!    !                                !                                !                                !    !    !    !  ...
COPYRIGHT!NOTICE!This!document!was!published!by!MAD!Perspectives!LLC!Copyright!2013.!!Reproduction!is!strictly!forbidden!u...
EXECUTIVE(OVERVIEW((                                                                                                      ...
destinations,!enabled!by!B2B!platforms,!curate!and!moderate!content!shared!on!the!site!or!imported!from!Twitter,!Facebook!...
leverages!the!high!awareness!and!adoption!of!social!networks!such!as!Twitter!and!Facebook.!!These!social!media!darlings!ha...
However,!Twitter!and!Facebook!act!as!barometers!of!social!activity!surrounding!TV.!!41%!of!TV!viewers!tweet!about!what!   ...
!!An!engaged!audience!means!opportunity!for!advertisers.!!Engagement!in!the!form!of!interaction,!clickYthroughs,!participa...
UNDERSTANDING!THE!BUSINESS!MODEL!The!business!of!social!TV!is!to!enable!consumers!to!interact!around!their!favorite!shows....
the!rules!of!basic!economics,!the!limited!supply!of!ad!slots!drives!rising!ad!pricing!–!despite!the!decline!in!viewers.!!T...
Greg!Kahn,!executive!vice!president!of!adYbuying!firm!Optmedia,!indicated!that!hed!much!rather!have!his!ads!in!a!show!    ...
•    ConnecTV!is!backed!by!a!conglomerate!including!Cox!Media,!EW!Scripps,!Gannett!Broadcasting,!Hearst!TV!and!           ...
want!to!retain!those!technologies!that!created!the!desired!fan!stickiness.!!The!most!important!investment!must!be!in!data!...
TV!viewing,!increasing!live!TV!viewership!while!also!providing!an!incremental!channel!for!advertisers.!The!bottom!line!is!...
While!Echo!provides!the!ability!to!integrate!social!feeds!(e.g.,!Twitter),!they!feel!the!social!TV!experience!should!be!br...
Privately!Funded!                  CEO:!Thomas!Engdahl!Magic!Ruby’s!goal!is!to!make!second!screen!apps!work!better.!!They!...
!                                   Founded:!2010!                                   Privately!funded!                    ...
Their!customers!include:!XFactor!(season!1!&!2),!Discovery!Channel,!Univsion,!ABC,!Fox,!Disney,!Epix!and!Viacom.!!They!hav...
a!comprehensive!story!across!multiple!media!platforms.!!Social!TV!introduces!the!potential!for!producers!to!succeed!in!the...
ENDNOTES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!                                       !       ...
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Social tv the second screen driving tv engagement

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Analysis of Second Screen vendors driving interactive social engagement around TV.

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Social tv the second screen driving tv engagement

  1. 1. ! ! ! ! ! ! ! ! Social!TV!–!The!Second!Screen!Driving!TV! Engagement! ! ! ! ! ! ! ! February!2013! MAD!Perspectives!LLC! Peggy!Dau! ! ! ! ! ! !
  2. 2. COPYRIGHT!NOTICE!This!document!was!published!by!MAD!Perspectives!LLC!Copyright!2013.!!Reproduction!is!strictly!forbidden!unless!authorized!by!MAD!Perspectives!LLC.!All!rights!reserved.!DISCLAIMER!MAD!Perspectives!uses!rigorous!methodologies!in!constructing!and!validating!its!research!and!opinions.!Our!collective!knowledge!includes!information!gathered!from!consumer!studies,!industry!interviews!and!other!research!sources.!Since!the!market!MAD!Perspectives!is!reviewing!is!subject!to!rapid!change,!MAD!Perspectives!is!not!responsible!for!loss!caused!by!any!errors,!omissions,!or!misinterpretation!of!the!contents.!All!information!is!provided!“as!is”!with!no!warranty!implied!or!expressed.!MAD!Perspectives!disclaims!any!liability!to!any!individual!or!organization!that!has!made!business!or!investment!decisions!based!on!reliance!on!the!contents!of!our!research.!!ABOUT!MAD!PERSPECTIVES!MAD!Perspectives!is!passionate!about!digital!media!and!the!technologies!that!are!changing!the!media!industry.!Founder,!Peggy!Dau,!has!spent!the!last!10!years!identifying!trends,!opportunities!and!solutions!surrounding!the!delivery,!management!and!consumption!of!premium!digital!media!content.!!Since!founding!MAD!Perspectives,!in!2009,!Peggy!has!consulted!to!highYtech!companies!and!broadcast!vendors!serving!the!media!&!entertainment!industry,!MAD!reviews!market!trends!and!emerging!technologies,!while!making!the!connection!between!business!goals!and!relevant!solutions!to!define!new!ways!of!achieving!success.!!!!!!!!!!!!!!! ! 2! !
  3. 3. EXECUTIVE(OVERVIEW(( 1TV!continues!to!be!the!most!compelling!home!entertainment!medium,!despite!reports!that!TV!viewing!is!on!the!decline .!!The!growth!of!OTT!has!shifted!the!way!in!which!we!consume!TV!content.!!Whether!it!is!operator!enabled!DVR,!deviceYenabled!access!to!online!content!(e.g.,!Xbox,!Roku,!Tivo)!or!Connected!TV!services!(e.g.,!Netflix,!Amazon!Prime!Video),!more!TV!content!is!being!streamed!vs.!being!broadcast!into!the!home.!!However,!there!are!signs!that!this!trend!is!reversing.!!Thanks!to!the!development!of!realYtime!engagement!platforms,!targeting!mobile!devices!such!as!smartphones,!tablets!and!laptops,!viewers!are!turning!on!their!TVs,!checking!into!apps!and!engaging!around!their!favorite!programs.!Engagement!is!taking!place,!on!the!second!screen,!in!the!form!of!checkYins,!quizzes,!polls!and!interactions!with!fellow!fans,!program!producers,!cast!and!crew.!!For!loyal!fans,!the!second!screen!is!providing!them!with!an!opportunity!to!create!a!stronger!emotional!connection!to!the!show!with!access!to!exclusive!content!relevant!to!onYair!programming.!!Broadcast!and!cable!TV!use!of!these!Social!TV!apps!is!on!the!rise!as!they!recognize!the!opportunity!to!lure!viewers!back!to!live!TV,!and!increase!long!tail!consumption.!The!second!screen!provides!producers!a!mechanism!to!discover!the!desires!and!capitalize!on!the!incremental!advertising!opportunity.!Who’s!watching?!Men!and!women,!young!and!not!so!young.!!They!are!engaging!around!sports,!drama,!news,!talk!shows!and!reality!TV.!!Why!are!they!interacting?!!Because,!they!want!to!and!because,!now,!they!can.!!Mobile!phones!and!tablets!are!the!devices!of!choice!for!fans!researching,!interacting!or!gaming!when!watching!TV.!!DIGITAL!OMNIVORES!ARISE!!Globally,!we!crave!access!to!information!throughout!our!day,!as!evidenced!by!our!acquisition!of!digital!devices!such!as!PCs,!tablets!and!smartphones.!!A!digital!omnivore!is!an!expert!at!twoYway!communication,!be!it!gaming,!texting,!or!chatting!on!Twitter!or!Facebook.!They!are!not!fans!of!