What the Disney Netflix Breakup means for the OTT Landscape

When Disney takes action, the rest of the entertainment world not only takes note, but takes action to react.  The big mouse is rarely a first mover or early adopter when it comes to making a company-altering decision.  Such a move requires years of study, deliberation, and strategizing. When a decision is made, it is a precise reflection of the industry’s direction.  Make no mistake, when Disney removed their content from Netflix and purchased a majority stake in BAMTech to do SVOD OTT services on their own, they also defined the future of content distribution.

 

What happened?

Two weeks ago, Disney was still deeply reliant on Netflix, as most major networks and studios are. SVOD OTT continues to be the fastest growing sector of content distribution, and without the means to do it themselves at scale, content owners rely on licensing to established services in order to get their cut of the SVOD pie.  In this case, the profit equation for Disney was simple; they provided the largest titles in entertainment to Netflix  in return for a significant paycheck.  No need to market, worry about technology, or engage with the audience. Netflix has already mastered the OTT experience, and possesses a user-base approaching critical mass; a well-oiled machine able to squeeze more profit out of a film than anyone else can do on their own, until now.

 

All of this changed when the barriers to enter the SVOD OTT market dropped to a point that mitigated the risk of ditching Netflix to tolerable levels.  Several factors have aligned that allow content owners like Disney to safely withdraw from traditional digital distribution hubs to go it on their own.  Consumers have vigorously expressed their preference to pay for SVOD services rather than a cable package, the growing ubiquity of devices to access an SVOD service conveniently, and the reduced price and effort to handle the technology necessary to run such a service from both a backend and UI/UX standpoint.

 

How it was possible

The decline of cable is a well-documented phenomenon that has coincided with the proliferation of OTT devices for viewing content.  By the end of 2017, 25% of households will officially “Cut Cable[1]” with 35% of  millennials never having it at all[2].  The younger generations are predicted to have an even more adverse outlook legacy media[3].  Conversely, devices for viewing content via OTT apps have exploded, a trend predicted to continue.  This is why OTT is on track to become a 64 billion dollar industry[4], and why letting the majority of that revenue go to three services (Netflix, Hulu, Amazon Prime), all still new to the original content game, makes no sense for networks and studios.  Rather than propping up Netflix with exclusive content, it was time for Disney to start putting its library to work for itself.

 

The final factor that is allowing networks and studios to break free from Netflix and the like is access to technology.  To truly run an SVOD OTT service requires the marriage of several complex and intricate systems, all of which must work seamlessly to provide a unified experience across an ever-expanding number of endpoints. It is not enough to just deliver the right video, streaming at the right quality, that loads at an acceptable rate.  Consumers expect an experience packed with bells and whistles to enhance engagement and the service requires certain features, like a recommendation engine, to keep fans watching.  To whip this up internally would be a multi-year and multimillion dollar undertaking, requiring constant upkeep and updating.  For most entertainment companies, it does not make sense to take the focus off of what they do best, produce content, in order to undertake this challenge.  In the current marketplace, there are many solutions to ascend the OTT technological summit.  For Disney, the answer was to buy a tech company that had mastered an OTT format for apps with a strong backend architecture.  For others it means an internal team piece-mealing different external systems and then uniting them in-house.  Many networks and studios are opting to partner with tech companies like Unreel.me, which has a fully fleshed out solution to launch OTT SVOD services quickly and backs them with a user experience that has taken years to perfect. In Unreel’s case, that also means access to patented technology focused on Big Data and UI/UX that networks and studios won’t find anywhere else.

 

What has 2.58 billion dollars and a huge shake up in the industry bought Disney?

Disney is set to enjoy all of the advantages in which the other major streaming services have indulged in for years.  The primary gain is pure profit. The SVOD re-occurring monthly payment model is a lucrative one and the revenue will all go directly into Disney’s pocket. The other advantage is that Disney now owns the audience watching their content on OTT.  They will be able to recommend to them what Disney wants to be seen, show them ads and promotions for the products and experiences they want to push, and target them via email however they choose.  The other side to owning their audience is Big Data.  The immense amount of information Disney will collect about its fans is invaluable.  To have a profile of the demo and psychographics around each subscriber, and to understand how they engage with content, will guide content creation and marketing for Mickey and crew for years to come.

 

Netflix always knew that the studios and networks they license from would eventually pull the plug and become competitors.  That is why they are slated to spend 8 billion dollars on original content this year.  Disney has now confirmed that wisdom; we have reached a point where it is foolish for content owners not to take on distributing their content themselves in order to cut their own slice of the rapidly growing OTT pie.

