Video

Facebook Portal adds games and web browser amidst mediocre Amazon reviews

Posted by | Apps, Facebook, facebook messenger, Facebook Portal, Gadgets, hardware, Media, privacy, smart displays, Social, TC, Video | No Comments

After receiving a flogging from privacy critics, Facebook is scrambling to make its smart display video chat screen Portal more attractive to buyers. Today Facebook is announcing the addition of a web browser, plus some of Messenger’s Instant Games like Battleship, Draw Something, Sudoku and Words With Friends. ABC News and CNN are adding content to Portal, which now also has a manual zoom mode for its auto-zooming smart camera so you can zero in on a particular thing in view. Facebook has also added new augmented reality Story Time tales, seasonal AR masks, in-call music sharing through iHeartRadio beyond Spotify and Pandora that already offer it and nickname calling so you can say “Hey Portal, call Mom.”

But the question remains who’s buying? Facebook is already discounting the 10-inch-screen Portal and 15-inch Portal+. Formerly $100 off if you buy two, Facebook is still offering $50 off just one until Christmas Eve as part of a suspiciously long Black Friday Sale. That doesn’t signal this thing is flying off the shelves. We don’t have sales figures, but Portal has a 3.4 rating on Amazon, while Portal+ has a 3.6 — both trailing the 4.2 rating of Amazon’s own Echo Show’s 2. Users are griping about the lack of Amazon Video support for Ring doorbells, not receiving calls and, of course, the privacy implications.

Personally, I’ve found Portal+ to be competent in the five weeks since launch. The big screen is great as a smart photo frame and video calls look great. But Alexa and Facebook’s own voice assistant have a tough time dividing up functionality, and sometimes I can’t get either to play a specific song on Spotify, pause or change volume or other activities my Google Home has no trouble with. Facebook said it was hoping to add Google Assistant to Portal, but there’s no progress on that front yet.

The browser will be a welcome addition, and allow Facebook to sidestep some of the issues around its thin app platform. While it recently added a Smart TV version of YouTube, now users can access lots of services without those developers having to commit to building something for Portal given its uncertain future.

The hope seems to be that mainstream users who aren’t glued to the tech press where Facebook is constantly skewered might be drawn in by these device’s flashy screens and the admittedly impressive auto-zooming camera. But to overcome the brand tax levied by all of Facebook’s privacy scandals, Portal must be near perfect. Without the native apps for popular video providers like Netflix and Hulu, consistent voice recognition and more unique features missing from competing smart displays, the fear of Facebook’s surveillance may be outweighing people’s love for shiny new gadgets.

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Facebook adds free TV shows Buffy, Angel, Firefly to redefine Watch

Posted by | Apps, Entertainment, Facebook, Facebook Watch, firefly, Media, Mobile, Social, TC, Video | No Comments

Facebook hasn’t had a hit show yet for its long-form video hub Watch, so it’s got a new plan: digging up some deceased cult favorites from television. First up, Facebook is making all episodes of Joss Whedon’s Buffy The Vampire Slayer, Angel, and Firefly free on Facebook Watch. There’ll be simultaneous viewing Watch Parties where fans can live-comment together for Buffy at 3 pm PT today, Angel tomorrow at 12 pm PT and Firefly on Sunday at 12 pm PT. Facebook recruited Buffy star Sarah Michelle Gellar to promote the launch.

These shows aren’t original, and they’re far from exclusive, as they’re included in a Hulu subscription and are available to rent or buy on other platforms. But at least they’re not run-of-the-mill web content. With Facebook’s remake of MTV’s Real World not arriving until Spring 2019, these sci-fi and horror shows are the most high-profile programs available on the free ad-supported streaming service. The hope is that fans of these shows will come get a taste of Watch, and then explore the rest of its programming.

