Top Disney executive Anne Sweeney said ABC now has more than 64% of its affiliates paying for rights to offer the network. The affiliates are paying ABC a license fee or a portion of the so-called retransmission consent dollars they are collecting from cable/satellite/telco TV operators. In the last year, ABC itself has done deals to get cash for its owned stations with Cablevision, Time Warner Cable and Verizon. The retrans process has "made ABC a multi-revenue-stream business for the first time in history," Sweeney said at the Disney investor event last week. However, not all affiliates have been keen on paying the network, although Sweeney has touted the Inventory Exchange System that started last fall. The program has the network and affiliates able to exchange spots, allowing each to maximize inventory. "We've injected marketplace dynamics and entrepreneurial spirit to create more value across the board," Sweeney said. Sweeney oversees the ABC network and the owned stations, as well as ABC Family and the Disney Channel. In a presentation, Sweeney noted that ABC endeavors to stay ahead of the curve in the digital realm, having been the first network to sell episodes on iTunes, make them available free with ad support on ABC.com and debut an app on the iPad. Also speaking at the event was ABC network head Paul Lee, who said ABC's "job is still to make big-tent programming that invites in" all segments of viewers. Lee said that there are opportunities to exploit Disney's acquisition of Marvel Comics to develop more shows that build family co-viewing, with several series in development, including "The Hulk."
The Pyrex brand and Sandra Lee have teamed up to educate consumers on how to cook with care when using glass bakeware. Lee, author and editor in chief of Semi-Homemade magazine, is also the host of "Sandra Lee Celebrates," a series of prime-time specials on HGTV, and two highly rated television shows on Food Network, the multi-Emmy-nominated "Semi-Homemade Cooking" and "Sandra's Money Saving Meals." Lee and Pyrex have developed "4 Simple Rules" for cooks to follow. "I've been a fan of Pyrex products for many years -- using them in my own kitchen," Lee said in a release. "The '4 Simple Rules' are easy to follow and incorporate into your everyday cooking lifestyle." The terms of the Pyrex brand's agreement with Sandra Lee were not disclosed, including the duration of the partnership. To help consumers keep the "4 Simple Rules top of mind, the Pyrex brand has launched a new website, http://4simplerules.amssupport.net, where consumers can watch a demonstration video and download savvy cooking tips and recipes from Sandra Lee. Pyrex also has produced consumer education videos with Sandra Lee discussing the "4 Simple Rules," which will be distributed in advertising, on-pack and through public relations. The program also will be supported by media relations, targeting print, online, radio and television outlets nationwide. The "4 Simple Rules" were featured in an ad in Parade earlier this month. "We will run a banner ad with Sandra Lee that links to a 15-second video on the '4 Simple Rules' on epicurean websites, such as AllRecipes.com and MyRecipes.com," according to a Pyrex spokesperson. "We are also distributing an FSI (free standing insert) to direct consumers to the website to get the '4 Simple Rules.' Additionally, Pyrex is working with Sandra Lee on a Valpak offering that will include a glass bakeware and potholder product giveaway." The safety of consumers is Pyrex's highest priority, says Pam McMeen, vice president of brand marketing for World Kitchen, LLC, the Rosemont, Ill.-based manufacturer of Pyrex glassware. The company's goal in reinforcing the "4 Simple Rules" and partnering with Sandra Lee to share the message is to reach as many consumers as possible. "There's a natural fit between Sandra Lee's experience in the kitchen and the goals of the Pyrex brand," McMeen tells Marketing Daily. "We want to make cooking easy for consumers, and Lee's helping us do just that." Consumers can help avoid the most common causes of breakage by following these rules: always place hot glass bakeware on a dry, cloth potholder or towel; never put glass bakeware directly on a burner or under a broiler; always allow the oven to fully preheat before placing glass bakeware in the oven and finally, always cover the bottom of the glass bakeware dish with liquid before cooking meat or vegetables.
