Mobile Is The FIRST Screen - Wash. Rinse. Repeat.

Media executives -- shower yourself in the new reality.  Mobile is the second/companion screen no more.  Mobile is the FIRST screen plain and simple.  Read that again -- and soak it in -- because this new reality should influence EVERYthing you do.

I have written about this -- and have counseled anyone who would listen -- over and over again for the past year.  But, only now is it sinking in at a mass scale, because the statistics to this effect are undeniable.  Here are some of the latest "must read" stats from Deloitte:

(1) Millennials now watch more TV shows (not just YouTube videos!) on mobile devices than on the traditional TV box -- 57% of their viewing behavior is on the small screen -- their first screen;

(2) 25% of these Millennials outright cancelled their pay-TV services in the past 12 months or haven't had one for over one year (that's why Cablevision's CEO, in a remarkable watershed announcement just last week, expressly marketed new "cord cutter" and "cord never" packages and told the Street that it considers itself to be a "connectivity" company (rather than a content/programming company);

(3) 72% of these Millennials indicated that streaming video is the most important way for them to view video (including television programming).

Here's one media executive who fully "gets" this -- and recently prodded other media executives at MIP to embrace and act upon this new reality -- Eric Scherer, Director of Future Media at French broadcaster France Televisions.  Here are some choice quotes from his speech at MIP:

"The TV industry will have to work on a mobile-first strategy.  Not a digital-first strategy, but a mobile-first strategy, because mobile is now the first screen, and it's taking time away from the TV."

"They [the millennials] are always mobile, they are always social, they are always interactive ... and it is more and more live ...".

"The young people will not come back to the TV screen -- at least the major TV screen that we knew for the last 40 years."

In commenting about multi-channel networks (MCNs) -- most of whom increasingly consider themselves to be multi-platform networks (MPNs) -- Scherer said, "These are the kids now ruling the entertainment, and it's just the beginning of it.  Again, new grammar, new syntax, new vocabulary."

Amen to that Eric.  Amen.

Let's meet up in June at Live Earth (expect my separate Forbes article about Live Earth soon) in Paris and look back at how much more things have changed in just the couple months from this point.

Because they will ....

Big Cable Now Markets "Cord Cutter" & "Cord Never" Packages - A Watershed Moment

Remember those days when major cable companies rejected OTT video streaming services and the prospect of "un-bundling" pay TV packages?  Yes, those days were so long ago ... except they weren't.  "Those days" -- in fact -- were much less than one (1) year ago!  That bygone "traditional cable company full bundle" era began to really unravel last September (only about 7 months back) when several major media companies, including HBO, announced their stand-alone OTT and "unbundling" ambitions in rapid succession.  I called this the "Great Unbundling of 2014" -- and it only accelerated since then.  The floodgates opened ...

... and now this -- just last week Cablevision not only accepted this OTT/unbundling new world order, it openly embraced it.  In a remarkable turn of events, Cablevision CEO Kristin Dolan announced new stripped down, affordable OTT programming packages targeting both "cord cutters" and "cord nevers" (yes, she used those terms -- as did the official Cablevision press release).  With that one announcement, Cablevision acknowledged -- on behalf of the entire cable/satellite television world -- that the times have changed ... and will never be the same again.  Make no mistake, Cablevision's announcement is a watershed event -- absolutely, positively, full stop.  Just think about how much has changed in such an incredibly short period of time.  THAT's what this represents.

And, amidst Cablevision's "cord cutter"/"cord never" announcement, its press release left a subtle -- yet hugely important -- strategic clue about how the company (and other major cable companies) now think of themselves amidst this reality.  Specifically, Cablevision defined itself -- its words -- as being "a connectivity company."  Not a content/programming services company -- rather, a "connectivity company."

Why is this important?  Because it represents an open acknowledgment that Cablevision recognizes that its future (and present) business model is broadband-focused -- rather than content-focused.  And, that's not all bad -- in fact, it can be quite good/smart -- because broadband services generate significantly higher margins than content/programming pay TV package services.  In other words, providing the "pipes" in which that content flows can be -- and is -- extremely lucrative, especially when the thirst for ever-broader "pipes" is accelerating in this increasingly video streaming and hungry world.

The times, they are a changin' -- and already have changed -- indeed!

Scenes from Sharon's Walk for Epilepsy - San Diego Style

Today -- another glorious day in San Diego.  And, not just because of the weather.  Today marked the 16th annual "Sharon's Walk/Ride for Epilepsy" in San Diego -- down at Mission Bay.  Great cause -- one that is near and dear to our family -- for which this year's Walk in San Diego likely will raise well over $200K!  My daughter, Hunter (15) and son, Luca (12) joined me again this year (that's them to the left with great friend and host Scott Hilkene in the middle) -- while Luisa was there in spirit.  We joined Team Anaya -- led by Sarah Anaya (with me below) and husband/partner-in-crime Scott -- who are inspired by Sarah's son, Jake, and who raise more money than any other team every single year.  This year, $30+ K!  Sarah and Scott, together with Jake, not only are inspirational and generous -- they are great great friends.