However, Facebook downplayed this as a change is overarching strategy when I asked if it would be licensing more old TV shows. Instead, it’s trying to build a well-rounded mix of content. A Facebook spokesperson provided this statement:

No – this doesn’t reflect a strategy shift. We’re focused on bringing content to Watch that people want to discuss and create a community around — whether that’s live sports like UEFA Champions League in Latin America, compelling shows like Sorry For Your Loss, Queen America and Sacred Lies, or even nostalgia content like Real World reboot we’re bringing to Watch next year. Buffy, Firefly and Angel are pop culture favorites with dedicated fan bases, and we’re excited for the opportunity to bring these shows back in a way that enables fans to watch and discuss together on the same platform.

There’s no guarantee Whedon fans will flock to Watch in droves. [TechCrunch owner] Verizon tried the same thing, bringing Veronica Mars and Babylon 5 to its Go90 streaming service. That failed to move the needle and Go90 eventually shut down. Meanwhile, Watch Party’s simultaneous viewing hasn’t blossomed into a phenomenon, but perhaps bringing the feature to Messenger (which TechCrunch reports Facebook is internally testing) could more naturally spur these social consumption experiences.

Watch has made some progress since its lackluster August 2017 debut. Indeed, 50 million people now spend at least 1 minute per month with Watch. For comparison, more than 18 Snapchat Shows have over 10 million unique viewers per month. Facebook Watch users spend 5X longer watching than on clips discovered on News Feed videos. But Facebook Watch really needs to pour the cash in necessary to secure a tent-pole series — its Game of Thrones or House of Cards. That might mesh well with its new strategy of conceding the younger audience that’s abandoning Facebook in favor of targeting older users, CNBC reported.

With so much free video content floating around and plenty of people already subscribing to Netflix, Hulu and/or HBO, it’s been tough for Watch to gain traction when it’s so far outside the understood Facebook use case. Laying a bed of diverse content is a good baby step, but it needs something truly must-see if it’s going to wedge its way into our viewing habits.

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YouTube rolls out Stories to creators with over 10K subscribers

Posted by | Media, Mobile, stories, Video, videos, YouTube, YouTube Creators | No Comments

A year ago, YouTube launched its own take on Stories, with the addition of a new short-form video format called Reels. The feature, which was rebranded as “YouTube Stories” at last year’s VidCon, was initially available only to select YouTube creators. But in June, YouTube said it would later in the year expand Stories to all creators with more than 10,000 subscribers. Today, it has done just that.

Now, YouTube is beginning to roll out Stories to a wider set of creators, giving them access to the new creation tools that include the ability to decorate the videos with text, stickers, filters and more.

The feature is very much inspired by rival social apps like Snapchat and Instagram — except that,  in YouTube’s case, Stories disappear after 7 days, not 24 hours.

The idea behind YouTube Stories is to give creators an easy way to engage with their fans in-between their more polished and produced videos. Today’s creators are no longer simply turning a camera on and vlogging — they’re creating professional content that requires editing and a lot of work before publication, for the most part.Stories let YouTube’s creators engage with fans in-between videos or while on the go, offering behind-the-scenes access to their creation process, updates, sneak peeks at upcoming videos and more.

Some early adopters of the format include FashionByAllyColin and SamirDR Oficial, ChannelFrederator and Cassandra Bankson. The test group before today was small, and only included creators with more than 70,000 subscribers, we understand.

Once enabled, YouTube creators can film a new Story by opening the YouTube app, tapping on the video camera icon, then selecting “Create Story.”

Also new today is the ability for fans to comment on the Stories.

Viewers can “thumbs up” and “thumbs down” comments and “heart” comments, as well. The same comment moderation tools that are available on YouTube’s video uploads are also available on Stories, the company says. Plus, creators can choose to respond directly to fans’ comments with photos or videos that the whole community can see.

During the week they’re live, YouTube Stories will show up to subscribers on the Subscriptions tab and non-subscribers on Home and in the Up Next list below videos.

Many YouTube creators point their fans to their Instagram for their short-form content and behind-the-scenes action — something that YouTube likely hopes to stem with its launch of Stories.

