Preface
**THE LAST MEDIUM TO BE DISRUPTED BY THE INTERNET**
Television is the last of the twentieth-century mass media to be disrupted by the twenty-first century internet. It’s also going to prove to be the toughest. The American television industry is still a cash machine that’s protected by an intricate web of rights deals and inertia. But that’s changing, and rapidly. And when it does, it’s going to change the industry dramatically, making it even better for both creators and consumers.
In the first section of this book, we’ll examine where the industry is today: who the players are, how they interact with each other (who pays who and for what), and what their sweet spots and pain points are.
Next, we’ll look at a number of current trends that are starting to rock the industry, looking at both the business and technology aspects of each and what their road map for the next few years looks like.
Finally, we’ll end with some predictions about where the industry ends up, who the winners and losers are and what TV will look like in the coming decades.
Sit back and enjoy the ride.
====== Group reading assignment and presentation ======
* The Television Industry Today:
* Player #1: The Networks: group 1
* Player #2: The MVPDs: group 2
* Player #3: The Studios: group 3
* Player #4: The Premium Networks: group 4
* Player #5: The OTT Services: group 5
* Player #6: Streaming Devices: group 6
* Player #7: Second Screen Platforms: group 7
* Player #8: Smart TVs: group 8
* Summary
* What’s Disrupting The Industry Today
* The Revolution Has Begun: group 1
* Time Shifting: group 1
* Binge Viewing: group 2
* Video On Demand (VOD): group 1
* Second Screen and Social TV: group 3
* Fans and Fan Communities: group 4
* Cord Cutting: group 5
* The Shifting Value Of Ownership: group 5
* Streaming Video Platforms: group 5
* Net Neutrality: group 6
* V-POPs: group 6
* Tablets and SmartPhones: group 6
* Streaming Devices: The New Set Top Boxes: group 7
* The Dominance of Data: group 8
* Future Predictions
* TV Everywhere: group 1
* The Future of Second Screen: group 2
* BYOD (Bring Your Own Device): group 3
* Recommendation and Discovery: group 4
* Non-Skippable VOD: group 4
* New Business Models: group 5
* The Spotifyization of Television: group 6
* A New Revenue Model: group 7
* The Continued Dominance of Data: group 8
* Summary
====== The Television Industry Today: A Primer For The Uninformed ======
{{https://marketrealist.imgix.net/uploads/2015/03/unnamed.png?400}}
===== Player #1: The Networks =====
* Broadcast Networks((A broadcast network is an organization, such as a corporation or voluntary association, that provides live or recorded content (such as movies, newscasts, sports, public affairs programming, and other programs) for broadcast over a group of radio or television stations([[wp>Broadcast_network]]). ))
* 미국의 지상파 네트워크 방송국((see [[wp>List_of_United_States_over-the-air_television_networks| US terrestrial television network list]])): [[ABC]], [[CBS]], [[NBC]], [[PBS]], [[FOX]] and [[the CW]]((The CW Television Network is an American broadcast television network that is operated by The CW Network, LLC, a limited liability joint venture[1] between CBS Corporation, the former owners of the United Paramount Network (UPN), and the Warner Bros. Entertainment division of Time Warner, former majority owner of The WB Television Network. The "CW" name is an acronym derived from the first letters of the names of its two parent corporations (CBS and Warner Bros.; [[wp>The_CW]] ). ))
* C(CBS) + W (Warner Bros) = CW
* Cable Networks
* [[Discovery]], [[A&E]], [[ESPN]], [[The Weather Channel]], [[MTV]], et al.
* The US cable networks are equivalent of Korean sig. slightly because of time-shifting viewer behavior.
**The A.C. Nielsen company**: rating by Nielsen
* three networks era (NBC, CBS, ABC) vs.
* new media era (+ Cable networks)
* Overnights: Nielsen’s next-day ratings
* Outdated methods for rating: Nielsen still relies on a small sampling of households who are tasked with recording their viewing habits in a diary (in pre-internet days, this was an actual handwritten diary).
* TV Everywhere ratings package
* C3, a three-day window rating((Nielsen also provides viewership data calculated as the average viewership for only the commercial time within the program. These "Commercial Ratings" first became available on May 31, 2007. Additionally, Nielsen provides different "streams" of this data in order to take into consideration delayed viewing (DVR) data, at any interval up to seven days. C3 was the metric launched in 2007, and refers to the ratings for average commercial minutes in live programming plus total playback by digital video recorder out to three days after. By the end of 2012, some television executives wanted to see C7, ratings for live plus seven days, with CBS Corporation chief executive officer Les Moonves making the claim C7 made ratings increase by 30%[[wp>Nielsen_ratings]]. )): see [[http://www.nielsen.com/us/en/insights/news/2009/c3-tv-ratings-show-impact-of-dvr-ad-viewing.html|Nielsen news in 2009]] -- C3 TV RATINGS SHOW IMPACT OF DVR AD VIEWING
* C7
* L+SD (Live and Same Day) -> L+3 (Live and Three days) ((See [[http://deadline.com/2015/11/fox-live-same-day-ratings-stop-1201631918/|a news story]]))
* People are also watching a lot more television on their connected devices (smartphones and tablets.) While Nielsen has been working on a solution, none has been implemented to date, and views on those devices go uncounted. We’ll take a closer look at OTT viewing—and how to measure it—later on.
