For some, the second-quarter TV scatter market is always a barometer of how the upfront TV market -- for the TV season to follow -- will perform. Now, a new research report confirms that assumption. Standard Media Index, a company that compiles actual TV and media-buying data from media agencies representing 75% of the market, says that both broadcast and cable networks took a hit in scatter volume during the second quarter of this year. Broadcast networks sank 7% to $457 million and cable networks dropped 4% to $860 million, according to SMI. These declines for broadcast and cable networks for the just-completed upfront TV market were in line with a number of other estimates from TV research and media companies. SMI also notes that in the first quarter of 2014, the scatter market for cable networks pulled in $688 million -- a 5.7% decline from the same period in 2013. Broadcast networks witnessed a 2.6% increase to $530 million. James Fennessy, chief commercial officer of SMI, says a key first-quarter result for broadcast was due to NBC’s strong Olympic performance. SMI also notes digital video revenues in the second-quarter 2014 totaled $720 million -- up 13% from the same period a year ago. In addition, national TV syndication pulled in $48 million in first-quarter 2014 scatter and $68 million in second-quarter scatter money. The three biggest growth categories in the second-quarter 2014 scatter market were pharmaceuticals, up 90.6% versus second-quarter 2013; entertainment, 49.1% higher; and food/produce/dairy, with a gain of 24.8%, per SMI. Much of the gain for pharmaceuticals, says Fennessy, was driven by Obamacare. Categories that declined included computers/software marketers, down 47.7%; consumer electronics, off 43.9%; and travel/tourism, down 21.9%. Looking at the best-performing TV networks -- cable or broadcast -- Univision had the best second-quarter growth, up 18.3%, with ESPN, next at 13.98%. Fennessy says Univision and ESPN gained from the strong World Cup performance. Scripps was the third-best, up 2.6% versus the second quarter of 2013.
Whether they realize it or not, the main factor that helps consumers to decide on a new television for video device is the ability to connect -- either to the Internet for streaming, or with other members of their family. According to a study conducted by GfK for the Council for Research Excellence, smart TVs and/or OTT streaming devices were among the top devices selected by households participating in a 50-household qualitative study. (Purchases in the study were monitored by self-reporting, behavior and usage surveys, and follow-up interviews.) Meanwhile, the dominant consideration for these shoppers was the availability of content, whether in the form of streaming, live watching or casting from one device to another. “It comes back to the tech adoption curve, [and] that ease-of-use is crucial to getting into the market,” Bryon Schafer, who serves as chair of the CRE's Digital Research Committee and is senior vice president, Warner Bros. Media Research & Insights, tells Marketing Daily. “Consumers in the purchase funnel are looking for a better means to an end, and they’re looking for what they want, when they want it.” Despite the adjustment in consumer preference about access to content, what has not changed is the role that television plays within the household. Once the TVs with OTT access were introduced into a household, they tended to generate a lift in group viewing and the sets remained the dominant video-viewing device, even when other devices were present in the same room, according to the study. “People are not abandoning [their televisions],” says Laura Cowan, director, analytics and insight at MEC, who led the team conducting the study. “There’s multiple screens to choose from in the home. It’s the use of [of the television] that’s changing.” Indeed, results from a “longitudinal ethnography” study of 100 households that ran concurrently with the 50-household “acceleration study” found even as consumers have moved to a multi-source, multi-device model for video content a family is likely to watch the main television set early in the evening on weeknights before retreating to separate rooms to watch individualized content on other devices. The notion of connection — both to the Internet and with other family members — could be a powerful one with consumers as makers of smart TVs and other OTT devices look to increase market share, according to the authors. “Convenience, control and ease of use trumps better picture and sound every time,” Schafer says.
