paidContent - TV Everywhere: What We KnowAnd What's Missing
This story was written by Staci D. Kramer.
Sometime this July, 5,000 Comcast (NSDQ: CMCSA) customers across the U.S. will get the first taste of TV Everywhere—and the first broadband access to select programming from 10-15 programmers, including many who have resisted putting full episodes online until now. As expected Time Warner (NYSE: TWX), whose CEO Jeff Bewkes is chief evangelist for the TV Everywhere concept, will be represented by TNT and TBS. We’ve confirmed that AETN is on board, as is Scripps Networks (NYSE: SNI), and, in a move that will strike some as unusual, we also have reason to believe that CBS (NYSE: CBS) will be involved, although the network would not confirm that. Rainbow Networks is in, according to AllThingsD. Not taking part as of now: Viacom (NYSE: VIA).
One of the key elements for any programmer involved in the trial: Comcast wants programming that has not yet been online for what it calls On Demand Online. It’s one way of showing that TV Everywhere is not about moving already-available programming behind a subscription wall; it’s about expanding the amount of cable programming available to broadband subscribers. Even so, this is primarily a technical trial for Comcast, which needs to test the authentication technology it is building with subsidiary ThePlatform and others within the company.
But Bewkes and Comcast CEO Brian Roberts did not want to focus on details during Wednesday’s lengthy press conference to introduce what really is a very small experiment. (For perspective, Comcast has 24.1 million cable customers, 15.3 million broadband subs, and 6.8 million Comcast Digital Voice customers.) Bewkes even closed by asking reporters to write about the forest, not the trees. True, the most notable aspect of any of this right now is that an industry that often makes “deliberate speed” look fast has moved from concept to trial—and from competition to a form of cooperation—so quickly. To keep that momentum, the partners need programmers and, most important at this point, other multichannel operators to sign on. A few areas to watch:
—Expanding VOD: Messrs. Bewkes and Roberts mentioned the importance of expanding VOD to broadband but at it’s most basic, TV Everywhere is about expanding VOD. Period. “We want to be able to have all our shows on demand,” Roberts said, mentioning that Comcast is up to 10,000 shows on demand now. But he knows better than most how hard that goal will be to accomplish. Even when programmers are willing, they don’t always have the rights to distribute a show through VOD. Making that work will take time.
When I first wrote about Comcast On Demand back in May 2002, the operator was planning a launch with 750 hours of VOD content and 750 hours of subscription VOD (premium channels like HBO). It had two programming partners—NBC and its own Comcast Sports Net—with hopes that 10 would take part inthat first major effort. One issue that became a sticking point: Comcasts didn’t want to pay more to get the VOD rights. It has taken Comcast all of this time to get to 10,000 shows. In the meantime, consumer interest in VOD as a form of time shifting or alternate DVR has grown.
—Mobile: The press conference talk centered adding broadband, although each of the execs has included mobile in the past. When I asked about mobile, Bewkes said it was included in broadband and Roberts agreed that an mobile handset would be authenticated for broadband access the same as a laptop. For some reason, Bewkes also thinks this requires having a carrier as part of the trial. Roberts, whose company has a major investment in Clearwire (NSDQ: CLWR), added: “Our companys vision is to be on any device and that would include mobile.” What about 3G or other speeds and coding versions for mobile use? That would be one of those trees we’re not supposed to be paying much attention to.
—Simul-streaming?: Don’t hold your breath if you’re waiting for simultaneous streams of The Closer. For now, the goal is “current” viewing, which would be within hours of the initial airing. The delay is technical more than anything, they said; streaming concurrently would take more capacity, usually, freely available shows go online 24 hours after the premiere airs and sometimes are delayed a week or more.
—Advertising: One of the appeals of Hulu and some other sites for consumers is the limited ad load. Bewkes and Roberts aren’t going there. Bewkes said the test shows would carry a “full TV load.”
—Genie shmenie: When Om Malik suggested this is all about putting the genie back in the bottle, Bewkes retorted: “I totally disagree with you.” From the perspective of those who see content available for free—without a video subscription, making programming available this way is taking something away. For Bewkes, Roberts and the other proponents of this idea, it’s about expansion. NBCU CEO Jeff Zucker reiterated recently that he was not going to put most Bravo shows online in real time, for instance, but authentication could change that. Ditto for Disney and ESPN (NYSE: DIS). Prove that material is protected when it’s online, make it easy for users and get operators to ask for it, instead of protest that their license fees should be lower when the same content goes online, and the idea of making most or all multichannel programming available to any of the 85 percent video subscribers in the U.S. might have a chance. What happens to the non-video subscribers? One suggestion I heard after the press conference was charge through the broadband provider. That won’t appease the “free” crowd or people who believe broadband shouldn’t include charges for content.
—Programmer response: Lynne Costantini, EVP of Affiliate Sales and Marketing for Scripps Networks, explained their rationale for participating via a statement: “Scripps Networks media brands, such as Food Network and HGTV, enjoy a strong connection with a passionate base of consumers who likely would find value in this type of service. ... Our participation in the Comcast authentication pilot will help us make some initial assessments regarding this innovative platform.” That’s a reminder that programmers are looking for reasons to take part after this first trial. They need reassurance on advertising, ratings, user engagement.
—Video portals: For Comcast, the initial access points will be its own Comcast.net and Fancastcom. To really work, pay TV content online or for mobile will have to be accessible, well, everywhere or at least through every major video portal, including Hulu and YouTube. The guiding principles Comcast and Time Warner publicized Wednesday includes this: “Both networks and video distributors should provide high-quality, consumer-friendly sites for viewing broadband content with easy authentication.” It doesn’t say they should make it easy for all sites who want to do it to take part. How will they handle players? Authentication technology? What would Hulu or YouTube gain in exchange for being an access point? This one is a whole grove of trees.
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By Staci D. Kramer