THE EVOLVING MEDIA CONSUMER & THE FUTURE OF LOCAL TV Bonten Media Group Leadership Conference January 9, 2012 1I hate the future because it’s always wrong.And yet, perhaps foolishly, I’m going to talk about the future of television. Some of the trends we’ll explore are here already, at least for somepeople, but how they evolve for the mass audience is a question. Others are perhaps ten years out, which means, maybe never.
WHAT I DO: Strategy for the Digital Era 218 months ago I launched a consulting business to help companies in the age of digital disruption. I work with companies that are disruptive---start-ups, mainly. And I work with companieswhose core business need to change -- those would be the disrupted! I provide strategy support, help deliver strategic partnerships and business developement, work with internal andexternal teams to build products and services. For 20 years I was Senior Vice President of the AFI in charge of media and technology. I launched programs like the Digital Content Lab thatbrought together Hwd. & SV. Partners included Intel, Apple, Microsoft, AOL, HP, Best Buy,IBM, studios & many others.
MEDIA ACTIVIST, 1962 3In terms of my expertise in local television, I can tell you, I was an early media activist. <Story here>
4Sufﬁce it to say, as a young Army brat living in Fort Hood, Texas, I was an avid watcher of television, and by far my favorite program was Perry Mason, which I received over the air fromnearby Waco Texas.
5That year my father retired from the Army and took a job in Austin Texas, whose only TV station was KTBC -- the only local broadcaster afﬁliated with all three commercial networks. KTBCbroadcast Perry Mason two weeks later than the Waco afﬁliate, and boy, was I mad!
6I wrote an irate letter to the station, and guess what? They invited me down for a tour….. I had what social media marketers today are craving: one-to-one relationship with a brand! Thisexperience opened my eyes to broadcasting at an early age AND illustrates that consumers care about their own experience, even today as it changes so much. We don’t much care about acompany’s proﬁt or loss. We care about the content and the experience.
LET’S LOOK INTO THE FUTURE 7In a time of rapid technological change, companies usually fall into one of 2 categories -- either they are disrupting the status quo or they are the ones being disrupted. In this talk, I’m goingto talk about how forces of disruption will impact local television, with ideas on how Bonten stations can be both.
8As I began polishing my crystal ball, I stumbled across a few clips that seem relevant. “The personal computer is dead” -- Somebody is always ready with a prediction. Problem is getting itright. This deals with the rapid rise of the iPad & other tablets, and return of the “walled garden.”
9This writer has joined the chorus that predicts the death of television, well really, the death of cable subscriptions, because of the so-called cord-cutters. Myself, I prefer to think of televisionas an application...Not going away, tho maybe proﬁts of a method of delivering the app. Disruption.
10Like he sez: the Internet is ruining everything. At the root of change in today’s world is the Internet Protocol, IP-delivered content, and all of the links in the chain of content production anddelivery made possible by digital content. We’ve known this now for 20 years. Why is this surprising anyone?
TEN QUESTIONS • What is a channel? • How do you share? • What is a remote? • Where do you watch? • What is a screen? • How do you create? • What is an ad? • How do you participate? • How do you watch? • What is reality? 11Before I get into some of the speciﬁc business issues and opportunities presented by the disruptive power of the Internet, let’s look a bit farther into the future.... I’ve organized this trendanalysis as a series of questions.
WHAT IS A CHANNEL? • Internet: always on • Video on-demand: downloads & streams • OTT: websites are networks • Time- and place- shifted 12The days are numbered for the channel as a fundamental organizing principle for content. This concept, and the business rules behind it, was a necessity in order to use the electromagneticspectrum efﬁciently, and it was carried over into cable TV.
WHAT IS A REMOTE? • Keyboard • Second Screen (touch) • Gestural interfaces • Voice command • Facial recognition 13The remote control was a revolutionary device because it allowed users much greater control of content consumption. But it’s a primitive and often very annoying interface that is beingreplaced.
WHAT IS A SCREEN? • TV is an application, not a device • Screens are everywhere • Screens get huge • Screens in our pocket 14The invention of the cathode ray tube paralleled the growth of the content and advertising networks that ﬁlled those early screens. Over time, of course, we’ve used screens to display allsorts of content, to the point where television content is simply another application.
WHAT IS AN AD? • Personalized, targeted • The Virtual Self • Interactive • T-commerce, M-commerce • Content as brand, brand as content 15Corporate advertising and sponsorship has ﬁnanced much of television, up until the rise of subscription television. With the rise of the Internet, and its ability to target individuals based upondata, the form of ads will change again.
