Broadcasters Hope To Counter Ad Skipping By Replacing Ads With Short 'Inspirational Videos'

from the that'll-work dept

The cable & broadcast industry has gone to some pretty absurd lengths to avoid having to adapt to the cord cutting era. As ad-skipping DVRs started to become popular, the industry's response wasn't to embrace natural evolution, it was to file a bunch of lawsuits and creatively harass companies that were trying to give consumers what they wanted. Similarly, as cord cutting has grown thanks to sky-high prices and ad break fatigue, the industry's overall response was to first raise prices like it was going out of fashion, then try to speed up or edit down programs in the hopes of shoving more ads into each viewing hour.

None of these "solutions," you'll be shocked to learn, actually slowed down the sector's evolution or the exodus of cable TV consumers to more flexible, less costly streaming alternatives. Alternatives that are, you'll note, actually listening to users and giving them what they're asking for (usually).

More recently, we've seen broadcast and cable executives begrudgingly admit that they can't just keep doubling down on the same dumb ideas and expect a better outcome. As a result, we've seen some broadcasters experiment with lower advertising loads during prime time. And we're also seeing to see the industry get a little more creative as to what modern advertising actually means, even if many of these offerings aren't likely to solve the problem either.

For example, NBC has pondered bringing back the bygone era of product placement, something that can easily go wrong if handled poorly. Similarly, Fox outlets like Fox Broadcasting, FX, at the National Geographic channel announced this week that they'll soon start experimenting with replacing ads with short "inspirational videos" funded by the pharmaceutical and insurance sectors:

"Starting this fall, Fox outlets like Fox Broadcasting, FX, Nat Geo and their digital counterparts will begin running inspirational videos that tell stories about people who have overcome adversity. These tales won’t take part over the course of 22 episodes, but will instead show up during advertising time, and Fox hopes to get marketers to sponsor them. Pharmaceutical companies, sports advertisers, insurance marketers and wellness firms are viewed as potential candidates that might consider attaching their names to vignettes of various lengths about people triumphing over cancer, the loss of a limb, or even blindness."

Executives at Fox are calling these "inspirational vignettes" or "unbreakables," in that they're supposed to keep the viewer's attention fixed to the screen:

"Fox is expected to unveil the idea for the inspirational vignettes, known as “Unbreakables,” Monday at the Cannes Lions advertising festival in France. “As part of our relentless pursuit of providing the best viewing experience and the highest performance for marketers, we are turning ad time into brand storytelling time,” says Michael Shields, senior vice president of sales strategy for Fox Networks Group, in a statement."

Short stories funded by major corporations seeded between programming sound a lot like... advertisements. And while you have to credit the industry for actually trying something new, this will do nothing to thwart cord cutting if the content in question isn't actually compelling. We've talked in the past about how good content is advertising and how good advertisements should be good content -- but do you really think that what comes out of this will be good content?

A better option for the cable and broadcast sector is to finally acknowledge that the cash-cow cable TV days of yesteryear are gone, they're not coming back, and that cable operators and broadcasters are going to have to actually try and compete now. That's going to require competing on price, service flexibility and customer service (gasp) instead of just doubling down on bad behavior. Many cable and broadcaster execs have grown so pampered from years of cozy deals and muted, "wink wink" style non-price competition that they're under the false impression that they have any real say in the matter.

But that's how competition works. You don't much have a choice in the matter, and you can either adapt your business model to the new paradigm, or you can slowly but surely become an outdated relic surpassed by more nimble, flexible companies that actually provide what the customers want. Better ads are certainly part of that equation, but they're only a small portion of what's wrong with the traditional cable TV model.

Filed Under: ad skipping, advertisements, advertising is content, broadcasters, content is advertising, cord cutting, inspirational videos
Companies: fox, nbc

Cable's New Brilliant Idea: Charging You More Money To Skip Ads

from the same-shit,-more-money dept

We've noted for years how cable executives facing market (r)evolution just can't stop making bone-headed decisions. As cord cutting accelerates and ratings take a dive, many cable and broadcast executives have decided the solution is to stuff more ads than ever into every viewing hour, in some instances actually editing down or speeding up programs so the additional ad load will fit. That's of course when they're not busy trying to prevent users from using modern technologies like DVR ad skipping, relentlessly raising cable rates and perpetuating some of the worst customer service in America.

Quite often, cable executives try to obscure the sector's dysfunction by pretending to be innovative, and hoping nobody can tell the difference. The latest case in point: FX Networks has struck a new deal with Comcast that lets viewers avoid ads on some FX programs -- if they're willing to pay another $6 per month:

"For an extra $5.99 a month, Comcast Xfinity customers will be able to receive the FX+ video-on-demand platform with up-to-date episodes of FX’s original programming, including “American Horror Story,” “Fargo,” “The Americans,” FXX’s “It’s Always Sunny in Philadelphia” and older FX titles such as “The Shield” and “Nip/Tuck.”