Today’s expansion brings Stories to a much wider group of creators than before, but YouTube hasn’t said if or when the feature will roll out to its entire user base.

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Bunch scores $3.8M to turn mobile games into video chat LAN parties

Posted by | Apps, Bunch, discord, funding, Fundings & Exits, Gaming, HouseParty, openfeint, Recent Funding, Social, Startups, TC, Video, video chat | No Comments

The best parts of gaming are the jokes and trash talk with friends. Whether it was four-player Goldeneye or linking up PCs for Quake battles in the basement, the social element keeps video games exciting. Yet on mobile we’ve lost a lot of that, playing silently by ourselves even if we’re in a squad with friends somewhere else. Bunch wants to bring the laughter back to mobile gaming by letting you sync up with friends and video chat while you play. It already works with hits like Fortnite and Roblox, and developers of titles like Spaceteam are integrating Bunch’s SDK to inspire longer game sessions.

Bunch is like Discord for mobile, and the chance to challenge that gaming social network unicorn has attracted a $3.8 million seed round led by London Venture Partners and joined by Founders Fund, Betaworks, Shrug Capital, North Zone, Streamlined Ventures, 500 Startups and more. With Bunch already cracking the top 100 social iOS app chart, it’s planning a launch on Android. The cash will go to adding features like meeting new people to game with or sharing replays, plus ramping up user acquisition and developer partnerships.

“I and my co-founders grew up with LAN parties, playing games like Starcraft and Counter Strike — where a lot of the fun is the live banter you have with friends,” Bunch co-founder and CEO Selcuk Atli tells me. “We wanted to bring this kind of experience to mobile; where players could play with friends anytime, anywhere.” 

Bunch team

Atli was a venture partner at 500 Startups after co-founding and selling two adtech companies: Manifest Commerce to Rakuten, and Boostable to Metric Collective. But before he got into startups, he co-founded a gaming magazine called Aftercala in Turkey at age 12, editing writers twice his age because “on the internet, nobody knows you’re a dog,” he tells me. Atli teamed up with Google senior mobile developer Jason Liang and a senior developer from startups like MUSE and Mox named Jordan Howlett to create Bunch.

Over a year ago, we built our first prototype. The moment we tried it ourselves, we saw it was nothing like what we’ve experienced on our phones before,” Atli tells me. The team raised a $500,000 pre-seed round and launched its app in March. “Popular mobile games are becoming live, and live games are coming to mobile devices,” says David Lau-Kee, general partner at London Venture Partners. “With this massive shift happening, players need better experiences to connect with friends and play together.”

When you log on to Bunch’s iOS app you’ll see which friends are online and what they’re playing, plus a selection of games you can fire up. Bunch overlays group voice or video chat on the screen so you can strategize or satirize with up to eight pals. And if developers build in Bunch’s SDK, they can do more advanced things with video chat, like pinning friends’ faces to their in-game characters. It’s a bit like OpenFeint or iOS Game Center mixed with Houseparty.

For now, Bunch isn’t monetizing, as it hopes to reach massive scale first, but Atli thinks they could sell expression tools like emotes, voice and video filters, and more. Growing large will require beating Discord at its own game. The social giant now has over 130 million users across PCs, consoles and mobile. But it’s also a bit too hardcore for some of today’s casual mobile gamers, requiring you to configure your own servers. “I find that execution speed will be most critical for our success or failure,” Atli says. Bunch’s sole focus on making mobile game chat as easy as possible could win it a mainstream audience seduced by Fortnite, HQ Trivia and other phenomena.

Research increasingly shows that online experiences can be isolating, and gaming is a big culprit. Hours spent playing alone can leave you feeling more exhausted than fulfilled. But through video chat, gaming can transcend the digital and become a new way to make memories with friends — no matter where they are.

