how we got here or what the future could look like the us unplugged starts right now. let's face it people are falling out of love with cable television not that it was all that popular to begin with of the forty three industries rated in the twenty seventeen american customer satisfaction index cable operators ranked dead last but it's not just poor service and hefty prices weighing down its reputation cable struggles to keep up with cutting edge technology and because of it more people are cutting the cord more than one in five american households are now cable free pay t.v. providers are bleeding subscribers the first three months of twenty seventeen alone the company's lost more than three quarters of

a million consumers according to research firm moffat nathan sin that's about five times more than they lost the same period last year and in a nielsen report about forty percent of cable subscribers under the age of thirty five said they have plans to cut the cord in favor of an online only option every day those options become more and more abundant but while they all fight for cable's old customers which one will end up on top. streaming doesn't just hurt cable and satellite companies like charter communications or dish network it also punishes entertainment networks like viacom which owns and t.v. comedy central paramount pictures companies like biocon sell its channels and programmes to third party providers and this past week when viacom told that the investors failed to cable and streaming services would be down this quarter while the stock plunged so why is viacom and other entertainment companies content less appealing these. let's bring in jason segel co-founder and chief digital officer.

jason thank you for being here thanks for having me look it's obvious why it's streaming services cable providers that seems very obvious to me it's less obvious to me why entertainment division. amc n.b.c. universal are also suffering why are these companies having a hard time switching from selling to cable to selling to streaming services what we're seeing happen is the pendulum is swinging in the past they always took advantage of just trying to sell volume of channels and the consumer always said i really only care about six channels and they just like well millions of minutes millions of hours and t.v. channels thousands of channels that's not important it's about quality and that's why netflix is really starting to dominate and take over because they have the quality content that the customer in the consumer really wants so it's a quality game not a quantity game and the pendulum is swinging back to the skinny bundle which is really really exciting for the consumer now how many skinny bundles that people

want before it starts to not even be financially attractive to the consumer that's what's going to be the next challenge i believe right because we don't want to be spending a lot of money when we know that we can spend seven dollars on netflix as opposed to a huge cable bill like new new media has completely transformed the way that we look at media in general all across the board how are more traditional forms trying to fight back and really do they have a fighting chance well the interesting thing is the skinny bones they sort of look at c. and b. c. when you look at c. and b. c. you've got animated characters like jim cramer great graphs and tickers but when you look at a brand like cheddar they can basically produce the same content but they don't have the expensive contracts of people like kramer integrated into it so you can put cheddar in with another premium channel and it's just as attractive because the young millennial they don't have the brand equity or allegiance to see. n.b.c.

like the baby boomers so this whole shift is happening and the new channels are emerging and taking market share from the old titans but the old titans seem to be doubling down on this like cable news. verses like who used utilizes more online forms you know we have a lot more people here at our t.v. we do broadcast on cable but we use facebook we use you tube we have streaming on our website we have our app so what happens when you don't keep up and surpass the times really because it's all about staying ahead of the trends well the interesting thing i see happening here is we're seeing a boom in the amount of demand for content creators and the executives in the ivory towers are able to financially and legally engineer their earnings the way they used to brands like e.s.p.n. they build business models gave billions of dollars to major league baseball but then they had an assumption of the number of subscribers that they'd be able to

monetize their guns they're not there anymore so it's a big challenge for them constant creators are now in huge demand because netflix and amazon they all want to create proprietary content so ip is really where it's at from at macro economic standpoint it's great for the economy more and more people get jobs you need writers editors after effects producers and then marketing agencies create viral buzz for this content so it's really exciting from a macro economic standpoint what's happening in the media industry is really creating a boom now unfortunately the c.e.o.'s aren't able to report earnings but on the other side the jobs report can look really really appealing mark let's talk about the consumer we have a ton of options there behind you i won't make you look around but do we have too many options that's going to be where the pendulum is going to swing back right now people say i don't need my six thousand channels with my brothers and i'll get six bundles with. netflix hulu it's h.b.o.

go but when the economics of that and they start creeping up their cost the consumer will start to say you know what this is actually going to be the same problem i had before and the pendulum will keep swinging back and forth i believe where all this is going is the netflix is and the other content buyers will start to look at artificial intelligence avatar technology machine learning as a way to produce high quality content without the big and costs that make it really difficult to hit their earnings expectations of wall street let me ask you this that what's your take on the news coming out this week that disney is going to be pulling its content from netflix and start not one but two streaming services of its own does it have a landscape for that i love the move because what we're seeing is with the miller world the acquisition by netflix netflix says you know what we know how to produce great content stranger things game of thrones we're we're seeing these brands are able to produce great content they need the great writers and the great idea people