“This initiative represents the first of its kind for an ad-supported cable network, and begins to put us on equal footing with premium networks and streaming services,” John Landgraf, chief executive of FX Networks, said in a statement.

There's several problems with this "premium," Comcast-exclusive effort. One, users are incredibly fed up with paying too much money for bloated bundles of channels they don't want, and raising prices in any fashion at this juncture is simply a bad idea. Two, these Comcast customers can already skip advertisements on FX programming by using a DVR, making paying an additional fee to do the same thing uninspiring. There's also a notable caveat with this effort: the ad-skipping only works on some FX programs, namely the ones the channel hasn't already licensed out to other streaming competitors like Amazon, Hulu and Netflix.

AMC Networks offered a similar initiative last month, also letting Comcast customers pay even more money to do something they can already do. In some instances these are broadcaster efforts to set the stage for their own more fully-functional streaming services in line with Netflix or Amazon. But every channel from FX to AMC having their own streaming service presents its own problem: namely one of fractured exclusivity. Or, a world where you have to subscribe to a litany of multiple, costly services just to get access to your favorite programs.

On the surface these efforts are designed to give the impression that the cable and broadcast industry are rolling with the punches and adapting to the streaming video era. But the act of charging more money to do something users can already do, combined with raising rates at time when cord cutting is accelerating only really accomplishes one thing: drive users back to piracy where avoiding ever-growing ad loads can be avoided entirely, for free.

Filed Under: ad skipping, cable, fees, tv
Companies: comcast

Dish Agrees To Make Ad-Skipping DVR Less Useful In Settlement With Comcast, NBC Universal

from the dumb,-protracted-waste-of-money dept

For years now, broadcasters have waged an unrelenting legal war on Dish network for giving consumers what they want: namely a DVR that automatically skips advertisements users weren't watching anyway. Fox, CBS and NBC Universal collectively sued Dish back in 2012, claiming that the ad-skipping technology embedded in its "Hopper" DVR violated copyright. CBS took this fight to some bizarre and troubling lengths, going so far as to pressure CBS-owned CNET to avoid reviewing the device and even demanding CNET back down from giving Hopper a CES award back in 2013.

In 2014, CBS and Disney both settled their suits, with Dish agreeing to cripple the ad-skipping technology for new programs, in exchange for streaming licensing for use by Sling TV. Fox continued to press on, and while Fox won on some contract issues regarding whether Dish could offer recorded content outside the home, it lost on most of its copyright claims -- settling with Dish earlier this year.

That only left Comcast NBC Universal, which held out longer in part because Dish (and Sling TV) are direct competitors to Comcast's own cable TV services, but also because the two sides were engaged in a larger debate over retransmission contracts. But even Comcast NBC Universal agreed to settle with Dish this week, finally bringing the legal fisticuffs to an end. As with the other settlements, Dish had to agree to cripple some of its ad-skipping DVR functionality if it wanted to not only settle the case, but get a hold of NBC content for streaming video:

"On Thursday, the last of the lawsuits, the one that was filed by NBC, was stipulated for dismissal. The parties have reached a settlement that will limit ad-skipping until after seven days from a show's broadcast airing. According to a statement from an NBCU spokesperson, "NBCUniversal and DISH Network have reached an agreement resulting in the dismissal of all pending litigation between the two companies, including disputes over the AutoHop and PrimeTime Anytime features."

That puts to bed a multi-million-dollar legal battle that raged for four years -- all because Dish made it easier for consumers to do something they were doing anyway. And while it's great this particularly stupid saga has finally been put to bed, it's obviously only a matter of time before broadcaster lawyers find some new, consumer-friendly advancement they'd prefer didn't exist.

Filed Under: ad skipping, dvr, settlement
Companies: comcast, dish, nbc universal

Dish Agrees To Cripple Its Ad-Skipping DVR To Settle Fox Lawsuit

from the negotiating-away-innovation dept

For years now, broadcasters have waged legal war on Dish network for giving consumers what they want: namely a DVR that automatically skips advertisements users weren't watching anyway. Fox, CBS and NBC Universal all sued Dish back in 2012, claiming that the ad-skipping technology embedded in its "Hopper" DVR violated copyright. Most of the lawsuits were packed with hilariously baseless claims, like Fox ignoring the Betamax case to breathlessly insist that merely recording the entire prime time lineup was making "bootleg" copies of Fox's broadcasts.