**Content license:**
* Carriage fees determined by network value + subscribers (MVPD)
* Retrans fee
* [[wp>Aereo|Aereo antenna]]: 스마트미디어 서비스의 저작권료와 관련한 대표적인 분쟁 사례로 미국의 Aereo 사례를 들 수 있다. 미국에서는 2012년 3월 지상파 TV방송을 온라인으로 실시간 시청할 수 있는 서비스인 Aereo가 출시되었다. Aereo 가입자는 ABC, CBS, NBC, Fox 등 미국 4대 지상파 방송 뿐만 아니라 Bloomberg TV 등 30여개 채널을 자신의 PC, 스마트폰, 태블릿PC, OTT 셋톱박스 등을 통해 시청할 수 있다. Aereo는 가입자 개개인에게 HD 방송수신이 가능한 동전 크기의 소형 안테나를 할당해 안테나로 수신된 지상파 방송을 온라인으로 시청할 수 있도록 하였다. 그런데 이 서비스는 지상파 방송사에게 별도의 재전송료를 지급하지 않는다. 방송사 진영에서는 Aereo가 인터넷을 통해 자사 방송을 재전송할 수 있는 권리를 보유하지 않은 채 지상파 프로그램을 가입자에게 전송함으로써 저작권법을 위반하고 있다고 주장하였다. 그러나 Aereo측은 자신들이 지상파 방송 재전송 사업자가 아니라 소형 안테나와 DVR4)등의 시설을 임대하는 사업자로서, Aereo 서비스는 공공을 대상으로 하는 콘텐츠 송출(public performance)이 아니라 가입자 개인의 콘텐츠 이용(private performance)으로 봐야한다고 하였다. 결국 ABC, CBS, NBC, PBS, Univision 등 지상파 방송사들은 뉴욕 남부 지방법원에 소송을 제기하여 Aereo 서비스의 중지 명령을 요청하였다. 그러나 뉴욕법원은 2012년 7월과 2013년 4월 두 차례에 걸쳐 지상파 방송사들의 요청을 기각하였다 ( {{:1_2014012916023834.pdf|스마트미디어 규제체계 관련 주요 논의 동향 및 시사점 PDF}} ).
* BUNDLING:
* OVERSEAS RIGHTS:
* O&Os AND AFFILIATES:
===== Player #2: The MVPDs =====
[[:MVPD|Multichannel Video Programming Distributors]]
Comcast, Uverse, DirectTV and the rest.
Two revenue streams:
* Local Ad Sales on the programming they run
* Subscription fees from consumers
The vast majority of MVPDs don’t just sell pay TV packages. They sell broadband and landline services too. The old Triple Play. It’s an incredibly lucrative system for them and an incredibly bulletproof one too.
HOW MANY CORDS CAN YOU CUT? It’s bulletproof because what tech bloggers often forget when they talk about “cord cutting” is that the cord that brings you television is generally attached to the cord that brings you the internet. And if you’re cutting the one, you’re still going to need the other. (To put this in perspective, somewhere over 90% of FIOS and Uverse subscribers get TV and broadband from the same provider.)
So here’s where the genius of this set-up kicks in: the MVPDs will give you two options—get the pay TV service and get unlimited bandwidth (free unlimited bandwidth, in the case of Google Fiber), or, get broadband only, but face possible bandwidth caps. If you’re a heavy TV watcher who plans to get content off web-based services like Netflix and Amazon, you probably won’t wind up saving any money.
The MVPDs are not blind either. They see where the market is going, understand the effect of Netflix and Amazon. And so they are busy cutting deals to include those services in their offering. It’s already happening in Kansas City, where Google Fiber TV has Netflix baked into the program guide with more OTT (Over The Top—the industry term for signals carried over the open internet) channels to come. Smaller MVPDs such as Atlantic Broadband, Grande Communications, and RCN recently announced deals to carry Netflix on their networks, and it won’t be long until the larger players follow suit.
===== Player #3: The Studios =====
see also [[wp>television studio]].
While the networks do produce some of their own programming, **many TV shows are produced by studios and production companies**. These range from studios affiliated with the larger movie studios (Warner, 20th Century, Sony et al) to smaller, independent production companies like Amblin and Bad Robot.
* Hundreds of scripts and winnow to get picked up by cable and broadcast networks.
