Singapore Telecommunications (SingTel) today launched its new IPTV service, mio TV. Available in the city-state, its initial offering is of 33 channels including blockbuster movies and offerings from the BBC.
Starting from tomorrow, willing subscribers will a minimum monthly fee of 15 Singaporean dollars per month for a mix of channels, ranging from $3.21 for Zee Music to $12.84 for programmes displayed in high-definition.
SingTel claims that its service will revolutionise the way Singaporeans watch television, by allowing viewers to indulge in what they want, when they want, without being tied down to fixed program schedules or rigid subscription packages.
A television shake-up
The firm hopes mio TV will shake-up the monopoly on pay TV in the country, currently held by StarHub, whose minimum cable fee stands at $29.96 Singaporean dollars.
To achieve this, SingTel is promising to pump $30 million into the project over the next fiscal year, offering the largest range of Video on Demand titles in Singapore.
There’s nothing like a bit of healthy competition, but can Singapore’s IPTV new kids on the block win out against a such deep-rooted opposition, and could similar IPTV business models spread further afield, threatening the likes of DirecTV in North America?
Singtel
Monday, July 23, 2007
Thursday, July 12, 2007
Article: Metcalfe's Law and Video
Metcalfe's Law and Video
Jul 9th 2007 12:47PM
Don't remember where I saw Metcalfe's law mentioned, but it got me thinking.
Metcalfe's law states that the more nodes connected to a network the more valuable the network is. Its a simple yet brilliant concept.
Since i have some time on my hands recovering from my hip replacement, I decided to ponder what laws applied to the value of video content and its viewers.
IMHO, there appear to be some simple "rules" that apply to the value of video content. Lets call them my hypothesis
1. The more people that see content when it is originally "broadcast", regardless of the distribution medium, the more valuable the content.
This is the example of "appointment viewing" or "breaking news". The more people who planned to watch, or did so as soon as they heard about it, the more valuable the content.
Call this the "heat check".
10mm people watching a tv show at the same time creates more value for the content than 10mm people watching the same show on demand over the course of time.
2. The greater the number of people that watch content simultaneously, the greater the emotional attachment of the viewer.
The greater amount of confirmation that a viewer can get from other viewers that there were others, like them that made an appointment to see a video or immediately changed their plans to watch a video, the greater the "we " effect and emotional attachment.
3. The longer the period required for content to saturate viewer demand, the cheaper the cost of delivery. Without the constraint of time, the originator to choose the least expensive method of delivery
4. The shorter the period required to saturate demand, the more expensive the cost. This is not intuitive. At first blush it may seem that broadcast technologies can reach an immense audience in realtime with a zero marginal cost of delivery to a new viewer.
However, there is a signicant cost to build a network that can saturate demand immediately. It usually takes constrained resources, whether it is spectrum for broadcast networks, the delivery infrastructure to reach an uncapped audience and the ability to deliver it without time constraints.
5. The greater the number of content alternatives at any given point in time, the more expensive it is for any given piece of content to acquire an incremental viewer. The cost may come in the form of investment into the production of the content, advertising, promotion or placement. It may come in the form of sweat equity from hustling to promote the content.
I thought this might create some interesting discussion that I could learn from, so here you go !
http://www.blogmaverick.com/2007/07/09/metcalfes-law-and-video/
Jul 9th 2007 12:47PM
Don't remember where I saw Metcalfe's law mentioned, but it got me thinking.
Metcalfe's law states that the more nodes connected to a network the more valuable the network is. Its a simple yet brilliant concept.
Since i have some time on my hands recovering from my hip replacement, I decided to ponder what laws applied to the value of video content and its viewers.
IMHO, there appear to be some simple "rules" that apply to the value of video content. Lets call them my hypothesis
1. The more people that see content when it is originally "broadcast", regardless of the distribution medium, the more valuable the content.
This is the example of "appointment viewing" or "breaking news". The more people who planned to watch, or did so as soon as they heard about it, the more valuable the content.
Call this the "heat check".
10mm people watching a tv show at the same time creates more value for the content than 10mm people watching the same show on demand over the course of time.
2. The greater the number of people that watch content simultaneously, the greater the emotional attachment of the viewer.
The greater amount of confirmation that a viewer can get from other viewers that there were others, like them that made an appointment to see a video or immediately changed their plans to watch a video, the greater the "we " effect and emotional attachment.
