Time Warner Inc. cut the ribbon yesterday on its Medialab for research and development, housed at its New York City headquarters. Its purpose is to study consumer behavior, evolving media habits and industry trends across Time Warner businesses, brands and ad partners.
The lab incorporates testing for consumer emotion through biometric monitoring devices that measure a participant’s physiological responses to content. The center’s virtual testing room is configured for eye-tracking studies that test the effectiveness of content and ads on the Internet, television and mobile devices. The lab also houses several large focus group and observation rooms, all equipped with the latest technical and mobile viewing devices. This will give Time Warner and its ad partners “umatched ability to look inside the mind of the consumer as we develop even more engaging content,” said Time Warner Chairman and CEO Jeff Bewkes.
The facility looks somewhat like a film set, as it recreates everyday settings for conducting studies including a 50-seat theater, an in-home style living room, a consumer retail area with a mock checkout, an eye-tracking station and gaming stations, all observable live by researchers. Time warner partnered with Ipsos MediaCT, a client-focused market research company. Innerscope Research and Schlesinger Associates also partnered with Time Warner and Ipsos MediaCT to create the Medialab; and with Innerscope Research, researchers into neuroscience-informed biometrics (e.g., eye tracking and brain activity).
Time Warner property HBO was the Medialab’s first client, using biometrics to gauge reaction its latest version of HBO Go, and Turner ran the same test on its Adult Swim. The first advertising study will be on consumer reaction to NCAA advertiser products.
Sony Halts Production on Google TV Models: Low-Cost Ad Reach Still Elusive
Sony has halted production on its Internet TV with built-in Google TV platform. Frost & Sullivan Principal Analyst Dan Rayburn broke the story late yesterday on his streamingmedia.com blog. While Sony has made no such announcement, Rayburn reached out to Sony stores and Sony’s sales numbers. He did so after observing the Sony models disappearing from online sales channels like Amazon.com, where only 13 of the TVs were available and from third-party resellers—not from Sony.
Google introduced the platform in May of 2010, at its annual Google I/O developer conference, with the tagline “TV MEETS WEB. WEB MEETS TV.” As TechCrunch described, “The implications are pretty clear what Google is going for. That is, the 4 billion TV users worldwide. Or rather, advertising to the 4 billion TV users worldwide.” A commentator on the TechCrunch site grumbled “Hopefully ad agencies will start to realize that Google is just waiting to flip the switch and cut them out. But somehow I doubt it.” Google CEO Larry Page boldly predicted that before the summer of 2012, the majority of production televisions would have the Google TV platform embedded. But thusfar, and aside from Sony’s models, competitors LG, Samsung and Vizio have announced only five such models.
Sony has not abandoned the Google TV platform; it just released a Blu-ray Disc player with Google TV embedded, and at a modest $199. And the models that LG, Samsung and Vizio have announced are all 47-inch or more. Rayburn observes that competition from those makers is likely keeping Google TV down—they are competing with their own connected TV platforms, “And it’s clear they see the Google TV platform as a threat.”
At the time of Google TV’s release, Bloomberg BusinessWeek observed advertisers giving it a “warm reception.” As BusinessWeek did the math, an online video ad through the platform would cost $30 per $1,000 viewings and enjoy precise viewing analytics and have interactive capability; a TV viewer could “click to phone” or place an order then and there, without leaving the TV screen.
But, with competitive platforms from TV makers, Apple, and cable companies including Comcast, interactive TV is still feeling its way, and Google TV is showing no signs of becoming the standard the company predicted it would be.
Radio Not A Dying Form Factor, But An Evolving One at CES
Radio is the subject of a “flurry of news releases at CES,” being the Consumer Electronics Show in Las Vegas. But as Radio World describes, “you may have to expand your definition” of the word “radio.”
Among other announcements at CES, TuneIn Radio released a smartphone app that is compatible with Ford’s voice-controlled Sync system. This is a free service and app with access to 50,000 AM, FM, HD and Internet stations.
Subaru is working with Harman to provide its Aha platform in Subaru models. This is a cloud-based platform that enables drivers to use Internet radio content. Harman describes Aha as “the Web-connected ‘fourth band’ of radio, alongside AM, FM and satellite radio.” Aha provides Internet radio from Shoutcast, CBS Radio and Slacker, among other providers.
Slacker and Verizon Wireless debuted the Slacker Radio application for Android, optimized for 4G LTE connections. This the companies described is “A highly visual application [that] features a unique station tile display [and] the ability to preview stations before playing and an optimized ability to browse for content, making music discovery even easier.”