CBS anticipates more than three-quarters of its advertising deals will be pegged to C7 metrics during next year’s upfront advertising marketplace. In an earnings call, Les Moonves, president/chief executive officer of CBS, says: “I expect by next year’s upfront more than 75% of deals will be C7. It’s a more accurate way of counting people who are watching our shows.” C7 is the average commercial ratings plus seven days of time-shifted viewing. The dominant advertising standard for many networks is the C3 ratings measure. With regard to the just-completed upfront market, Moonves says, CBS had many upfront C7 deals with advertisers, and C7 deals pulled in more overall advertising revenue for TV networks. He didn’t go into specifics, but said: “C7 was a major part of our negotiations... C7 deals will shortly become the only measurement of relevance.” For the second-quarter reporting period, CBS revenues dropped 5% to $3.19 billion from $3.37 billion for the second quarter -- suffering somewhat from key semifinal NCAA Tournament games that were aired on Turner Broadcasting networks during the period versus those games airing on the CBS Television Network in 2013. CBS also had lower content licensing revenues -- especially from international business. Operating income grew 10% to $801 million versus $730 million with net income dipping 3% to $418 million versus $435 million. Total CBS advertising revenue was down 7% to $1.64 billion, with content licensing/distribution revenue off 9% to $903 million. Affiliate/subscriptions fees grew 7% to $586 million. CBS TV stations' revenues were down 6% to $665 million, primarily from softness in the advertising market. TV stations were also affected by the absence of NCAA semifinals. Moonves says next year’s big political campaigns will ramp up TV advertising revenues for TV stations. CBS’ cable networks were $516 million -- virtually identical to $518 million in the second quarter of 2013, due to lower international content licensing revenues. Publishing revenues climbed 12% to $211 million from higher print book and digital sales. A quarter of of publishing sales now come from digital sales. Although upfront advertising was “down slightly,” Moonves said CBS “will be happy to have the extra inventory to sell in scatter.” Still, he says CBS pulled in more upfront TV advertising dollars than any other network, as well as posting the highest cost per thousand viewer (CPM) prices. While scatter pacing has been weaker for many TV networks in the first half of the year, Moonves says pacing has accelerated in the upcoming third quarter and anticipates the same in the fourth quarter. CBS’ stock closed down 1.3% to $53.90.
Scripps Networks Interactive says it booked $1 billion in upfront advertising for the third year in a row -- despite holding back some ad inventory. Scripps -- the cable network group of Food Network, HGTV, and Cooking Channel -- says it posted mid-single cost per thousand price increases during the upfront selling period. Many TV networks held back some advertising inventory for the just-completed upfront selling period, and Scripps Network did the same. “We did hold back a little inventory. But we are always in a range. We still did pretty well,” says Burton Jablin, president of Scripps Networks, in an earnings call with analysts. As with other TV network group executives, Jablin’s assessment was that “a little bit has gone to digital. Advertisers are also holding back for the calendar year and in the scatter market.” For its second-quarter earnings reporting period, Scripps Networks said it had a 6.5% gain in advertising revenue of $486 million and a 4.1% gain in affiliate revenue of $188 million. Scripps also witnessed international revenues gain of 15% to $20.4 million. Overall revenue climbed 6.5% to $708 million. Net income was down 2.2% to $205 million. Scripps Networks Interactive was down 4.6% to $78.21 in mid-day trading.
Retention Science will announce Friday that it has secured $7 million in Series A financing, bringing total funding to $9 million. Upfront Ventures led the round, with participation from existing investors Baroda Ventures, Forerunner Ventures and Mohr Davidow Ventures. Joining the round are angel investors Brian Lee, founder of The Honest Company, Michael Dubin, founder of Dollar Shave Club, Tamim Mourad, founder of PriceGrabber.com, and eSalon.com and Andy Dunn, founder of Bonobos. The funds will help the company accelerate growth and develop services that retain and determine customer lifetime values. "It is extremely difficult and costly to build an enterprise sales and marketing force, and we feel a strong financial backing enables our team to focus on scaling the business and hiring talent," said Retention Science CEO Jerry Jao. Forrester Research suggests that enterprise technologies need to focus on winning, serving and retaining customers through all phases of the customer lifecycle. This will give companies a long-term competitive advantage. Having the correct data improves the customer experience. Apparently, this has become the job of chief information officers, as well as CMOs. Forrester analysts advise CIOs to focus on winning, serving and retaining customers. Analysts at the research firm, per the report, believe CIOs must work to understand the six phases of the customer lifecycle, from discovering the brand to keeping consumers satisfied long after purchase, which in turn will support CMOs in their quest to satisfy more consumers. It's done, in part, by having access to the correct data. About 70% of the Retention Science team is composed of engineers and data scientists. Growth should come from developing ways to retain customers and determine the lifetime value of each. Data is data, but having the correct data makes the difference. Ultimately, the data helps consumers make buying decisions, but only when messages are served at the perfect time in the buying process. The correct data helps to determine that time. "It often costs five to seven times more to acquire a new customer than to retain one, marketers must start paying attention to retaining their customers more effectively," Jao said. "Nurture their interests, and provide the most relevant and timely communication." The company says that clients have seen up to a 133% increase in customer spending as a result of their personalized campaigns.