3. The longer the period required for content to saturate viewer demand, the cheaper the cost of delivery. Without the constraint of time, the originator to choose the least expensive method of delivery
4. The shorter the period required to saturate demand, the more expensive the cost. This is not intuitive. At first blush it may seem that broadcast technologies can reach an immense audience in realtime with a zero marginal cost of delivery to a new viewer.
However, there is a signicant cost to build a network that can saturate demand immediately. It usually takes constrained resources, whether it is spectrum for broadcast networks, the delivery infrastructure to reach an uncapped audience and the ability to deliver it without time constraints.
5. The greater the number of content alternatives at any given point in time, the more expensive it is for any given piece of content to acquire an incremental viewer. The cost may come in the form of investment into the production of the content, advertising, promotion or placement. It may come in the form of sweat equity from hustling to promote the content.
I thought this might create some interesting discussion that I could learn from, so here you go !
http://www.blogmaverick.com/2007/07/09/metcalfes-law-and-video/
Article: Sites let preteens network online
By ANICK JESDANUN, AP Internet Writer 11 minutes ago
This past spring, 10-year-old Adam Young joined other tweens on Club Penguin, playing games, throwing virtual snowballs and chatting with fellow kids who appear onscreen as plump cartoon penguins. A few weeks later, Adam asked Mom to pay $5 a month for extra features, such as decorating his online persona's igloo.
Karen Young demanded to learn more about what some have billed as "training wheels" for the next MySpace generation. She spent time on the site with Adam and consulted with her sister, the mother of another daily visitor.
"I said, `Well, what is it? What does it involve?'" Young recalled. "I wanted him to show me what he wanted and what it was about."
Drawing preteens as young as 6 or 7, sites like Club Penguin and Webkinz are forcing parents to decide at what age they are willing to let their children roam about and interact with friends online. They, along with schools, are having to teach earlier lessons on safety, etiquette and balance with offline activities.
"It's kind of like what happened in the real world with Cabbage Patch dolls and Beanie Babies," said Monique Nelson, executive vice president of Web Wise Kids, a nonprofit focused on Internet safety for children. "Their friends are doing it, so like kids who follow like sheep, they go online and go on these sites."
According to comScore Media Metrix, U.S. visitors to Club Penguin nearly tripled over the past year, while Webkinz' grew 13 times.
Peggy Meszaros, a professor of human development at Virginia Tech, said kids' identities begin to blossom by 8 and they start wanting to meet other children, so these sites may become their introduction to social networking. But she said kids that age would get much more "going to the swimming pool and meeting friends face to face," making parental oversight of online usage ever-important.
Young, a first-grade teacher in Louisville, Ky., ultimately deemed the environment relatively safe and agreed to pay for a membership. Unlike News Corp.'s MySpace, the anything-goes site frequented by Young's older son, Club Penguin limits what kids can say to one another, reducing the risks of predators and online bullying.
That sentiment was echoed by Tony Bayliss, father of 7-year-old Maisie in England. Club Penguin is the only site Bayliss lets Maisie visit unsupervised; Bayliss also has a cartoon penguin of his own and visits his daughter online while traveling.
"It's what the future is," Bayliss said of the online environment. "It's what she's going to be using for the rest of her life."
Club Penguin was started more than a year ago as "an online playground for kids," said Lane Merrifield, the site's co-founder and chief executive. "How can we take the fun pieces of these more grown-up and adult (social-networking) sites and surround them in a safe environment?"
Kids win gold coins by playing games such as sled racing and, with a paid membership, buy virtual items like furniture and clothing. Kids can attend parties and make friends by adding other penguins to their buddy lists.
The site, from Canada's New Horizon Interactive Ltd., does not try to keep out older users — after all, anyone can lie about age. Rather, it builds in controls meant to curb outside contact and harassment. The company says it has never had a problem with predators.
Parents can choose an "ultimate safe" mode, meaning chat messages sent and received are limited to prewritten phrases, such as "How are you today?"
In the standard mode, kids can type messages like any other chat program, but only the sender sees messages containing foul language and even innocent-sounding words such as "mom" — to prevent someone from asking, "Is your mom home?" Senders would think they are being ignored and not try tricks to bypass filters.
The filters also catch numbers that might form a phone number a kid is trying to share, even if someone tries to replace "1" with "one."
Veterans can apply to become "secret agents," responsible for patrolling the site and reporting bad behavior, and violations can get a kid banned for a day or longer.
Likewise, Webkinz limits chats by permitting only prewritten phrases, and e-cards go only to those already on friends lists.
Kids take quizzes or perform chores to earn "KinzCash" to buy furniture for their virtual room and food for their virtual pet. They must return to the site regularly to keep their pets fed and healthy; otherwise, it's a trip to Dr. Quack for medical care, though the pets themselves never die.