“old”!media.!!However,!digital!omnivores!are!exhibiting!some!“couchYpotato”Ylike!behavior!as!they!turn!to!the!second!screen!for!a!more!interactive!entertainment!experience.! 2The!Viacom!Social!TV!Study !defines!Social!TV!as!the!ability!for!viewers!to!communicate,!access!content!and!interact!with!friends!via!a!second!screen.!The!dominant!screen!is!the!smartphone!with!82%!of!respondents,!in!the!study,!indicating!it!as!their!preference.!!The!tablet!is!a!distant!second!at!18%.!!It’s!not!surprising!that!these!devices!are!in!use!while!we’re!watching!TV.!According!to!our!latest!connected!consumer!study,!36%!of!tablet!owners,!ages!26Y44,!use!it!while!watching!TV! 3at!least!once!a!day. !!The!power!of!tablet!is!yet!to!be!revealed,!but!its!rate!of!adoption!has!outpaced!that!of!all!other!technologies!introduced!in!the!last!100!years.!By!the!end!of!2012,!97.1%!of!U.S.!households!will!have!at!least!one!TV.!!While!this!percentage!is!declining!in!the!U.S.,! 4according!to!Nielsen, !TV,!as!a!device!is!still!as!relevant!as!ever.!!However,!the!acquisition!of!second!screen!devices!is!also! 5on!the!rise.!!Smartphone!penetration!in!the!U.S.!passed!50%!in!November!2012 .!!One!fifth!of!the!entire!U.S.!population!accesses!social!networks!or!blogs!using!their!smartphones.!Tablet!adoption!is!even!more!astonishing!as!more!than!40!million!tablets!have!been!sold!in!less!than!2!years!in!the!U.S.!Mobile!subscribers!view!the!tablet!a!supplementary!to!their! 6smartphone.!While!smartphones!are!used!at!even!levels!throughout!the!day,!tablet!usage!peaks!in!the!evening, !leading!us!to!believe!that!the!tablet!will!become!the!primary!second!screen!device.!While!the!device!is!the!medium!for!second!screen!activity,!the!destination!defines!the!level!of!engagement.!!Much!initial!Social!TV!activity!was!measured!in!terms!of!tweets.!!However,!by!their!very!nature!tweets!are!broadcast,!like!TV,!to!unidentified!individuals.!!It!is!helpful!to!see!the!volume!of!activity!surrounding!an!event!or!show,!however!it!is!not!personal.!!Social!TV!platforms!and!websites,!however,!provide!a!more!intimate!experience!through!the!involvement!of!likeYminded!fans!and!content!producers.!!B2C!apps!aggregate!users!for!checkYins,!games!and!comments!provide!rewards,!while!web! 3! !
  4. 4. destinations,!enabled!by!B2B!platforms,!curate!and!moderate!content!shared!on!the!site!or!imported!from!Twitter,!Facebook!or!Social!TV!apps.!!ITS!ALL!ABOUT!THE!BRAND!It!would!be!easy!to!assume!that!Social!TV!is!about!new!technology!and!the!devices!enabling!our!use!of!said!technology.!!However,!second!screen!activity!is!all!about!the!brand.!!A!media!brand’s!key!demographic!is!the!segment!most!likely!to! 7extend!their!reach!across!multiple!platforms!–!regardless!of!age. !!Viewers!are!using!their!mobile!devices!to!enrich!their!viewing!experience.!!60%!of!a!media!brand’s!TV!consumers!use!the!Internet!concurrently!while!watching!TV,!while!29%!use! 8Facebook!while!watching!TV. ! !Brands,!such!as!USA!Networks,!view!Social!TV!as!a!transmedia!storytelling!experience.!!By!enticing!fans!to!participate!in!a!twoYway!dialogue!their!superYfans!enjoy!content!across!multiple!screens.!!The!goal!is!to!drive!increased!viewing!of!their!programs!from!the!very!first!show!until!the!season!finale.!!Increased!viewers!translate!to!higher!advertising!revenues!on!both!primary!and!secondary!platforms.!Social!TV!is!a!key!component!of!a!compelling!multiYscreen!strategy!driving!greater!usage!of!and!engagement!with!brand!content.!!WHAT!IS!SOCIAL!TV!In!this!age!of!broadcast!and!cable!TV,!IPTV,!Connected!TV!and!Smart!TV!there!is!yet!another!term!gaining!wide!attention!from!all!constituents!of!the!TV!industry.!!It!is!Social!TV.!!Simply!put,!it!is!the!convergence!of!TV!and!social!media.!!It!is!technology!that!expands!the!traditional!boundaries!of!inYhome!TV!entertainment.!!It!allows!friends,!family!and!fans!that!don’t!even!know!each!other,!to!share!their!TV!viewing!experience!–!virtually.!Social!TV!leverages!all!of!the!elements!of!social!media!–!blogs,!activity!streams,!games,!crowd!sourcing,!pictures!and!videos,!to!create!an!immersive!fan!experience.!These!activities!are!most!frequently!pursued!on!a!second!screen.!!Social!TV! 4! !
  5. 5. leverages!the!high!awareness!and!adoption!of!social!networks!such!as!Twitter!and!Facebook.!!These!social!media!darlings!have!simplified!communication!across!the!miles!and!changed!the!way!we!interact!and!consume!content.!!It!is!a!no!brainer!to!consider!adding!a!social!media!element!to!the!already!social!activity!of!watching!TV.!Thanks!to!the!emergence!of!tablets!and!smartphones!capable!of!high!quality!video,!viewers!can!easily!enjoy!Social!TV!apps!designed!around!their!favorite!programs.!!The!technology!may!be!a!mobile!app!as!a!destination!or!a!platform!enabling!a!network!branded!site!tracking,!inviting!and!capturing!fan!commentary.!!In!either!case!the!second!screen!is!enabling!greater!interaction!around!the!content!on!the!first!screen.!!ENGAGING!MORE!THAN!EYEBALLS!TV!is!one!of!the!most!social!forms!of!entertainment.!We!watch!programs!with!friends!and!family,!while!adopting!new!phrases!into!our!daily!vernacular.!“Not!that!there’s!anything!wrong!with!that”,!said!Seinfeld!in!1993!and!it!is!still!relevant! !today. !Why!are!viewers!getting!social!about!TV?!!Technology!now!enables!them!to!do!what!they!used!to!do!at!the!office!water!cooler!–!chat!about!their!favorite!programs!and!get!instant!feedback!from!others.!!Social!TV,!like!social!media,!provides!a!sense!of!immediacy,!relevance!and!perhaps!most!importantly,!recognition.!!Social!TV!changes!viewers!from!passive!couch!potatoes!into!active!fans!as!they!engage!for:! 1. Companionship!–!simply!to!share!thoughts! 2. Community!–!alignment!with!likeYminded!individuals! 3. Curiosity!–!discover!the!opinions!of!others! 4. Influence!–!the!ability!to!shift!the!thoughts!of!others!through!interaction! 5. Information!–!desire!to!become!an!expert! 6. Acknowledgement!–!recognition!by!others!in!community!or!from!producers!Trendrr.TV!measured!over!800!million!conversations!(via!Facebook!or!Twitter)!or!interactions!via!Social!TV!apps)!related!to! 9TV!programming.!!Overall,!social!TV!chatter!has!grown!by!800%!on!Twitter,!doubled!on!Facebook!and!on!social!TV!apps. !Social!TV!is!more!than!tweets!about!a!show;!it!is!about!communication,!content!and!comments.!Social!TV!features,!that! 10combine!all!three!components,!are!twice!as!likely!to!be!used!during!live!TV!viewing!versus!onYdemand!consumption.! !!! ! 5! !
