Frager Factor

Monday, May 13, 2013

Big Media Moves Cast Doubt on a Future For dotTV

See NamePros-inspired update HERE
Fresh off the press all fronts heating up NOW! 
Whether dotTV of new gTLD, Hollywood is going APP-driven and Domainless, as investors watch a their future vision of the web as a broadcast medium pass them by as they had called it.
You've heard me talk about the concept "direct to domain" before. That every domain name is a theater just waiting for branded entertainment to bring it to life. 

I've been on a soapbox for over ten years advocating how television shows would be viewed online. That multiple channels of distribution and profit eating would be eliminated and that every domain name could be a broadcast station for someone.

I knew all of those would happen on dotCOM and all would need a name. So did other investors hence Frank Schilling owns the hits Shameless and Last Man Standing. Rick Schwartz owns the about to be released SaveMe. Fortunes have been made when Fox bellied up to the bar for and NBC for It was proof positive that any sustainable video content needs a permanent base camp on a dotcom domain matching its show title name. 

But at the end of the day, when all is said and done,no big 'Hollywood" deal has been for other than dotCOM.

But many investors have poured money into dotTV and have waited years for an expected rebirth of media on the .TV domain. I have always been skeptical about dotTV. The best case against dot TV, is its promoter, Demand Media went dotCOm with its own video content. Frank Schilling and other major investors own less than dozens, and then mostly for personal brand protection. The agreement with Tuvalu is shaky and so is the sustainability of the island of Tuvalu itself in the face of climate change. It will be an early victim. You have no standing in US courts. Pretty risky for Hollywood to bet hundred million productions on. Which is why the play never made sense to me.

Now, don't get me wrong, while there has been some success on dotTV such as Hollywood entertainer Byron Allen and his network of dotTV branded stations, a lot of Spanish and other European countries adopting it, and corporations using YouTube as a platform to deliver their video content with a dotTV domain redirect, so as to isolate content from their .com sites (StopAndShop.TV, Citrix.TV etc.), BIG MEDIA has failed to embrace the extension.

And that's a shame because the unlimited opportunities for streaming content online are unfathomable because everything Seth Godin predicted about the disintermediation of Hollywood, the removal of all the roadblocks that kept 99% of talented people from ever having a chance, are slowly fading away. And that means more content driving a big need for show titles and names,

At the same time the  monopolies are not going quietly as traditional broadcasters scramble to keep viewers watching its programs instead of drifting off to Netflix and other online services.

Everyone knows how Direct TV grabbed the hit show damages from cable to create a reason to by them. Now Netflix is bringing back Arrested Development and House of Cards. Note that none of this is happening on dotTV and even on dotCOM. It's all APP-driven providing pretty solid proof to dotTV investors that they got the future not ponly wrong, but that it's already passed them by.

Instead of being found on dot TV broadcast content will be found via APPS on iPad and iPhone and on the Kindle Fire device, and later this summer on Samsung Galaxy devices.

Law Suits Abound.
With plans to expand to Boston on May 15, Aereo is preemptively suing CBS. The start-up backed by Barry Diller, which allows users to stream and record broadcast television signals over the Internet, recently prevailed in a lawsuit when the U.S. 2nd Circuit Court of Appeals declared the service does not constitute “public performances” of copyrighted material. CBS and other networks are appealing that decision, but Aereo is already making good on its plans to expand outside of New York City.

According to The New York Times, "Disney's ABC network will become the first broadcast network to stream its shows live online through an ongoing service, starting with viewers of its TV stations in New York and Philadelphia on May 14 and expanding to its other stations by the end of the summer."

"To promote its WATCH ABC service, through the end of June Disney is allowing all viewers of its WABC station in New York and WPVI station in Philadelphia to watch live ABC programs online or on mobile devices by downloading the WATCH ABC app, Disney said in a statement."

"The app will initially allow users to be able to watch the service on Apple's iPad and iPhone and on the Kindle Fire device, and later this summer on Samsung Galaxy devices."

"Other networks are expected to follow Disney,"

Anne Sweeney, the president of the Disney-ABC Television Group, and Albert Cheng, its executive vice president show the future of TV and it's Mobile and APP-Driven

Photo: New York Times
In April, CBS made an investment in Syncbak, a technology company that works with local TV stations to stream programming to consumers over the Web.

CBS communications topper Dana McClintock responded to the news on April 23 by tweeting, “Stealing our signal will be found to be illegal in Boston, just as it will be everywhere else.”

Aereo doesn’t want to face another lawsuit in Boston, or anywhere else, so the firm filed a declaratory judgment action on Monday in New York federal court, seeking a ruling that its service is legal and doesn’t violate broadcasters’ copyrights, per the Hollywood Reporter.

"The fact that CBS did not prevail in their efforts to enjoin Aereo in their existing federal lawsuit does not entitle them to a do-over in another jurisdiction,” Aereo said in a statement quoted in Variety. “We are hopeful that any such efforts to commence duplicative lawsuits to try to seek a different outcome will be rejected by the courts.”

YouTube Going To Charge
YouTube has been the platform that makes a lot of broadcast transmission on the web possible. For the corporate sites mentioned above the idea of paying for hosting then having to accept 30-60 ads for other brands front ended for mandatory viewing before prospects and customers can access your content, may change the whole game.

According to Financial Times, "Google's YouTube video service is dipping its toe into pay television by starting on Thursday a subscription service with 30 content creators, including children's programmers Sesame Street and Muppet creator The Jim Henson Co, and the Ultimate Fighting Championship.

YouTube, the world's largest video website, allows creators to set subscription fees and accept advertisements, at their discretion, for the channels they create.

For $4.99 a month, subscribers can get golf lessons from the PGA Golf Academy. The Laugh Factory charges $2.99 for clips of stand-up comedy routines and Henson charges $2.99 for full length episodes of "Sid The Science Kid" and "Fraggle Rock."

YouTube has spoken repeatedly about its intent to experiment with paid channels, and has made no secret about its intent to be a major player in quality content.

"If feels to me as if history is repeating itself, said Tony Vinciquerra, former chairman of News Corp's Fox Networks Group. "In the early '80s cable providers subsidized channels to enhance offerings to consumers and increase penetration. Fast forward to today, and YouTube is subsidizing the development of new content offerings."

YouTube will feature content from traditional TV and film producers, company executives said, and at the launch featured children's videos from National Geographic and videos from cable channel HDNet.

That could eventually be a threat to cable and TV operators, but no time soon, said Richard Greenfield, a media analyst with BTIG LLC.

"I think everyone who creates video programming should be worried about the growth of new content channels," he said. "Broadcast TV has been hurt by cable. Broadcast is still a very large business despite fragmentation."

Content creators will get most of their revenue from subscriptions, as they already do from advertising on the site, according to company officials.

In March, YouTube said on its blog that it has more than 1 billion unique users a month. The new subscription service will be available in 10 countries at launch.

YouTube has spent more than $100 million to help about 150 media partners create and promote specialized YouTube video channels dedicated to topics ranging from food to sports.

"Consumers have gotten used to getting their content on the web," said Laura Martin, senior analyst with Needham and Co. "The question is whether they will pay for it."

And one question that's answered: Will dotTV play a significant role in anyone's ability to host or consume this content. The answer now is a resounding NO!

About The Author: Owen Frager is an Internet marketing expert ready to help take your company to the next level.

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