Category Archives: Television

Light reading September 29, 2013

Articles of interests to techs, geeks, and capitalists.

It appears Android has overtaken iOS in unit numbers of, but declarations of the iOS demise would be premature. If Apple spun out its iPhone business it alone would be ranked 10th based on revenue in the S&P 500. Bloomberg has compiled a slew of other iPhone fun facts.

This would be humorous if it wasn’t so creepy. The NSA can scan our social network, phone, email, and travel itineraries, but a federal judge allows a class action suit against Google to proceed because Gmail’s ad serving technology might violate federal wiretapping laws.

As baseball’s regular season winds down, Jonathan Mahler of the New York Times asks why such a wildly successful enterprise like Major League Baseball feels so irrelevant. Could it be that TV killed baseball? Is the Game Over?

And finally, the obligatory Breaking Bad reference. This Economist column favorably compares the lessons learned from Walter White to a Harvard B-school MBA.

Rethinking Ratings

Last week the NY Times reported in its Media Decoder blog that Nielsen is rejiggering the way it tabulates ratings to include Internet connected TVs. Of course media executives are in favor of any upwards pointing tweak to the algorithm, but how much closer to reality is this making the ever dubious ratings game?

I think not much. Nielsen still isn’t counting laptops, tablets, and phones. Just big, old flat screen TVs.

The new definition “will include those households who are receiving broadband Internet and putting it onto a television set,” said Pat McDonough, the senior vice president for insights and analysis at Nielsen. Currently a “television set” is the flat-screen kind…

…just 0.6 percent of households in the United States meet the new description.

It’s a start, but for how long are advertisers going to care about the aggregate? If everyone isn’t seeing the same ads, what good is the data? And don’t we already have good numbers on ads that reach viewers via IP?

To an advertiser a ratings point equals 1.1 million or so households viewing its ad. Advertisers don’t really care about who viewing the surrounding content. In the age of the DVR, VOD, and TV over IP, that’s not just semantics. The discrepancy between eyes on the content and eyes on the ad can be significant.

According to Wikipedia, the number of homes with televisions dropped by 500,000 form the previous year. A cynic might argue that a mere 0.6% upwards adjustment was concocted to maintain the value of a rating point, not the value of the data. It’s time for a fundamental overhaul of the ratings system. Television might be the first case in the modern media era where the IP-delivered ad has greater value than the traditionally delivered ad due to targeting and mandatory viewing through technologies like fast forward disabling in VOD.

Some Oscar Night Reading

This week’s Economist features a brief article on the state of Hollywood. Though not a lot will be revelatory to those of us in the space, it does remind us of some interesting trends that many of could hardly imagine just a few years ago.

One example, rumors of television’s demise were premature.

TV is relatively stable and currently lucrative. TV networks earn money from advertising and from the fees that cable and satellite operators pay to carry their programmes. These fees amount to some $32 billion a year in America, and are growing by about 7% annually. People love watching TV, and, per hour, it is one of the cheapest forms of entertainment.

In contrast, film revenues are volatile. Attendance swings like the moods of Claire Danes’s bipolar character, Carrie Mathison, in the TV show “Homeland”. In 2011 American cinemas sold 1.28 billion tickets, the smallest number since 1995.

As studios continue to experiment with new distribution models, and companies like Netflix are getting into the content creation business, both the motion picture and television industries might be in for a period of growth.