Magazine Circs Slip in First Half The total circulation of magazines tracked by the Alliance for Audited Media (formerly the Audit Bureau of Circulations) slipped 1.9% between the first half of 2013 to the first half of 2014, reflecting a 1.8% decrease in paid subscriptions and an 11.9% drop in newsstand sales. Although declines were spread across all categories, some suffered more than others. A number of celebrity weeklies took hits, with one of the biggest drops occurring at In Touch Weekly, where total circ tumbled 22.3% from 554,496 to 431,038. Most of that was due to lower newsstand sales, which fell 23.5% from 522,736 to 376,858, while subs slipped 1.1% to 31,396. Life & Style Weekly saw its total circ decline 20.8% from 281,533 to 223,042. Again, this was due to falling newsstand sales, down 21.7% from 272,424 to 213,192; subs posted a modest 8.1% gain from 9,109 to 9,850. Women’s interest magazines also suffered. Woman’s World saw total circ fall 14.9% from 1,223,792 to 1,041,326, with newsstand sales down 16% from 1,111,756 to 1,041,326. First for Women’s total circ declined 12%, from 1,220,199 to 1,073,316, as single copy sales slipped 13.9% from 1,005,300 to 865,665. Woman’s Day posted a smaller 3.1% drop from 3,394,754 to 3,288,335. However, no category was immune, and iconic titles were especially vulnerable. Reader’s Digest saw total circ tumble 38.1% from 5,520,573 to 3,393,573, due to drops in both paid and verified subscriptions, while single-copy sales rose 16.1% to 181,967. The National Enquirer’s total circ fell 10.9% from 532,522 to 474,573, reflecting an 11.1% drop in newsstand sales. Among business titles, Money’s total circ declined 10% from 1,930,480 to 1,737,129. National Geographic was down 10.7% from 4,001,937 to 3,572,348, and Playboy fell 15.9% from 1,263,257 to 1,062,790. GQ Offers Promotions by “Elite” Readers Advertisers who spend at least $100,000 advertising in GQ can get additional promotional bang for the buck courtesy of GQ’s “elite” readers, according to Ad Age. GQ has assembled a cadre of 57 “elite” readers who will help promote brands across print and digital channels, including their own social media feeds. The members of the “GQ57” don’t get paid for their work, but they do benefit from increased exposure. Food & Wine Launches Table, Cookware Collection Food & Wine has partnered with Gorham to launch a new, branded tableware and cookware collection. The Food & Wine Collection will be sold exclusively on Amazon.com, beginning in September. It includes three main lines of dishes: Modern Farmhouse, with a Scandinavian inspiration, The Entertainer, for parties and everyday use, and On the Dot, which has a raised dot to help home chefs plate food as artistically as a professional. The collection also has three different styles of flatware, as well as drinkware, oven-to-table bakeware, and two cookware lines in stainless steel and enameled cast iron. WWEMagazine FoldsWWE Magazine is folding after 30 years in print, according to an announcement from the professional wrestling organization, WWE. The decision includes WWE Kids and WWE Specials. The final issue of WWE Magazine will be September 16."Magazine stand" photo from Shutterstock.
The History Channel has announced the launch of Planet H, a brand extension targeting kids ages seven to 11 with educational content about history. Developed by History and its parent company, A+E Networks, Planet H aims to make learning about history fun by incorporating play, in the form of digital games and other interactive content. The first Planet H offerings include mobile apps like “Empire Run,” which allows kids to race through ancient empires, hopefully learning about their culture and geography on the way, and “Frontier Heroes,” in which kids compete in mini-games set throughout American history. Both games were developed in partnership with Red Games, a division of Red Interactive Agency These apps cost $2.99 each and are available for iOS, Android and Kindle Fire. A third game will be released later this year, with more to follow in 2015. Dan Suratt, A+E Networks’ executive vice president for digital media and brand and content licensing, stated: “There is a void in the marketplace around high-quality, historically inspired content that is dynamic and engaging for kids. Planet H is launching mobile first, but it is a long-term initiative with great potential to reach children with an array of content and products.” History already has a presence in schools, through a partnership with Houghton Mifflin Harcourt, creating virtual experiences as part of social studies curricula. Given kids’ affinity for iPads and other mobile devices, it’s no surprise that media companies are rolling out educational apps at a steady pace. Discovery Kids, for example, has over a dozen apps for kids on offer, including a number tied into the Animal Planet franchise and several devoted to the ubiquitous Shark Week.