 

Click here to find out how Unreel partners with content owners to quickly launch OTT services powered by Big Data and to learn more about our patents.                       

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VidCon Panel: Should Brands Make Videos?

This past week, the Unreel team was at Vidcon meeting with major creators, networks and brands, exploring how we can help them with OTT distribution.  During the event we attended several round-tables and keynotes, all focusing on a unique aspect of the rapidly expanding digital video industry.  One of these discussions stuck out as the most insightful and forward thinking.  Its title; Should Brands Make their Own Content?

 

Obviously, that sort of question at Vidcon is rhetorical in nature. The panel featured the content executives for Fandango, Dollar Shave club, Portal A and Mattel, who all opened with an unequivocal yes; brands should make their own content.  Of course no one was in attendance for that anti-climactic conclusion.  The actual focus of the dialogue was to understand how brands should go about making and distributing videos. Videos that engage their target market, expand their brand, and even possibly break through as a new source of substantial revenue for their respective company.

 

Deliberating the best means for brands to create content were Eileen Rivera of Fandango, Zack Bloom of Portal A, Josh Schoellmeyer of MEL, the content arm of Dollar Shave Club, and Isaac Quiroga of Mattel.  The group warned that for brands, taking on a legitimate content strategy was difficult, failed to present any kind of short term gain, offered unmeasurable and on occasion dubious long term returns, and is absolutely necessary to compete in today’s climate.  The challenge may be immense, but the payoff is unrivaled; a community of loyal for life fans.  To engage with your customers and nurture a relationship to that point results in an ROI marketers salivate over.  In order to accomplish creating that community requires two things; engaging content and appropriate distribution methods.

 

The adage ‘Engaging content’ is carelessly thrown around at Vidcon, with most possessing little understanding of its actually meaning. Fortunately the panel was eager to share their refined definition of quality content for brands. Engagement for brands is a challenge to measure, because it goes beyond views, likes and even comments.  The engagement brands care about is winning hearts and minds, ultimately driving a sale. To reach that end goal, you have to do something that is a bit counterintuitive ­– produce content that serves your target market without selling them a thing.  Entertain them, inform them, design narratives and formats that serve your users, but never sells them.  Would the content be able to stand on its own if it was not produced by a brand? According to Josh Schoellmeyer of MEL, only after years of engaging your audience can you work in light marketing and sales information without spooking your fans away forever.  For MEL, the name of the game is volume, constantly experimenting on a daily basis with videos.  If you hit 60% of the time, you are doing an outstanding job.  

 

The next component of the content equation for brands is distribution.  The group’s consensus was to focus on one platform that fit your brand well and would reach the greatest number of your target users.  Fitting the brand means a platform’s users match your target market, has limited restrictions, and posses a reputation aligned with your company’s goals and image.  When asked which brand is killing the content space, the first name to receive nomination from every speaker was Red Bull TV.  The reason?  Red Bull TV not only does a terrific job with creating content that serves its fan base, but they also have owned and operated OTT apps.  By owning the apps their content is distributed on, they need not worry about finding an external platform that is appropriate for their brand, they have created their own.  

 

In creating their own platform, Red Bull TV has captured the Holy Grail for brand videos.  They have been full heartedly embarrassed by their target market as a lifestyle brand synonymous with extreme living.  They are reaching their fans on their own terms on their own apps, without a concern for the restrictions and reputation of other platforms.  Lastly, they are able to start monetizing, or promoting themselves within their platform however they would like, sans some outrageous rev share or restrictions.  Red Bull has created a community passionate about their brand for life.  A community that took years to nurture that will now be customers for decades.

 

Click here to learn how Unreel is helping brands take control of their own distribution with OTT apps.

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App Spotlight: WHO?MAG Multimedia

Unreel’s newest partner to launch apps across leading OTT platforms is the largest host of urban entertainment and music content in the world, WHO?MAG Multimedia.

 

WHO?MAG brings you exclusive interviews, movies, TV shows, concerts, music videos, and much more. Starting as one of the first hip-hop/R&B orientated websites in 2002, a DVD magazine in 2005, to the largest independent hip hop/R&B TV show worldwide since 2007, WHO?MAG TV has now evolved into the TV network, WHO?MAG Multimedia.  WHO?MAG has always been ahead of the curve in urban entertainment, and now with Unreel, it is continuing that trend with OTT apps.