* A dozen or two will get made into pilots
* The pilots are winnowed down by the network programming executives into the shows that will actually appear on air the following season. (This process is not set in stone and shows with big name stars or big name producers associated with them will often get picked up without having to go through much of the winnowing process.)
How Do They Make Money?
* Programs are **picked up by the networks**. The networks pay them a fee to run the series and reap advertising revenue from it. Sometimes, if the producer is powerful, they can work a deal where they get a share of the ad revenue. __That’s just step one.__
* If a series is successful (the holy grail has been //100 episodes//, or //around four or five seasons//), the studio can then sell **syndication rights to independent TV stations and networks** like USA or TBS that rely on reruns of recent hit shows. Syndication is worth millions of dollars and can continue to line pockets for years.
* In the past few years, Netflix and Amazon (**OTT**) have become a key source of income for studios too, as they pay top dollar for full seasons of reruns((The cost is high enough for them to make their original - netflix original, amazon original, etc.)), which allows for [[:binge watching|binge viewing]]. Studios and networks like this arrangement because, (a) it’s very lucrative and (b) if the show is still on air, they can attract new viewers who have caught up via Netflix. Selling prior seasons to Netflix also allows studios to recoup their losses from shrinking DVD sales.
* The final money-making opportunity comes by selling **overseas rights**: non-U.S. networks and MVPDs will buy rights to the shows, and a hit show can make a huge profit through these sorts of deals as there will be a new deal for each and every market. While it used to take American shows years to make the voyage overseas, the difference between U.S. and overseas launches can now be just days.
THE NETFLIX CONUNDRUM:
UNIONS:
===== Player #4: The Premium Networks =====
HBO, Showtime, Cinemax, Red Zone and other sports networks (ESPN, ESPN2, etc.).
* ad-free cable networks that started out showing movies but really made their mark by introducing high quality original content.
* a second “golden age of television”
* a must-have for many Americans, especially the affluent 25-to-54 demographic.
How Do They Make Money?
* **Subscriptions called The only thing stopping them is the fact that many households still have old-fashioned cathode ray analog TVs that won’t work with the streaming devices.
===== Player #7: Second Screen Platforms =====
A second screen involves the use of __a computing device__ (commonly a mobile device, such as a tablet or smartphone) to provide an enhanced viewing experience for content on another device, such as a television. In particular, the term commonly refers to the use of such devices to provide interactive features during broadcast content, such as a television program, especially social media postings on social networking platforms, such as Facebook and Twitter. The use of a second screen supports social television and generates an online conversation around the specific content. [[wp>Second_screen]]Activities - Social activities * via twitter or something else * Facebook * Kakaotalk 단톡방 * It is important to make it exclusive (open to certain types of relationships only such as friends and family) . - Acquiring information * 촬영장소정보 * 배우정보 * 선수정보 * 상품정보 - Purchasing service or products * 상품구매 * 서비스구매 - what else? * 스포츠도박? * TV Channel browsing (instead of using television set) **How Do They Make Money?** While "second screen" is a great catchall term, the range of interaction models (let alone business models) makes it difficult to issue grand pronouncements on the entire segment. Each piece currently has its strengths and weaknesses. Maybe * Ads on second screen (targeted user and products) see Twitter's TV targeting. * (shared interests) community provision __SOCIAL TV__ * Twitter and Facebook * {{:twitter social tv.png}} * [[https://bn.co/twitter-and-the-second-screen-how-to-leverage-tv-targeting/|Twitter and the Second Screen: How to Leverage TV Targeting]] * Nielsen data shows that 95% of U.S households have at least one TV, and the average American watches 5 hours of TV per day * . . . as many as
Quick question: When you’re watching TV, do you talk during the entire show? When the commercials come on (provided you’re not skipping through them) do you only think and talk about the show you’ve been watching? I’m guessing the answer is no. So then why did so much of the initial activity in the social TV space assume the opposite? Yes, a lot of people watch TV with a second screen device in hand. But there’s no logical path that says they are using that device solely to interact with whatever is on the screen. Chances are high that if they’ve whipped out the iPhone, they are checking email, looking at a friend’s Facebook photos, checking the score of the game they’re not watching, or some other activity completely unrelated to the what’s on TV.==== ACTIVE VERSUS PASSIVE VIEWING ==== TV as a background distraction -- passive viewing Shows you look forward to and actually care about -- active viewing
. . . . During active viewing you’re far more likely to give your undivided attention to what’s happening on the screen, to the point of letting phone calls and texts go unanswered. During passive viewing, there’s not a whole lot of incentive to spend any time talking about a program you’re only casually watching.
Studies show that live sporting events and reality game shows were most likely to get fans interacting (either via Twitter or via polls and quizzes) during the show.Live . . . Super Bowl, Oscar, presidential inauguration Sitcomes and reality dramas Dramas and crime shows