Internet radio may get a boost in Europe, where Ford will cease fitting new models with CD players, in favor of MP3, USB and Bluetooth devices. Drivers will bring their own music on mobile devices, giving them the ability to stream Internet radio.
Barnes & Noble Considers Spinning Off Nook Business, will Shed Publishing
Advertisers looking to the ereader and tablet platforms may find the field narrowing. B&N is considering spinning off its Nook business, a move that TechCrunch says will “doom” the ereader. The move is a strategic one to shelter the burgeoning epub business from B&N’s losses. The Nook ereader dominated B&N online sales in 2011, for $327 million in revenue. B&N sold 70% more Nook devices over last year than the year prior. Still, Business Insider calls the spinoff a “terrible idea.” Nook's only advantage in the market is Barnes & Noble's retail: that the Nook is heavily promoted in B&N stores, and B&N still has heft in the book business to get publishing deals.” Business Insider sees the Nook as a valiant effort that is doomed. “In the long term…Kindle economics are too powerful. Amazon will undercut and overmarket Barnes & Noble at every turn.”
Barnes & Noble has also put its Sterling Publishing arm up for sale, reports the Wall Street Journal. It had acquired Sterling in 2003. WSJ speculates that competition from Amazon.com is forcing B&N to “recast itself as a technology company” with its Nook ereader and tablets as its anchor. The Sterling catalog includes classics, as well as puzzle books, children’s books, gardening and cooking titles. B&N in December posted a loss of $6.6 million (17 cents a share) for Q3, versus a loss of $12.6 million (22 cents a share) for the same quarter in 2010.
WSJ Reports Top Ad Trends 2012: Think Mobile, Soft Core, Hard Edge and Humor
The Wall Street Journal polled ad industry luminaries, and reports that digital media are breathing life into the supposedly declining TV commercial, print ad and print catalog formats. Google for example has unveiled an app to aggregate print catalogs, including those for LL Bean and Pottery Barn. iPads provide a new platform for print ads, and YouTube enables commercials to go viral. (As of this writing, that Volkswagen commercial with a boy in a Darth Vader mask has had 48 million views.) WSJ expects “couch potato gatherings” to gain steam, with viewers using virtual communities to meet and comment during broadcasts. “TV networks will pump it up because it encourages live watching and thus commercial watching,” CEO Daniel Khabie of Digitaria (a digital marketing firm) told WSJ.
Khabie and other interviewees predicted “Facebook fatigue,” spurred largely by advertising, alas. But large brands will tie their identities to social marketing, chiefly through a Facebook presence, if not through Facebook ads. Mobile devices will be a powerful advertising outlet, as “the link between mobile and commercial thickens” in 2012, speculates the CEO of Digitas North America. Finally, interviewers expect advertising to become more targeted, more sexual and foul mouthed, and light hearted.
Hearst President Claims Solid ’11, Sets High ’12 Targets
Hearst President David Carey previously claimed the company is on track to reach 1 million paying digital subscribers in 2012. He reiterated that goal in an open letter to employees, reports Paid Content, telling them “Our target is to reach more than one million paid digital subscribers per month via iTunes, Zinio, Nook, Amazon and Next Issue Media.” Hearst is sticking by the somewhat controversial digital/print split: Hearst offers the subscriptions separately, so print subscribers have no access to digital. But, observed Paid Content, subscriberships are just one half of the equation, and advertising the other. Carey claims that about 65% of subscribers using iPads opt to share personal data with the publisher. Hearst saw some impressive successes in 2011, with its U.S. digital media business being “solidly profitable for the first time,” selling more than 400,000 digital editions every month. “More than 40 of our book titles are in e-format,” claims Carey, with dozens more in the works.
Apple TV in 2012?
AdWeek is speculating that Apple will deliver its iTV in 2012. AdWeek referred to a report by analysts Sterne Agee, which suggested the success of an Apple television would depend largely upon the selection of content. “Content is a key factor in how people are adopting streaming set-top boxes,” observed MediaBeat. Apple is rumored to be in talks with media companies, CBS included, about creating a streaming platform that would circumvent cable companies: customers would purchase content the way they purchase music from iTunes. iTunes largely circumvents advertisements as well, and there is no speculation as yet how advertising will fit in at iTV.
