Online Video Draws Mixed Reviews From Media Execs
Discovery CEO David Zaslav says company's content won't be online in near future
By Alex Weprin -- Broadcasting & Cable, 12/10/2008 1:55:00 PM
Complete Coverage: UBS Global Media and Communications Conference
More people than ever are watching video online, but monetizing this viewership is a whole other ballgame. At The UBS Global Media Conference in New York, executives from media companies, both of the new and traditional variety, were split on the platform’s potential.
Discovery CEO David Zaslav, speaking at the conference, said that despite the large content library that Discovery owns, viewers are unlikely to find any of it online in the near future.
"You won't find our long form content on the Web," Zaslav said. "There is no long form business model yet, we will be really careful [in that area]."
Cable networks also have affiliate agreements that often prevent them from syndicating their content online in a timely manner or at all.
FX relaunched its website this summer with full episode streaming. The player however offers a limited number of episodes and series, and posts them on an eight-day delay after they air in order to satisfy its affiliates.
"Cable companies simply do not want their content partners to put content online," said Jason Hirschhorn, president of Sling Media, at the UBS Conference.
Rather than dig into its library, Discovery is putting bite sized clips from its shows online, both on its own sites and on YouTube, where the company has a content partnership.
"[Viewers] aren't spending a lot of time watching full length TV shows on the internet, they are watching clips," said Turner Chief Research Officer Jack Wakshlag at a press briefing here Wednesday.
Rather, Wakshlag says, people continue to consume their long form content on television, both live and timeshifted via DVR.
Of course, just because traditional media companies are bearish on online video, does not mean that they should discount it altogether.
NBC Universal CEO Jeff Zucker’s quip from this year’s NATPE that content companies cannot “trade analog dollars for digital pennies” may hold true right now, but there seems to be some optimism that digital dollars could be around the corner. The trick is finding out what will make those dollars happen.
"The way we operate is to always think long term," said Jason Kilar, CEO of NBC Universal-News Corp. joint venture Hulu. "Those services that provide higher recall rates will do increasingly well going forward. I think [digital CPMs] go up, at least with services that provide that higher recall.”
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Discovery Education Network makes its living by the fact schools can't find this online -- robust business educating the educators, making the path to good video shorter, easier, and measurable and making money per student. Discovery is indeed on line in a very lovely and well designed walled garden. They also had launched Cosmeo to be online for pay subscriptions to families. So just focusing a tad -- Discovery FREE online, ad-supported, would not pay nearly as well for all their volumes of assets.
Gigi Johnson - 12/11/2008 11:23:00 AM EST -
Preview orig. b-cast shows online... to spark word-of-mouth for the smart people who'd rather watch in big-screen high-def. But don't give away your best stuff in a technically inferior viewing environment. Better to sked encore airings of series originals in a one- or two-week window than to immediately put product online and abandon your biz model, broadcasters. Just my 2¢.
Vic Livingston, columnist, NowPublic.com/scrivener; former editor, TV/Radio Age, CableVision - 12/10/2008 9:47:00 PM EST
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