Unlike Club Penguin, though, access to the Canadian-based site from Ganz is restricted to those who buy a Webkinz plush toy at a retail store for about $15, many of which have been selling out because of high demand. Think Beanie Babies with an online component. A code on each toy unlocks the site for a year.
Both sites do require some reading skills, though younger kids can participate with older siblings or parents.
Other popular tween online hangouts include Millsberry, a General Mills Inc. site that promotes good eating but features product placements for its cereals, and Numedeon Inc.'s Whyville, where tweens play games and earn clams.
Although these social-networking precursors for tweens tend to incorporate more safety measures than MySpace, Facebook and other sites geared toward teenagers and adults, experts warn that parents can't simply sign their kids on and leave them there, especially during the summer months when kids have more time to spend online.
"We want them to develop and grow physically, spiritually and emotionally," Meszaros said. "If they are on the computer three or four hours a day, that's time they could be doing other things. Parents need to be monitoring."
Step one is to decide whether kids should be there at all.
Jane Healy, author of "Failure to Connect: How Computers Affect Our Children's Minds — for Better and Worse," said kids may feel they are "going to be a hopeless social failure" if they can't participate.
Advocates say the controlled environment can teach kids important lessons about typing, communicating, caring for pets and budgeting — they must learn to work and save for the trampoline they want for their virtual room.
But Healy said these sites also teach kids to be "a good consuming member of the consuming culture (and) to need stuff to be considered successful or good."
She urges caution in opening the door to "powerful forces out there trying to intrude into your family life and personal relations with your child." Not only do these sites introduce commercialism, she said, but they also can take kids away from offline environments where they can learn to pick up body language and facial expressions.
Software tools are available to help parents control Internet activities, including use of these sites. Monitoring software can record a kid's chat conversations and whereabouts — secretly if the parent wishes. Other tools, some available for free, aim to block porn or limit when or how long a child can be online.
Parents should at least keep computers in an open room and surf the Web side-by-side with their kids now and then. A discussion on time limits is important because rules are far easier to impose from the beginning, and Club Penguin will soon introduce a feature for parents to set such limits on the site.
"As soon as the egg timer comes up, we're going to have a list of activities they can do outside," Merrifield said.
Parents should also start addressing safety and online etiquette.
"They can't be there every time they go online .... so it's even more important to spend more time up front teaching them how to be safe and smart," said Susan Sachs, chief operating officer with the nonprofit Common Sense Media.
It helps that many parents are now using the Internet not just for work but also for recreation, information sharing and other social interaction.
"When kids start to use technology, (parents) can be much more part of the process, as opposed to, `Gee, this is all new and strange to me. I don't want you using it,'" said Peter Grunwald, a researcher who specializes in kids and technology.
Nonetheless, Grunwald said, "kids are using online services at an earlier age, and that means parents do have to exercise their role as parents and be mindful of it at an earlier age than, say, seven, eight or nine years ago."
http://news.yahoo.com/s/ap/20070712/ap_on_hi_te/social_networking_tweens_4;_ylt=An67EhmxqAghabffGFZB2P8E1vAI
This past spring, 10-year-old Adam Young joined other tweens on Club Penguin, playing games, throwing virtual snowballs and chatting with fellow kids who appear onscreen as plump cartoon penguins. A few weeks later, Adam asked Mom to pay $5 a month for extra features, such as decorating his online persona's igloo.
Karen Young demanded to learn more about what some have billed as "training wheels" for the next MySpace generation. She spent time on the site with Adam and consulted with her sister, the mother of another daily visitor.
"I said, `Well, what is it? What does it involve?'" Young recalled. "I wanted him to show me what he wanted and what it was about."
Drawing preteens as young as 6 or 7, sites like Club Penguin and Webkinz are forcing parents to decide at what age they are willing to let their children roam about and interact with friends online. They, along with schools, are having to teach earlier lessons on safety, etiquette and balance with offline activities.
"It's kind of like what happened in the real world with Cabbage Patch dolls and Beanie Babies," said Monique Nelson, executive vice president of Web Wise Kids, a nonprofit focused on Internet safety for children. "Their friends are doing it, so like kids who follow like sheep, they go online and go on these sites."
According to comScore Media Metrix, U.S. visitors to Club Penguin nearly tripled over the past year, while Webkinz' grew 13 times.