 

WHO?MAG Multimedia features the biggest names in hip hop and R&B ranging from Pitbull, Wyclef, Big Sean, Rakim, KRS-One, Redman & Meth, DJ Premier, Mathew Knowles, George Clinton, Public Enemy, and hundreds more. Check out the gallery below to see some of the industry’s biggest names already using the app.

 

Ready to get access to exclusive hip hop interviews, music videos, concerts, and much more?  Get WHO?MAG Multimedia, now live on Android, iOS, tvOS, and Roku!

 

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Bonnier and Unreel Partner to Launch Branded OTT Apps

Unreel is proud to announce our partnership with one of the world’s leading publishers, Bonnier Corporation. By working with Unreel, Bonnier Corp. has already rapidly released a streaming service supported by multi-platform apps for one of their most popular brands, On Two Wheels, a video series focused on motorcycling.

As innovative thought leaders in the publishing industry, Bonnier Corp. has come to consider OTT a key component of their business’s blueprint for long-term success. With the majority of consumers coming to prefer video over text and transitioning their viewing habits to OTT devices, the need to embrace video via an OTT app strategy has become a necessity for publishers. For them, OTT is a can’t miss opportunity and Unreel is the ideal partner to grow both their audience and revenue streams.

“Partnering with Unreel to deploy our own branded apps saved significant time and money, allowing our team to focus on content creation.” -Sean Holtzman, Bonnier

By powering many current and upcoming Bonnier Corp. own-and-operated video streaming apps, Unreel is enabling them to engage and monetize audiences on new digital platforms. As the publishing industry continues to converge with technology, it is clear that leveraging OTT is a vital part of 21st century publisher’s success; connecting and monetizing their audience in a new way (SVOD, VOD, AVOD). Utilizing Unreel’s big data focused OTT solution ensures that Bonnier Corp., and any publisher or network who partner with Unreel, will lead the new digital video landscape.

More about On Two Wheels:

On Two Wheel is the best motorcycle video series on the internet! Watch as Zack Courts and Ari Henning take on the most exciting motorcycle adventures they can find. Whether they’re skidding across the frozen lakes of Wisconsin, riding BMWs through Thailand, or racing Honda Grom’s, they’ll show you how to have fun On Two Wheels. A monthly motorcycle video series including motorcycle video reviews and motorcycle video test.

Click here to download On Two Wheels for tvOS, Roku, iOS and Android.

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How We Would Change The NAB Show

The NAB Show is the cannot miss event for those in the video industry, be their focus on film, television, digital and everything in between. It attracts anyone and everyone who is involved in the process of recording audio and video, editing it, storing it and then distributing it to audiences. As a distribution solution to that equation, we at Unreel have a unique perspective on how the NAB Show could be enhanced; providing a more productive experience for exhibitors and attendees. 

 

Improving the Show comes down to the most cliché’ phrase in the OTT, film, and television industry — Content is king.

 

For an event loaded with exhibitors focused on the process of creating and succeeding with content, one thing is glaringly missing from the expo hall; content. Every piece of the puzzle to win in video is missing except the actual video. There are film festivals and other content focused events happening year round for highlighting content, but they are fragmented and don’t draw as large a crowd focused on video as the NAB garners. Inviting owners of content to exhibit at the event would benefit all attendants, most of whose entire world circles around producing or distributing what else, content.

 

As it currently stands content owners of all kinds, be they networks, filmmakers, or creators, do not exhibit at the NAB. Although they constitute a significant portion of attendees, from the smallest independent creator to the head of a major network, without a booth their only opportunity to participate in the event is by walking. The NAB is overwhelming and even the most ambitious attendee would struggle to make it to all corners of the event and meet with every company relevant to their needs. For owners of content, there is one specific need that they can ill-afford to miss out on exploring every solution for; that is additional distribution. By giving them the chance to exhibit rather than wander, it would simplify the process of connecting content with distribution platforms; be it a new app store, UDN, or means to distribute themselves.

 

How the new and improved NAB Show would work:

 

Just like hardware, software, and services get their own floors at the NAB, so would content owners. Major Networks, the OTT kings (Netflix, Hulu, etc.), and MCN types would be able to have a presence as exhibitors, and show off their content; an asset nearly every one else at the event so desperately wants to get their hands on in some way. Platforms with the need for content, like Unreel, be it for syndication, distribution via an app, or original content, would then be able to target and approach appropriate content owners— rather than waiting and hoping that those content owners just pop up at the platform’s own booth by chance.  At the end of the event content owners who chose to exhibit would have a thorough list of contacts for new opportunities to distribute. It is a win-win for all sides, allowing those with content, always looking for new ways to increase their reach, to connect with platforms desperate for content to deliver to their audiences.