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Facebook Lasso app lead Brady Voss leaves for Netflix right after launch

Posted by | Apps, Brady Voss, Facebook, Mobile, Netflix, Personnel, Social, Talent, TC, tiktok, Video | No Comments

Facebook Lasso has a steep uphill climb ahead as it hopes to chase the musical video app it cloned, China’s TikTok (which merged with Musically). Lasso lets you overlay popular songs on 15-second clips of you lip syncing, dancing or just being silly — kind of like Vine with a soundtrack. It’s off to a slow start since launching Friday, having failed to reach the overall app download charts as it falls from No. 169 to No. 217 on the U.S. iOS Photo and Video App chart, according to App Annie. Sensor Tower estimates Lasso has been downloaded fewer than 10,000 times across both iOS and Android.

Forme Facebook Lead Product Designer Brady Voss

And now one of the Lasso team’s bosses, Brady Voss, is leaving Facebook for a job at Netflix. He’d spent five years as a lead product designer at Facebook working on standalone apps like Hello and major feature launches like Watch, Live, 360 video and the social network’s smart TV app. He previously designed products for TiVo and Microsoft’s Xbox.

“After five life-changing years at Facebook, my last day will be this Friday, 11/16,” Voss wrote on Facebook. “Following our launch of our new app, Lasso, a project I’ve been working on for a while now, the timing works well to explore what’s coming next…. As for what’s next? I have accepted a position at Netflix in Los Gatos, California.” A Facebook spokesperson responded that “Yes, I can confirm that Brady is leaving Facebook.”

Voss added some color about joining Facebook, noting, “There was actually a discussion about whether or not I’d be a great culture fit because I wore a tie to my interviews–which is funny because we don’t believe dressing like that is what enables people to bring their best everyday. Thankfully, they saw past the common clichés–because suits and ties are not me.” As for Facebook’s troubles, he wrote that “I was even there for the big freak out moments along the way–we’ll keep them unnamed 🙃”, which could refer to his work on Facebook Live that spawned big problems with real-time broadcasts of violence and self-harm.

While it’s reasonable for anyone to want a change of pace after five years, especially after the brutal year Facebook’s had in the press, his departure just a week after Lasso’s launch doesn’t inspire a ton of confidence in the app’s trajectory. It might have been a sensible stopping point haven gotten the app out the door, but you’d also think that if Lasso had a real shot at popularity, he’d have wanted to stick around to oversee that growth.

Lasso’s first rodeo

TechCrunch first broke the news last month that Lasso was in development, citing Voss as one of the team’s heads. But in the meantime, the world’s highest valued private startup ByteDance managed to push its TikTok app past Instagram, Snapchat and YouTube on the download charts. It’s now at No. 5 on the U.S. iOS overall charts and No. 1 in Photo and Video. Facebook seems to have shooed Lasso out a little prematurely before losing more ground, given it lacks many of the augmented reality features and filters found in Instagram, Snapchat and TikTok .

Facebook Lasso

TechCrunch asked the company for some more details about the Lasso roadmap. A spokesperson told me that Facebook will be evolving Lasso and adding new features with time, and may test a feature for uploading videos instead of being restricted to shooting them in-app right now. Voss’ departure post includes a “Made With Lasso” video featuring an augmented reality effect with him conjuring Facebook Like thumbs-ups out of his hand. [Update: He tells me he added this in AfterEffects, but it shows that Facebookers think AR should be part of Lasso.]

As for monetization, Facebook tells me there are no plans to show ads right now. Typically, Facebook tries to build products to have hundreds of millions of users before it potentially endangers growth by layering in revenue generators. I asked if users might be able to pay their favorite video creators with tips, and the company says that while that’s not currently available, it hopes to explore ways to allow creators to earn money in the future. Instagram said the same thing about IGTV when it launched in June, and we still haven’t heard anything on that front. Facebook likely won’t be able to lure creators to new platforms with smaller audiences than their main channels unless it’s going to let them earn money there.