What does this post -- and what do these pics -- have to do with digital media?  Nothing.  They don't. Sometimes problems are real.  Very.  Epilepsy is one of them.  And, the human beings impacted by them are real, not digital.

Here are just a few scenes from the day.

5 Questions with New Form Digital SVP JC Cangilla - My Exclusive Q&A

New Form Digital, a digital-first studio, launched with great fanfare almost exactly one year ago by Hollywood legends Ron Howard and Bryan Grazer who joined forces with Discovery Communications.  I recently spent some time with SVP JC Cangilla who runs overall operations, among his many other hats.  Cangilla previously worked as a senior executive in video at Yahoo! and has been a digital dealmaker for years.  In a digital video world still dominated by low production values and large doses of serendipity (not necessarily bad traits, by the way), New Form Digital's approach is very different and, well, a bit more "traditional" -- focused on high production values and scripted story-telling -- but with digital, mobile and millennials top of mind. 

Despite New Form Digital's high profile roots, most of you likely still don't know much about the company.   JC changes that here -- giving extremely detailed responses that offer real insights about the company.  Definitely worthy of reading and consideration, since New Form Digital is a "must know" company in the digital media "space." 

Here are my 5 questions to JC -- and his answers unedited.  Enjoy ....  

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

New Form fills a white space that exists in the digital landscape: we are solely focused on developing, producing and releasing scripted series on digital platforms.

We’re an entertainment company with a technology mindset. Our scripted originals (typically episodic shows in sci-fi, drama, comedy, horror genres) feature digital-native talent (typically from Youtube, Vimeo, Instagram and Vine). We use data to make informed choices in the development, packaging and distribution of our scripted originals. And we tie it all together with really compelling story.

Our creative is led by Kathleen Grace, our Chief Creative Officer, who works with our Head of Development and Production, Melissa Schneider to find talent, develop the projects and build out a complete story.  We are producing great stuff, with 14 series sold since we launched just one year ago. Some of my favorites are here.

My job is to take these great stories and use my knowledge of the larger video ecosystem to find the right homes for the stories and the right models for the business. It’s a fun job. We’ve done great deals with major media companies, MCNs, marketers and agencies. This content market has exploded in the past few years and there is significant demand for high-quality scripted series.

It’s hard to believe how much we have grown in just one year -- with nearly 25 pilots in development and 14 series sold and going into production over the next year. We’ve already announced 4 showswith Vimeo and have a number of deals on the horizon that we will be announcing in the weeks ahead.

(2) How are you different from your competitors?

We are the only entertainment studio built specifically to focus solely on scripted originals for digital platforms.

We’re not a multi-channel network (but we work and partner with MCNs like Fullscreen, Maker and Machinima), we’re not simply a production company (because we’re focused on developing story and talent) and we’re not a media company. 

We are huge fans of creators and digital video in general. And we are in an explosive market with an incredible product. The digital video business is seeing record investment from traditional media holders, new platforms and, increasingly, marketers. We look to partner in each of those spaces.

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

Scripted content and cinematic stories have historically shown massive value—both to the content creators (e.g. studios) and to the distributors (e.g. TV channels like AMC going big into scripted originals in the early 2000s or more recently with premium subscription platforms like Netflix and Amazon developing their own original programming).  Our continued success will be dependent on successful stories and listening to the audience and creators.

As one example of our model in action, we recently released 14 “shows” on YouTube, within the channels of the most prominent actor or director on that show. We looked at performance of  New Form Digital’s content vs. mostly non-scripted, conversational content that was consumed over the last 90 days on those channels. Our shows had a significantly longer watch time (+262%) and more shares and likes (+60%) than anything else in that time period.  So we are excited to replicate that success with individual series across multiple platforms.

We’re uniquely positioned in the digital space to leverage the vast amount of data  like this to help make the right creative choices. Digital efficiencies allow us to ideate, create and release quickly. We’re building the business to support scaled development and release.

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

The company is unique because of what we talk about above: focus on scripted, marrying tech into the entertainment process and focusing on digital talent, distribution and audience.

I’ve been fortunate enough to be involved in digital video for the last 10 years (first at Spot Runner, then at Yahoo and now at New Form) and have seen growth and challenges in the space. The business that I’ve been able to generate is always dependent on having a wide knowledge of the entire ecosystem while being opportunistic. Flexibility, deep relationships, perseverance, and willingness to try new things are all important qualities that lead to success in this space.