Advertisers on Twitter can now create campaigns focused on specific marketing goals, and pay only when people take desired actions as a result. With the rollout of objective-based campaigns, announced Thursday, marketers can choose from a range of key goals including driving Tweet engagements, Web site clicks or conversions, app installs or engagements, followers, or leads. For each objective, Twitter’s self-serve ads tool will suggest the appropriate ad format. “Let’s say you’re a camera retailer, and you want to drive more visitors to the summer promotion on your Web site,” stated a Twitter blog post. “You can create a Web site clicks or conversions campaign, and then promote a Tweet with a Web site link or Website Card, our recommended ad format that is specifically designed to drive website traffic.” The company said it has also added tools to make it simpler to create an ad, including an image cropper with drag-and-drop capability to more easily customize photos. In terms of paying for performance, Twitter also gave examples of specific actions that would represent conversions. For a “Leads On Twitter” campaign, the creative setup includes a Lead Generation Card — a tool to help advertisers connect off-Twitter with users interested in their message. A marketer would only pay when someone submitted their information on one of these cards. Similarly, app install and app engagement campaigns are only charged on a cost-per-app-click basis. Campaigns can also be optimized based on metrics tied to particular goals. “For instance, reports for your Web site clicks or conversions campaign will show total link clicks and cost-per-link-click. If you have a tracking pixel set up, the reports will also show total conversions and cost per conversion. All campaign data can be easily downloaded into a CSV file,” Twitter stated. The company said it has seen positive results with clients testing objective-based campaigns over the last few months, but didn’t provide details. The new offering is available in beta now to small and medium-sized business and API partners globally, and will be rolled out to managed clients by invitation in a few months. During Twitter’s latest earnings call, CEO Dick Costolo indicated the majority of self-service buying comes from small businesses rather than from larger advertisers. “We are encouraged by the impact that self-serve has on the SMB advertiser base and I think it’s a big opportunity for us,” he said.
Honda likes to flip the typically mundane summer sell-down (otherwise known as summer clearance) campaign template on its head. Instead of the usual "parade 'o cars" tier 2 TV ads, the automaker has been doing offbeat social media campaigns inviting consumer participation to get people to dealerships for deals. Last summer, for instance, Honda touted summer sales with real-time offbeat videos based on consumer tweets. This time it's about “Cheerance” where, in addition to traditional media executions, Honda is launching a social flotilla of humorous videos, off-beat installations, GIFs, events and a partnership with YouTube celeb du jour, Andrew Hales. All of it is around the idea of creating unexpected cheer -- something everyone probably needs right now, assuming world peace and a cure for ebola doesn't happen in the next 24 hours. The campaign running this week, launched with an introduction video that sets up the scheme. The content is tagged with a Honda Summer Clearance Event call to action. Hales is promoting the program with two videos on his own channel LAHWF YouTube channel, where he dances with strangers, among other things. The video content includes candid-camera type footage of unsuspecting people getting cheered in a couple of ways: they might encounter piñatas at various locations, and Honda has a “Stand Here for Cheer” box in busy areas. A person who stands in the painted box gets a surprise, but a good one. Honda says it might involve, for example, a sax player serenade. Honda also showed up at a beach with a “Cheer Detector” that “found” a buried treasure chest whose contents were shared with onlookers. Honda is also partnering with Pandora, which is running a custom "Cheerance" pop music playlist. Honda is also running radio ads in top DMA's, including drive-time radio segments featuring comedian Steve Simeone, who voices two 60-second, custom-made “Summer Cheerance” comedy bits during commercial breaks. Honda's campaign Web site is hosting the candid guerrilla video grabs of Honda’s impromptu cheer happenings. “Summer Cheerance” pre-roll appears before humorous videos on social channels. Banner ads are running on sites like as Cars.com, KBB.com and Edmunds.com and Facebook, Twitter and YouTube. Honda says it is also running "Summer Cheerance" pre-roll creative before humorous videos sites like YouTube. Print ads are in People, Sports Illustrated and local newspapers in top DMAs. Network radio spots will also air during the event. But no self-respecting clearance campaign would be without at least some TV. Honda's Summer Clearance Sales Event has six spots including Spanish-language versions referencing last year’s Vine video campaign by responding to tweets, and offering a solution: a new car. Honda says network placements for the TV spots will be on “The Bachelorette,” “New Girl,” “24” and “MasterChef” and on national cable networks such as Bravo, Discovery, TBS and HGTV. Honda is also using the effort to support a cause with which Honda motorcycles and the Honda riders club has had an association with over the years, the Pediatric Brain Tumor Foundation, to which the automaker will donate $100,000, but only if the automaker reaches a goal of cheering up three million people by week’s end. The Web site has a counter keeping a running tally.
