (in the digital-first, mobile-driven millennial world -- where the kids are).  This is no time to waltz delicately and methodically into this feverish dance.  It's time to partner up.  If you hesitate -- if you turn around to grab some punch -- you just may find that your erstwhile dance partner has found another suitor. There are many to be found.  And many who are anxious.

This is a time to be aggressive.  This is a time to be bold.  This is a time to experiment and damn the torpedoes.  It's innovation time.  It's transformation time.

And, it's opportunity time ... for those who have the courage to seize it!

Media executives, "Do not go gentle into that good night ...."

VR 101: Lesson 1 -- DISTRIBUTION (& Its Challenges) -- #1 In a Series

[The following is the first in a series of posts about the burgeoning world of Virtual Reality (VR) by guest blogger Omar Noureldin of Manatt Digital Media.  He previously wrote a VR-focused "Cheat Sheet" overview of the VR space (and key players in it).]

To understand what the virtual reality (VR) distribution pipeline will look like, a stroll down memory lane vis-à-vis online video will be instructive. It took time for the online video ecosystem to develop into what it is today -- and that was largely because of disjointed and competing distribution platforms in its early years. Anyone with a smartphone, tablet or computer knows that YouTube -- despite new "real" significant challengers like Facebook -- continues to dominate this space with over 1 billion users.  But, this took time (and an acquisition by Google, which merged Google’s less than stellar Google Video platform). Still, the vast majority of YouTube’s content is user-generated.

Then there are the premium content platforms like Netflix, Hulu and Amazon, all of which have turned the prime-time TV model on its head. First, by reusing content, and now by creating original content. Vimeo is a growing player in this space (among numerous others) and has laid its stake in the ground by focusing on high-quality, high-resolution content and on content creators -- and it is now dabbling in VOD and SVOD models.

So, what does this mean for VR? What is the opportunity?

Well, the opportunity is for new digital distribution platforms to emerge that focus solely on VR content. The reason some believe nnovation will happen with these new distribution platforms, rather than from giants like YouTube, is because VR distribution will require advancements in packaging and transferring vast amounts of data across existing networks that are not necessarily ready to handle that kind of traffic.

Herein lies a massive challenge. High-quality VR content is not mobile friend ... at least not yet ... for a couple of fundamental reasons. First, current bandwidth capacities limit the amount of data that can be transferred, and mobile devices are limited in their storage capabilities. Second, mobile processors literally overheat and melt when trying to play high-quality VR content that is more than five minutes long.

Today, the big online video distributors are all about mobile, which creates a disconnect in strategy and focus if they want to move full force into VR. Moreover, YouTube is still trying to figure out how to be profitable in the traditional online video space, so many pundits believe that makes little sense for them to spend a lot of time, money and effort to develop new distribution channels for VR (especially when YouTube is now focused on developing its own premium original content, as original premium VR content is a ways away).

Instead, many predict a proliferation of VR-focused distribution platforms and companies experimenting with different ways to deliver the content—Vrideo is one of them. The company recently hosted a VR Meetup and panel discussion on this very topic in Santa Monica. As discussed earlier, there will need to be technological innovation at every level of distribution—packing, transfer, storage and processing.

Do not get me wrong, there is already talk of the big media and online video companies (Google, Amazon, Netflix, Disney, etc.) and telecoms (AT&T, Verizon, etc.) eventually going to war to acquire these smaller VR distribution companies.  But, it is likely to be an M&A war, not a technological advancement war.  Google has already invested a whopping $500 million into MagicLeap, which is developing VR technology that merges the real and virtual worlds -- so-called augmented reality.

Massive sums of money are being poured into VR right now -- and distribution is one of the keys to unlocking its potential.

[NEXT IN OMAR'S CONTINUING VR SERIES WILL BE LESSON 2 -- SOCIAL, followed by Lesson 3 -- Hardware, Lesson 4 -- Advertising, and Lesson 5 -- VR Rights.  Stay tuned ...].