  6. 6. However,!Twitter!and!Facebook!act!as!barometers!of!social!activity!surrounding!TV.!!41%!of!TV!viewers!tweet!about!what! 11they!are!watching.!!The!types!of!shows!people!are!most!likely!to!post!about!are: ! • Comedies!–!56%!! • Reality!TV!–!46%! • Sports!–!38%! • Cable!News!–!26%!A!leader!in!their!use!of!the!second!screen,!USA!Networks!has!developed!Character!Chatter!to!complement!its!primetime!lineup.!!It!is!a!destination!that!enables!fan!communication,!integrating!feeds!from!Twitter,!Facebook!and!GetGlue.!!USA!shares!content!about!upcoming!episodes,!inviting!fans!to!comment!about!plot!lines!and!character!decisions.!!It!is!an!extension!of!USA’s!tagline,!“Characters!Welcome”.!! ! !WHO’S!ENGAGING!Studies!show!men!ages!25Y54!engaging!around!the!“big!games”,!while!women!age!24Y44!interact!around!dramas!and!reality! 12programming. !!Engagement!behavior!varies!by!platform,!with!Twitter!reflecting!the!highest!activity!on!Sundays,!Tuesdays!and!Thursdays.!!Facebook!activity!is!steady!throughout!the!week,!except!for!Saturdays!when!it!declines!by!50%.!!App!provider!Get!Glue!gains!high!interaction!at!the!beginning!of!the!week!while!shows!the!highest!activity!on!Tuesdays.! 6! !
  7. 7. !!An!engaged!audience!means!opportunity!for!advertisers.!!Engagement!in!the!form!of!interaction,!clickYthroughs,!participation!in!polls!or!games,!or!action!to!acquire!information!or!product!is!the!currency!of!success.!!They!are!the!intersection!of!social!media!and!internet!advertising.!!As!TV!brands!incorporate!Social!TV!into!their!overall!strategy,!they!should!consider!these!criteria:! 1. Audience!must!be!able!to!share!likes!and!dislikes!by!connecting!with!other!fans!and!connecting!to!primary!social! networks!like!Facebook!and!Twitter! 2. Platforms!or!apps!must!integrate!realYtime!data!feeds!for!a!compelling!user!experience! 3. Content!producers!must!commit!to!providing!an!interactive!experience.!!This!requires!constant!moderation!of! content!as!well!as!acknowledgement!of!fan!commentary,!trending!topics!and!provision!of!compelling!content.!! ! 7! !
  8. 8. UNDERSTANDING!THE!BUSINESS!MODEL!The!business!of!social!TV!is!to!enable!consumers!to!interact!around!their!favorite!shows.!!The!models!supporting!this!interaction!vary!and!as!a!result!so!do!the!revenue!streams.!The!two!primary!models!are!1)!apps!enabling!engagement!via!a!mobile!device!and!2)!platforms!providing!media!brands!the!ability!to!create!an!online!social!interaction.!! Product! Purpose! Revenue!Model! Vendors! Success!Metrics! • Enable! • License! • ConnecTV! • Ease!of!B2B!platforms! development!of! • Advertising! • Echo! development!&! web!destination!or! • EYCommerce! • IntoNow! integration! apps!! • Future!=!revenue! • Magic!Ruby! • #!subscribers! • Integrate!&!curate! share! • Numote! • !level!of!activity! social!feeds!from! ! • Tellybug! • clickYthrus! Twitter,!Facebook! • TVPlus! • response!to!callYtoY or!Social!TV!apps! action! • Viggle/GetGlue! • #!subscribers!B2C!apps! Mobile!apps!enabling! • Advertising! • Miso! • #!checkYins! checkYin,!polls,! ! games,!activity! ! stream!around!TV! shows!The!app!model!invites!fans!to!subscribe!and!engage!around!their!favorite!TV!shows.!!The!app!is!the!primary!interface!for!engagement!and!is!linked!to!Facebook!and/or!Twitter.!Fans!are!encouraged!to!invite!their!friends!to!join!them!in!using!the!app.!!Content!can!be!shared!within!the!app!and!on!the!social!networks.!There!may!be!rewards!for!performing!certain!activities!such!as!checkingYin,!answering!polls!or!participating!in!quizzes.!!Most!apps!are!free!for!download,!with!iOS!being!the!primary!platform!for!which!apps!are!developed.!!The!revenue!model!is!advertising!or!sponsor!driven.!!Most!vendors!in!this!space!are!paying!close!attention!to!the!fan!experience!and!do!not!want!advertising!to!become!a!deterrent!to!their!enjoyment!of!the!community.!The!platform!model!provides!TV!networks!with!the!toolkit!to!develop!a!branded!destination!for!second!screen!activity.!!!The!toolkit!usually!includes!a!foundation!addressing!core!technology!requirements!for!managing!data,!enabling!realYtime!interaction!and!simplifying!integration!of!additional!applications.!!These!applications!fulfill!user!expectations!for!social!functionality!such!as!social!login,!fan!chat,!comments,!forums,!trends,!polls!and!more.!The!foundation!is!designed!for! rdscalability!and!realYtime!interaction.!!It!does!allow!integration!with!3 !party!apps!such!as!Viggle/GetGlue!or!Miso,!social!networks!like!Twitter!or!Facebook,!or!complementary!content!providers!like!Imdb.!In!addition,!an!SDK!provides!media!brands!the!ability!to!create!their!own!custom!applications.!The!revenue!model!follows!that!of!a!typical!cloud!service,!with!licenses!or!fees!based!on!the!volume!of!content,!queries!or!interactions!supported.!!Customer!subscription!fees!increase!as!they!add!functionality!or!increase!volume!of!activity.!!The!platform!model!is!focused!on!brands!extending!their!reach!and!driving!traffic!to!the!destination!of!their!choice.!!READ(MY(LIPS(–(IT’S(ABOUT(ADVERTISING(Advertising!remains!a!significant!revenue!driver!for!TV,!along!with!license!fees.!!Even!as!the!Internet!and!display!ads!have!introduced!new!outlets!through!which!brands!can!reach!consumers,!TV!provides!a!stable!inventory!of!at!least!160!sports!per!viewer!per!day!(assuming!the!viewer!consumes!an!average!of!5!hours!of!TV!daily,!with!32!ad!spots!per!hour).!!Following! 8! !