From a professional standpoint, it’s never been a better time to be in digital video and yet the opportunity is still growing and evolving. 

On a personal level, my son Jack is eighteen months old and nothing gives me greater joy than spending time with him and his mother. Jack’s favorite toy is a pink stroller and Sundays typically find him pushing through a crowded local farmer’s market so we can get to the strawberries he loves the most.

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

It’s fascinating to see how quickly the video consumption experience is changing; feels like tectonic shifts are all happening at the same time. They include (but are not limited to): 1. major media embracing direct-to-consumer services and OTT experiences, 2. audiences, especially younger audiences, flocking to digital platforms and 3. marketers investing in content as means-in-itself and not just around the content.  All three of these make us excited about the potential of  our own projects.

Least interesting question that I get asked daily: Are you making short-form or long-form?  Our episode lengths fit the story they are telling. Some are long, some are shorter. There is a structural legacy from TV that leads to assumptions that episode lengths less than 22 minutes in length aren’t “high-quality.” With binge consumption, DVR, and millennial video consumption patterns, we don’t think 22s are necessarily the best ways to engage and retain audiences.  Thus you’ll see 10 minute episodes, 15 minute episodes and 5 minute episodes from New Form. And we’re confident that distributors and platforms will love the content, the audience engagement will be significant and then the monetization rates and the ad-serving technology will fall in line. 

Tesla - Almost BK & Acquired by Google When I Was Buying My Model S!

Imagine my surprise yesterday when I, a Model S owner, learned for the first time that Tesla was running on fumes and almost BK when I ordered mine in mid-April 2013!  That surprise was doubled when I learned that Google's Larry Page and Tesla CEO Elon Musk had reached a handshake deal for Google to bail out Tesla.  But, as fate would have it (happily!), Musk's and the company's fortunes turned dramatically upward precisely as the lawyers were papering the deal.  In a matter of weeks, Model S "word of mouth" -- and resulting sales -- radically changed, skyrocketing Tesla's stock upward.  The company immediately achieved profitability in the ensuing quarter and, as they say, the rest is history.  (That's me picking up my Tesla -- at essentially the precise moment when, unbeknownst to all of us -- Tesla's fortunes changed.)

I love my Tesla -- have had it for nearly 2 years now -- and have nearly 40,000 miles on it.  I have written several times about it (here is my original post about my buying experience two years ago) -- including my recent post about how the car essentially saved my life, or at least great bodily harm (I really believe it).

I also have frequently predicted that Apple ultimately will buy Tesla because the two companies -- and their respective founders -- share similar DNA (here is my overall analysis of this tantalizing possibility from nearly 2 years ago -- well before such rumors hit the mill).

But, Google?  Didn't see that one coming!

Then again, that was long ago ... and in far, far away land.

Tesla is a very different company now of course.  And, it will have a radically different outcome ....

The Rise of the Global Digital Content Market (The View from MIP) -- Guest Post by Eunice Shin

(This is the second guest post by Eunice Shin, who heads up the business consulting side of Manatt Digital Media and just returned from MIP.  Take particular notice of the quote at the very end of her post.)

Warm weather with a gentle breeze on the French Riviera is pretty fantastic.  Add to that a wave of excitement seeing the growth and potential of the global digital market – and there you have an incredible MIP Digital Front event.

Clearly to date, the US has been a leading force in the world of digital media.   Certain parts of the world have been slower to the take (hint: where millennials don’t make up the majority of the population), but there is no doubt that digital media buying is now a global opportunity.    

Here are some of the big trends we saw at MIP TV 2015:

·      MCNs have grown into MULTI-PLATFORM MEDIA AND ENTERTAINMENT companies, developing content in films, music and scripted TV.  Buzzfeed, Vice, CDS, and AwesomnessTV are in the film business as well.  Many of the leaders in this space are growing into their own skin and have a better sense of identity.  It’s exciting to see differentiation of focus starting to take place among these digital-first players – Stylehaul and Collective Digital Studios with brands; VICE with millennial-only media programming channels; and  New Form Digital with scripted, original content. 

·      Digital content, short and long form, are getting licensing deals with international streaming services and partners

o   Maker Studios will have a channel with over 2,000 videos on CanalPlus’ streaming service, CanalPlay

o   AwesomenessTV will provide over 200 hours of original content for Verizon mobile platform

o   Numerous deals initiated at MIP and still underway will soon be announced

·      Social media is a DISTRIBUTION PLATFORM.  Facebook and Snapchat were mentioned in every single presentation and meeting I attended.  Without a doubt, better effectively leveraging social platforms will be key for digital content companies in 2015.

