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tv   Boom Bust  RT  August 19, 2017 8:29am-9:01am EDT

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if you don't lie well there will and souls find a way to rebuild their lives in the wounded lambs game. we're. i'm seimone del rosario and you're watching boom box unplugged a special episode taking a closer look at how digital and through media are pushing out more traditional forms and these are the headlines dominating the media landscape does need to pull movies from netflix launched her own streaming service netflix just bought its first company and it's to team up with a comic book legend c.b.s. will launch a streaming sports network later this year facebook watch social media giant launch a platform for short form shows and f.x. to stream ad free for six bucks but only for comcast cable user these headlines
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that a whole lot more are from this week alone media technology is moving at lightning speed and companies of all kinds are trying to not only keep up a complete but who is winning the race and who is coming in last or about to find out and not only in damage how we got here but what the future could look like the bus 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
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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 companies 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 cables 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.
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comedy central paramount pictures companies like viacom sell its channels and programmes to third party providers and this past week when viacom told its investors that sales to cable in streaming services would be down this quarter while the stock plunged so why is viacom and other entertainment companies content less appealing these days 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 divisions like viacom 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 millions of minutes millions of hours and t.v.
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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 quality game and the pendulum is swinging back. so 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 bono's 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 chatter they can basically produce the same content but they don't
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have the expensive contracts of people like cramer 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 a c. and 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. forces who use 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 used you tube we have streaming on our web site 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
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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 in some. and 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 content 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 an 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. talk about the
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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 brides and i'll get six bundles with netflix hulu or h.b.o. go but when the economics of that and they start creeping up their costs 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 though 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
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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 terror 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 prime when they push their own original content over the content of life in 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.
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using the debt instrument of over ten billion dollars and they wind up making that work what we're seeing is either peons 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
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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 at blue text 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 than netflix. down cutting off v.p.n.
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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 the stingy shutdown 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 p.p.i. news 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 when we return we'll tell you which device gives advertisers the biggest bang for their buck and you tube versus facebook which videos get the most views and really what constitutes
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a view in the first place. actually as a financial survival guide. let's learn to love let's say i'm the troika and you're i'm greece the flight. thank you for. the story that's true. for debt slavery. we all willingly accepted the reel of being shot. taken prisoner with.
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the friggin poison. people that was leaked or biological or chemical products do not truck tires. styrofoam polystyrene. trucks there was a complete denial i think at all levels of government that there was any connection between. and what these brave soldiers were suffering from to compensate every soldier marine airman and say or there was on the ground that are complaining about illnesses from their exposure from the burn pits would literally send the v.a. growth they don't want to pay it so the way to decades a lot of those soldiers. and they won't. get the bill for the movie is in. delayed.
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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 graph compares the change an hour spent 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.
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roku amazon fire t.v. devices. you plug into the t.v. to stream content those viewers complete ninety eight percent of the ad that's compared to tablet users at 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 that o.t.c. 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
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internet ad revenue worldwide and more than sixty percent here in the united states joining me to talk about the battle for ad dollars is michael dell peer co-founder and c.e.o. of conversion by michael first of all thanks for joining us there for having me 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 web sites 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 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
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you. 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 seedling didn't is a great aspect is won't have a great product but google's a default i mean you 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
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correct i remember when i first went public it was so interesting to see them sell 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 are they able 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 are 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 advertise on whether 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 their platforms don't even have t.v.
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. you used to be the place for advertisers though 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 do you see 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 conditions no i mean if you're a big brand and you have a huge burning campaigning or you want to get the word out that short 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 were to be able to buy that money to digital advertising. if you look at any chart 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 aren't 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
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would you tell a client to split that money up among them are now 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 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 because 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. you saw. the picture it's gone is the
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same type of methodology and theory is less to smaller advertising avenues and see if this makes an impact the promise this is purely a test they have no idea how this is going to turn out but we're in a landscape right now where everyone is 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 a 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
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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 can sit at your desk right now go to web site order 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 care co-founder conversion pipeline thank you so much for joining us today thank you 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. machine 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's a seemingly never ending stream of platforms to upload video of the wide variety facebook and youtube that remain on top the. which one guarantees the most views we
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put it to the test to find out on the archie america you two 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 the best investment is 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
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those figures rise 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 once 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 hear it
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are to use that kind of platform but what about individual content creators so the business approach for 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 you tube facebook and some other options like snapchat 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
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and i think that while it doesn't help the individual user groups it does help the bottom line to focus on a small subset of users or other creators and help. everyone else grow and 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 and 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 abt changes they're going to websites like me or patron 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. ad policy in general last year you tube had what users were calling an ad pocalypse where they were purging
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a lot of ads that were on videos that may have had a lot of use 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 sheeny 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 web site on our app 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
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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 one line. for dogs may not only be tiste but also. the relationship between kids sure it was just a proof and a fairly strong one there were two thousand routes involved in the study it's a very extensive study done by a well respected scientists. do chemicals that appetizing. crease the risk of cancer and i chose a means of known to infuse damage in the last test is it
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a shared skepticism they do not believe that risk is is truly by independent scientists and in the meat industry pins you for this i received some compensation for my time as was the others why is that the meat lobby definitely didn't like what we were doing and if you want to learn more you'll get a definite on the flood. not. is it big business against health. as it started. almost. seemed wrong. to me. yet to shape out these days to come to advocate and engage equals betrayal.
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when so many find themselves worlds apart. choose to look for common ground. well you. know look i know what mary and one million people died. he killed people even begun. to. know no one's going to wait a few bodies around him and that's. police
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in finland say they now believe that friday stabbing attack which left so you dead was an act of terrorism the main suspect is said to be an eighteen year old moroccan asylum seeker. mass protests a scene in barcelona are often twin terror attacks that hit this is the state killing fourteen and injuring hundreds more also to come. we didn't get any benefit from the u.s. they target civilian houses but they don't target are still moving.

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