so they're like you know what people the young generation they might not know thor the way maybe baby boomers and gen x. understand who thor and these characters are we're going to create great stories with the next generation of characters and they invest in millar world and they're going to go toe to toe against disney who acquired marvel and it's going to be an interesting fight to see what the consumers are attracted to the most but what happens to the media landscape when it comes to money being dispersed when companies like netflix and hulu amazon crying when they push their own original content over the content of life since movies and shows that they have well you know it's going to be really interesting to see if the economics can work out netflix is using the debt instrument over ten billion dollars and can they wind up making that work what we're seeing is paeans economics and the way they figured it out it's looking like it's not going to work out for disney and they may want to spin out e.s.p.n. they've given. too much money to major league baseball and others and those

subscribers aren't there to justify their investment so now the other netflix and others amazon is starting to they just spend a ton of money for thursday night football can they wind up making that work i think they're going to use this as a way to get in the door and show people they could have a competitive entertainment offering but will they eventually have the same problem as varieties and the other cable giants we will see is there money in aggregating all of these choices into one area i don't believe so i think what you're going to see happen is what the skinny bundle is it's premium content and as much be content as possible that they can put in the try to show perceived value but eventually netflix and the others if they don't if they try to take the route of just stacking garbage versus stacking quality content they'll be perceived back to life of horizon so they need to keep the quality high keep their costs in shock and they can take it to the next level and take down the old giants we'll see where it goes

from here jason segel co-founder and chief digital officer absolute x. thank you very much. not all netflix accounts are created equal the company operates in nearly every country in the world but that doesn't mean every country has access to the same content the us is basically the mecca for netflix shows so international customers would log into virtual private networks or v.p.n. to circumvent any geo blocks that would say prevent an australian from seeing shows licensed only in the us then netflix cracked down cutting off v.p.n. users from accessing content from other international catalogues so that even if you tried to get around it netflix would lock you down to your local service these are real customers paying real money to get access to netflix offerings but there's a real reason behind this. and she shut down the thing is when someone owns rights

to a movie they want to make as many different distribution deals in as many regions as possible so a show that's sold to the u.s. cable might also be sold to u.k. sky and australia's foxtel by shutting off netflix pleases the rights holder at the cost of customer satisfaction but it's also why when trying to sell to subscribers worldwide streaming services like netflix push its own content first all right time now for a quick break but stick around and when we return we'll tell you which device gives advertisers the biggest bang for their buck and you tube facebook which videos get the most of us did. even the first place where we go here the number of opposing.

chemical discoveries of the last century made every day life easier but at what cost this is serial is exceptionally sick. no wonder it's confidential. just says the years old industrial giants reap the benefit ignoring the caused by chemical production. you know as if these people aren't people just experimental animals decades later the toxic environment continues to poison lives and we found these astronomically high levels of dioxin

levels that my staff think maybe some of the highest levels ever found in the united states for almost thirty years this very serious problem had not actually been addressed what will that investigation into the chemical industry secrets revealed. to disrespect. the earth. this transition is in the still energy paradigm is really remarkable as happening quite rapidly and. by this network economics that's just forming the global economy. getting electricity in the battery is our battery technology. so it's really. a pocket. business and. while. we willingly accepted the risk of being shot wounded taken prisoner but noone signed

up to be friggin poisoned by people that was nuclear biological and chemical products the said do not truck tires all types of styrofoam polystyrene batteries trucks there was a complete denial i think at all levels of government that there was any connection between berm pits and what these brave soldiers were suffering from to compensate every soldier marine airman and sailor that was on the ground that are complaining about illnesses from their exposure from the berm pits would really literally send a v.a. broke and they don't want to pay it so the waiting decades a lot of those soldiers will die in time and they will have to pay it. all grow up and get the middle finger to the movies tomorrow or is. delayed a no no peter.

welcome back to a special episode of boom bust unplugged we know people are watching last and last traditional t.v. by how much though this crop compares the change in hours that watching t.v. per month from twenty ten to twenty seventeen overall americans are tuning in. twenty one hours fewer each month than they did seven years ago now while viewership is up here in the sixty five plus range for every other age group it's down especially here in the thirty five and under crowd with all this negative numbers mean is that companies that advertise on t.v. are getting less exposure to the product so no surprise these companies are turning

to other platforms to get the message out these are the results from a new report from free will part of comcast advertising solution to what it shows is that viewers that stream content on over the top devices that is apple t.v. roku amazon fire t.v. devices that you plug into the t.v. to stream content those viewers complete ninety eight percent of the ad that's compared to tablet users that ninety one percent smartphones eighty six and desktops over there at eighty four and the same studies show that these o.t. t.v. viewers spent more time watching programs thirty six percent of them tuned in for more than an hour so the entre pretty high that they're seeing a lot of those ads to make even more appealing to advertisers freewill found the household tend to be younger and more affluent making it one of the most desirable to marketing targets.