Peggy Meszaros, a professor of human development at Virginia Tech, said kids' identities begin to blossom by 8 and they start wanting to meet other children, so these sites may become their introduction to social networking. But she said kids that age would get much more "going to the swimming pool and meeting friends face to face," making parental oversight of online usage ever-important.
Young, a first-grade teacher in Louisville, Ky., ultimately deemed the environment relatively safe and agreed to pay for a membership. Unlike News Corp.'s MySpace, the anything-goes site frequented by Young's older son, Club Penguin limits what kids can say to one another, reducing the risks of predators and online bullying.
That sentiment was echoed by Tony Bayliss, father of 7-year-old Maisie in England. Club Penguin is the only site Bayliss lets Maisie visit unsupervised; Bayliss also has a cartoon penguin of his own and visits his daughter online while traveling.
"It's what the future is," Bayliss said of the online environment. "It's what she's going to be using for the rest of her life."
Club Penguin was started more than a year ago as "an online playground for kids," said Lane Merrifield, the site's co-founder and chief executive. "How can we take the fun pieces of these more grown-up and adult (social-networking) sites and surround them in a safe environment?"
Kids win gold coins by playing games such as sled racing and, with a paid membership, buy virtual items like furniture and clothing. Kids can attend parties and make friends by adding other penguins to their buddy lists.
The site, from Canada's New Horizon Interactive Ltd., does not try to keep out older users — after all, anyone can lie about age. Rather, it builds in controls meant to curb outside contact and harassment. The company says it has never had a problem with predators.
Parents can choose an "ultimate safe" mode, meaning chat messages sent and received are limited to prewritten phrases, such as "How are you today?"
In the standard mode, kids can type messages like any other chat program, but only the sender sees messages containing foul language and even innocent-sounding words such as "mom" — to prevent someone from asking, "Is your mom home?" Senders would think they are being ignored and not try tricks to bypass filters.
The filters also catch numbers that might form a phone number a kid is trying to share, even if someone tries to replace "1" with "one."
Veterans can apply to become "secret agents," responsible for patrolling the site and reporting bad behavior, and violations can get a kid banned for a day or longer.
Likewise, Webkinz limits chats by permitting only prewritten phrases, and e-cards go only to those already on friends lists.
Kids take quizzes or perform chores to earn "KinzCash" to buy furniture for their virtual room and food for their virtual pet. They must return to the site regularly to keep their pets fed and healthy; otherwise, it's a trip to Dr. Quack for medical care, though the pets themselves never die.
Unlike Club Penguin, though, access to the Canadian-based site from Ganz is restricted to those who buy a Webkinz plush toy at a retail store for about $15, many of which have been selling out because of high demand. Think Beanie Babies with an online component. A code on each toy unlocks the site for a year.
Both sites do require some reading skills, though younger kids can participate with older siblings or parents.
Other popular tween online hangouts include Millsberry, a General Mills Inc. site that promotes good eating but features product placements for its cereals, and Numedeon Inc.'s Whyville, where tweens play games and earn clams.
Although these social-networking precursors for tweens tend to incorporate more safety measures than MySpace, Facebook and other sites geared toward teenagers and adults, experts warn that parents can't simply sign their kids on and leave them there, especially during the summer months when kids have more time to spend online.
"We want them to develop and grow physically, spiritually and emotionally," Meszaros said. "If they are on the computer three or four hours a day, that's time they could be doing other things. Parents need to be monitoring."
Step one is to decide whether kids should be there at all.
Jane Healy, author of "Failure to Connect: How Computers Affect Our Children's Minds — for Better and Worse," said kids may feel they are "going to be a hopeless social failure" if they can't participate.
Advocates say the controlled environment can teach kids important lessons about typing, communicating, caring for pets and budgeting — they must learn to work and save for the trampoline they want for their virtual room.
But Healy said these sites also teach kids to be "a good consuming member of the consuming culture (and) to need stuff to be considered successful or good."
She urges caution in opening the door to "powerful forces out there trying to intrude into your family life and personal relations with your child." Not only do these sites introduce commercialism, she said, but they also can take kids away from offline environments where they can learn to pick up body language and facial expressions.
Software tools are available to help parents control Internet activities, including use of these sites. Monitoring software can record a kid's chat conversations and whereabouts — secretly if the parent wishes. Other tools, some available for free, aim to block porn or limit when or how long a child can be online.
Parents should at least keep computers in an open room and surf the Web side-by-side with their kids now and then. A discussion on time limits is important because rules are far easier to impose from the beginning, and Club Penguin will soon introduce a feature for parents to set such limits on the site.