  9. 9. the!rules!of!basic!economics,!the!limited!supply!of!ad!slots!drives!rising!ad!pricing!–!despite!the!decline!in!viewers.!!The!global!TV!advertising!market!is!approximately!$196!billion.!The!digital!media!portion!continues!to!increase!and!it!is!expected!that!social!TV!will!accelerate!digital’s!share!due!to!the!higher!degree!of!interactivity!and!volume!of!meaningful!data!available.!Social!TV!presents!advertisers!with!either!a!solution!or!a!conundrum.!!The!solution!is!that!social!platforms!aligned!with!TV!programs!guarantee!a!dedicated,!wellYdefined!audience.!!Advertisers!recognize!the!power!of!a!strong!social!media!following!on!Facebook,!Twitter!or!social!TV!platforms!in!driving!more!eyeballs!to!TV!programs.!!While!a!large!proportion!of!the!overall!TV!audience!may!not!use!the!second!screen,!even!those!that!do!can!translate!into!millions!of!dollars!in!ad!revenue.!They!are!positioning!social!TV!sponsorships!to!brands!that!desire!highly!engaged!consumers.!!Social!TV!by!its!very!nature,!reflects!a!committed,!interested!audience.!!On!the!other!hand,!advertisers!must!decide!whether!to!advertise!onYscreen!or!online.!!Which!option!will!inspire!consumer!action?!!Social!TV!is!yet!another!arrow!in!the!quiver!of!media!planning.!!Adding!it!as!an!option!gives!advertisers!the!chance!to!experiment.!!!The!larger!Social!TV!advertising!opportunity!is!in!the!data!provided.!!Media!brands!can!provide!advertisers!with!greater!insights!into!consumer!affinity!with!a!TV!show,!audience!demographics,!audience!response!to!advertisements,!programming!concerns!and!more.!!Brands!are!interested!in!the!second!screen!as!it!represents!a!dedicated,!engaged!fan!base!that!is!more!likely!to!click!on!a!relevant!ad.!!! ! Traditional!Data!Collection! RealYTime!Listening! Timing! Periodic! Real!time! Sample!Size! Limited! Thousands!of!posts! Data!Characteristics! Solicited,!guided,!guarded! Unfiltered!expression! Relevance! Directional!gauge! Measurable!influence! Data!Use! Siloed!and!sequestered! Available!to!all! ! ! Source;!Network!Insights!2012!The!benefit!of!online!advertising!is!that!it!is!measurable!in!the!form!of!clicks,!clickYthrus!and!actions!taken.!!Social!TV!enables!the!same!measurement,!plus!greater!insight!into!audience!sentiment!about!plot,!characters!and!brands.!Global! 13revenue,!80%!of!which!is!US!centric,!attributed!to!Social!TV!Platforms!is!anticipated!to!grow!to!$12!billion!by!2020, !reflecting!a!CAGR!of!29.68%.!This!revenue!will!come!in!the!form!of!advertising!and!eYcommerce.!!Today!the!lion’s!share!of!revenue!is!from!advertising,!but!as!producers!and!brands!better!understand!the!value!of!the!second!screen,!the!proportion!of!eYcommerce!related!revenue!should!increase.!Today,!most!business!models!for!app!or!platform!providers!in!this!space!are!subscription!or!license!models.!!These!providers!will!be!considering!revenue!share!models!in!the!future,!but!are!unable!to!pursue!this!revenue!stream!until!they!can!provide!the!data!to!substantiate!the!model.!! 9! !
  10. 10. Greg!Kahn,!executive!vice!president!of!adYbuying!firm!Optmedia,!indicated!that!hed!much!rather!have!his!ads!in!a!show! 14with!2!million!active!online!followers,!vs.!a!show!with!little!online!social!interaction. !!Fans!engaged!with!a!TV!show!are!more!likely!to!be!engaged!with!its!ads.!!Social!TV!provides!value!to!media!brands!and!their!advertisers!through!promotion!of!season!debuts,!individual!episodes!and!postYshow!activity.!!By!increasing!viewership!of!the!first!three!episodes,!TV!shows!can!guarantee!better!Nielsen!ratings.!!Improved!ratings!lead!to!greater!advertising!opportunities.! !As!social!TV!apps!continue!to!evolve,!media!and!consumer!brands!will!appreciate!the!impact!of!data!gathered.!They!will!gain!deeper!insight!into!the!correlation!between!sponsorships,!programming!and!consumer!actions.!!On!the!other!hand,!fans!are!beginning!to!recognize!that!social!TV!gives!the!ability!to!directly!impact!the!content.!!In!reality!or!gaming!programs,!viewers!impact!outcome.!(e.g.,!American!idol,!Big!Brother)!!For!produced!content,!the!audience!can!influence!actor!choice! 15and!opening!credits!as!experienced!by!USA’s!White!Collar!during!Season!3. !!Content!is!king,!but!data!is!the!queen.!!WHO’S(BEHIND(THE(SECOND(SCREEN(As!Social!TV!becomes!a!part!of!the!daily!lexicon!for!those!following!the!television!space,!it!is!interesting!to!note!who!is!behind!the!companies!in!this!emerging!space.!!Why!are!investors!interested!in!Social!TV!apps!and!platforms?!They!are!intrigued!with!the!opportunity!to!finally!deliver!a!fully!integrated,!geoYtargeted,!measurable!direct!response!marketing!opportunity!tied!to!media!brand.!!Media!economist,!Jack!Myers!predicted!the!market!will!grow!to!$8Y$12!billion!by!2020,!at! 16the!2011!Social!TV!Summit!in!Los!Angeles. !The!Social!TV!segment!is!not!just!filled!with!entrepreneurs!and!venture!capitalists!out!to!create!new!technology!and!capitalize!on!the!latest!technology!craze.!!Major!TV!networks!are!investing:! 17 18 • BSkyB!took!a!10%!interest!in!Zeebox .!!Viacom,!NBCU!and!Comcast!have!also!invested,! !while!Network!Ten! 19 entered!into!a!joint!venture!with!Zeebox!to!penetrate!the!Australian!market. ! 20 • Fox!Broadcasting!has!a!stake!in!ACTV8 ! 10! !