YouTube continues to step up its wave of buyouts with the acquisition of Directr, a small video editing company supporting a mobile app that provides businesses with a way to create and publish online clips. The deal makes the app free to use. "Our small band of scrappy film lovers set out 2 years ago to help regular folks make great video. Today, we are incredibly excited to take the next step on that journey and announce that we are joining the video ads team at YouTube," reads a blog post on the company's Web site announcing the deal. Google has begun to focus more on YouTube's ability to provide tools that spark creativity in those who make content by either acquiring companies with innovative technologies or building production studios in Los Angeles, New York and London for partners to use. The Directr deal puts another tool in YouTube's coffer that advertisers can use to produce content for their Web site or upload to YouTube, as well as index in Google Search and Google Maps.
Consumers may soon have an option to search and purchase tickets for live events from a search engine if Live Nation EVP of Digital Marketing Ryan Okum gets his way. "I will not be surprised if a lot of the data gets pulled in to search engines that allow fans to find more tickets for live shows," he says. Results for local live events could one day serve up on google.com or bing.com, similar to the way airline travel results serve up for flights information, Okum agrees. Dreaming a bit further for the concert promoter, a buy button would allow the purchase of tickets. "It's a huge opportunity for us as a business to be better connected to fans," he says, referring to opportunities in digital that provide "information and value-added experiences." During Live Nation's first fiscal quarter in 2014, ended July 7, entertainment revenue from concerts rose 29%, compared with the year-ago quarter. To better understand growth from digital channels, Google worked with Ipsos MediaCT to follow the trend. After consumers use search engines to seek out information about live events, about 80% of consumers eventually purchase a ticket. The study, released Thursday, suggests that 71% of all ticket buying happens online. While consumers mostly buy tickets on their desktops, growth on tablets and smartphones continues to rise. There was a 50% increase in the use of smartphones for ticket purchases from 2012 to 2014. Pop concepts stand out in the United States. Some 66% of people who view live events engage in online activities during the event such as tweet photos on Twitter or post messages on Facebook and Google+. Of those, 20% comment or post, 17% check in, 16% +1, follow or like something, and one in three research future events. The increase in online purchases continues to drive more of Live Nation's marketing budget online. The company invested between 15% and 35% of the company's overall marketing budget in digital media campaigns in 2013, but plans to invest between 30% and 40% this year, Okum said. Consumers increasingly use smartphones to research events. Some 79% use smartphones to look up live event information at the beginning of their research, and 64% use the Internet as the main source for live event information.
Nami Media, a Los Angeles-based online marketing and tech company that was acquired by LIN TV in 2011, has announced the launch of its own media-buying division. The announcement is representative of the blurring lines between tech companies and agencies. Nami has primarily been a tech platform for cost-per-click, pay-per-click and XML search ads, explained Gary Mittman, the company's president and co-founder. The media-buying division will focus on buying in-text ads, toolbar ads and various forms of search. In other words -- not the type of advertising found on display networks or programmatic environments. “We have a media-buying team in-house using our technology to grow out this sector of business, which we're starting to call the alternative [to programmatic exchanges] -- for lack of a better term,” said Mittman. The technology that Nami's media-buying team will use is a “hybrid,” said Mittman. It involves real-time bidding, but it’s not fully automated. (The bid's prices are predetermined.) Nami has relationships with a number of agencies, but Mittman doesn’t believe the company's launch of a media-buying division -- a very agency-like thing to do -- will cause those relationships to sour. “I think it will expand our relationships with agencies,” Mittman asserted, noting that agencies are “always looking for new sources of traffic.” Mittman also said the company isn’t looking to “squeeze margins,” and Nami claims it’s launching a media-buying division because of demand. “Client demand to simply purchase media directly from Nami Media has led to the creation and launch of the Nami media-buying division,” the company writes in a release.