"As soon as the egg timer comes up, we're going to have a list of activities they can do outside," Merrifield said.
Parents should also start addressing safety and online etiquette.
"They can't be there every time they go online .... so it's even more important to spend more time up front teaching them how to be safe and smart," said Susan Sachs, chief operating officer with the nonprofit Common Sense Media.
It helps that many parents are now using the Internet not just for work but also for recreation, information sharing and other social interaction.
"When kids start to use technology, (parents) can be much more part of the process, as opposed to, `Gee, this is all new and strange to me. I don't want you using it,'" said Peter Grunwald, a researcher who specializes in kids and technology.
Nonetheless, Grunwald said, "kids are using online services at an earlier age, and that means parents do have to exercise their role as parents and be mindful of it at an earlier age than, say, seven, eight or nine years ago."
http://news.yahoo.com/s/ap/20070712/ap_on_hi_te/social_networking_tweens_4;_ylt=An67EhmxqAghabffGFZB2P8E1vAI
Article: TV junk food ads feeding child obesity
The first study of child health in Queensland in more than a decade shows one-in-five children are overweight or obese.
The rates are slightly lower than in New South Wales and Western Australia, but Queensland Health Minister Stephen Robertson says the Commonwealth should act.
The university study also found half the state's children ate less than one serve of vegetables a day, while fewer than one-in-six boys and one-in-15 girls did an hour of daily moderate physical activity.
Health Minister Stephen Robertson says it is further proof of the need for the Federal Government to limit TV junk food advertising.
"We banned tobacco advertising years ago - why? Because advertising encourages people to smoke," he said.
"Why not apply that same rationale, that same commonsense, to the advertising of junk food during the hours when kids are most likely to be watching it."
http://abc.net.au/news/stories/2007/07/12/1976452.htm
The rates are slightly lower than in New South Wales and Western Australia, but Queensland Health Minister Stephen Robertson says the Commonwealth should act.
The university study also found half the state's children ate less than one serve of vegetables a day, while fewer than one-in-six boys and one-in-15 girls did an hour of daily moderate physical activity.
Health Minister Stephen Robertson says it is further proof of the need for the Federal Government to limit TV junk food advertising.
"We banned tobacco advertising years ago - why? Because advertising encourages people to smoke," he said.
"Why not apply that same rationale, that same commonsense, to the advertising of junk food during the hours when kids are most likely to be watching it."
http://abc.net.au/news/stories/2007/07/12/1976452.htm
Monday, July 9, 2007
Article: Kids Market Buoyed by Non-Traditional Categories Upfront Chronicles Part 9
By Jack Myers
Turner, Nick & Disney Bullish on Kids' Upfront Market
With spending power of $78.5 billion annually, kids are an increasingly vital economic force. A growing number of non-traditional advertisers are moving into kids television not only to reach them but to reach their parents in a relevant environment. According to Yankelovich Youth Monitor, 72 percent of kids say commercials influence their purchase decisions and a growing majority of adults admit they are significantly impacted by their children's requests and recommendations.
Until earlier this decade, the "Kids Upfront" market would typically move in February in conjunction with the Toy Market and would offer a telltale sign of what might happen in the general market. But, agree senior executives of Turner Entertainment, Nickelodeon and Disney /ABC Cable Network Group, the kids network television advertising business has changed dramatically and is now moving closer to the traditional Upfront season. In separate interviews Jack Myers Report spoke to David Levy, president of Turner Sports and Entertainment Sales & Marketing; Cyma Zarghami, President of Nickelodeon Television; Jim Perry, SVP Nickelodeon Ad Sales; and Tricia Wilber, SVP Ad Sales & Promotions for Disney/ABC Cable Networks Group.
Search
Wilber points out "the kids' business is different in two primary ways. First there is a smaller number of players so the competitive environment is different. At the same time, the market — the number of traditional kids advertisers — is smaller. We don't have the depth and breadth of kids advertisers we had in the past."
Credit: Nickelodeon
Levy comments, "products are now marketed to four age groups: birth to three, three to five, six to eleven and eight to fifteen. Manufacturers market products to these age groups and we're programming to them but they still buy media targeted to two age groups, two to six year olds and six to eleven. The growth of hand held gaming, computer gaming and electronic products for kids has resulted in greater market segmentation."
But, says Zarghami, "the kids' market is attracting several new categories. Non-traditional accounts have started to reach out to kids. Their influence on household purchases is significant and marketers are responding." She adds "there are a number of packaged goods advertisers using kids TV as a way to reach moms who are watching TV with kids. More pre-school programming is interactive," she explains, "and we attract more moms in Nick Jr. than many prime time programs."