The latest incarnation of Miracle Whip's distinctive "We're Miracle Whip and We Won't Tone It Down" brand positioning not only declares that the spread isn't for everyone, but is anchored by TV spots featuring both celebrities and actors representing average consumers who declare that they "hate" the brand, interspersed with praise from those who love it. This newest leg in the campaign, from McGarryBowen, will get its first mass national exposure with a 60-second "Take A Side" spot to air on Feb. 23's "American Idol," and subsequently on the Oscars' pre-show broadcast. The commercial features Miracle Whip lovers who include political commentator/strategist James Carville (praising it as "America," in contrast to "fancy-dancy, elite" mustards and "stuff like that") and comedian/author/TV and movie celeb Amy Sedaris (who notes that it's "always great in bed"), as well as actors extolling it for its tang, exotic sweetness and other unique qualities. (Not included in this leg of the campaign are the specifically anti-mayo messages that in 2009 prompted Stephen Colbert to "defend" mayonnaise and parody Miracle Whip's "hipster" creative approach ... which Miracle Whip countered by buying up blocks of ad time on "The Colbert Report.") Countering the "lovers" are comments from "Jersey Shore"'s Pauly D ("I would never eat it, I would never put it on my head ... it's just wrong") and actors describing Miracle Whip as tasting like "spreadable disappointment" and "sweet lotion," among other things. The driving "We're Not For Everyone (Are You Miracle Whip?)" theme and encouragement of consumers to post either a hate or love stance through a poll on a branded YouTube hub (auto linked to pop up when consumers enter the miraclewhip.com site) represent a first-of-its-kind marketing approach in the U.S., according to Kraft. TV ads also include 30- and 15-second versions featuring somewhat different love/hate expressions from Carville, Pauly D and the actors (who, Kraft says, were chosen for their genuine, "undying passion" for or against the spread). Four of the videos were posted four days ago on the brand's YouTube channel, and as of today, one featuring Pauly D had already generated more than 63,000 views, and the one-minute "Take A Side" commercial had generated some 29,000 views. Visitors to the YouTube channel can register to receive free samples, and the online (apparently uncensored) "love/hate" poll comments are accompanied by this brand message: "We were hoping you'd stop by ... this means you've tried [Miracle Whip], you want to, or you're lost. If you haven't tried us, you're in luck. We just so happen to have some free samples for you. We're a little loud and a little tangy. So after you get a taste, tell us what you think. If you've already tried us, congrats ... So what did you think? If it's unfettered hatred, that's cool. We know we're not for everyone. We just ask you to let it out on the right ["hate us" comments column]. If you love us, well, we love you, too. Confess it on the left ["love us" column]. The campaign will also feature print ads that begin running in March, and support via Miracle Whip's Facebook page.
The global business economy for TV sets has rebounded. Fourth-quarter 2010 shipments of TV sets grew 15% to 77.6 million units, after falling 9% in the third quarter. The survey came from DisplaySearch's Advanced Quarterly Global report. Gains were made in North America, which had a slowdown throughout most of 2010. China -- one of the fastest-growing economies -- experienced a 2% decline in the fourth quarter. This was due to a major decline in older CRT television sets, which overwhelmed the growth by LCD and plasma screen TVs. All LCD TV sets have a 82% share of the worldwide market; CRT TVs have an 11% share. The report says for the first time since the beginning of the year, LCD TVs grew at a faster pace that plasma TVs -- all because newer LED-backlit LCD TVs pricing fell. LED TVs now have a 30% share of the marketplace. Plasma TVs had 20% year-over-year growth in the period, commanding a 7.3% share of the worldwide market. Newer 3D TVs now have a 9% share of global TV revenues, with 2.3 million sets shipping in the fourth quarter. Paul Gagnon, director of North America TV research for DisplaySearch, said in a release: "LCD TV panel prices started falling in July, but due to the length of the supply chain, it takes about a quarter for those prices to be realized at retail."
Netflix has inked a deal with CBS that allows it to stream some of the network's shows, although apparently none currently on the air. The list includes the recently canceled "Medium" and summer show "Flashpoint." Under the two-year deal, there is also a slew of library content owned by CSB Corp. such as "Cheers," "Frasier" and the original "Hawaii Five-O." CBS has an option to re-up the deal for two more years. Negotiations with Netflix to stream current CBS shows will continue. Netflix is content to acquire rights to previous seasons, saying that fits its business model as sort of a catch-up-on-a-rainy-day approach. The company does stream back episodes of shows currently running on ABC, NBC and Fox. "This deal recognizes the increasing value of our content in today's marketplace," stated Scott Koondel, who heads distribution for CBS's syndication unit. Wells Fargo analyst Marci Ryvicker said the deal could worth hundreds of millions of dollars to CBS. Meanwhile, Amazon said it would make 5,000 movies and TV shows available for instant streaming to members of its Amazon Prime service (which costs $79 a year) at no additional charge. The service marks an expansion for the service that allows free two-day shipping for Amazon purchases.