I read earlier in the week that aside from a small uptick in April, shopper visits to U.S. retailers have fallen by 5% or more from a year earlier in every month for the past two years. Apparently, instead of wandering through stores and making impulse purchases, shoppers use their mobile phones and computers to research prices and cherry-pick promotions, sticking to shopping lists rather than splurging on unneeded items. As a major Amazonian, none of this comes as much of a surprise to me. What does is how brick-and-mortar retailers are reacting: by letting their last vestige of hope -- personal customer service -- atrophy or disappear altogether. It used to be you had to go to Radio Shack to find profoundly and universally poor customer service, but these days I see it nearly everywhere. Before I give you just a few examples from my life, you have to understand that I hardly ever go into stores (except for groceries). I embraced Internet shopping practically from the 2400 baud rate. Although I have made my share of mistakes (like not fully investigating a seller before buying, and finally realizing that the lowest price is often not the best product) by and large Internet shopping has been fantastic for me. So why -- on my so-very-few visits to actual stores -- is the customer service almost always terrible? If you extrapolate from my few visits, the issue is clearly massive. The names have not been changed to protect the innocent. Go to CVS to pick up prescription. Five people behind the counter, but only one helping very long and slow line of customers at one of three available registers. When I make sarcastic and pointed comment to pharmacist, he blames "rules" made by "Wharton B School types" who run the company. Alternative solution: stop counting pills and work the register until line is resolved. Plan B: hire another high school kid during peak hours. After getting hard sell on TV at Best Buy, I agree to purchase, only to be told THEN that product is out of stock: "You can come back next week when we expect a delivery." Alternative solution: "When it arrives, I will deliver it free to your house." Plan B: "Here is a slightly better, more expensive, unit I will sell to you at the price of the out-of-stock unit." At Toyota dealership asking very basic questions about $35,000 potential purchase, only to be told "I don't know" or "I'm not sure." Alternative solution: Know the frickin' product or don't try to sell it. Plan B: "I am really a dumb-ass, so let me get a smarter dumb-ass to help you." At Walmart asking astoundingly basic questions about electronics, only to have "associate" refer to shelf tags and/or box for information. Alternative solution: See "Know the frickin' product." Plan B: Offer big screen-TV access to Internet, so I can get a straight answer from someone who know what the hell they are talking about, like Crutchfield. Also making the Frequently Annoying Club: One open register across half a mile of department store clothing departments; kids who make up answers they gleaned from the store or manufacturers' marketing material, which don't remotely address the question; standing in a retail aisle CLEARLY looking for help, only to be ignored by store workers; listening to two store workers converse about incredibly private matters that should not be aired in public (often about how much they hate their jobs); cashiers who can't be bothered to look you in the eye, even once; being answered "try aisle 7" when there is an 80-20 chance that is the wrong aisle, rather than being walked to the product; not being offered alternative ideas when the store is out of stock. Then there was this guy, in the auto parts department of Sears in Charleston, S.C. who -- when he didn't have a taillight in stock -- picked up the phone, called an unaffiliated auto parts store down the road, and asked them to hold it for me. Coulda "ordered" it and had me return. Could have just blown me off. But he didn't. Chalk up a big win for Sears customer service. I understand that less traffic means less sales, lower margins and less money to properly train workers in the art of customer service. And that retail sales is not the career of choice for the highly trainable. But the single reason to go to a store is that human contact. If it is miserable, why go?