Credit: Cartoon Network
Perry claims Nickelodeon's business from traditional categories has been steady. "Growth of our toy business isn't aggressive but all the major toy companies are introducing electronics products. The automotive, food and entertainment business has been incredibly strong over the last 18 months. The automotive category has been growing," he claims, with Nickelodeon already scoring campaigns from Ford, Dodge, Toyota, Mitsubishi and Honda and about to announce a sixth automotive partner. "Food manufacturers are reformulating products and coming out with new product introductions, so they have to spend to support them," Perry explains.
Levy agrees food manufacturers may be changing product ingredients and launching new brands. "That's a more positive way to look at the impact of regulatory concerns," he suggests. Wilber confirms the food industry's messages are changing and dollars associated with the category are still strong. She also says "the entertainment business seems to have a good slate of theatrical and DVD releases coming out. Video games are strong." Levy adds "the studios are coming out with more kid friendly and animated movies. The launches and the aftermarket are exploding."
Perry claims travel is also a growth category, with clients like the Cayman Islands, Embassy Suites, and Best Western. (Nick is opening its first Nickelodeon Family Suites by Holiday Inn on Memorial Day Weekend.)
Credit: Cartoon Network
Levy confirms the growing importance of packaged goods, DVD and new studio releases, gaming advertisers, and non-traditional categories, suggesting a key to the growth of this year's kids market will be how big these new categories grow and how much these advertisers spread their campaigns beyond the traditional "hard eight" weeks prior to Christmas and the two weeks prior to Easter.
Zarghami points out "while the Upfront plays a big part in the business, because of integrated promotions, licensing and tie-ins, we are doing business 52-weeks a year. We have a fairly significant percentage of business already wrapped up." Levy agrees "there are new opportunities for marketers trying to extend reach and find new opportunities."
Credit: Nickelodeon
"Levy believes the kids Upfront market should "break" just two to four weeks prior to the traditional Upfront market, meaning there remains six to eight weeks before kids' networks get a clear picture of market demand. "Buyers are not yet showing their cards," says Levy. "When one buyer moves, the whole market will follow. The market moves when toy and gaming advertisers need to get money down for the hard ten weeks." Three agencies, Starcom, Mediacom, and Summit Media are the primary drivers of the traditional kids market, followed by Mindshare.
Zarghami believes the kids Upfront market could be wrapped up by mid-April and says "we expect the market to be up in total revenues in the high single digits. Overall kids' gross rating points are down two percent but demand will be up." "The market is still forming." Wilber confirms. "Budgets are still being formalized, although we see it as a strong marketplace. We will definitely see growth in costs-per-thousand and we're waiting to see where the market will end up."
Nickelodeon and Turner's Cartoon Network are the major players in the kids advertising marketplace. Disney Channel is not a fully commercialized network but Toon Disney is in close to 50 million homes and is becoming a stronger force. Kids WB, which is packaged with Cartoon Network, is the only broadcast network with a strong Monday to Saturday kids presence and ABC Saturday morning continues to attract sizeable audiences. Additional competitors in the kids market are Fox Box and Discovery Kids, but Nickelodeon and Turner are the dominant market forces.
"We look at Cartoon Network as being well positioned for this year's Upfront," says Levy. "Ratings are up year over year. Anytime you can show growth it is a great opportunity. We've had two new hit shows, and we're launching a pre-school block with two hours each weekday from 7 to 9 am. We have identified a great opportunity with Adult Swim from 11pm to 5 am. The demand will be there because ratings are up and supply is tighter."
Zarghami points to the continued leadership of Nickelodeon. We introduced 'Nick Toons' in the fourth quarter and it is already in 32 million households and on its way to 40 million. 'The N' digital network for teens was introduced last year and it's now in 42 million homes. We believe the combination of Noggin, Nick Jr. and the CBS Saturday morning programming is a powerful offering to reach pre-schoolers and moms. Our consumer products business is tremendous. Our sales and marketing groups are closely aligned with our programming groups and our multiple platform pitch has been significant."
