In a move designed to encouarge deals with cable operators and advertisers, TiVo Monday named veteran TV executive Tom Rogers as its new chairman. Rogers, who has been vice chairman of TiVo since last October, and a board member since 1999, will take over on July 1, succeeding co-founder Mike Ramsey, the company announced yesterday. The shift has been somewhat expected since Ramsey indicated his intentions several months ago to step away from the business he helped to start. Rogers was to take over temporarily as chairman while a search was conducted. Some months back, Rogers made a crucial deal with large cable operator Comcast Corp., in which the MSO would use TiVo in its fast-growing digital set-top box business. At the time, analysts said they expected that other cable operators would follow the lead of Comcast, the largest cable operator in the United States. At yesterday's press conference, Rogers said the company is indeed in talks with a number of cable operators. But TiVo, with three million current customers, still faces some hefty challenges, said industry observers. "The question for Rogers still is, 'How do you fight the generic DVRs?'" said Dennis McAlpine, managing director of McAlpine Associates. Analysts say TiVo is hoping its name--ubiquitous with digital video recording--will help cable operators market their digital set-top boxes. For some time now, TiVo has been selling the value of its software, not its hardware--software that technology experts say is still among the best in the business. If customers want to 'Tivo' TV shows, then the company is on the right track, say analysts. "Make it a verb instead of a noun," said McAlpine. Long the lightning rod for advertisers because of its commercial-skipping technology, Rogers also said the company is working on better relationships and deals with advertisers. TiVo also is developing local cable advertising systems, including one being developed with Comcast. Analysts view Ramsey as a pioneering technology executive--but not a seasoned TV marketing executive. Rogers had been instrumental in the growth of cable network CNBC, as the president of the NBC Cable group. He had less success as the chairman of magazine group Primedia, when a plan to develop magazine content for the Internet failed to attract a significant revenue-generating audience. The perception of TiVo as an ongoing business has been in doubt ever since cable operators increasingly have been pushing their own generic DVR technology to be included in digital set-top boxes. Another cloud on the horizon for TiVo came some months back when its biggest partner, satellite distributor DirecTV, said it would no longer sell TiVo in DirecTV/TiVo packaged deals to its customers. DirecTV, now owned by News Corp., is working on its own DVR technology.
Evidence is mounting that digital video recorders aren't necessarily the negative for TV advertising that many people have believed them to be. While research increasingly shows that a high percentage of DVR users do skip through commercials, new information suggests there is a DVR advertising upside--including the fact that people actually use the devices to replay interesting commercials, and they appear to be restoring the kind of family viewing that marketers and agencies relish. That second point was revealed via new research from ESPN, which showed that 85 percent of DVR households own only one, and 68 percent of viewing in those households is done on the TV set connected to the DVR. The implication, he said, is that DVRs are leading to more family viewing within those households. "I've felt for some time that in some respects, the DVR might actually encourage viewing, especially family viewing," reacted Charlie Rutman, CEO of MPG. "When you think about it, the DVR becomes the media center of the household, and draws everyone to it." "I would definitely buy into that. I have five TVs in my house, and the DVR draws the family together as a function," concurs Bob Flood, executive vice president-director of national electronic media at Optimedia. "I think it would be interesting to do more research on the co-viewing impact of DVRs to learn how it impacts how people watch TV, but it definitely is bringing people back together again at a time when we all thought people would be splintering off into other directions." However, Flood noted that although family members may be gathered around a TV with a DVR, they are likely doing more simultaneous media usage within that room. "Typically, it's in the den or living room, or family room where there's also a PC with Internet access, or a gaming system or other technologies that might be competing with the television," he noted. Meanwhile, new research released Friday during the PROMAX conference in New York indicates that DVRs also are being used to enhance advertising, not always to avoid it. The study, conducted by Frank N. Magid Associates, found that 55 percent of DVR users "on occasion" stop while fast-forwarding to watch a commercial that catches their attention. Not surprisingly, Magid concluded, in order to get the viewer to stop fast-forwarding, the spot or commercial must "make an emotional connection (with humor, riveting video, etc.) and provide strong and compelling content or products that the viewer is interested in using." Additionally, the researcher said, advertisers and agencies need to adopt new commercial production techniques, especially ones that are more eye-catching, "with less cuts and stronger visual elements. Producers need to understand how each DVR system differs, such as how the fast-forward bar intrudes on the TV screen, and the impact it has on graphic placement."