HOW DO YOU WATCH? • Watch with friends (real & virtual) • Motion capture, telepresence & holograms • Interact w/content & characters • Viewing becomes persistent & immersive (transmedia) 16TV viewing is sometimes lonely, sometimes social, often simply ambient -- based upon circumstances within each household. In the future, other factors outside our physical reality will helpchange the viewing envirnoment.
HOW DO YOU SHARE? • Social graph integrated at every level • Content discovery is social • Sharing reﬂected in content formats 17The social web is the web for most people, and with IP connected TVs, second screens, etc., the conventions of the social web will naturally extend to the TV experience. It’s happeningalready.
WHERE DO YOU WATCH? • Screens are pervasive • Vivid portable screens • Content (TV) follows you • Cloud storage • Stop & start all day 18Content consumption left the living room a long time ago. We will view anytime, anywhere.
HOW DO YOU CREATE? • UGC as an emergent form • Faster, better, cheaper tools • Crowd-sourced production • Proliferation of outlets • The rise of the fan/producer 19A great story well told, that’s what we want from our media providers, along with information, education, escape. The advent of cheap productiontools & ubiquitous distribution = an amazing revolution of content production that is competing for eyeballs and redeﬁning what we think of asTelevision.
HOW DO YOU PARTICIPATE? • Merger of story forms (linear, games, distributed) • Rise of collaborative narratives • Integration of big data • Fan voting for more than just stars 20The audience is becoming used to being in the picture -- certainly as surrogates, in the triumph of reality and competition formats -- but alsodirectly in terms of interactive forms. Games are a big factor here. We will see story forms merge, new formats created, greater involvement andimmersion.
WHAT IS REALITY? • Multi-sensory experience • Perfected 3D • Holographic video • Olfactory and tactile • Multiple POVs and camera angles 21McLuhan used the word synesthetic in describing television’s exploitation of multiple senses. We will see additions to the sensory, particularlyspatial elements, that bring increasingly realistic experiences to life inside the home.
TOMORROW IS NOW ... • IP-enabled TVs/screens • Pervasive social graph • Content in the cloud • “Expanded” TV shows • Over-the-top networks • Browsers & search across delivery systems • Apps (TVs, mobile) • The virtual self: content • Powerful mobile devices follows people • Voice & gestural command 22The seeds for tomorrow’s TV are planted, & are sprouting today.Tomorrow is now, with each trend I mentioned emerging in some form, maybe notyet a mass form. That’s where the fun begins -- determining how we get there, and, of course, who wins the race...
SIMPLY CHANGE TIRES WHILE DRIVING 23 ...without blowing out a tire, crashing and burning. This is what we should avoid. It’s simple: the digital revolution simply requires a little change.Simply change tires.... while driving 80 miles an hour down the Interstate. Can you do it? Well, I for one, think you can. So let’s take a look at yourstrengths.
(+) LOCAL TV: STRENGTHS • NEWS,TRAFFIC, WEATHER • Go-to medium for LIVE • Don’t forget SPORTS! • Brand identity, brand equity • On-air personalities • Local sales & national spots • TV viewing is still growing • Local advertising is still growing • Economies of scale (station group) 24Your stations have strong brands, you deliver live news, traffic, weather, sports -- tailored to local needs -- with on-air personalities. Pew: localTV still tops for breaking news. While online video ads grow, they still acct for about $2 billion in the US and over $3 billion worldwide (2012) TVads is a $70b+ market.
(-) LOCAL TV: WEAKNESSES • Seismic technology shift • Video is everywhere • TV is just an application • Legacy business model • Digital demands new skills • Protective of status quo • Don’t think like ‘digital natives’ 25Keeping with the tattoo motif, this one reads: “Pain is weakness leaving the body.” Ouch! Like music, newspapers, magazines, and other media before you, the local TV station faces aseismic technology shift. In particular, video is everywhere, and its consumption on many different devices continues to surge. No, TV still reigns, but look at rates of growth. As I said earlier,with the Internet as the platform, TV is simply another app. And yet, you have a legacy business model, based upon frequency and reach and an outdated measurement system. You havebuilt teams whose primary skills are not in the digital realm. Constitutionally, most incumbent businesses PROTECT the status quo. You do not think like digital natives.