LinkedIn Video Coming Soon?

LinkedIn -- everyone's on it -- literally, everyone of us.  And, the majority of its traffic is now mobile.

But, it still remains virtually nothing but text.

In this mobile-focused video world, where is LinkedIn in the video conversation?  And, why isn't it?  (a provocative -- yet little discussed topic -- that came up in my breakfast meeting yesterday).

There's YouTube of course.  And, now virtually every video conversation I have with industry insiders includes Facebook (which is seen as YouTube's first real threat).  Countless others -- like extremely well-funded upstart Vessel (a company I recently profiled which bills itself as being the Hulu for the mobile/digital-first millennial world) - are also frequently mentioned.

So, why isn't LinkedIn part of this conversation?  Why isn't LinkedIn in the video game yet?  It is ripe for video not just because all of us are on it.  It also is ripe for video not just because most usage is now mobile.  It is also ripe -- very -- because many on LinkedIn (especially LinkedIn "Influencers") have massive, passionate audiences who hang on every thought and insight from their individual business "celebs."  Imagine if those celebs of the written word evolve into the far more viral video world?  Some will effectively make that transition, others will not (in a kind of "Video Killed the Radio Star" kind-of-way).  Yes, LinkedIn videos generally would be a different kind of content (i.e., not entertainment first and foremost).  But, that too could be a real strength and differentiator.  And, that unique-ness could very well be LinkedIn's "special sauce" to advertisers (due to its business-driven/buying-power demographic).

But, while video is not yet part of LinkedIn's story, it inevitably will (and absolutely should and must) be fundamental to it.  The company already is killing it (with a market cap of nearly $33 BILLION!). Just imagine when video inevitably enters its lexicon ....

NOW is the time to enter that video conversation.  It is a conversation that is moving at auctioneer warp speed ....

[For more LinkedIn "fun facts", check out this article titled "120+ Amazing LinkedIn Statistics" -- a great summary of all.]

The New Media Shake-Up and M&A Game -- My Interview in Forbes

Forbes recently interviewed me about our ongoing fundamental media and entertainment transformation that is driven by mobile-hungry millennials -- and the resulting M&A and other strategic moves that have gone with it.  In my interview, I give my detailed thoughts about Disney/Maker, Otter Media/Fullscreen, Samsung/Milk Video and more -- including my advice to all major media companies -- which is, "Go swiftly into the mobile night.  Go there now, don't overthink it!"

Here is the full article/interview -- including accompanying infographic.

"Marginal Gains" (That Drive MASSIVE Long-Term Success) -- LESSONS for Entrepreneurs

Last week in San Francisco, I attended an event hosted by British broadcasting giant SKY -- an event that featured Sir Dave Brailsford, Manager of the "Team Sky" professional cycling team, as the speaker.  Why Brailsford and why Team Sky for this tech-driven/digital media event?

Here's why -- the concept (and results) of "marginal gains." (For those of you entrepreneurs who have ADD and want to get to the "lessons" learned from this philosophy, skip to the bottom).

THAT was the core theme of Brailsford's fascinating discussion.


Using British cycling as the backdrop, Brailsford laid out British cycling success (or massive lack thereof) before he joined as manager and implemented his "marginal gains" commitment and strategy -- a strategy that looks at every single detail related to cycling and seeks to improve upon each of them on the margin in order to make realistic and demonstrable steady, incremental gains which -- over time -- offer the real possibility of massive gains and success (rather than improbably shoot for such success in one or more giant leaps).  One example (just one) of the myriad he offered -- his supporting team would arrive in advance at hotels in which his riders would stay during riding events and "fit" each room with individually customized mattresses so that each cyclist would be slightly more rested than otherwise.  Brailsford also identified exciting new technologies that keep British cycling on the forefront of innovation (and ultimately performance).  That's why he was in SF at the time, in fact.