perhaps no company at this point can compete with the big two in internet advertising facebook and alphabet which owns google and you tube the research firm a marketer expects that this year these two companies will take half of all internet ad revenue worldwide and more than sixty percent here in the united states joining me to talk about the battle for dollars is michael dell peer co-founder and c.e.o. of conversion by michael first of all thanks for joining us there for every it sounds like google and facebook dominance in the digital ad space is pretty hard to dispute what's your take on it it's true. for the majority of our clients they focus on strategies that yield them a good return on investment and there's no better companies outside of facebook and google if you think about it google owns about ninety percent of the network of websites out there so from an ad dollars standpoint that's the go to but facebook

has got more criteria for each person name address phone number where you went to school interests things of this nature and they can target you better and then with over two billion unique facebook users a month there's a better platform so these are the top two though who edges the other one out if you're talking about different advantages for the two companies. coming up a snap chat that just came out but that's hardly really the twenty and below crowd there's always being in the yahoo but for the most part it's it's google and facebook but is google better or is facebook better it's really completely different if you're looking more forward to be to be crowned king than say linked in is a great aspect is won't have a great product but google's a default and we have to understand that over three billion internet searches are conducted per day on google unbelievable that's insane so that's why google's the big behemoth and i don't even comes close to that right but facebook offers a different type of a platform in which their people are on there every single day for hours at

a time so advertisers want in front of them it seems like companies like facebook have figured out a way to make money but it wasn't always the case i remember in the early years of social media that was a real struggle is figuring out how these free platforms would bring in revenue correct i remember when i first went public it was so interesting to see them so the stock price go up and then it just plummeted because nobody had faith that they would be able to monetize their platform and their user base but once they start to see growth when advertisers they started picking up steam they're like you know there's something there and there is that's why that's blowing out of the park or they. not to charge as much for ads though compared to what you would see in t.v. i can tell you this for a lot of our clients just clients worldwide is that people have a certain amount to spend on google it goes sometimes four and five fold on facebook it's it's a lot cheaper and on top of that they have a lot more diversified platforms to ever ties on with

a straight paper click ads you get charged every time you click on that to about four or five other different options google's pretty much a paper clip type of an option facebook offers a lot of different options that love the platforms don't even have t.v. used to be the place for advertisers thought i mean you have even with a hefty price tag talk about the super bowl companies are spending millions of dollars to get a thirty second spot be that changing or when it comes to events like that is it still worth it to go to t.v. and spend that kind of money are recognitions no i mean if you're a big brand and you have a huge burning campaigning or you want to get the word out short of super bowl if you have the million dollars to spend and above but if you're the same amount of money you can make a huge improvement over a brand recognition as well as lead generation if you are to be able to buy that money to digital advertising. if you look at any part did digital advertising is only going down it's not going up i'm sorry t.v.

advertising is only going down not going up are is the number of advertisers or the price in terms of the amount of advertising more advertisers are spending the money on digital than ever before let's say you have one hundred thousand dollars how would you tell a client to split that money up among different advertisers it would depend if you're b. to b. or b. to c. or going to g. ok let's say like business to consumer sure. facebook is a no brainer our party divided up forty percent on facebook and then a large chunk on google and polluted to being in yahoo ok so you do see a lot of traffic on sites like yahoo that surprising. i would i would imagine that google would have taken that over a long time ago it's true but the one thing yahoo does have is a network of websites that is beneficial to advertisers what about the way that we consume ads so this weekend the teen choice awards are going to air and fox is trying something new they're going to be airing six second commercial spots they're

charging as much as seventy five thousand dollars for a six second commercial what are we seeing there what's this new trend to six seconds and up on t.v. and and who are they trying to target if you think about it the attention span for that specific age group is based upon what snapchat. you sent a picture it's gone it's the same type of methodology and theory is less to smaller advertising avenues and see if this makes an impact the problem is this is purely a they have no idea how this is going to turn out but we're in a landscape right now where everyone's testing things out where do you see t.v. ads and digital ads in the next five to ten years how do you see them merging or changing i think the biggest thing is going to be video interactive video i've been able to engage with the end user understanding their likes understanding what they're looking for and be able to tailor an ad to target them think about it how many times have you been to a website and then you leave to go to another website to see an ad for that

specific website or product that you just left to targeting this is something that's only going to improve and get better over the course of time and i think that's the future and we've already seen it we're talking about how advertisements really target you and for an older generation maybe that seems a little more concerning for a younger generation they might see it as more convenience it completely is i mean if you want over lunch you just sit at your desk right now go to a website in order to watch and it's there thirty minutes from now you can do that ten years ago it's all about convenience and creating the best user experience instant michael dell pair co-founder of conversion pipeline thank you so much. for joining us to thank for having me. as traditional cable companies continue to fight for viewership and subscribers modern video platforms are exponentially growing while there is more than a few out there the reigning leaders of online video are you tube and facebook but how is that changing the business of media boom bust break that down for us the