 

To learn more about how Unreel transforming the way owners of content distribute, click here!

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App Spotlight: KNEKT Television

In a society where the entertainment industry and its stars often focus on the material and extraneous, the video network KNEKT is digging deeper.  At the intersection of celebrity, charity, A-list events, and healthy living, KNEKT develops socially conscious content that matters. Driven by their motto, ‘Believe. Connect. Change the World,’ the LA based production company produces world class live and pre-recorded HD broadcasts from exclusive events, concerts, performances, charity galas, fundraisers and red carpet shows, as well as developing and producing film and TV shows with a core theme of conscious content and social good. A winner of the 2016 iMedia Agency Award “Campaign of the Year,” KNEKT is defining what it means to produce content that is as impactful as it is entertaining.

 

Introducing KNEKT Television apps:

KNEKT Television, the exclusive streaming service of KNEKT content, has launched across iOS, tvOS, Roku, and Android with the help of Unreel tech! Here is what to expect from KNEKT Television apps:

 

“KNEKT Television will take you behind the velvet ropes to experience world-class exclusive events, celebrities and social influencers. From concerts, performances, charity galas, fundraisers, red carpet interviews to health and wellness videos, sporting events, environment, animal rights and celebrity news, there is something that matters for you to watch on KNEKT Television. KNEKT Television will entertain, inspire and educate through content that matters with a focus on social good.”

 

Of course KNEKT Television’s website and apps feature the cutting edge UI/UX only Unreel powered apps offer. That includes moment based commenting, an instant GIF/MEME maker to GIF your favorite scenes, and social engagement from around the web. Couple that tech with an incredibly rich and diverse content library keen on delivering a positive message and KNEKT Television is an app you have to have!

 

  

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How to make more money from videos: Syndication

 

For content creators, cashing in on their videos is becoming increasingly difficult. Major companies and their ad dollars, predicted to be worth almost a billion dollars, are fleeing away from YouTube after recent blunders. The platform’s response has been to tighten the rules around what content can be monetized, further hurting YouTubers. There is less money to be had, and it is harder than ever to get past the gatekeeper. Even if you create a monetizable viral hit, it is nearly impossible to keep others from copying the video, and republishing it on Facebook or elsewhere, allowing them to take a significant cut of the revenue you could have generated. In today’s content world, making a business out of your videos means pursuing multiply revenue opportunities. Only mega-creators, who’ve signed lucrative exclusive deals with a specific platform, can rely on distributing their videos to one place. A major part of distributing content to multiple platforms and maximizing revenue for creators now includes syndicating content.

 

Syndicating your content is a simple process that allows your videos to work for you without additional effort. It is important to note the major advantage of syndicating videos is that it in no way affects your current content strategy. You continue along as you would, free to make and distribute content however you choose. Syndicating simply means that the videos you upload to YouTube and Facebook, will also synch with other properties (video streaming apps) who have been given permission to show your videos. When your videos are shown on these properties, ads are placed just as they would be on YouTube or Facebook. Of that ad revenue, you are given a majority cut.

 

Syndication libraries like Unreel’s push out videos to apps with millions of users. When you synch your videos to our content library, they have the opportunity to be seen by millions of new viewers. This means you receive ad revenue without having to do a thing and gain exposure to a massive audience interested in the genre your videos occupy. Those new viewers are often easily converted into fans of your brand, then seeking your content on other platforms.

 

How it works:

 

1. Go to Unreel.me and launch your own video streaming site for free. This can be a destination you market and drive fans to, or a private place, simply used to synch and upload your content. If having your own video streaming service (Think your own Netflix) is something you are interested in, Unreel can also build you video streaming apps for every device to reach your fans wherever they watch.

 

2. Upon creating your site, you will be invited to connect your YouTube and Facebook accounts. By doing so, every video you’ve ever published on those platforms will automatically be imported onto your new site and integrated into Unreel’s syndication library. Any videos you upload to YouTube or Facebook in the future will also automatically be synched.   You also have the option to upload videos directly to your Unreel.me powered site.

 

3. Contact us through the admin and express your interest in syndicating. By creating a site and synching your content you will automatically be added to our syndication marketplace, however by personally letting us know about your desire to syndicate, we can make an effort to push your content out to our partners and our own properties.

 

4. Keep doing what you do. Continue making the videos you enjoy to produce and posting them where you normally would. They will automatically be pulled into our system’s library and be eligible to syndicated to millions of users.

 

Learn more and start earning with syndicated content at Unreel.me!

 

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