  11. 11. • ConnecTV!is!backed!by!a!conglomerate!including!Cox!Media,!EW!Scripps,!Gannett!Broadcasting,!Hearst!TV!and! 21 Meredith!Corp. !Executives!at!leading!Social!TV!vendors!reflect!backgrounds!in!web!2.0,!advertising,!broadcast!and!technology.!!The!required!infrastructure!to!enable!social!engagement!should!not!be!underestimated.!!While!the!user!interface!must!be!appealing!and!easy!to!navigate,!the!underlying!infrastructure!must!address!heavy!read/write!activity!and!the!ability!to!share!results!in!realYtime!(less!than!three!seconds).!It!would!be!easy!to!assume!that!an!understanding!of!broadcast!and!advertising!business!models,!is!enough.!!Leadership!teams!must!pursue!viable!goYtoYmarket!models!with!technology!that!fulfills!media!producer!and!audience!engagement!goals.!!!Executive!resumes!in!this!space!reflect!the!complexity!of!this!emerging!segment.!!Social!TV!is!at!the!intersection!of!web!and!social!technology!delivering!value!to!brands!through!their!consumer!engagement.!!The!technology!enabling!realYtime!interaction!is!not!trivial!and!the!importance!of!building!a!highly!scalable!infrastructure!is!critical!to!the!success!of!this!space.!!In!addition,!ease!of!integration!with!existing!or!emerging!applications!is!a!requirement!for!incorporating!a!breadth!of!conversations.!!The!role!of!executives!in!this!growing!market!is!to!anticipate!and!educate.!!They!must!design!solutions!that!provide!flexibility!for!growth,!branding,!customization!and!integration.!!At!the!same!time!they!must!help!customers,!who!span!both!marketing!and!IT.!!While!the!intent!of!social!TV!is!closely!aligned!to!marketing,!the!enabling!platforms!are!cloud!services!requiring!IT!investment.!!In!this!age!of!social!networking,!the!audience!no!longer!accepts!a!passive!position!Y!they!demand!a!voice.!!Social!TV!encourages!their!discussions.!!The!broadcast!and!advertising!industries!are!tightly!entwined!as!they!seek!new!ways!to!attract!consumers.!!Social!TV!strengthens!that!bond!while!providing!deeper!insight!into!the!opinions!of!the!TV!audience.!The!segment!will!continue!to!evolve!with!analytics!becoming!an!important!element!in!capturing!Social!TV!value.!!Analytics!provide!the!intelligence!and,!more!importantly!differentiating!content,!to!help!producers!engage!audiences!more!fully.!!!GROWING!PAINS!This!market!is!just!entering!its!second!phase.!!Phase!one!could!be!defined!as!the!birth!of!opportunity.!!Many!companies!were!founded,!pursuing!both!B2C!and!B2B!models.!!Revenue!streams!were!unclear!and!typical!Internet!start!up!models!geared!to!attract!followers,!as!a!means!to!attract!investment!were!dominant.!!Presumed!long!term!sustainability!for!these!platforms!include!acquisition!by!other!participants!in!the!value!chain,!such!as!networks!brands!or!advertising!conglomerates.!!Consolidation!is!now!underway!with!the!Viggle!acquisition!of!Get!Glue!and!Dijit!Media’s!acquisition!of!GoMiso.!!The!second!phase!will!separate!the!real!players!from!the!“wannabes”.!!The!focus!will!be!on!revenue,!infrastructure!and!content!management.!SelfYsustaining!revenue!is!a!basic!requirement.!!There!has!been!equity!investment!by!VCs!and!content!owners,!validating!the!interest!and!opportunity.!!However,!further!investment!will!be!dependent!upon!proof!of!a!business!model!that!creates!new!revenue!opportunities!for!producers,!brands!and!advertisers.!!While!advertising!has!been!the!primary!revenue!source!to!date,!there!is!opportunity!for!ads!to!be!more!relevant.!!With!the!data!gleaned!from!fan!interaction,!advertisers!can!target!ads!by!demographics,!interests!and!location.!!The!other!key!revenue!source!should!be!eYcommerce.!!Whether!this!is!in!the!form!of!complementary!products!(e.g.,!Levi’s!jeans)!or!branded!show!content!!(e.g.,!TYshirts,!gear)!as!pursued!by!Sons!of! 22Anarchy .!The!attention!to!infrastructure!cannot!be!ignored.!!Without!a!robust,!scalable!platform!enabling!interaction,!integration,!data!collection!and!analysis,!future!revenue!opportunities!will!be!lost.!While!fan!engagement!is!the!primary!goal,!the!ability!to!integrate!with!social!networks!or!other!social!TV!apps!&!platforms!is!critical.!While!some!vendors!may!reference!open!architecture!enabling!integration!with!Facebook!and!Twitter,!it!is!also!becoming!a!requirement!to!integrate!with!platforms!that!may!have!been!developed!by!another!vendor.!!Content!producers!are!trialing!all!types!of!social!TV!models!and!will! 11! !
  12. 12. want!to!retain!those!technologies!that!created!the!desired!fan!stickiness.!!The!most!important!investment!must!be!in!data!collection!and!analysis.!!Understanding!who,!when,!how!and!why!fans!are!engaging!allows!advertisers!to!invest!more!wisely!and!increase!their!ROI!The!final!opportunity!for!vendor!differentiation!as!this!market!matures!is!in!simplifying!content!management!across!the!varying!social!platforms!from!Facebook!and!Twitter!to!social!checkYin!apps!and!branded!microYsites.!Social!TV!increases!the!opportunity!for!a!24x7!conversation!around!your!program.!!Regardless!of!audience!viewing!onYair,!online!or!in!a!timeYshifted!manner,!there!is!an!expectation!of!engagement.!!For!content!producers!this!adds!a!new!burden!in!having!staff!to!manage!these!conversations,!advance!the!story!in!line!with!the!defined!story!arc,!and!attract!fans!to!future!episodes.!!This!capability!is!the!least!mature!yet!has!the!greatest!operational!impact!on!content!owners.!!THE!SOCIAL!TV!ECOSYSTEM!At!its!most!basic!Social!TV!is!about!discovery!and!engagement.!!However,!these!categories!can!be!segmented!further!based!on!target!customer!(business!vs.!consumer)!and!functionality!provided.!! !Social!TV!vendors!are!focused!on!simplifying!content!discovery,!inviting!consumer!recommendations,!personalizing!the!TV!experience!and!in!the!process,!capturing!more!data!about!the!viewer!than!ever!before.!!Today,!individual!program!or!network!success!is!measured!by!TV!ratings,!which!are!derived!by!measuring!reach.!!Social!TV,!when!combined!with!social!analytics,!will!measure!success!by!level!of!engagement.!Engagement!is!the!watchword!of!all!things!social.!!Media!owners!have!long!discussed!methods!for!engaging!their!audience!in!order!to!woo!advertisers!and!the!revenue!associated!with!them.!!Social!TV!provides!a!complementary!platform!to!actual! 12! !
  13. 13. TV!viewing,!increasing!live!TV!viewership!while!also!providing!an!incremental!channel!for!advertisers.!The!bottom!line!is!that!audience!engagement!equals!media!value.!The!industry!buzz!around!Social!TV!is!encouraging,!yet!the!market!is!tiny.!!It!is!a!very!small!proportion!of!a!media!brand’s!overall!marketing!or!advertising!budget.!Most!projects!are!experimental!in!nature!and!funded!through!online!marketing!dollars!not!spent!elsewhere.!!When!valuing!the!size!of!the!market,!a!safe!assumption!is!that!Social!TV!represents!a!fraction!of!a!percent!of!the!overall!$196B!TV!advertising!market.! 23The!interest!lies!in!its!ability!to!drive!eyeballs!and!subsequently!new!methods!of!monetization.!A!2011 analysis !by!Nielsen!and!NM!Incite!(a!Nielsen/McKinsey!Company)!studied!the!correlation!between!online!buzz!and!TV!ratings.!They!found!a!statistically!significant!relationship!between!the!two,!especially!in!the!18Y34!demographic:!that!is,!those!programs!with!greater!online!buzz!also!enjoyed!high!TV!ratings.!Take!last!year’s!royal!wedding,!for!example.!Nielsen!reported!that!23! 24million!Americans !woke!early!to!watch!last!year’s!royal!wedding,!while!PR!firm!Weber!Shandwick!noted!that!the!royal!wedding!prompted!2.2!million!tweets.!!The!next!step!is!to!identify!the!willingness!for!these!fans!to!take!action!by!enticing!friends!to!become!fans!thus!increasing!audience!size,!or!by!buying!merchandise!offered!by!sponsors,!advertisers!or!the!brand!itself.!However,!despite!the!continuing!emergence!of!market!participants,!like!any!new!segment,!consolidation!is!already!starting.!! 25 26Local!Response!bought!Philo !and!Yahoo!!bought!!IntoNow !in!2011.!!Joe!Kraus!of!Google!Ventures,!at!the!San!Francisco’s!Social!TV!Summit,!predicted,!“70%!of!social!TV!startups!will!disappear!or!be!acquiYhires!(company!acquired!for!the!talent),! 2720%!will!“toil!in!obscurity”!and!10%!are!“going!to!be!breakout!in!some!way,” !!SECOND!SCREEN!ENHANCING!FIRST!SCREEN!Social!TV!apps!have!one!common!objective!–!aggregating!viewers!to!share!their!thoughts!surrounding!a!TV!program.!!Their!approach!to!enabling!synchronization!around!a!show!varies!from!providing!infrastructure!to!address!content!management,!integration!with!leading!social!networks!or!other!second!screen!apps!or!audio!recognition.!!In!addition!they!provide!varying!models!for!monetizing!the!interest!in!the!show.!!The!options!range!from!pure!advertising!to!eYcommerce.!!Those!vendors!with!a!focus!on!customer!experience,!monetization!and!flexible!platforms!will!not!only!survive;!they!will!lead!in!educating!the!market!as!to!the!true!value!of!second!screen!TV.!New!research!from!Avid!and!Ovum!upholds,!“75%!of!media!executives!believe!online,!social!and!mobile!platforms!actually! 28drive!audiences!to!watch!more!television!content” . Their!goal!is!not!to!pull!viewers!away!from!their!entertainment,!but!to!provide!a!more!immersive!experience.!!!The!companies!!!reviewed!here,!reflect!a!snapshot!of!the!vendors!providing!apps!and!platforms!promoting!fan!loyalty!and!creating!fan!communities.!!!ECHO! ! Founded!2007! Total!Venture!Funding!of!$5M! CEO:!!Khris!Loux!Echo!is!the!force!behind!some!of!the!most!successful!social!TV!platforms.!!As!a!cloud!service!Echo!provides!to!toolkit!for!brands!to!leverage!realYtime!social!activity!in!interesting!ways!to!drive!user!behavior.!!Their!goal!is!to!enable!brands!to!provide!their!fans!with!supplementary!content!to!enhance!their!enjoyment!of!their!favorite!shows.!!They!are!uniquely!focused!on!the!synchronization!of!realYtime!content!from!media!owners,!content!producers!and!fans.! 13! !