Stephen David of the eponymous production company that he founded in 2010 is an Emmy-nominated executive producer who was named to Realscreen’s Global 100 list earlier this year. He says, “I started working as a screenwriter for several studios out in Los Angeles, and then was hired onto the creative team of NBC’s ‘The Apprentice.’ So I ended up combining my background in dramatic writing and non-fiction producing, and that’s where this hybrid world came from – mixing these two genres together.” Stephen’s hybrid abilities are put to good use in his newest series of projects for several different TV networks – each show tackling big topics throughout history. He says, “My next project coming out is a fully scripted event series for History called ‘Sons of Liberty,’ which tells the story of how the Revolutionary War started." I sat down with Stephen and asked him the following questions: CW: Stephen, tell us about the making of “Sons of Liberty.” SD: With “Sons of Liberty” we wanted to portray the story behind the Revolutionary War – which tends to get skimmed over….I know that I was surprised when I learned the real history. It is being filmed in Romania and stars Ben Barnes (“The Chronicles of Narnia”) as Sam Adams, Michael Raymond-James (“Jack Reacher,” ”True Blood”) as Paul Revere, Rafe Spall (“Prometheus,” “Life of Pi") as John Hancock, Henry Thomas (“E.T.,” “Legends of the Fall”) as John Adams and Dean Norris (“Breaking Bad,” “Under the Dome,”) as diplomat Benjamin Franklin. I think audiences are going be truly surprised to see how the actors have interpreted these iconic figures. CW: What draws you to history? SD: It’s not so much that I’m drawn to history. It’s more that I’m fascinated by what people really did. The true stories, the character motivations… some of the things these people did – if you made it up, it wouldn’t be believable. CW: Are your non-fiction series editorialized in any way? How do you avoid slanting history? SD: With our shows, we’re always trying to find a new way of looking at history – a new thesis, a new lens… But we try to avoid passing judgment on whether what these historical figures did was right or wrong. We let the audiences decide for themselves. For example, with "Sons of Liberty,” we wanted to portray the story behind the Revolutionary War – which tends to get skimmed over. But in many ways, it’s a far more interesting, exciting story to tell. CW: How do your screenwriting skills play into your producing skills? Are there ever any inner creative conflicts you have to navigate – writer vs. producer? SD: The hardest thing is trying to figure out what you put into these shows given the amount of time, episodes and budget you have to tell your story. As a writer, you fall in love with certain stories – but as a producer you realize that sometimes you won’t be able to tell those stories. CW: Is content king? SD: I don’t know that I understand distribution models well enough to completely answer that – but I can tell you that content is king for me. Storytelling is what we love doing most. CW: What is your definition of television? SD: The definition has changed for me over the past ten years. The fact that I can watch a show or a movie or any form of entertainment on my phone while I’m riding on the subway is amazing. So for me, any screen I happen to be watching is a television, in a sense. CW: 2014 has been a big year for you, with multiple Emmy nominations, and “Sons of Liberty.” What else do you have in the works? SD: Luckily, we’re getting to work on a lot of really interesting projects for a variety of networks, some of which are in the hybrid format, like “The World Wars,” and others are fully scripted such as “Sons of Liberty.” Our next hybrid series is called “American Genius”, which we’re doing with National Geographic. It’s about the greatest inventor rivalries that fueled some of the most innovative developments in history. We have several other projects that have not yet been announced, but we’re extremely excited to be working on them and can’t wait to share more… CW: How has the programming pipeline changed since you started in the business? SD: There are significantly more television channels now then there were when I first started in the business. And all these channels have a strong desire to do interesting things. So there’s a lot of genre-bending going on in television that makes it a very exciting time to be a content creator. CW: Looking ahead, how do you see the media landscape evolving over the next three to fiveyears? SD: I think as we see more and more screens available through various mediums, we’re going to see a proliferation of innovative content as networks push to grab eyeballs. Ten years ago, you could have said the word “docudrama” or “factual television” and it probably wouldn’t have meant much to anyone. Media is constantly evolving – it’s very exciting to be a part of that larger process, however the landscape may change.
Growing digital revenues are a nice bonus for broadcast stations. But are they growing fast enough? Borrell Associates estimates that local TV-related digital advertising sales will get to $2.9 billion this year -- about 6.5% of all local TV revenue. Borrell notes that some TV companies see as little as 3% of their ad revenues from digital, others as high as 8%. But Borrell notes how well stations “could be doing.” Local TV-related digital advertising sales will rise a modest 7.4% this year. down from a 14.9% gain in 2013. This might sound reasonable in comparison to overall TV revenues. BIA/Kelsey says traditional station advertising will be $19.9 billion in 2014 – an 8.2% gain from $18.4 billion in 2013 - mostly due to political and Olympic revenue. Stations may have a lot of work to do. Overall local digital advertising - will climb 42.5% this year to $35.2 billion. Newspaper and directories -- though under more pressure than other media -- already glean twice TV stations’ share of digital advertising dollars, or around 12% to 13%. But there’s good news for digital platforms that are heavy into video content. Much more than on other digital ad platforms, marketers are willing to pay premium pricing for big, impactful video content. Borrell points out that video CPMs are still well above display advertising, averaging $23.70 -- down a small 5% from $25.03 in 2013. The problem is how to garner new business going forward, with the digital marketplace overcrowded and fragmented. No matter. Borrell believes stations need to be much more aggressive to make digital 25% or more of their total revenue within five years. That would be a rapid rise. But we agree that stations need to get close to these goals -- and fast. They have their work cut out for them.