Networks clamor to push content to new devices
LAS VEGAS: At the 2006 Consumer Electro-nics Show (CES) in Las Vegas, there was a flurry of announcements that many major video content providers and Internet companies have formed partnerships to expand the ways that primetime TV shows and movies can be accessed by users of video cell phones, video iPODs, laptop computers, and other portable media devices.
While it's too early to assess how much revenue can be generated by Internet-driven video on demand to mobile media devices, media companies are seeding the field in the event that this new technology wave mushrooms into something that reshapes the media landscape.
EVOLUTION UNDERWAY
While these ventures are ushering in innovative content distribution models, they call into question what impact they will have on traditional media outlets, such as affiliate TV stations that have always carried primetime TV shows to viewers.
"These new forms of media distribution should be watched carefully because obviously there is an evolution taking place," said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc., in Durham, N.H.
Although the market for using portable devices like video iPODs and video cellphones is still relatively small, Leichtman cautions that it could steadily grow in the same way that satellite radio grew from zero to nine million subscribers in just a few years.
On the other hand, Leichtman added, "It remains to be seen if the public will willingly pay fees to download individual TV shows onto portable media devices. "Very quickly, they'll realize, 'Duh. I could just record these shows and watch them for free.'"
Leichtman's advice to affiliate stations is, "Don't panic. But pay attention to what's happening. Change doesn't happen overnight but things are clearly evolving. The fact that media companies are busy entering into partnerships is their way of testing the waters and hedging their bets in the event something does happen to dramatically change traditional business models."
GOOGLE TV
One of the biggest announcements at CES was the planned opening of the "Google Video Store," the first open video marketplace enabling consumers to buy and rent a wide range of video content, such as music videos from Sony BMG; feature length independent films from Greencine.com; news and documentary footage from ITN, as well as current NBA basketball season games and highlights from previous season games provided by the NBA.
"Google video will let you watch lots of high-quality video on the Web for the first time. You can search and browse, and we make it fast and easy for you to watch," said Larry Page, Google's co-founder and president. "From the Google Video homepage at http://video.google.com, people will be able to browse listings of video by category from the store or search Google's entire collection of videos by simply entering keywords into the search box."
Among Google's content partners is CBS, which is offering a collection of commercial-free, primetime and classic TV shows, including "CSI: Crime Scene Investigation," "Survivor," and "The Amazing Race," as well as library classics like "MacGyver," "Have Gun Will Travel," "I Love Lucy," and "The Brady Bunch."
"This is yet another exciting platform in which CBS can leverage its market-leading content to a whole new audience," said Leslie Moonves, president and CEO of CBS Corp.. "Making our programming accessible to the Google Video Store guarantees our shows significant new exposure to millions of users who are likely to access this Web service and who may not be traditional TV viewers. As the industry's most prolific generator of popular TV content, it's only natural that CBS would partner with Google on this service, which is destined to become one of the Web's most popular destinations."
Just prior to CES, CBS sent out several an-nouncements showing that it is pursuing multi-faceted, broadband initiatives, joining forces with many entities to ensure maximum exposure to their library whenever, wherever, and using whatever devices the audience may choose.
Through one such deal, CBS properties, such as "Late Night With David Letterman" and "Entertainment Tonight," are now accessible via the Verizon Wireless VCAST multimedia service, which enables over 140 million Verizon Wireless customers to view video content on cell phones.
CBS also announced that full episodes of its primetime shows, such as "Two and a Half Men" and "How I Met Your Mother," are now available for video streaming via Yahoo! TV (http://tv.yahoo.com) commercial-free.
"We're always looking for ways to provide current and potential new viewers every possible opportunity to sample our series," said Nancy Tellem, president of CBS Paramount Network Television Entertainment Group.
CBS and sister network UPN also have entered into an agreement to offer their TV fare to broadband wireless devices by Los Angeles-based Amp'd Mobile, a mobile entertainment company created to bring broadband wireless services to the youth market. Its members will have access to entertainment branded channels on their cellphones to download video, wallpapers, ringtones and voicetones, all accessible through the Amp'd Live program guide.
SEEING STARZ
Another major player staking out opportunities in the growing portable video device market is Starz Entertainment Group LLC (SEG), in Englewood, Colorado. At CES, Robert B. Clasen, SEG president and CEO, announced "Vongo," a new video download application and service that delivers movies and other select video content over the Internet for playback on laptops and portable media devices that use Microsoft's PMC (Portable Media Center) OS.
"By combining the wide array of programming choices on Vongo with a host of new [PMC OS-enabled] portable media devices, consumers will be able to seize control of their video and watch whatever, wherever, and whenever they want," Clasen said. Among the brand devices currently supporting the PMC OS are LG Electronics, Tatung, and Toshiba. A new version of PMC will incorporate DRM (Digital Rights Management) capabilities critical to offering Vongo.
For a monthly fee of $9.99 and a special Vongo application from SEG, subscribers can download from almost 1,000 SEG movie offerings and transfer the files between any three devices they choose to use. Through its long-standing relationships with Disney and Sony studios, the movies will be available during SEG's exclusive rights window (beginning about 6-8 months after theatrical release, and lasting about 18 months) and after that the user will no longer be able to play them.
"Vongo represents the launch of a completely new environment in which business and leisure travelers, and other users of portable video players, can watch movies on the go," said Eric Becker, SEG's executive director of corporate communications. "For example, families would be able to download movies onto a laptop that the kids can watch on the road." This value and convenience may erode the brick and mortar video rental business potentially," said Becker. "But with the proliferation of portable media devices, we view the marketplace as an ever-expanding pie with enough opportunity for all types of media service providers."