increase in video content on the internet has forever changed the media business between all of the websites and mobile apps there is a seemingly never ending stream of platforms to upload video of the wide variety facebook and youtube that remain on top but which one guarantees the most views we put it to the test to find out on the archie america you to page a one minute and fifty one second video received a little over four thousand views within twenty four hours on facebook it got over double that at nearly nine thousand but the metrics are measured differently on each one both facebook which was founded thirteen years ago and you tube created twelve years ago see over one billion daily active users log on on facebook of you is counted after three seconds on you tube it's counted after thirty seconds they also measure auto plays differently with facebook counting them without sound and you tube not counting them at all so when it comes to online video advertisements

those are some of the points weighed before spending and that's still up for debate by the end of two thousand and sixteen both websites pulled in an estimated five point six billion dollars in ad revenue and are expected to see those figures rise to this and next year the reason there is not a clear choice for one over the other has a lot to do with the topic and length of the video itself short videos tend to do better on facebook where users explore their feeds until something catches their eye and long videos generally perform better on you tube where users go specifically to watch a video. when you consider that it becomes a little easier to choose which platform you should upload your thirty second recipe explainer for your thirty minute construction tutorial according to technology conglomerate cisco video make up sixty nine percent of all consumer based internet traffic this year by two thousand and nineteen it's expected to jump

to eighty percent so even if facebook and youtube continue to fight for the top spot neither will have much to worry about considering analyst expectations. they sound like they're neck and neck and there is a lot of potential for business when it comes to online video that's why we here at our to use that kind of platform but what about individual content creators so the business approach to online video is very different than the individual user experience i mean when you go to websites like you tube a majority of the accounts are individuals so to get more insight on what their experience is like i spoke with chris sanders who's had an active you tube channel since two thousand and eleven he has over sixty thousand subscribers and uploads a variety of content and i asked him if he had to choose between mutual facebook and some other options like snap chat or instagram which one would he pick to promote his content and he said you tube for sure but right after he said that he quickly acknowledged that a change in new algorithm which occurred last year has been making it much harder

for users to expand their brand and build an audience so i asked him why he thought you tube did that and this is what he had to say about that you tube we've never been profitable in the entire. google is trying to get more and more profitable and i think that while it doesn't help the individual user base it does help the bottom line to focus on a small subset of users or other creators and help them cope with everyone else grow and expand so the individual user base is still important to you tube it's obviously the basis of their entire platform but now that they're moving towards the ad game. kind of prioritizing that it's hurting a lot of those individual users and could drive some of them away so how has the shift to prioritizing big ad dollars impacted individual users like chris well as i just said in one way it's pushing them to other platforms that they're getting frustrated with you tube and the whole ad changes they're going to websites like me

or patriot where they can also upload their content and have an easier time monetizing their content but another interesting aspect is the way this has really changed our policy in general last year you tube had what users were calling an ad pocalypse where they were purging a lot of ads that were on videos that may have had a lot of views but turned out to be very offensive or inappropriate so you know that was scaring advertisers away and they couldn't lose out on that money right bianca machining that was really good reporting thank you so much. here's the skinny you may be watching me right now on your t.v. but a lot of you are watching me streaming on our website on our rap on facebook or on you tube the thing is cable t.v. is alive for now but it's dying at a faster rate than media professionals could even predict just a few years ago and the skinny bundles being offered where you pick and choose just

a few channels you want for a cheaper price that'll likely phase out to traditional media is just going to have to give a new forms or give up now we have all sorts of options to choose from but picture this if i want to watch a specific movie say the goonies i'm going to google it on my smartphone which platform stream it chances are i have a subscription then i go to my smart t.v. click on the app and watch it i have that patience because i grew up adjusting bunny ears but the younger generation will not and whoever can aggregate all of these combined might just win in the end. because as you no provision are going to do what it does on those. but arca. your so you'll try to alaska's buskers just will begin to got the. resources you are going to go for that people go mano

a mano with those who oppose it but the big sort of i don't mean that there's been any of them. joining us as you know but it was you're not. you know just i mean about what it already but it was but the bar would be difficult to read it. i remember star the lord we're going to go with. this it up as well i must admit that it is yours and yours will get on getting worse but those were the orders they speeded to sound those people are going to respect one of this but of course the basilica obviously does this where this part of his arm was criminal. i'm. in the. live. live.

live. live live. live

. r.t. visits a russian family who claim to recognize a relative in a video filmed by our pruitt an orphanage and back that. the. president from says u.s. weapons are locked and loaded for north korea that's after he doubled down on his fire and against the country frankly the people who were pushed through that statement wasn't too tough maybe it wasn't so for the. new report shows top e.u. officials racked up enormous bills on their luxuries sporran trips and twenty six paid for by none other.