Despite the headline, this is not a commentary on the Middle East -- which makes me one of the few people not publishing uninformed opinion. (I was particularly fascinated to see New York's infamous, former Governor Spitzer weighing in on Egypt policy from his new platform at CNN, all the while leveraging for us his extensive foreign policy experience. But I digress.) No, this is about something else -- something that may finally be taking shape. Some years ago, the visionary CEO of a direct marketing agency approached a speaker's podium with the song, "Two Different Worlds" playing in the background. His message was simple: that direct-to-consumer marketing rests primarily on the principle of relevance -- and that principle was going to be increasingly important as mass media platforms gave way to more specialized digital platforms with unique communications characteristics and attributes. But he wasn't talking to direct marketers; he was talking to major brand marketers. And this wasn't two years ago, but 15. One of the lessons learned from a journey beginning in direct marketing and moving to major brand marketing relates to the strengths and shortcomings of each discipline. The world of direct has been and continues to be primarily (though often brilliantly) tactical. It should not be so, but the net result of years of A/B split testing leaves one conditioned to focus laser-like on the details of each effort -- details resulting in the clarifying accountability of campaign ROI. Conversely, in my experience there are few better strategists in marketing than brand managers. They have to take a longer-term view of what Joel Tucciarone calls the "perceptual and relational equity" resulting from their efforts. But brand managers too often abdicate to the black box of marketing mix modeling (lately more impressively called econometric modeling) to dictate key tactical decisions. And if you understand the way the math works for these models, you'll understand why they rarely result in recommendations of new tactics. Two different worlds. What marketing requires today, and what it will achieve, is convergence -- not of devices, but of disciplines. It is what the consumer demands of us, and it is what the digital platforms of the MediaTech industry offer us: the best of these two different worlds. The process of "marketing brands directly," which is how we repositioned direct-marketing principles when introducing them into CPG companies, effectively utilizes both sets of skills, with data-based and insight-driven brand strategy directing the "test, measure and refine" tactical planning approaches for customer relationship marketing programs for example, or the introduction of branded, personalized e-commerce platforms like My M&M's. And it's about to get better. With the growth of online video, and all things video, there is growing momentum to take a fresh look at the potential of "new again" platforms -- e.g., ad-supported video on demand. Why VOD? Because it is a classic consumer- in-control environment, retains all the advantages of television's sight and sound, and is poised to add the "online" capabilities of dynamic insertion, addressability and interactivity. Targeted, on demand, responsive... television. Marketing directly. Two different worlds becoming one? What do you think?
The question of whether or not to offer product placement is often on the minds of 10 p.m. network show producers. Maybe they also think about how theatrical movies handle this issue -- especially when it comes to fictional versions of public figures. In an episode of "The Good Wife" titled "Net Worth," which CBS telecast last week, the show's fictional Chicago law firm takes on a case involving a movie studio's production of a film about a young entrepreneur named Patrick Edelstein who built a very big Internet company -- like Facebook's Mark Zuckerberg in the movie "The Social Network." Indeed, in the episode, law firm partner Diane Lockhart even says Edelstein could be the next Zuckerberg. Seems that Edelstein wants to sue the movie company for "defamation" -- something historically very hard to prove. Then law partner Will Gardner decides to go about it a different way. Instead of focusing on defamation, he focuses on product placement, another way in which a studio might capitalize on a public figure. The story line says some 23 branded entertainment deals were done for the fictional film. For the general TV audience, that seems a little too inside. Still, it's kind of cool. But there doesn't seem to be judgment here -- which brings me to branded entertainment deals in "The Social Network." According to Brandchannel.com, 51 brands appeared in "The Social Network." Here's the long list: Adidas, Apache, Apple, Arm & Hammer, Boston University, Brooks Brothers, Cadillac, Cambridge University, Columbia University, Cornell University, Dell, Disney, Exeter Academy, Facebook, Friendster, Gap, Google, Harvard University, LiveJournal, London School of Economics, Macy's, match.com, Microsoft, Mountain Dew, MySpace, Napster, Network Solutions, New England Patriots, NFL, Nike, Oxford University, Patagonia, Philips, Polaroid, Polo Ralph Lauren, Porsche, Range Rover, Red Bull, Samsung, Sony VAIO, Stairmaster, Stanford University, The Harvard