  14. 14. While!Echo!provides!the!ability!to!integrate!social!feeds!(e.g.,!Twitter),!they!feel!the!social!TV!experience!should!be!broader!and!deeper!than!140!characters.!!Their!goal!is!to!promote!the!media!brand!and!drive!traffic!to!the!brand!website.!!The!challenge!of!delivering!realYtime!content,!synchronized!with!onYair!content!is!addressed!through!their!multiYlayered!solution.!!The!foundation!is!in!the!core!platform!designed!for!massive!scalability!and!the!integration!of!data!from!an!app!ecosystem.!!This!ecosystem!reflects!standard!apps!available!for!brands!to!integrate!as!needed,!plus!apps!from!Echo’s!developer!community!providing!incremental!features!and!functionality.!Echo!is!able!to!innovate!quickly!due!to!its!broad!set!of!partners!and!the!development!platform!that!speeds!time!to!market.!!Developers!can!quickly!and!easily!design!as!much!as!80%!based!on!the!SDK.!!Echo!provides!best!practices!and!assistance!to!complete!the!final!20%.!Given!their!position!as!a!Software!or!Platform!as!a!Service!Provider!(Saas,!PaaS),!Echo!delivers!revenue!through!subscription!and!services.!!Customers!subscribe!to!defined!levels!of!search!queries!and!use!of!desired!Echo!or!partner!apps,!and!pay!subscription!fees!based!on!the!volume!of!queries!or!tiers!of!apps.!!In!addition,!Echo!provides!customer!support!services!to!facilitate!development!and!ongoing!use!of!the!Echo!platform.!Networks!using!Echo!to!build!an!appealing,!interactive!experiences!on!their!websites!include:!!Showtime,!AMC,!USA,!WWE,!Bravo!and!ABC.!!Echo!is!chosen!for!their!holistic!approach!and!their!positioning!as!an!infrastructure!partner!integral!to!the!delivery!of!an!overall!Social!TV!strategy.!!Success!is!defined!by!measurable!metrics:!!USA!launched!its!Characters!Welcome!Social!TV!page!for!a!new!show!and!grew!monthly!unique!visits!from!zero!to!300K!in!60!days.!WWE!doubled!page!views!within!24!hours!of!launch!and!now!integrates!social!into!every!live!event!and!TV!show.! 29Echo!won!the!2012!award!for!best!white!label!platform!at!the!Social!TV!Awards!earlier!this!year!in!San!Francisco. !INTO!NOW! Founded:!2010! Acquired!by!Yahoo!for!$20Y30M!in!2011! CEO:!!Adam!Cahan!IntoNow,!one!of!the!pioneers!of!Social!TV!frontier,!is!focused!on!fan!engagement!and!community.!!Their!app!allows!fans!to!share!and!discuss!their!entertainment!experience!with!friends!and!family!through!its!userYfriendly!interface.!!Their!proprietary!technology,!SoundPrint,!identifies!the!TV!programs!they!are!watching!as!well!as!the!music!in!the!background.!!Unlike!many!of!their!competitors,!IntoNow’s!app!works!in!both!live!and!onYdemand!scenarios,!thanks!to!their!indexing!of!TV!content!for!the!past!seven!years.!With!building!community!as!their!goal,!IntoNow!is!uniquely!focused!on!delivering!content!and!functionality!that!provides!value!to!their!users.!!Their!recently!launched!version!3.0!includes,!Tapit,!a!feature!allowing!users!to!capture,!caption!and!share!screen!shots!of!their!favorite!programs,!Their!TV!Sync!and!Music!Sync!capabilities!enable!users!to!quickly!identify!shows!and!music,!whether!tunes!are!performed!by!original!artists!or!not.!The!app/platform!allows!this!discussion!through!its!interface!or!via!Facebook!or!Twitter.!!Users!create!a!personal!profile!that!defines!what!content!will!be!shared,!what!notifications!will!be!received!and!which!social!networks!will!be!integrated.!!The!app/platform!is!also!integrated!with!IMDB!to!provide!detailed!content!about!a!show!and!its!cast.!!Additionally!it!displays!the!schedule!for!shows!you!like!and!provides!recommendations!of!shows!you!might!enjoy!based!on!your!preferences.!!MAGIC!RUBY! ! Founded:!2012! 14! !