From seed-spitting contests to town hall meetings, CBS's local online content will remain provincial, but its packaging is going pro, according to Viacom, which announced Monday that its Television Stations Digital Media Group is relaunching each of its 40 stations' Web sites. Under the direction of Jonathan Leess, president of the Media Group, each site is getting a surface polish, a souped-up video flash player, and a slew of local features. Leess--who's already devoted a year to the project--has conducted three soft launches since May with station Web sites in Salt Lake City www.kutv.com, Minneapolis www.wcco.com, and Denver www.cbs4denver.com. Web sites for stations in San Francisco, Chicago, Baltimore, and New York are pending--which, said Leess, will lead the way for 14 other CBS stations, 16 UPN stations, and three that are not affiliated with major networks. "The commitment behind this initiative represents the television broadcast paradigm shift we must make in order to adapt to today's on-demand, always-on consumer," said Leess. "The improvements we are making across the board will significantly enhance our station's ability to connect with the millions of broadband Internet and wireless users who are thirsting for more video and for locally relevant content." The focal point of each site is its video streaming product, which allows for free access to the thousands of hours of each local station's archived video libraries, as well as each day's news features. With regard to site layout, Leess said he veered away from the "NASCAR approach," opting for a clean, palatable look. Leess said he was selling on national and regional level through third-party ad sales groups. A portion of the ad space would surely be devoted to Viacom Television Stations Group promotions, Leess added. A local search engine, which incorporates ZIP-code driven results enhanced by retrospective and prospective search products, is also included on each site. This will give content providers and advertisers an unprecedented degree of reach, according to Leess. "With regard to advertisers, what differentiates this project is the ability we now have to target the highest CMP levels," Leess. "Advertisers can now target to an extremely specific audience, and we're talking about people at work, which is all the more appealing." The overall initiative will also feature desktop, wireless, and mobile distributed components, including breaking news, traffic, weather, and entertainment alerts in voice and text, and eventually, video. Also featured prominently on the new sites are real-time weather maps and forecasting alerts; live traffic cameras, maps and accident and construction alert systems that support real-time routing directions; local real estate guides, and sports scoreboards and news. There are also localized content sections dedicated to health, lifestyles, food, entertainment, pets, shopping, autos, and careers.
As interactive video gaming exerts a greater cultural pull, MTV is hoping to exact some pull of its own in that area with the launch on Monday of its newest division, MTV Games. The division will be devoted to developing, producing, and promoting creative gaming experiences that are somehow congruent with MTV's target audience. MTV Games will work in-house through its newly created interactive entertainment studio, along with industry partners, to produce and market original video game titles. The new unit will incubate original game franchises in partnership with independent game developers. In addition, the new division will forge strategic marketing partnerships with game publishers to connect with the MTV audience across multiple platforms. MTV executives hope that the new division will offer cross-platform opportunities similar to its movie division. "In 1996 we launched MTV Films with the hopes of discovering some risky and bold stories to tell," said Van Toffler, President, MTV Networks Music/Logo/Films Group. "Nine years later, I'm ecstatic about what we have accomplished, and today we launch MTV Games with a similar objective--incubating breakthrough gaming concepts that embrace creative risk-taking, and push the boundaries of interactive entertainment." As part of Monday's launch, MTV Games had more news to make on its first day. The division has struck a strategic relationship with Midway Games, an interactive entertainment publisher and developer, to market, jointly sell in-game advertising, and collaborate on soundtrack development for three upcoming games. The first release from this partnership will be "L.A. RUSH," an arcade racing game that was designed by West Coast Customs, the automotive customization company featured in the hit MTV series "Pimp My Ride." Back on the TV programming side of things, MTV also on Monday unveiled its development slate for the next few months. The shows currently in the works include: "Yo Momma" (Wilmer Valderrama, of Fox's "The '70s Show," created and hosts this new reality/comedy competition, where he searches the country looking for the funniest and most outrageous trash talkers); "Welcome to Crunkville," which follows hip hop group Ying Yang Twins in their search for roommates to move into their mansion in California; "Mr. Rooney's Barbershop," a reality show that looks at a barbershop in Queens, NY where the local cutters are always on the lookout for rising hip-hop talent from the hood--plus record exec Tommy Mottola serves as executive producer, along with the shop's owner/record producer; "Homewrecker," starring MTV's Ryan Dunn, which gives viewers a chance to get revenge on someone who has done them wrong; "Beyond Normal," which follows MTV News correspondent Gideon Yago using his investigative resources to help real young people whose lives have been turned upside down by crisis or conflict; "8th & Ocean," a reality soap set in the "high stakes, super sexy modeling world" of Miami Beach; and "Ten Years Later," a scripted comedy series that asks "what happens to the child star after his cable access show has run its course?," featuring guest stars Horatio Sanz, Moby, and Janeane Garofalo.