Crimson, The North Face, The Unlimited, Thirsty Scholar, Tower Records, Ty Nant, Under Armour, Victoria's Secret, Yale University. To be fair, there are many types of product placement/branded entertainment situations. Sometimes, prop masters just go and buy the products. Other times, the prop masters work with marketers who give them free products or services, especially cars. And there are also big marketing deals involving big media dollars that help tout the TV show or film. All this isn't just for money; many times it gives the production a nice dose of realism. The crucial piece of the case in "The Good Wife" came from an ex-branded entertainment executive who placed a couple of car product integrations in the movie because Edelstein's name was attached to the film's publicity. This was key. The lawyers linked the studio to wrongfully using a real-life entrepreneur's name to gain commerce. That wasn't the end of things. The branded entertainment executive threw in his own kicker: "It was between this movie and 'Social Network.'" Real products in real times, and a bit of brand exposure in a big 10 p.m. CBS drama.
Online advertising has been coming under a good degree of scrutiny lately, and television may not be far behind. As new technologies evolve to tell us more about who's watching what, it seems highly likely to me that one of these days some flavor of "Do Not Track" will be applied to the television platform. The question is, who among us will be prepared? After all, privacy practices aren't something you can easily add after the fact, like the icing on a cake. Privacy protection and information systems security need to be baked into that cake from the moment you mix the ingredients, and if you deal with consumer data in any form, it needs to be considered part of everything you do. Start-ups have a clear advantage here. After all, it's much easier -- not to mention much less expensive -- to build privacy practices into a business when you're starting from scratch. That's not to say, however, that established businesses can't lead on the privacy protection front. The industry, as well as clients and customers, will benefit when they do. On the Federal Trade Commission website, there's a pretty thorough tutorial about the fundamental necessity of information systems security and privacy protection practices for business. I have written about innovation in the TV industry in the past The same principles apply more than ever when it comes to privacy. Make privacy a core strategic priority from day one. This way, it will be part of your processes and policies for years to come. Here are six best practices I think are most worth considering when building privacy into a TV-data-centric solution: 1) Implement "Privacy by Design": Make privacy one of your corporate objectives, integrating privacy and information security principles into everything you do. 2) Don't receive unnecessary personally identifiable information. If you must collect personally identifiable information -- names, addresses, birthdates, etc. -- limit it to what you really need. If you are a media research/planning company and can run your business without that information, even better, because you can't compromise what you don't receive. Then go even further to do everything you can to prevent household re-identification. 3) Keep your data secure. Protect your data from loss, unauthorized access, and unapproved uses. If you are building a TV ad network, don't let your data leave your servers without agreements for security and protection. If you are a media research/planning company, don't let your data leave your servers except in aggregate form (i.e., as a report). 4) Make your opinion heard. As government agencies develop privacy guidelines, they want to hear from practitioners in the industry. Go ahead and submit your comments on privacy and information security to the FTC and the Commerce Department. Take part in roundtables among stakeholders. Be proactive, participate in the process, and help make sure that the regulatory bodies don't establish rules that don't work for the industry. 5) Consider pursuing information security certification. As an example, the International Organization for Standardization (ISO) sets standards of excellence in various sectors across 160 countries. Their information systems security certification is difficult to achieve but a tremendous independent validation of your IT practices. While only about 90 U.S. companies are ISO27001 certified (none in the media industry other than TRA), the process of certification itself forces you to take a hard look at security best practices. 6) Conduct regular information security audits. Unsure where you're vulnerable? Invite an objective third party to audit your company's practices. Once you execute their recommendations, schedule regular audits to ensure you're maintaining the highest level of information security. Privacy and information security may not seem core to your business, but in fact they're key to ensuring you'll be able to serve your clients now and in the future without fear of privacy landmines. And always remember -- do what's right where privacy's concerned and you'll pass muster in the only court that matters: the court of public opinion.