Wilber claims the strength of the Disney/ABC kids platforms is the "ability to deliver targeted kids. If they're looking for targeted audiences we offer the most efficient ways to deliver them. We give marketers a place where they can get an incredible concentration of boys on Jetix, which has a 70 percent concentration of boys. Our Saturday morning offers the largest concentration of girls in the marketplace. Plus," she adds, "the uncluttered environment of Disney Channel is a place where marketers are breaking through and making emotional connections with kids."
http://www.mediavillage.com/jmr/2005/03/30/jmr-03-30-05/
Turner, Nick & Disney Bullish on Kids' Upfront Market
With spending power of $78.5 billion annually, kids are an increasingly vital economic force. A growing number of non-traditional advertisers are moving into kids television not only to reach them but to reach their parents in a relevant environment. According to Yankelovich Youth Monitor, 72 percent of kids say commercials influence their purchase decisions and a growing majority of adults admit they are significantly impacted by their children's requests and recommendations.
Until earlier this decade, the "Kids Upfront" market would typically move in February in conjunction with the Toy Market and would offer a telltale sign of what might happen in the general market. But, agree senior executives of Turner Entertainment, Nickelodeon and Disney /ABC Cable Network Group, the kids network television advertising business has changed dramatically and is now moving closer to the traditional Upfront season. In separate interviews Jack Myers Report spoke to David Levy, president of Turner Sports and Entertainment Sales & Marketing; Cyma Zarghami, President of Nickelodeon Television; Jim Perry, SVP Nickelodeon Ad Sales; and Tricia Wilber, SVP Ad Sales & Promotions for Disney/ABC Cable Networks Group.
Search
Wilber points out "the kids' business is different in two primary ways. First there is a smaller number of players so the competitive environment is different. At the same time, the market — the number of traditional kids advertisers — is smaller. We don't have the depth and breadth of kids advertisers we had in the past."
Credit: Nickelodeon
Levy comments, "products are now marketed to four age groups: birth to three, three to five, six to eleven and eight to fifteen. Manufacturers market products to these age groups and we're programming to them but they still buy media targeted to two age groups, two to six year olds and six to eleven. The growth of hand held gaming, computer gaming and electronic products for kids has resulted in greater market segmentation."
But, says Zarghami, "the kids' market is attracting several new categories. Non-traditional accounts have started to reach out to kids. Their influence on household purchases is significant and marketers are responding." She adds "there are a number of packaged goods advertisers using kids TV as a way to reach moms who are watching TV with kids. More pre-school programming is interactive," she explains, "and we attract more moms in Nick Jr. than many prime time programs."
Credit: Cartoon Network
Perry claims Nickelodeon's business from traditional categories has been steady. "Growth of our toy business isn't aggressive but all the major toy companies are introducing electronics products. The automotive, food and entertainment business has been incredibly strong over the last 18 months. The automotive category has been growing," he claims, with Nickelodeon already scoring campaigns from Ford, Dodge, Toyota, Mitsubishi and Honda and about to announce a sixth automotive partner. "Food manufacturers are reformulating products and coming out with new product introductions, so they have to spend to support them," Perry explains.
Levy agrees food manufacturers may be changing product ingredients and launching new brands. "That's a more positive way to look at the impact of regulatory concerns," he suggests. Wilber confirms the food industry's messages are changing and dollars associated with the category are still strong. She also says "the entertainment business seems to have a good slate of theatrical and DVD releases coming out. Video games are strong." Levy adds "the studios are coming out with more kid friendly and animated movies. The launches and the aftermarket are exploding."
Perry claims travel is also a growth category, with clients like the Cayman Islands, Embassy Suites, and Best Western. (Nick is opening its first Nickelodeon Family Suites by Holiday Inn on Memorial Day Weekend.)
Credit: Cartoon Network
Levy confirms the growing importance of packaged goods, DVD and new studio releases, gaming advertisers, and non-traditional categories, suggesting a key to the growth of this year's kids market will be how big these new categories grow and how much these advertisers spread their campaigns beyond the traditional "hard eight" weeks prior to Christmas and the two weeks prior to Easter.
Zarghami points out "while the Upfront plays a big part in the business, because of integrated promotions, licensing and tie-ins, we are doing business 52-weeks a year. We have a fairly significant percentage of business already wrapped up." Levy agrees "there are new opportunities for marketers trying to extend reach and find new opportunities."
Credit: Nickelodeon
"Levy believes the kids Upfront market should "break" just two to four weeks prior to the traditional Upfront market, meaning there remains six to eight weeks before kids' networks get a clear picture of market demand. "Buyers are not yet showing their cards," says Levy. "When one buyer moves, the whole market will follow. The market moves when toy and gaming advertisers need to get money down for the hard ten weeks." Three agencies, Starcom, Mediacom, and Summit Media are the primary drivers of the traditional kids market, followed by Mindshare.