In all the years before Brailsford led British cycling, no British rider had won the Tour de France (and only 1 Olympic medal had been won in scores of Olympic years).  But, after Brailsford joined and implemented his "marginal gains" philosophy and strategy -- and recruited riders who internalized this strategy and shared his absolute commitment to it -- Britain achieved success after success in the international arena.  Case in point -- Brailsford-led British riders won both the 2012 and 2013 Tour de France.

Lessons for all entrepreneurs?

(1) Aim high -- very!  Set audacious goals!
(2) Find team players who share that passion and absolute commitment to achieve those goals (and get rid of those who don't ... fast!)
(3) But, be realistic of how to get from here to there -- implement a strategy of incremental, measurable and continuous gains/"wins" (and communicate these tangible wins to boost morale)
(4) No detail is too small -- be relentless in your pursuit of greatness and challenge yourselves to do more than others are willing to do
(5) Drive innovation, don't follow it -- commit to being on the bleeding edge of new technology and be open-minded to experiment

Well said Dave Brailsford, well said ....

5 Questions with Playboy's Chief Product Officer, Phillip Morelock -- EXCLUSIVE Q&A

     

Phillip Morelock is SVP & Chief Product Officer (Digital) of Playboy -- a highly-recognized brand for sure -- and one with an interesting challenge on its hands.  How to transition this long-storied (lurid?) brand into the digital age, a dilemma it has faced for years.  Phillip recently joined Playboy (after stints at Disney, etc.) and is responsible to meet that challenge.  Last August, Phillip overhauled and relaunched Playboy.com (perhaps surprisingly to some, with not a woman on the home page by design -- more of a men's lifestyle magazine in the vein of GQ and Esquire) after previously relaunching Disney.com.  In Phillip's words, he tells his friends that he jumped from "the mouse to the bunny."  And, I believe this Q&A will be illuminating -- and address issues faced by all traditional media companies (even "edgier" ones) in our current transformative mobile-focused, digital-first media times.

     (1)  What is the reason your company exists (and what problem(s) are you looking to solve)?

For more than 60 years, Playboy has been a symbol of sexiness and sophistication and a beacon for an intellectually forward lifestyle.  Although Playboy is perhaps best known for our monthly magazine, I joined Playboy to rebuild the company’s digital business, including Playboy.com which we re-launched this past August.

(2)  How are you different from your competitors?

At Playboy we have built a reputation as an authority on a wide variety of subjects, from fashion and automobiles, to food and drinks, from humor and politics, to, of course, women and sex.  No other brand has the authority to weigh in on such a wide variety of subjects.

On more of a structural level, rather than build the new site on top of older technology, we were able to start from scratch.  That means Playboy.com is a totally responsive site, built truly mobile-first. Mobile and tablet users currently make up over 75% of our online audience. That fact, in combination with the amazing original content only available on Playboy.com, has fueled explosive growth on the site, from about 5 million monthly unique visitors pre-relaunch to about 20 million last month.

(3)  Why will you succeed (and what is your single most important ingredient for success)?

The popularity of our websites, our social media presence, and our mobile apps tells us that we are on the right track – that we are offering a unique user experience that people are really enjoying. The Playboy brand has been successful in every medium it has entered over the past 60 years: print, radio, television, and now the dominant world of social / mobile / digital media.

In the coming post-search world of digital media entertainment, clearly defined brands will matter more than they ever have. Playboy will be able to cut through the noise and reach men in every corner of the world on every platform.

(4)  What makes you unique (and what do you enjoy most outside of building your business)?

I’ve worked to build highly contagious digital experiences my entire career, for companies ranging from startups to multinationals. People seem to get a kick out of it when I tell them I’ve relaunched both Disney.com and Playboy.com in the past three years. (From the mouse to the bunny…)

Outside of business I like to spend time with my kids.

(5)  What digital media trend is most interesting to you (and what is the least)?

I love that true convergence of technology and entertainment has finally really happened. Increasingly the only two screens that matter are the smallest screen you own, and the biggest screen you own. Your mobile and your TV. I love that we can reach people with great content and experiences no matter where they are, at any time of the day or night.