  15. 15. Privately!Funded! CEO:!Thomas!Engdahl!Magic!Ruby’s!goal!is!to!make!second!screen!apps!work!better.!!They!provide!the!backend!infrastructure!to!enable!clients!to!create!a!sticky!experience!driving!customer!loyalty!while!capitalizing!on!the!second!screen!experience!to!increase!revenue.!!Their!platform!enables!the!creation!of!show!apps!and/or!the!integration!of!various!show!apps!and!social!networks!created!elsewhere.!!The!key!focus!is!on!the!consumer!experience!when!enjoying!content!that!complements!the!viewing!experience!or!when!integrating!sponsored!content!(e.g.,!advertising).!Magic!Ruby’s!platform!allows!for!the!ability!to!host!Magic!Ruby!developed!apps!as!well!as!those!developed!elsewhere.!!The!goal!is!to!consolidate!the!second!screen!experience!and!simplify!synchronization!of!content,!advertising!and!eYcommerce!across!ALL!second!screen!apps!for!defined!program.!Magic!Ruby!targets!content!producers!with!a!hosted!service!with!an!eye!towards!increasing!the!value!of!advertising.!!Their!core!belief!is!that!the!second!screen!will!double!the!number!of!impressions!based!on!demographics!and!social!graph!profile!of!a!show’s!fan!base.!Magic!Ruby!provides!a!second!screen!experience!that!supports!live,!onYdemand!and!timeYshifted!content.!!In!addition,!they!provide!audio!watermarking!which!inserts!a!beacon!into!the!second!screen!app!that!enables!syncing!with!the!program!regardless!of!ambient!noise,!real!time!or!onYdemand!viewing!or!broadcast!of!a!live!event.!!This!unique!technology!differentiates!Magic!Ruby!from!competitors!who!enable!synchronization!using!audio!fingerprinting!that!does!not!work!well!in!loud!environments.!Magic!Ruby!is!focused!on!a!flexible!business!model!that!provides!for!multiple!revenue!streams,!adapting!based!on!customer!need.!!Their!revenue!sources!may!be!from!fees!for!service!(e.g.,!app!development),!fees!for!ad!serving,!revenue!share!or!flat!fee!for!eYcommerce!or!license!fees.!!!!!With!their!upfront!focus!on!monetization,!Magic!Ruby!is!aligned!with!their!customers’!primary!need.!!NUMOTE! ! Founded:!2010! Privately!Funded! CWO:!Vijay!Kailas!Numote!is!a!white!label!platform!provider!delivering!a!SDK,!content!management!capability!and!analytics!to!networks!interested!in!increasing!the!viewing!of!live!programming,!enabling!fan!interaction!and!delivering!specialized!content.!!While!the!media!company!is!their!customer,!they!partner!with!digital!agencies!that!work!with!media!companies!to!customize!the!integrated!social!TV!experience.!Numote’s!platform!enables!networks!to!create!a!holistic!audience!engagement!including!editorial!content!from!the!producers,!integration!with!leading!social!networks!(Facebook,!Twitter)!and!Social!TV!apps!(GetGlue,!Miso)!and!advertisers.!!Numote!is!focused!on!simplifying!the!backYend!workflow!to!support!a!dynamic!user!experience.!Numote’s!business!model!is!a!straight!forward!licensing!arrangement,!providing!users!with!access!to!their!platform!that!provides!a!toolkit!with!components!to!design!a!branded!social!engagement!experience!and!customization!options!to!develop!features!tied!to!content!and!desired!audience!interactions.!!The!platform!enables!brands!to!syndicate!content!and!ads!across!multiple!platforms.!!More!importantly!it!allows!producers!to!synchronize!and!initiate!social!content!and!interactions!with!a!show’s!realYtime!airing.!Numote!won!the!Popular!Choice!Award!in!Samsung’s!Free!the!TV!Challenge!in!2011.!!TELLYBUG! 15! !
  16. 16. ! Founded:!2010! Privately!funded! CEO:!!Matt!Millar!Tellybug!is!a!technology!company!addressing!the!desires!of!producers!to!bring!the!audience!into!onYair!and!offYair!discussion!and!storytelling.!!What!started!as!a!platform!to!support!the!heavy!read/write!demands!of!social!engagement,!became!a!business!to!create!apps!supported!by!cloud!based!infrastructure!to!support!the!requirements!of!broadcasters!and!content!producers!to!engage!with!their!large,!highly!distributed!audience.!!Tellybug!is!focused!on!integrating!the!conversation!between!the!atYhome!TV!audience!and!onYair!talent.!Tellybug’s!initial!solutions!were!delivered!to!live!news!or!entertainment!programs.!!They!have!delivered!apps,!backed!by!cloud!services,!for!Liverpool!Football,!XYFactor!and!Britain’s!Got!Talent.!!Their!platform!enables!broadcasters!to!integrate!social!comments!into!their!onYair!discussion!and!into!their!graphic!overlays.!While!their!initial!focus!was!truly!live!TV,!they!are!now!discussing!solutions!that!enable!viewers!to!engage!with!scripted!TV!programs!while!they!are!onYair!or!engage!in!offline!talent!interaction.!Tellybug!pursues!a!collaborative!approach!when!engaging!with!customers!with!a!goal!of!leveraging!their!flexible!technology!to!attract!viewers!and!drive!incremental!revenue!streams.!!!Tellybug’s!technology!includes!deep!analytics!to!abstract!relevant!data!from!Twitter.!!They!have!been!capturing!tweets!related!to!UK!television!for!the!past!two!years!allowing!them!to!identify!trends!and!influential!fans!for!their!customer’s!programs.!While!Tellybug’s!key!customers!today!are!TV!content!producers,!their!future!customers!may!include!agencies!interested!in!using!Tellybug’s!APIs!to!develop!apps!or!platforms!to!support!their!needs.!Tellybug’s!revenue!streams!are!derived!from!app!or!product!development!and!feeYbased!cloud!services.!!The!data!provided!and!interactions!managed!allow!TV!shows!to!increase!their!audience!share!and!ultimately!increase!CPC!or!CPM!for!the!content!owner.!!!!TVPLUS! Founded:!2010! Total!Venture!Funding:!undisclosed! CEO:!Ajay!Shah!TV!Plus!provides!its!customers!with!a!branded!experience!in!the!form!of!a!platform!and!app!development.!!With!a!keen!focus!on!core!platform!functionality!enabling!the!required!scalability!to!fulfill!realYtime!interactions,!TV!Plus!has!also!paid!attention!to!its!content!management!system!and!software!developer!kit!(SDK).!!Their!goal!is!to!deliver!a!platform!that!is!easy!to!use!and!easy!to!integrate.!!Their!goal!is!to!become!the!de!facto!standard!in!the!still!emerging!Social!TV!space.!Their!revenue!model!is!unique!in!the!space!with!its!focus!on!engagement!time.!!This!is!based!on!a!belief!that!their!platform!will!improve!the!quality!of!audience!engagement,!which!means!fans!will!spend!more!time!on!the!second!screen!while!enjoying!the!first!screen!–!TV.!!TV!Plus!collaborates!with!its!clients,!sharing!best!practices!to!help!them!understand!how!to!best!engage!their!fans.!!This!approach!reinforces!their!business!model!of!revenue!derived!from!engagement.!Their!content!management!system!(CMS)!is!designed!to!simplify!creation!of!companion!content.!!TV!Plus!will!provide!resources!to!augment!production!teams!if!dedicated!staff!is!not!available.!!They!recognize!that!the!effort!in!creating!incremental!content!is!as!important!as!the!enabling!platform.!!Their!simple!goal!is!to!increase!the!value!of!the!viewer’s!engagement!around!any!program.!!An!increase!in!engagement!equals!an!increase!in!revenue.!TV!Plus’!SDK!allows!customers!to!quickly!and!easily!develop!an!app,!manage!audio!sync!with!the!program,!integrate!the!content!management!system!and!render!content.!!Their!open!ecosystem!includes!integration!with!third!parties!and!focuses!on!the!import!of!third!party!content!into!the!CMS.! 16! !