If Facebook is truly serious about challenging TikTok, it may need to build closer ties between Lasso and Instagram. Facebook left its previous standalone video apps like Slingshot and Poke out to dry, eventually shuttering them after providing little cross-promotion. Given the teen audience Lasso craves is already on Instagram, it will be fascinating to see if former VP of News Feed Adam Mosseri, who’s now running Instagram, will insert some links to Lasso. A Facebook spokesperson says that Facebook may investigate promoting Lasso on its other apps down the line.

And one final concern regarding Lasso is that Facebook isn’t doing much to prevent underage kids below 13 from getting on the app. Tweens flocked to Musically, leading to some worrisome content. Ten-year-old girls in revealing clothing singing along to the scandalous lyrics of pop songs frequently populated the Musically leaderboard. That prompted me to question Musically CEO Alex Zhu onstage at TechCrunch Disrupt London 2015 about whether his app violated the Child Online Privacy Protection Act (COPPA) that prohibits online services from collecting photos or videos of kids under 13. He denied wrongdoing with flimsy excuses, claiming parents were always aware of what kids were doing, and stormed out of the backstage area after our talk.

So I asked Facebook how it would prevent such issues on Lasso, where all content is public and adults can follow children. A spokesperson told me that you need a Facebook or Instagram account to sign up for Lasso, and those services require people to be 13 older. But “require” isn’t exactly the right word. It asks people to state they’re of age, but doesn’t do anything to confirm that. Lasso does have a report button for flagging inappropriate content, and the company claims to be taking privacy and safety seriously.

But if the tech giants are going to build apps purposefully designed for young audiences, asking for kids to merely promise they’re old enough to join may not be sufficient.

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Zuckerberg says the future is sharing via 100B messages & 1B Stories/day

Posted by | Advertising Tech, Apps, Facebook, Facebook Earnings, Facebook Earnings Q3 2018, facebook messenger, Facebook Stories, instagram, Media, Mobile, Snapchat, Social, TC, Video, WhatsApp | No Comments

The News Feed won’t sustain Facebook forever, and that’s scaring investors. Today on Facebook’s earnings call, Mark Zuckerberg stressed that sharing is shifting to private chat, where people send 100 billion messages per day on Facebook’s family of apps, and Stories, where he says people share 1 billion of these slideshows per day (though it’s unclear if that includes third-party apps like Snapchat).

But that means Facebook will have to realign its business towards these mediums where monetization is more complex and it has less experience. The result of Zuckerberg’s comments was a reversal of Facebook’s initial 2 percent share price gain after earnings were announced that dragged it down to a 3.5 percent loss. That was only reversed when Zuckerberg said Facebook would reduce limits on video advertising, pushing shares up 3 percent in after-hours trading.

Facebook’s year-over-year revenue growth has already slowed from 59 percent in Q3 2016, to 49 percent a year ago, to 33 percent now as Zuckerberg admits it’s hitting saturation in developed markets, plus it’s running out of News Feed space. Now it will both have to deal with the sharing medium shift, and that the new users it’s adding in the Asia-Pacific and Rest Of World regions earn it 10X less than users in North America.

Battling iMessage

In messaging, Zuckerberg says “People share more photos, videos, and links on WhatsApp and Messenger than they do on social networks.” He sees Facebook’s position as strong, saying “We’re leading in most countries”, though that’s mostly in the developing world Android market where people choose their own default messaging app. “Our biggest competitor by far is iMessage. In important countries like the US where the iPhone is strong, Apple bundles iMesssage as the default texting app, and it’s still ahead” Zuckerberg notes.

The “bundled” language harkens back to to antitrust lawsuits against Microsoft for bundling computers with Internet Explorer. With Apple CEO Tim Cook constantly harping on the poor privacy practices of ad-supported companies like Facebook, Zuckerberg might be gunning to draw regulator attention to iMessage.

Facebook is starting to more aggressively monetize Messenger through inbox ads, and its now selling enterprise tools to brands on both Facebook and WhatsApp that let them pay to ping users. But Facebook risks its chat apps seeming annoying or intrusive if it packs in too many ads or allows too much Message spam. Users could stray to status quos like iMessage and Android Messages if it puts monetization above the user experience.