The following five product placements highlight some of the best on television from June 12 through June 18. These placements were interwoven into the fabric of the stories and became integral plot points or provided interesting ways of showing product integration within the television program. Aspiring Hilfiger protégés re-design two Lincoln Navigators for rapper, Fabulous, in the June 16 episode of CBS' "The Cut." Each team has a different vision of what they think Fabulous would like but when the teams are given the opportunity to talk to the rapper, one team takes the time to listen while the other flirts away their chance. That's just one of the featured product placements of the past week brought to you by MediaDailyNews and branded entertainment researcher iTVX. Other notable placements include the following: Vince generously gives Eric a free Maserati in the June 11 installment of HBO's "Entourage." TNT premiered its new summer series, "The Closer" on June 13 with limited commercial interruption sponsored by Audi. Bright, high school seniors show real school-spirit and compete for a $50,000 scholarship courtesy of Wal-Mart on the June 13 installment of ABC's "The Scholar." The challenge this week is for each team to get the most USC students to attend the school's volleyball game. The winning team gets a $2,000 gift card to Wal-Mart to outfit their dorm rooms. Ruth, George, and George's daughter take time to share some Dreyer's ice cream in the June 12 episode of HBO's "Six Feet Under." George melts down when he can't get the ice cream he wants and Ruth slowly breaks down as the pressure of taking care of George becomes too much. Link back each Monday to see each week's fresh batch of the top five branded deals. Click to view and evaluate placements.
With a hardy "as long as we can hit a high standard and have no risk of vandalism, then it is worth having a try at it again;" and a "Hi-Oh-Silver!" Rob Barrett, the Los Angeles Times Interactive general manager, drove a stake through the heart of the paper's ill-conceived two-day experiment having online readers add their two cents to a newspaper editorial. As the world knows by now, the mirthful readers of LATimes.com thought profanity and pornographic pix were appropriate contributions to an editorial about the Iraq war. "Readers took things in an unforeseeable way," Deputy Editorial Page Editor Michael Newman told Editor and Publisher. Acknowledging that hindsight is a good deal more refined than foresight, is there a breathing soul among us who could not have predicted that any position on the Iraq war would have prompted extreme reaction? Hey, why not launch with a position on abortion or gay marriage, or if illegal immigrants in Southern California should get free state-provided medical benefits? While it is a little premature to compare Iraq to Vietnam, the polarizing effect on public opinion is just short of the Tet offensive. I'm confident that the editors who thought up this wikitorial experiment wanted to start with something that would provoke reaction. Well, they got it, and from 1,000 registered contributors--some of whose lexicon was apparently at odds with the prevailing community LA standard of decency. Which, given what passes for PG-13 in that town, is something of a surprise. The Internet is still a largely untamed environment where nearly anything (well, where almost everything) goes. It is seen by hackers as a public playground where they can run around with abandon, regardless of the toddlers in the sandbox and old people on the benches. The anonymity empowers otherwise ordinary citizenry to collect porn, entrap unsuspecting teens, pose as gender opposites in chat rooms, and deface earnest attempts at public discourse. One wonders if the LAT problem was the result of the subject matter or the fact that it was hosted by the Great Corporate Establishment Press? I suspect, a little of both. There is also the demented satisfaction some people get out of seeing their graffiti in a highly visible public place. And frankly, I am surprised it doesn't happen online more often. Other than have someone real-time monitor what is being posted, I foresee no end to this problem. Other than perhaps requiring full (verified by the host) disclosure of name, address, and phone number. This will surely cut down on the participation and take away that "anything goes, because I am anonymous" thrill--but in the end, might right the ship enough to set a new, more successful course.