(!) NEW PLAYERS • Google & Microsoft (Bing) • YouTube • Anschutz (Examiner.com) • AOL (Patch) • Local.com & Auto Trader, etc. • Groupon, Living Social • Pandora, Weather.com • Blogs, ad networks, mobile video 26Once upon a time your competition for local advertising was limited, with television attracting the largest dollars because of the size of your audience, and the sheer impact of audiovisualbrand messages. The web has eaten print alive, and is nibbling at your heels, especially with video viewing and online video ads presenting competition. No, TV has not been decimated --but it’s being disrupted, like other media before it. The game of frequency and reach is not as potent as it once was. Just look at the sheer variety of companies and platforms vying for youraudience’s attention -- and trying to monetize them.
> MULTIPLATFORM STATION • Your station’s web HUB • Microsites & hyperlocal • YouTube & social sites • Mobile: WAP, SMS, • DTV • Tablet apps • Deals, contests & coupons • Out-of-home, simulcasting, community/charity events 27So, yes, local broadcasting stations have LOTS of competitors, but almost none whose brand umbrella is so large as local television. With your websites, you are already on your way tobecoming a multiplatform station, offering content to viewers, and impressions to advertisers. You can continue this expansion to other websites that meet audiences where they are goingtoday. Microsites and hyperlocal neighborhood sites are important trends we can look at. YouTube and other social networks, of course, which I will address in some depth. The fastestgrowing trend is mobile, and you can grab more views and viewers with WAP and SMS-enabled mobile sites. Digital mobile broadcasting, as well, allows your viewers to catch local newslive and archived, even when they’re not near a set. The same can be done for the fast-growing tablet market. Many stations and newspapers have launched deals, contests, coupons, andother forms of advertising that keeps certain brands under your umbrella. Out-of-home means connected to retail networks in stores and gas stations. Simulcasting means using yourspectrum to deliver additional content. And of course, leveraging your community and charity relationships into these venues offers advertisers great value.
PUT YOU IN “YOUTUBE” • 48 hours per minute • 3 billion views per day • 44% of WW video views • 33% of US video views • 21 hours per month • #2 search engine • 10,000 content partners • It’s where your viewers view videos 28With the upsurge in broadband penetration and the launch of YouTube, the ﬁrst competitor since cable TV has emerged. According to Comscore in October 2011, 201.4 billion videos wereviewed online worldwide by 1.2 billion unique viewers age 15 and older, with Google-owned Youtube accounting for 43.8 percent of all viewing. In the US, total video viewing is now up to 21hours per month, one third of which is YouTube/Google sites. Moreover, YouTube is the #2 search engine and has 10,000 content partners. Lots of other stats provided by YT in May http://bit.ly/w0W0Gj. It’s where your viewers view videos. You should be there.
YOU TUBE STRATEGY? • AFI in 2009 • No channel strategy • No subscribers • Nobody sharing video • No ad revenue • Uploads by others • DCMA takedown • Playlists feed website 29Back in 2009 a search for AFI or the American Film Institute might have looked like this search for a local TV station (KRCR) -- with links to random videos uploaded by others. No channelstrategy of our own, and therefore no subscribers who received regular notice of our updates. And of course no revenue from videos that others uploaded -- or in the case of our nonproﬁt, noreferrals to our site. Our solution was to use the DCMA takedown provision that required YouTube to delete copyrighted materials uploaded by others, and to reach out to each of those fansto encourage them to link to the bona ﬁde versions we posted. All of our videos were high quality, and included a graphic ID and an “outro” referring viewers to our website. We also createdchannels on our own website fed by YouTube playlists that enabled us to “broadcast” videos created by others -- simply add to your playlist.
IT’S A SOCIAL WORLD • YouTube feeds FB,Twitter • “Likes” = customers • Followers = dialog • Subscribers = $$ • Don’t forget to blog • Adapt • Cost/beneﬁt analysis • Issue: Does YouTube undercut your own site? 30Its a social world online, with YouTube feeding Facebook & Twitter, and back again. When a customer "likes" you or favorites you or subscribes, this creates a one on one bond that you cancultivate. Your followers need dialog. Cannot feel exploited. But handled correctly, they are worth a lot of money. Dont forget to blog. Adapt to new players (example: Google Plus). Be carefulin terms of how you apply traditional cost/beneﬁt analysis to social marketing. You are investing. Finally, does YouTube video undercut the value of what you publish on your own site?
ARE YOU ENGAGING? 31In today’s social world, engagement is the key. Indeed, audience engagement is a form of measurement that advertisers will increasingly desire as the utility of ratings and shares becomesless viable. Engaging your audience where they congregate (places like Facebook) is imperative. Here is KRCR’s Facebook page (the correct one!!)
