The highly anticipated joint venture between News Corp. and NBC Universal that will stream full episodes of hit series such as "The Simpsons" and "My Name is Earl" finally has a name: Hulu.com. A beta version of the site went live this morning, inviting people to sign up to a private beta test of the new service. "Why Hulu?" writes the venture's CEO Jason Kilar on the site. "Objectively, Hulu is short, easy to spell, easy to pronounce, and rhymes with itself. Subjectively, Hulu strikes us as an inherently fun name, one that captures the spirit of the service we're building." Kilar -- named CEO of the stand-alone company NewSite that runs Hulu -- went on to write that the site's "never-ending mission ... is to help you find and enjoy the world's premier content when, where and how you want it." News Corp. and NBCU have been coy about the video destination's moniker since the announcement of the venture came in March. Hulu - which some have said looks to be a "YouTube killer" since it will offer full episodes of network and cable hits, plus movies, as opposed to a heavy emphasis on user-generated low-quality videos - recently received a financial infusion via a reported $100 million investment by private equity firm Providence Equity Partners which gave that group a 10% stake. Visitors to Hulu.com can now sign up to receive an invitation to use the site once the content actually is available for viewing (only the names of shows that will be available sits on the home page so far.) Kilar indicated the site - which will be free and ad-supported -- will go live in October, a month after executives at the partner media companies had indicated it would. NBC shows that will be available besides "My Name is Earl" include "Las Vegas" and the coming "Bionic Woman. From News Corp., coming series besides "The Simpsons" include Fox's "American Dad" and "Bones," as well as the freshman series "K-Ville," -plus two series from its FX cable channel, "Dirt" and "The Riches." There is no indication of which films might be available from either Universal Pictures or Twentieth Century Fox. NBC Universal executive Kevin McGurn is heading up sales efforts for the ad-supported site, MediaPost has learned. That was confirmed by a July post by blogger Donna Bogatin, who conducted an interview with him. McGurn has headed sales for a previous NBCU broadband venture, NBBC. When the site was announced News Corp. and NBCU said a run of advertisers had already signed up, including General Motors and Cisco. The site's content - thousands of hours of full-length programming are promised -- will be distributed via sites AOL, MSN, MySpace, Yahoo, CNET and Comcast. Site operators say it will reach 98% of the U.S. Internet audience. "This is a game changer for Internet video," Peter Chernin, News Corp. president-COO, said in March when the site was announced. "We'll have access to just about the entire U.S. Internet audience at launch. And for the first time, consumers will get what they want -- professionally produced video delivered on the sites where they live. We're excited about the potential for this alliance and we're looking forward to working with any content provider or distributor who wants to take advantage of this extraordinary opportunity." Among the films News Corp. and NBCU said would be available include "Borat," "Little Miss Sunshine," "Devil Wears Prada" and "Bourne Supremacy," as well as various movie trailers. Its launch distribution partners will provide the biggest potential reach of any player on the Internet. Moreover, the new site will actively seek agreements with a variety of additional distribution partners. "This new venture is further proof that the Internet is now a full-fledged entertainment medium, and we are delighted to serve as a major online distribution partner for the quality content produced by these media powerhouses, as well as a provider of strategic services to the new venture," Randy Falco, AOL Chairman-CEO, said in March. Kilar, Hulu's CEO, previously worked at Amazon.com before joining to launch the venture in July.
Agency Crispin Porter + Bogusky has inked a deal with TiVo to receive data about the second-by-second viewing behavior of its user base. The shop wants to gain insight into how long viewers stay tuned to ads it creates, or whether they are skipped via DVRs. The service, known as TiVo Stop||Watch, provides the opportunity to drill down into audience behavior on the most granular basis, to track viewing of each second of specific ads seen in both "live" and time-shifted modes. Two large media buyers have previously inked deals with TiVo for the service: Starcom and Interpublic Group. Both are looking to the service as a tool for evaluating issues, such as which programs and networks generate the highest viewer retention rates during breaks, as well as general DVR behavior. (TNS Media Research also provides second-by-second data based on a sampling of Los Angeles-area viewers, and has Scripps Networks and MTV Networks as clients. Starcom made an upfront deal with Discovery for its HD channel based on that data.) Crispin is less a media buyer than a creative group with clients such as Burger King and Volkswagen. It is the only creative shop known to have bought the TiVo data--so the service will be used as fodder for evaluating the success of its ads' creative twists and turns. For example, it may find viewers fast-forwarding through--or turning away from--spots plugging a Whopper price reduction, but staying tuned for ones for Burger King with a humorous brand message. Such insight could alter its creative process going forward. Discovering which ads work best in which programming is also a goal, as well as how competitors' spots work. (TiVo data shows that ads from Wendy's perform particularly well.) "In this highly competitive industry, it is imperative that we identify new trends and recognize which commercials pique viewer interest in which programming, and at what point in the programming," said Crispin's Jim Poh. While both media and creative agencies are prepping for how to work within continued growth in DVR penetration, gaining insight into the TiVo user base (which was over 4 million) can be helpful. However, TiVo users are believed to be more upscale and tech-savvy than the general population, raising the question of whether widespread conclusions can be drawn from its data. The TiVo data is released daily. It covers viewing the day before and is culled from behavior of 20,000 TiVo units, which are tracked anonymously.