Disney and CBS' lawsuits were settled in 2014, with Dish agreeing to hamstring Hopper's skipping functionality in exchange for not only an end to legal hostilities, but access to streaming video rights for its Sling TV service. Fox however continued to push its luck in the courts with decidedly mixed results; losing on many of the copyright claims, but winning on a few contractual issues. For example, the courts agreed that Hopper's ability to download recorded content to mobile phones violated contract restrictions against the copying of programming for use outside the home.

With the arrival of 2016, however, comes word that Dish and Fox have finally ended their protracted legal battle. According to the companies' statement, Dish has, as it did with CBS and Disney, agreed to further cripple its DVR's ad-skipping functionality:

"Fox Networks Group and Dish Network L.L.C. have reached an agreement resulting in the dismissal of all pending litigation between the two companies, including disputes over Slingbox technology and the AutoHop, PrimeTime Anytime and Transfers features,” Dish said in the statement. "As part of the settlement, Dish’s AutoHop commercial-skipping functionality will not be available for owned and affiliated Fox stations until seven days after a program first airs.”

Though it's not indicated by the companies' announcement, the settlement likely also involves some broader access to Fox content for use in Dish's Sling TV service, so the deal's probably not a total evolutionary wash. Still, the end result is one of the most popular and innovative DVRs on the market being crippled just to make legacy broadcast executives feel more comfortable as their empires face earth-shaking disruption on every front.

With the exception of Comcast NBC Universal (which, not coincidentally, directly competes with Dish as a cable provider), all of the original 2012 lawsuits have now been put to bed -- but at the cost of innovation and customer satisfaction.

Filed Under: ad skipping, commercial skipping, content, copyright, dvr, hopper
Companies: dish, fox

NBC's Ingenious Solution To Ad Skipping And Low Ratings: More Embarrassingly Unfunny Product Placement

from the dead-cash-cows dept

We've already talked a lot about how the cable and broadcast industry's response to a changing TV landscape (ad skipping, dropping ratings, Internet video competition) is the ingenious one-two punch of mindlessly raising rates and making the viewing experience more annoying than ever. They've accomplished the latter in several ways, ranging from simply pushing more ads than ever before, or by even speeding up or editing popular programming to ensure more ads will fit in each viewing hour.

With ad skipping on the rise, ratings in free fall and lawsuits to stop ad skipping going nowhere fast, the broadcast industry's latest ingenious solution is to also start including more in-show product placement:

"Moments before climbing into bed with supermodel Christie Brinkley, Donny Deutsch turns to the camera and tells viewers that a certain brand of vodka is perfect for the occasion. The scene is from Deutsch’s new comedy series “Donny!” debuting next month on NBCUniversal’s USA Network. It’s the latest example of how TV shows, which have long avoided acknowledging product placement to their viewers, are becoming increasingly upfront about it, even turning it into a joke.

That sounds incredibly stupid to me, but maybe you had to be there. Now that consumers have more choices and improved ad skipping technology, they're making their preferences clear, whether that's Netflix or Dish's Hopper ad-skipping DVR. Adapting to competition is still a foreign concept to the cable and broadcast industry, which is why NBCUniversal execs apparently believe that including stupid references to products that erode the quality of your series is the height of "creativity," helping them better connect with Millennials:

"We see that happening at our company more and more often," (NBC U ad exec Linda) Yaccarino said during an Advertising Week panel in New York. "You have to acknowledge the challenges with ad-skipping and lapses in measurement and break out in a more creative way."..."Today's young people are hip to what we do for a living," (Donny) Deutsch said on stage during Advertising Week, which ended Oct. 1. "You've got to let them in on the joke."

Yeah, but hawking vodka just isn't funny. The real joke is that your valued young target audience is increasingly no longer watching your show on traditional TV to begin with, and you believe having stars peddle more hummus is the answer. Shoving more ads down the throats of your viewers isn't creative, it's desperate. And while advertisers may be willing to pay an estimated $300,000 per each placement, it's a band aid on a major gash in the hull of the industry's legacy cash cow. It's also telling that the broadcast industry's version of "creativity" and customer adaptation is bringing television advertising back full circle to the 1950s:

Of course, the solution for traditional cable and broadcasting isn't to find a way to shovel more ads into less space, it's to develop a better product and offer it in more convenient packages at a better price. Whether that's a fair position to be in is irrelevant. The cable and broadcast industry's traditional cash cow is dead. There's no turning back the dial. The answer now is in developing new models going forward that finally, after a generation, give consumers what they want. Sadly, that's going to mean having to (gasp) compete on price and probably make less money for a little while. But the alternative is letting companies like Netflix run away with the holy cash cow, leaving legacy cable a relic of a bygone era that could have adapted, but instead chose to stupidly keep making the same mistakes.

Filed Under: ad skipping, product placement, tv
Companies: comcast, nbc universal