ARE YOU ENGAGING? 32Here is a search for KRCR on Twitter. Fans mention the brand and include links to the station’s videos, very likely by clicking the Twitter button the station’s website. Twitter is only one ofmany ways that consumers are connecting their networks of friends to their TV viewing, typically by means of apps on smartphones and tablets, all of which offer you engagementopportunities like badges, contests, and user-rewards.
2-SCREEN ENGAGEMENT • Direct connection • Social Check-in • Gamiﬁcation • Rewards/badges • Sponsorships • Loyalty programs • Coupons 33Social platforms like Twitter, Facebook, YouTube and group texting make sharing a mass phenomenon alongside the individual’s media consumption. A new generation of social TV apps onsmart phones and tablets connect into the social portals, and add unique value. Here’s another way to engage consumers and connect with your brand customers.
> CREATE AND CURATE • Goal = Engagement • Curate = aggregate • Creating is not enough • Co-create • Reward fans • Stimulate production • Find great content in your market area 34Engagement can come in other ways beyond the big social media platforms in one of the web’s biggest trends. Call it aggregation or curation, we are talking about intermingling content fromother sources with your own branded content. Think Hufﬁngton Post, Gawker, and many other sites. You are already doing this by syndicating CNN video content. We can do the same withother providers, both professional and amateur. If it’s on YouTube, we can drag that into a playlist, and feed it onto your website and social sites. You can create contests to create new videocontent, and let the market know that your station embraces the user-generated, curated and aggregated world we all live in today.
> USE YOUR SPOTLIGHT • Brand = value • Build your brand • Use your brand • Reward YouTubers, bloggers • Hi-lite social on your air • Connect to your sponsors • Aggregate content from others on your site • Integrate with contests, sweepstakes, community events 35It all comes back to your brand, which continues to offer great value in the marketplace. In the world of new media, you build your brand by leveraging it across many different platformenvironments. Wherever your consumers go, they should ﬁnd your familiar brand as part of the experience. Don’t let them migrate to the newcomers. Grab their attention and their loyalty,and make it easy. Reward YouTubers and bloggers in your market area by republishing them/ aggregating them on your digital platforms, and highlight them on your air. Connect tosponsors, especially contests, sweepstakes and community-related events.
> PARTNER WITH OTHERS • Mobile Content Venture ✦ Consortium of station groups & Fox, ION, NBC ✦ Pearl DTV (consortium of station groups) • Dyle - live mobile TV • ConnecTV - tablet app • Required hi-tech partners 36Bonten knows how to partner in new media -- your station sites are powered by Internet Broadcasting & you feature content from CNN. Here’s an interesting example in some of the newerplatform areas--mobile digital broadcasting. Formed in April 2010, MCV partnership to bring mobile TV to market via the ATSC standard. On board are ION-TV, Fox, and NBC and Univision,plus a consortium of station groups that include: Barrington Broadcasting Group, Belo Corp., Cox Media Group, E.W. Scripps Co., Gannett Broadcasting, Hearst Television Inc., MediaGeneral Inc., Meredith Corp., Post-Newsweek Stations Inc. and Raycom Media. Both Dyle and ConnecTV brought station groups together with high tech partners in Silicon Valley.
DISRUPTED ? DISRUPTOR? 37Those are just a few of the implementations we might look at to execute an overall digital strategy for a local TV station or group like Bonten. This is, ultimately, a strategy that starts with thecommitment that if you don’t disrupt your competitors, your business will be disrupted, and face certain demise over time. There’s no question that every business on the planet faceschallenges as the digital transition continues apace. The only issue is whether you see the future as a great opportunity, too. Now I would love to hear from you, questions, suggestions, andgreat ideas. Let me know how I can help you.
NICK DEMARTINO • TWITTER: • BLOG (and newsletter): @nickdemartino www.nickdemartino.net/ blog • SLIDESHARE: www.slideshare.net/ • DELICIOUS: nickdemartino www.delicious.com/ aﬁnickd/bonten • EMAIL: email@example.com or: • WEBSITE: • www.delicious.com/ www.nickdemartino.net aﬁnickd/ott 38Please feel free to contact me with questions. I will be posting this presentation on SlideShare. If you give me your card after the talk, I’ll send it to you, as well. Please check out my website,and if you like my blog posts, sign up for my newsletter. Much of the research for this talk can be found on my Delicious site, under either bonten or ott tags.
Thank You Very Much 39Thank you very much. I hope you enjoyed this as much as I did.