The Hearst Corp. hopes to persuade institutional holders to accept its proposed price to buy them out and take the Hearst-Argyle station group private. One snag: a significant shareholder has come out against the bid price--perhaps auguring an uphill battle for Hearst Corp. Marathon Partners L.P., with 90,000 shares, urged the Hearst-Argyle board Tuesday to reject Hearst Corp.'s proposed $23.50-per-share price. "It is absolutely clear that the current offer does not fairly compensate the shareholders of (Hearst-Argyle) for the unique and valuable assets the company controls," Mario Cibelli, the managing member of Marathon, wrote to the board--calling the offer price "unacceptably low." The H-A assets include management of 29 TV stations (eight in top-25 markets), a stake in Internet Broadcasting and the possibility of future growth through retransmission consent dollars. A representative for Hearst Corp. declined comment in an e-mail. A representative for Hearst-Argyle could not be reached. Cibelli also accused Hearst Corp. management of trying to capitalize on Wall Street's recent downturn to nab full ownership of the company at a low price. (It already owns some 73%, and is seeking the rest.) "From my vantage point, this offer was made at a time when general market weakness created a small window for Hearst Corp.'s paltry offer price to be perceived as fair to the weak-kneed or weak-minded," he wrote. Hearst Corp. plans to make an offer next month to buy out shareholders for the portion of H-A it doesn't already own for $23.50 a share--a $600 million transaction. But since the announcement, the stock has been trading nearly $2 per share higher, and at least one analyst feels it could command perhaps $28. The H-A board is controlled by Hearst Corp., but if large institutional shareholders balk at the company's offer, it will be difficult to execute the deal. Marathon's 90,000 shares pale beside the holdings of prominent groups, such as Vanguard Group and Goldman Sachs and others, but suggest that others may join its opposition. The H-A board Monday said it will consider the offer once the Hearst Corp. bid is officially made, and render a recommendation within 10 days. In his letter to the board, Cibelli cited recent comments by H-A CEO David Barrett that the company's stock is undervalued; the expected near-tripling of retransmission consent dollars since 2005 and opportunity for more growth over the next three years; the coming benefits from tens of millions invested to bolster digital initiatives; and a boon from a rush of political dollars in 2008 as reasons to reject the Hearst Corp. bid. "Hearst Corp.'s timely proposal to (H-A) is quite self-serving, as it seeks to usurp the public shareholders' participation in next year's huge political advertising surge," Cibelli wrote.
While some independent U.S. cable channels are still looking for a buyer, NBC Universal has its sights set on overseas networks, judging them to be a better bet. NBC Universal will buy Sparrowhawk Holdings, which has a portfolio of global TV channels, including the international-versions of the Hallmark Channel. The deal does not include the U.S. channel. NBC will acquire from Sparrowhawk's owners--Providence Equity Partners, 3i and the company management--18 feeds of the international Hallmark Channels, which air across 152 territories to more than 60 million subscribers. The network will also get 580 titles of the Sparrowhawk International Library, which was formerly known as the Crown Media/Hallmark Library. Other international networks include Movies 24, KidsCo and Diva TV. That brings NBC's total to 30 international channels. The goal is to get to 50 in the next two to three years, keeping a promise made by Jeff Zucker, president/CEO of NBC Universal to grow this area of the company. In August 2005, Sparrowhawk bought much of Hallmark/Crown Media international assets. This was months before Crown Media tried to sell the U.S.-based channel. But with few takers, Crown Media decided to pull the channel off the market, and revamp it with new management. Recent rumors had NBC Universal considering a possible deal for Oxygen, one of a handful of established stand-alone U.S. cable networks remaining. NBC dismissed those claims. TV executives say Oxygen has been hunting for a buyer for some time.
AT&T, the nation's biggest provider in the red hot telecommunications sector, Tuesday confirmed plans to conduct a review to consolidate its disparate media services accounts from five big agencies to just one. All five incumbents - Publicis' Digitas unit, Omnicom's GSD&M, WPP's Mediaedge:cia, Omnicom's OMD and Interpublic's Initiative have been invited to pitch. The size of the account was not clear. AT&T spent an estimated $500 million during the first quarter, according to syndicated research data, and some trade reports have put billings for the consolidated account as high as $3 billion, but the telecommunications marketer is expected to downsize its media spending as it phases out the consolidation of the AT&T and Cingular brands that propelled much of its advertising over the past year. In a statement, AT&T also indicated that it expected cost savings and media buying efficiencies to result from the media account review: "This move will consolidate all of AT&T's media planning and buying at one agency and is part of the company's ongoing efforts to maximize efficiencies created, in part, by AT&T's acquisition of BellSouth at the end of last year." In recent years, AT&T has shifted its focus from its traditional long distance "land line" business into one of the world's biggest wireless carriers, as well as a major player in broadband and television services. AT&T said a decision was due by the end of the year. AT&T's history with Mediaedge:cia, which stems back to when the media shop was part of long-time AT&T shop N.W. Ayer & Sons, is one of the longest media buying relationships ever.