Dominating Snapchat

On Stories, Zuckerberg says Facebook is doing even better. Over 1 billion people use its Stories features across Facebook, Messenger, Instagram, and WhatsApp each day, compared to 186 million daily users on Stories inventor Snapchat as a whole. Stories are where the majority of Facebook sharing growth is happening, and Facebook Stories are gaining momentum after a slow and buggy start. That’s why Zuckerberg never mentioned Snapchat, and instead talk about YouTube as its primary competitor in video.

The problem is that creating attractive video ads, especially vertical full-screen ones for Stories, is beyond the capability of the long-tail on small businesses that have fueled Facebook’s News Feed ad revenue. Users often rapidly skip through Stories ads, and Facebook currently doesn’t offer unskippable ones like Snapchat. Many people don’t think to tap or swipe up to visit a link from a Story, or simply don’t want to lose their place in ways that didn’t happen on desktop or even mobile feed ads.

Chasing YouTube

Beyond Stories, Facebook salvaged its after-hours share price by discussing how it plans to show more video, and therefore more of its lucrative video ads. Back in January, Facebook admitted its Q4 user count had declined and revenue might stumble in part because it had decided to show people fewer viral videos that they watch passively. This came as part of its drive for Time Well Spent. But now, Zuckerberg says that Facebook has cracked the code for how to make passive video consumption a positive experience, so Facebook will lift some limits:

People really want to watch a lot of video. To a large degree we’ve had to rate limit its growth, and we need to do the things so we can stop limiting it. The things that have caused us to limit it are on the one hand, when we see passive consumption of video displacing social interactions . . . We needed to figure out a way that video can grow but people can also keep on interacting and doing what they tell us that they uniquely want from Facebook. And now I think we’re starting to work through what the formula is going to be so we can take some of those rate limits off and let video grow at the rate that it wants to. I feel that that’s a very exciting opportunity ahead.”

Across Facebook’s other products, Zuckerberg noted that 800 million people now use Marketplace, its Jobs feature have helped people find 1 million jobs, and its birthday fundraisers have raised $300 million alone this year. But it will be teaching advertisers how to effectively create sponsored messages and Stories ads that will define whether Facebook’s revenue keeps growing.

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Snapchat’s new Camera desktop camera app brings AR masks to Twitch, Skype…

Posted by | Apps, Gaming, Media, Snap, Social, TC, Twitch, Video | No Comments

Snapchat is launching its first Mac and Windows software that takes over your webcam and brings its augmented reality effects to other video streaming and calling services. Snap Camera can be selected as a camera output in OBS Skype, YouTube, Google Hangouts, Skype, Zoom and more, plus browser-based apps like Facebook Live so you can browse through Snapchat’s Lens Explorer to try on AR face filters. And through its easily equipped new Twitch extension, streamers can trigger different masks with hotkeys.

You can download the Mac and Windows versions of Snap Camera now. Users can use Lens Explorer to preview effects and see who made them, Star their favorites for easy access and access a tab of your recently used Lenses.

Despite Snap Inc.’s troubles following yesterday’s Q3 earnings announcement that revealed it’d lost 2 million users, causing its share price to hit a new low, Snapchat Camera isn’t about stoking growth. You won’t even have to log in to Snapchat to use it. Instead the goal is to drive more attention to its community AR Lens platform so more developers and creators will make their own effects. “We’re going down the path of providing more distribution channels [for Community Lens creators] and surfacing their work,” Snap’s head of AR Eitan Pilipski tells me. The desktop camera could win Lens creators more attention, and Snapchat connects to the most talented ones to brands for sponsorship deals.

Snapchat first came to the desktop in January with its first embeddable content, designed for newsrooms that wanted to show off citizen journalism on their sites. But now Snapchat content creation is escaping the mobile medium.