  17. 17. Their!customers!include:!XFactor!(season!1!&!2),!Discovery!Channel,!Univsion,!ABC,!Fox,!Disney,!Epix!and!Viacom.!!They!have!won!awards!from!Cable!Labs!Y!best!new!product!2011,!Social!TV!Summit,!NYC,!2011!–!Best!New!Idea!Award!and!Social!TV!Summit!2012!Y!Best!Ubiquitous!Social!TV!Award.!!VIGGLE!! Founded:!2010! Publically!traded:!!VGGL! CEO:!Robert!F.X.!Sillerman!!Viggle!is!a!loyalty!program!that!rewards!users!for!watching!television.!!Users!receive!points!for!checking!in!to!and!interacting!with!their!favorite!TV!shows!and!can!then!redeem!these!points!for!real!items!such!as!movie!tickets,!music!and!gift!cards.!!Viggle!announced!earlier!this!year!that!it!had!passed!the!one!millionYsubscriber!mark.!!With!it’s!acquisition!of! 30GetGlue ,!the!total!number!of!subscribers!will!approach!4.5!million.!The!user!experience!is!simple.!!The!consumer!downloads!the!app,!creates!an!account!and!while!watching!TV,!taps!the!check!in!button.!!Using!the!device’s!microphone,!the!application!collects!an!audio!sample!of!what!the!user!is!watching!on!television!and!uses!proprietary!technology!to!convert!that!sample!into!a!digital!fingerprint.!Within!seconds,!that!proprietary!digital!fingerprint!is!matched!against!a!database!of!reference!fingerprints!that!are!collected!from!over!100!English!and!Spanish!television!channels!within!the!United!States.!!TV!checkYins!are!verified!across!broadcast,!cable,!online,!satellite,!timeYshifted!and!onYdemand!content.!The!ability!to!verify!checkYins!is!critical!because!users!are!rewarded!points!for!each!check!in.!In!addition!to!television!show!checkYin!points,!users!can!earn!additional!points!by!engaging!with!brand!or!network!sponsored!games,!videos,!polls!or!quizzes!related!to!the!show!that!they!are!watching!and!by!inviting!friends!or!sharing!their!activities!via!social!media.!Users!can!redeem!the!points!within!the!app’s!rewards!catalogue!for!items!that!have!a!monetary!value!such!as!movie!tickets,!music!and!gift!cards.!!Revenue!is!generated!through!advertising!and!the!sale!of!merchandise!related!to!the!TV!shows!and!other!entertainment!viewed!by!users!that!would!appear!in!users’!mobile!devices!through!the!use!of!the!application.!!!Viggle!is!expanding!their!reach!through!the!release!of!a!Platform!Developer!Kit!so!TV!networks,!producers!and!programmers!will!be!able!to!easily!develop!their!own!show!or!channel!specific!enhancements!and!experiences!using!features!that!have!proven!very!popular!with!viewers!such!as!realYtime!polls,!games!and!quizzes.!!SUMMARY(9(MOVING(FORWARD(It’s!early!days!for!Social!TV!despite!the!plethora!of!emerging!companies.!!While!a!challenge!exists!for!second!screen!vendors,!to!create!sustainable,!measurable!value!to!their!clients,!the!bigger!challenge!may!be!for!the!media!companies.!!Broadcasters!and!producers!are!still!in!the!experimental!stage!with!Social!TV.!!Success!metrics!are!not!clearly!defined!as!they!reYallocate!existing!online!budget!or!utilize!miscellaneous!funds!to!initiate!trials.!!Their!simple!goals,!at!present,!are!to!engage!with!their!fan!base!and!learn!more!about!their!desires.!!!The!hidden!challenge!is!in!the!effort!it!takes!to!manage!these!burgeoning!relationships.!!Any!social!media!effort!is!not!about!the!cost!of!the!platform,!but!in!the!time!spent!to!create!complimentary,!relevant!content!that!encourages!interaction.!!Transmedia!storytelling,!the!ability!to!extend!a!story!arc!across!multiple!outlets!(e.g.,!broadcast,!online,!social!media),!has!been!the!watchword!in!Hollywood!in!recent!years,!and!the!debate!continues!about!the!success!of!producers!in!truly!telling! 17! !
  18. 18. a!comprehensive!story!across!multiple!media!platforms.!!Social!TV!introduces!the!potential!for!producers!to!succeed!in!their!effort!to!tell!their!stories!even!when!their!program!is!not!onYair.!!But!this!requires!dedicated!resources!to!create!and!align!content!to!the!ongoing!plot!AND!respond!to!and!incorporate!fan!comments.!!It!is!also!necessary!to!manage!crossYplatform!content!creation,!keeping!in!mind!the!device!and!how!it!is!used.!!Marketers!managing!social!TV!outlets!will!need!to!be!an!extension!of!the!creative!team,!creating!the!right!content!at!the!right!time,!for!the!right!device,!to!continue!the!story!arc.!As!content!producers!continue!to!test!different!Social!TV!strategies!they!will!strike!the!balance!between!enabling!platforms!and!marketing!plans,!both!fulfilling!the!goal!to!attract!and!retain!a!dedicated!audience.!!!!!!! ! 18! !
  19. 19. ENDNOTES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ! !1 The Nielsen Company, Cross Platform Report Q4’122 http://blog.viacom.com/2012/05/how-viewers-cs-the-moment-a-social-tv-research-exploration/2 http://blog.viacom.com/2012/05/how-viewers-cs-the-moment-a-social-tv-research-exploration/3 http://blog.nielsen.com/nielsenwire/consumer/watching-tv-dont-forget-your-smartphone-tablet/4 The Nielsen Company, 20115http://www.comscore.com/Insights/Press_Releases/2012/11/comScore_Reports_September_2012_U.S._Mobile_Subscriber_Market_Share6 ComScoare “2012 Mobile in Focus” February 20127 ComScore “How Multi-screen Consumers are Changing Media Dynamics” June 20128 ComScore “How Multi-screen Consumers are Changing Media Dynamics” June 20129 http://www.variety.com/article/VR1118063975/10 Viacom Media Networks “Social TV: Viewers C’s the Moment study” May 201211http://socialmediatoday.com/briansolis/506188/music-film-tv-how-social-media-changed-entertainment-experience12 iModerate Research Technologies Social TV Report13 http://www.eggtoapples.com/social-tv-12b-market-spend-by-2020/14http://www.usatoday.com/tech/columnist/talkingtech/story/2012-05-02/social-media-tv/54705524/115 http://tv.yahoo.com/news/social-tv-white-collar-twitter-let-fans-decide-215800539.html16http://www.jackmyers.com/jackmyers-think-tank/Why-is-Everyone-Talking-About-Social-TV.html17 http://www.guardian.co.uk/media/2012/jan/09/bskyb-buys-stake-zeebox-app18 http://techcrunch.com/2012/10/04/zeebox-viacom/19 http://paidcontent.org/2012/07/11/network-ten-takes-a-stake-in-zeebox-down-under/20 http://lostremote.com/fox-invests-in-actv8-me-launches-new-girl-app_b2737221 http://www.connectv.com/company-aboutus22 http://socialtvdigest.com/post/31504001609/sons-of-anarchy-second-screen-app-demo-video23http://www.multichannel.com/article/474858Study_Social_Buzz_Definitely_Corresponds_To_TV_Ratings.php24 http://www.huffingtonpost.com/2011/05/01/royal-wedding-tv-ratings-_n_855967.html25 http://techcrunch.com/2011/08/04/localresponse-buys-social-tv-advertising-and-check-in-platform-philo/26 http://techcrunch.com/2011/04/25/yahoo-intonow/27 http://www.lostremote.com/2012/04/04/highlights-from-the-social-tv-summit-in-san-francisco/28http://www.avid.com/static/resources/common/documents/Avid-Ovum_TheFutureofDigitalMediaSurvey.pdf29 http://aboutecho.com/AboutEcho30 http://www.4-traders.com/news/Social-TV-Leaders-Viggle-and-GetGlue-Enter-into-Agreement-to-Merge--15530952/ 19! !

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