·      Live streaming is on the rise – creating more opportunities around events, sports, music and gaming

o   Dailymotion served 150 million hours of live streaming in 2014

o   Vice and LiveNation announced at MIP a new partnership to deliver live music videos – applying the cinematic nature of music videos to a live performance and streaming it live from a variety of major music concerts

·      When it comes to digital, SCALE IS STILL CRAZY IMPRESSIVE.

o   YouTube has 300 hours of content uploaded every minute

o   At Machinima, their audience consumes 3.8 billion videos per month.  And in one month, Machinima produces more than 10 times the annual output of the largest fully-distributed cable network in the US.

o   The most social film of 2014 was AwesomenessTV’s Expelled, beyond Guardians of the Galaxy, The Maze Runner, and Fault In Our Stars.

I leave you with the best quote of the week:

“Traditional TV viewing among teens and tweens is dead.  Not dying, dead.” -Brian Robbins, Founder/CEO of AwesomenessTV

Yahoo! Kills Its YouTube "Killer" - So, What's Still Alive?

Last week VideoInk broke a story that floored me -- "Yahoo Shutters Video Platform for Creators One Year After Anticipated Launch."  Yet, seems like I was the only one who was floored.  I searched all over for others reporting the news, but couldn't find it anywhere.  I reached out to two key reporters at top media/digital media publications and, shockingly, one hadn't even heard the news (nor seemed to think it was a big deal) while the other had heard, but was still sniffing around.  Out of an abundance of caution, I asked VideoInk to verify the story again -- which they did -- pointing to the leaked Yahoo! email that started the whole thing in the first place and verifying its authenticity.

So, people -- hear me out here -- and make no mistake.  This IS big news in the OTT video world.  Very big news.  If true -- if, in fact, Yahoo! is closing its self-publishing platform for video creators -- this development deeply demonstrates 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).

Here's the relevant timeline leading to this apparent "leak."

Almost exactly one year ago, reports everywhere indicated that Yahoo! was only months away from launching its own video creator platform -- its own YouTube "Killer."  This was very big news at the time -- everyone covered it.  So, we all waited in anticipation.  After all, Yahoo! managed unique and 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.  But months ticked on and, alas, it never came.  Instead, silence.

That report, of course, followed Yahoo!'s attempt -- almost exactly 2 years ago -- to buy a 75% controlling interest in Dailymotion, the European YouTube (certainly not of the scale of YouTube, but still a force in its own right).  Alas, that never came either -- but this time, not for lack of trying.  Rather, French regulators killed it.  Movie over.  Fin.

Meanwhile, throughout this entire time-line -- these past two years covered by these major non-developments at Yahoo! -- the OTT video world changed radically.  What once was, in essence, a YouTube-only video world for creators ... is now a world of multiple competing video platforms.  And a rapidly growing "multiple" it is -- in which YouTube is no longer the only game in town for creators (case in point, Facebook once again).

And, what was happening at Yahoo!?  Senior video executives came and went and apparently took their individual video strategies with them out that revolving door.  Those that remained found themselves in an environment apparently emitting, shall we say, not the highest level of morale.  I have spoken with several of these video execs who have come and gone (I will keep their names confidential) and have heard one theme that is focused -- i.e., Yahoo!'s video "strategy" has been overtaken by confusing multiple layers of decision-making, internal conflict, and what some even called "chaos."  Not trying to be a muckraker here -- it gives me no joy reporting this (because I believe Yahoo! could succeed in some very meaningful) -- but am just reporting the current state of affairs as I have come to understand them from multiple sources.  And, Yahoo! is running out of time amidst the current great OTT video land grab of 2015.

So, what do we have now at Yahoo!?  We have a media regime headed by Kathy Savitt, an accomplished marketing executive, but whose official title itself is split -- "CMO and Head of Media" -- which alone connotes a certain lack of corporate focus and commitment.  We have had some major exclusive and very expensive video content announcements -- including Yahoo!'s exclusive rights to cult television favorite Community -- but Yahoo! does not actively promote that programming (it is mentioned nowhere on Yahoo!'s home page).  We have "Yahoo TV" and "Yahoo Screen" -- Yahoo!'s two primary video initiatives.  But have you even heard of them?  I hadn't ... at least not really.  Those two also are essentially invisible on Yahoo!'s home page, which is a major head-scratcher (to say the least) in this "new golden age of video" (and, again, with all the reach and resources Yahoo! continues to have).  Once I did find them, I can't really tell how "Yahoo TV" and "Yahoo Screen" are the same ... different ... complementary?

One thing we apparently do know now, however, is this.  Yahoo! is giving up on the mega YouTube-esque "killer" opportunity.  Throwing up the white flag ...

... at least, and unless, Yahoo! has a major Dailymotion-like acquisition trick up its sleep 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).

But, sadly, I don't see that coming.

Hope I'm wrong -- and will be the first to fall on my sword if Yahoo! works some mystical sleight of hand.