Strangely, Snap Camera has no interface of its own. Really, it should have a Photo Booth-style app so you can record photos and videos of yourself with your webcam and share them wherever. “We don’t want to compete in that space. We just want to bring Community Lenses to whatever apps people are using,” Pilipski explains. One major app that won’t support Snap Camera is Apple’s FaceTime. Why? “I don’t know. Apple didn’t comment on that. Believe me we tried,” says Pilipski.

Because there’s “not even a facility to collect the impressions” and users don’t have to log in, Snap won’t be able to add Camera users to its daily active user count. With that number falling from 191 million in Q1 to 188 million in Q2 to 186 million in Q3 as it announced yesterday, Snap really does need more ways to keep people from straying to Instagram Stories. It will have to hope that when video chat users see their friends or family using Snap Camera’s lenses, it will remind them to fire up Snapchat more often. And Lenses could go viral if they show in a Twitch celebrity’s stream.

The Twitch extension comes amidst more announcements at today’s TwitchCon event, including the reveal of Squad Streaming and a karaoke Twitch Sings game for the service’s average of 1 million concurrent viewers and half-million daily streamers.

The Snap camera equips Twitch broadcasters with extra features. They’ll have access to game-themed lenses for League of Legends, PlayerUnknown’s Battlegrounds, World of Warcraft and Overwatch. Viewers will see the QR Snapcode for the Lens on the screen, which they can scan with Snapchat to try the mask on themselves for virality. Streamers get a button that lets viewers subscribe to them, and can set up a “bonus” lens that shows up as a thank you when someone follows them. And with hotkeys, streamers can trigger different lenses, like an angry one for when they lose a game or victory lenses for if they manage to beat all the other Fortnite addicts.

More than 250,000 Community Lenses have been submitted through Snapchat’s Lens Studio since it launched in December, and they’ve been viewed over 1 billion times. Snapchat realized it couldn’t dream up every crazy way people could use AR. Out-Lensing Instagram is critical to Snapchat’s business strategy. The more people that use Snapchat’s AR features, the more the company can charge businesses to promote Sponsored Lenses. With the user count shrinking, Snap needs to show its business is growing to salvage its share price and pull in the outside investment or acquisition it will likely need to make it to profitability. A desktop presence could not only make Snapchat more ubiquitous, but get it in front of older users and advertisers who might be a little scared of its mobile app.

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Twitch announces group streaming and a karaoke game for its 1M concurrent viewers

Posted by | Apps, Emmett Shear, game streaming, Gaming, Media, Social, TC, Twitch, Video | No Comments

The teens were out in force today in San Jose for the annual TwitchCon game-streaming conference. There, Twitch announced that at any given time, 1 million people are watching it (up from 746,000 last year), and it seemed like many game lovers were at TwitchCon in person to meet some of the nearly half-million web celebs that broadcast each day on the service. Considering Twitch said just 2 million were broadcasting per month in December, the service’s growth is still explosive under Amazon’s ownership.

Amongst the major reveals at TwitchCon were a new Squad Streaming feature that lets up to four people broadcast at once in split-screen that will test with select streamers later this year.

There’s also a new Twitch Sings game built-in partnership with Rock Band-creator Harmonix. Broadcasters can play to perform karaoke (though only with fake versions of songs as Twitch lacks major label music licenses). Viewers can use the chat to request the next song and control the lights on the virtual karaoke stage; broadcasters can sign up here for the Twitch Sings closed beta that starts later in 2018.

Twitch Squad Streaming

And Twitch broadcasters can now use Snapchat’s augmented reality lenses thanks to the new Snap Camera desktop app and accompanying Twitch extension launching today. Streamers can use hotkeys to trigger different Snapchat Lenses, let viewers try those masks by scanning an onscreen Snapchat QR code and reward subscribers with a bonus thank you effect. Read our full story on Snap Camera here.