Those feel-good reality shows are now giving some feel-good results to advertisers. In June, Nielsen Media Research reports, Sears scored the best "audience with recognition and positive feeling" results of any marketer for its product placement in "Extreme Makeover: Home Edition." Sears has had a long-time marketing and advertising relationship with the show. Sears scored a 58.1% approval number, which is a new metric from Nielsen's Place*Views product-placement service. Previously, Place*Views only offered a calculation of the time and number of brand placements per TV show. Second-best among broadcast network programs is the NBC game show, "Deal or No Deal," which earned a 48.8% number for its mention of the Miami Heat basketball team. Right behind the Heat was another NBA team, the Los Angeles Clippers, for a shout-out to CBS' "The New Adventures of the Old Christine." It earned 35.8%. Several other good scores for the month had an association with cars--either makeover automobile shows or for a car race. "Rides" on TLC gave Chevrolet Camaro a 63% tally. MTV's "Pimp My Ride" took Honda to 58.2%. ABC's "Fast Cars & Superstars," a celebrity car race, had communication company Alltel with a 35.5% approval rate. Nielsen says these new scores can be used in conjunction with its TV ratings to place a value and quality on the placement. But marketers don't think any product-placement metric will get to the same value level of current media measures any time soon. "The currency is still cost per thousand," says Brad Adgate, senior vice president and corporate research director for Horizon Media. "With DVR penetration growing, you wonder is this is something marketers are going to look at more and more. Can they come up with an accurate gauge of viewers [for product placement]?"
Dial back to the future. A number of well-known on-air personalities have returned to CBS Radio's WCBS-FM after the station dropped its "Jack" programming and brought back its "Oldies" format earlier this summer. Thus far, three are back behind the mike: Don Reed, hosting Sunday night's "Radio Greats," Dan Taylor, the morning host, and Bob Shannon, who's taking mid-day. The return of the popular DJs completes the transition to the station's old lineup--a decision widely attributed to CBS Radio veteran Dan Mason, who also returned to the company as its new CEO earlier this summer. While popular in other parts of the country, in New York, Jack's computer-selected mix of music and automated radio airplay had an uneasy reception at best, after its June 2005 launch. Many listeners claimed a sentimental attachment to the old CBS format, including DJs Bruce Morrow ("Cousin Brucie"), Norm N. Nite and Harry Harrison--none have announced plans to return. After leaving WCBS-FM, Morrow and Nite both got oldies gigs on Sirius Satellite Radio, while Harrison, almost 77, appears to have retired. Many listeners also objected to the dilution of the pure "Oldies" format, songs from the 1950s-1970s, when artists from the 1980s to the present were added to the mix. After the switchover, Mayor Michael Bloomberg was quoted in the New York Post as saying he would "never listen to that [expletive] CBS Radio ever again." Mason, previously president of CBS Radio from 1995-2002, left to work as a consultant for the radio industry, but returned to the network in March. The scrapping of "Jack," as well as his decision to return 92.3 K-Rock to its "Alternative" format, signal a return to formats that were CBS Radio signatures under his leadership.
Local newspapers and Yellow Pages publishers are striking deals with companies in the online and mobile spheres that allow them to offer local businesses a digital "up sell" for their listings. The latest deal comes from publisher R.H. Donnelley, which is entering into a deal with Yahoo Local to offer its directory customers exposure on the Yahoo Local and Yahoo Maps sites. The deal covers 14 Western and Midwestern states, where Donnelley, under the Dex brand name, publishes the print Yellow Pages for Qwest. Dex advertisers that opt for the digital upgrade will be offered inclusion in Yahoo Local's featured listings, which guarantees sponsored placement in the first or second page of search results. It also provides enhanced listings, which offer additional information, like detailed business descriptions, photos and coupons. These listings will also appear on the Dex local search site, DexKnows.com. Recently, Yahoo has also been striking deals with newspapers to share a variety of content, offering local businesses exposure on Yahoo Local listings, Yahoo Maps and Event Listings. Newspaper publishers that have joined Yahoo's newspaper consortium include Belo Corp., Calkins Media, Cox Newspapers Inc., Hearst Newspapers, Journal Register Company, Lee Enterprises, McClatchy, Media General, MediaNews Group, Morris Communications, Paddock Publications, Philadelphia Media Holdings, owner of Philly.com, and the E.W. Scripps Company. Taking the mobile route, in early 2006, Gannett partnered with Txt4Info to offer news content and business listings via mobile devices, and has aggressively expanded the relationship in recent months. It invested an additional $10 million in the company in July. Txt4Info allows consumers to search for news and business listings via simple short codes, five digits long, on their mobile phones. As part of the Gannett deal Txt4Info also forecasts coordination with the Captivate Network, a place-based video network which delivers news and advertising via digital displays in the elevators of office buildings.