Connected TV advertising will get more airtime, said Instart Logic Chief Marketing Officer Dan Druker Friday. In other 2019 trends, voice ads will see “dramatic growth” as brands test the new format. Innovative ad models will grow -- placements, rewards, credits and other engagement models -- to reach consumers who don’t want to see digital ads. Publishers will push their native apps more heavily, along with content hosted through native apps such as Apple News, to bypass the ongoing threat of ad blockers, Druker said, and ad duration will become a new measurement of advertising value. “Getting an ad to be ‘viewable’ won’t be enough to satisfy progressive advertisers."
As recently as three years ago, streaming was only 25 percent of Warner Music Group’s recorded music revenue, but grew to more than 50 percent of sales in the year ended Sept. 30, said CEO Steve Cooper on an earnings call Thursday. Warner’s streaming revenue is now nearly three times that of physical music, he said. “We remain very focused on ways to turbocharge the industry’s recent growth period,” said Cooper. “Subscription streaming now has a firm economic foundation,” with more than 200 million “paying customers” globally, he said. There’s still “plenty of room for long-term growth” in “established and emerging markets” because the 200 million is only 3 percent of the world’s population, he said. Cooper does think It’s conceivable that streaming will reach “something akin to saturation” in the next five to 10 years in developed countries, he said. Though subscription growth in less affluent emerging markets will be more open-ended, revenue growth in those regions will be slower due to lower average revenue among active users, he said.
Google Fiber wants out of FCC accessibility rules for its set-top boxes, said a petition for limited waiver posted in docket 12-108 Thursday. It's “only with respect to certain functions required by the rules and only for a limited time,” the petition said. The waiver would apply only to “less frequently used functions” of activating video description, displaying or activating current configuration options, and adjusting caption displays. Google Fiber wants the waiver “until it completes the transition of its more traditional ‘set-top boxes’ to an operating system capable of full compliance” not more than two years: “Since Google Fiber has a limited number of video subscribers to begin with, it expects few if any of its customers to require access to these particular functions.” The leeway “will permit Google Fiber to continue to make audibly accessible the most important and frequently accessed functions without having to retrofit end-of-life equipment,” the company said.
The Copyright Royalty Board's rule Wednesday sets January 2018-December 2027 royalty rates for sound recording transmission by pre-existing subscription services and satellite radio: 7.5 percent of gross revenue for pre-existing subscription services and 15.5 percent of gross revenue for satellite radio.
Four TV makers and one panel maker will be founding members of the new 8K Association launching at CES to spread consumer awareness of the fledgling ultra-high-resolution format, emailed Insight Media President Chris Chinnock, who will be the group’s executive director. It plans a Jan. 9 debut news conference, CTA announced. A pre-CES release will name companies involved, said Chinnock Tuesday.
The NAB/NCTA carriage election notification process proposal (see 1812100051) likely faces mixed feedback, as industry officials and others we spoke to aren't of one mind about it. Comments are due Jan. 7, replies Jan. 17, said an FCC public notice Thursday. The proposal seems reasonable, said broadcast lawyer Jack Goodman. He said one difficulty broadcasters can have with elections is figuring out where to send notices, and it's common to have registered letters bounce back undelivered and the correct address tough to find. American Cable Association believes in two-way communications electronically between cable operators and broadcasters for required notices, but plans to file comments offering recommendations for minimizing burdens on smaller cable systems, said Senior Vice President-Government Affairs Ross Lieberman. The agency is likely giving the joint proposal serious consideration, since it would fit into Chairman Ajit Pai's overall rubric of deregulation, said cable lawyer Craig Gilley of Mintz Levin. A direct broadcast satellite expert said questions remain why stations are pursuing changes in the election notification process since the status quo of certified letters is a small obligation. He said certified mail is a less questionable route for delivery than an electronic one. The proposal could run into some problems for going beyond what the FCC proposed, a cable industry executive said. The FCC had asked about switching notice delivery mechanisms, and it's questionable whether doing away with notices altogether fits that or is a proposal that would require its own NPRM, the executive said. The agency said it will look at the joint proposal, comments on it, and previous comments received in response to the NPRM.
CBSN New York debuted Thursday, the first of several planned advertising-supported, direct-to-consumer local news services in major markets where CBS owns and operates stations (see 1811010064). CBSN Los Angeles is due next in early 2019, said the network.
Next year expect big management changes at Facebook, pay-TV subscriber losses to continue at similar pace to 2017 and 18, and "another ugly year" for DBS outside of rural areas, Pivotal Research wrote investors Wednesday. It said there will be increased bidding for sports rights, and fixed 5G won't penetrate mass markets or be a competitive threat to cable data. Pivotal predicted better wireless MVNO deals for cable as part of T-Mobile buying Sprint, regardless of whether the deal is approved, and "healthy" subscriber growth for Netflix despite Disney, HBO and Amazon competition. The analyst firm said potential deals for 2019 could include CBS/Viacom; Charter Communications buying Liberty Broadband, GCI Liberty or Altice USA; SiriusXM buying Live Nation Entertainment; or an outside player buying Dish Network spectrum.
The American Cable Association lacks standing to request early renewal for Sinclair stations, said the broadcaster's opposition posted Tuesday to ACA’s petition (see 1811270057) to jump-start renewals for stations subject to an FCC Sinclair/Tribune hearing designation order: ACA also "fails to allege any substantial and material question of fact.” The renewal process would ordinarily begin in June 2020. ACA hasn’t demonstrated the process occurring at the normal time will injure members, Sinclair said. The HDO doesn’t mean the commission ruled on Sinclair’s fitness to hold a license, the company said. “Sinclair’s fitness to hold its current licenses, including the licenses of the Stations, is not at issue in the pending hearing.” Broadcast attorneys say it’s unclear whether Sinclair licenses could be in danger from the hearing process. “Sinclair is mistaken when it says that its lying to the FCC in the Tribune proceeding can have no consequences for its other licenses," ACA emailed. "This has never been the law. All of us, including Sinclair itself, deserve to resolve this issue quickly."
Among those streaming video subscribers, Netflix is most popular, with 89 percent getting it, though 75 percent of those subscribe to other services in addition, Lab42 Research said Monday. It said streaming video consumers subscribe to an average of 2.5 video services. Among those who subscribe to just one video, 25 percent subscribe to Netflix, making it the most popular, while next is Amazon Prime Video, with 6 percent. The researcher said Netflix has the highest renewal rate, at 93 percent, with Amazon Prime Video next at 75 percent and Hulu at 64 percent. It said Netflix's renewal rate benefits from "its hyper-customized content and suggestions," and investment in original content. Results come from an October survey of 500 U.S. consumers.