Report: 30% of Consumers Say 4G Data Plan is Too Expensive
Consumers may be confused about 4G and hesitant to move to 4G, at least in the near term, according to a recent Retrevo Gadgetology study. The survey found that a little less than a quarter of the respondents responded with certainty about the upgrade to 4G. 22% of people don't think 4G performance is worth the cost. 30% of people think the 4G data plan costs too much.
As well, 34% of iPhone owners have the impression that they already own a 4G phone; however, Apple doesn’t offer a 4G phone at the moment. BlackBerry owners -- 24% of respondents -- are also confused since RIM doesn’t currently offer a 4G phone.
7.7 Million Watch BET Awards | Survivor’s Probst Looks at Daytime Talk | Social TV Round-up
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Global pay TV revenues will climb to $173 billion by 2016, an increase of $49 billion overall since 2006, but with a slowing rate of increase after 2010, with adding $18 billion, or 12% of the total growth , according to “The Digital TV World Revenue Forecasts,” from Digital TV Research. On-demand revenues will increase much faster than subscription revenues, though on-demand will only reach US$5.7 billion (or 3.3% of the total) by 2016.
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The BET Awards 2011 Sunday, June 26, drew 7.7 million total viewers, making it the top awards show in cable this year, and the second-most watched telecast in BET history, behind the 2009 ceremony honoring Michael Jackson, the network said. As well, producers counted 7.5 million tweets about the program throughout the weekend of June 26-27, and said that there was an average of 11,500 tweets per minute during the live telecast, peaking at nearly 21,000 tweets per minute at 11:05 p.m.
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Jeff Probst, host of reality show, Survivor, has signed a development deal with CBS Television Distribution to star in his own daytime talk show that would debut in fall 2012. CTD is shooting a pilot in the middle of next month that it plans to shop to stations. Probst will remain host, executive producer and mastermind on Survivor, reports Broadcasting & Cable.
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Wells Fargo Securities analyst Marci Ryvicker said that FCC’s prposed spectrum reclamation is a priority – but says that it won’t come quickly, reports Radio Business Report. Ryvicker said that the National Broadband Plan seeks to reclaim 500MHz of spectrum, with 120MHz coming from the television broadcasters via incentive auctions, but the route to share those proceeds with the public safety network on the D block spectrum, is not yet paved with legislation.
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LostRemote has a round-up of the happenings in social TV, and the arenas where social TV is quickly gaining traction. Starting with the April 2010 buyout of IntoNow TV-listening app by Yahoo for about $20-30 million, the article also discusses this month’s $32 million funding for music-listening app Shazam to start work on TV-commercial tagging.
X Factor Debut Scores More Air Time | Analyst: Advertisers May Cancel
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Fox has increased air time for Simon Cowell's new singing competition show The X Factor to four hours a week for the start of the fall season, according to a schedule Fox announced Thursday. The X Factor will debut on Wednesday, Sept. 21 and Thursday, Sept. 22 and run from 8-10 p.m. both nights, reports Broadcasting & Cable.
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With three months to go before the 2011-12 TV season gets underway, AdWeek’s Anthony Crupi takes a look at the aging dramas of the Big Four. NBC’s Law & Order: SVU is on the verge of its 13th season, CBS stalwart NCIS is preparing its ninth campaign and ABC’s Desperate Housewives and Grey’s Anatomy are entering their eighth cycles—and there’s been a concomitant decline in ratings.
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UBS Investment Research analyst John Janedis has downgraded investment recommendations for Discovery Communications and Time Warner and lowered stock-price targets for Scripps Networks and Viacom. Janedis also said that upfront sales may be affected by the slowing economy: Broadcasters sold $9.3 billion in inventory, up about 6% from last year, while he expects cable networks to record about $9.2 billion in orders, up about 15% from last year. But advertisers will cancel a lot of those orders later this year, according to Deadline Hollywood.
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It has taken nearly three months for Viacom to sue Cablevision over its app that allows cable subscribers to have live streaming of all channels on their iPads. Viacom’s filing in a New York federal court came even as Viacom and Time Warner Cable put their streaming litigation on hold while they negotiate a potential settlement, according to Radio Business Report.
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Fox Sports Media Group has renewed “The Moto: Inside The Outdoors” for a third season scheduled to premiere Saturday, September 10. After the Saturday premiere, the show moves to its regular day and time of Mondays at 9:30PM. The documentary-style program follows the motocross world.
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President Barack Obama’s speech about withdrawing troops from Afghanistan on Wednesday was watched by 25.4 million people -- making it the smallest television audience for a major speech since he took office, the Hollywood Reporter said.