Zarghami believes the kids Upfront market could be wrapped up by mid-April and says "we expect the market to be up in total revenues in the high single digits. Overall kids' gross rating points are down two percent but demand will be up." "The market is still forming." Wilber confirms. "Budgets are still being formalized, although we see it as a strong marketplace. We will definitely see growth in costs-per-thousand and we're waiting to see where the market will end up."
Nickelodeon and Turner's Cartoon Network are the major players in the kids advertising marketplace. Disney Channel is not a fully commercialized network but Toon Disney is in close to 50 million homes and is becoming a stronger force. Kids WB, which is packaged with Cartoon Network, is the only broadcast network with a strong Monday to Saturday kids presence and ABC Saturday morning continues to attract sizeable audiences. Additional competitors in the kids market are Fox Box and Discovery Kids, but Nickelodeon and Turner are the dominant market forces.
"We look at Cartoon Network as being well positioned for this year's Upfront," says Levy. "Ratings are up year over year. Anytime you can show growth it is a great opportunity. We've had two new hit shows, and we're launching a pre-school block with two hours each weekday from 7 to 9 am. We have identified a great opportunity with Adult Swim from 11pm to 5 am. The demand will be there because ratings are up and supply is tighter."
Zarghami points to the continued leadership of Nickelodeon. We introduced 'Nick Toons' in the fourth quarter and it is already in 32 million households and on its way to 40 million. 'The N' digital network for teens was introduced last year and it's now in 42 million homes. We believe the combination of Noggin, Nick Jr. and the CBS Saturday morning programming is a powerful offering to reach pre-schoolers and moms. Our consumer products business is tremendous. Our sales and marketing groups are closely aligned with our programming groups and our multiple platform pitch has been significant."
Wilber claims the strength of the Disney/ABC kids platforms is the "ability to deliver targeted kids. If they're looking for targeted audiences we offer the most efficient ways to deliver them. We give marketers a place where they can get an incredible concentration of boys on Jetix, which has a 70 percent concentration of boys. Our Saturday morning offers the largest concentration of girls in the marketplace. Plus," she adds, "the uncluttered environment of Disney Channel is a place where marketers are breaking through and making emotional connections with kids."
http://www.mediavillage.com/jmr/2005/03/30/jmr-03-30-05/
Atricle: Netflix’s Watch Now Tops the Online On Demand Movie Market
As we know, Netflix.com stands on top of the online video rental industry. Using U.S. monthly unique visitors as a proxy for subscriber-base, and thus overall success, Netflix currently doubles the closest contender, Blockbuster.com.
However, when you are atop any e-commerce industry you cannot become complacent. The second you loose your innovative edge you will become obsolete like the ’07 Yankees (oh snap!).
Back in January, Netflix released its Watch Now feature allowing subscribers to stream full-length movies and TV shows on their PCs. The service is offered free to existing Netflix members. The online on demand concept was certainly not invented by Netflix and there are plenty other players in the game. The space includes established sites like Vongo.com and Cinemanow.com, as well as new comers like Amazon.com’s Unbox. A look at the amount of people visiting these services shows that Netflix’s Watch Now has quickly grown into an industry leader.
*Cinemanow.com and Vongo.com are domain level counts. Netflix.com and Amazon.com counts are for the specific Watch Now or Unbox pages, respectively.
The executives at Netflix know that DVD’s will not be around forever. Being an early adopter to any new viewing formats will certainly help the company remain the king of the online movie business.
http://blog.compete.com/2007/07/06/online-on-demand-movies-netflix-watch-now-amazon-unbox-vongo-cinemanow/
However, when you are atop any e-commerce industry you cannot become complacent. The second you loose your innovative edge you will become obsolete like the ’07 Yankees (oh snap!).
Back in January, Netflix released its Watch Now feature allowing subscribers to stream full-length movies and TV shows on their PCs. The service is offered free to existing Netflix members. The online on demand concept was certainly not invented by Netflix and there are plenty other players in the game. The space includes established sites like Vongo.com and Cinemanow.com, as well as new comers like Amazon.com’s Unbox. A look at the amount of people visiting these services shows that Netflix’s Watch Now has quickly grown into an industry leader.
*Cinemanow.com and Vongo.com are domain level counts. Netflix.com and Amazon.com counts are for the specific Watch Now or Unbox pages, respectively.
The executives at Netflix know that DVD’s will not be around forever. Being an early adopter to any new viewing formats will certainly help the company remain the king of the online movie business.
http://blog.compete.com/2007/07/06/online-on-demand-movies-netflix-watch-now-amazon-unbox-vongo-cinemanow/
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