There were plenty of other minor announcements during the conference’s keynote:

  • More than 235,00 streamers now have Affiliate status and are earning money on their channels, while 6,800 have joined its Partnership program so they can earn even more through channel subscriptions and ads.
  • Twitch is revamping Gear on Amazon, where streamers can show off products and earn affiliate fees, renaming it Amazon Blacksmith.
  • Twitch’s Highlight editor can now stitch together multiple clips from across a broadcasting session.
  • New homepage sections will feature up-and-coming streamers, new Partners and Affiliates or streamers local to viewers.
  • VIP Badges will let creators recognize their favorite subscribers and moderators.
  • Moderators can now see how long someone has been on Twitch, view chat messages that person has sent in the channel and see how many time-outs or bans that account has received in that channel to better understand who to boot.
  • 18 billion messages have been sent in Twitch chat and its Whispers feature in 2018, and fans have given creators 85 million Cheers and Subscriptions.
  • 150 million Twitch Clips have been created in 2018 to bring the best game stream and other weird content to the rest of the web.
  • Twitch users have gifted $9 million worth of subscriptions to fellow users in just 9 weeks.
  • Twitch will open its Bounty Board of sponsorship opportunities to 30 more brands, and more Partners and Affiliates in the U.S. and Canada in November.
  • The Twitch Rivals in-person gaming tournaments will double to 128 events in 2019. Some will have million-dollar prizes, and it already gave out $5 million in winners’ jackpots last year.


As CEO Emmett Shear made the announcements, audience members hooted and hollered with delight. They out-yelled even Apple’s keynote attendees. Shear shouted out early users who’ve been with it since Twitch was a Y Combinator live-vlogging startup called Justin.tv. “When people have your back and support you for a long time, we think they should be recognized for it,” he said, revealing the new VIP badges and a counter that shows how many months a fan has been a channel’s paying subscriber.

“You spoke and we listened,” Shear said. That truly seemed to be the message of this conference. Facebook’s F8 conferences held in the same San Jose Convention Center often seem to produce updates that are designed to help the company as much as the users. But Twitch has realized it can’t just be useful. It must remain beloved if people are going keep spending 760 million hours per month watching others game, joke and express themselves. Shear concluded, “I think we’re just scratching the surface when it comes to everyone playing together.”

Twitch Sings

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Why IGTV should go premium

Posted by | Entertainment, Facebook, Facebook Watch, IGTV, instagram, Jeffrey Katzenberg, Media, meg whitman, Mobile, newtv, Quibi, Snapchat, Social, Subscription model, Video, WndrCo, youtube red | No Comments

It’s been four months since Facebook launched IGTV, with the goal of creating a destination for longer-form Instagram videos. Is it shaping up to be a high-profile flop, or could this be the company’s next multi-billion-dollar business?

IGTV, which features videos up to 60 minutes versus Instagram’s normal 60-second limit, hasn’t made much of a splash yet. Since there are no ads yet, it hasn’t made a dollar, either. But, it offers Facebook the opportunity to dominate a new category of premium video, and to develop a subscription business that better aligns with high-quality content.

Facebook worked with numerous media brands and celebrities to shoot high-quality, vertical videos for IGTV’s launch on June 20, as both a dedicated app and a section within the main Instagram app. But IGTV has been quiet since. I’ve heard repeatedly in conversations with media executives that almost no one is creating content specifically for IGTV and that the audience on IGTV remains small relative to the distribution of videos on Snapchat or Facebook. Most videos on it are repurposed from a brand’s or influencer’s Snapchat account (at best) or YouTube channel (more common). Digiday heard the same feedback.

Instagram announced IGTV on June 20 as a way for users to post videos up to 1 hour long in a dedicated section of the app (and separate app)

Facebook’s goal should be to make IGTV a major property in its own right, distinct from the Instagram feed. To do that, the company should follow the concept embodied in the “IGTV” name and re-envision what television shows native to the format of an Instagram user would look like.

Its team should leverage the playbook of top TV streaming services like Netflix and Hulu in developing original series with top talent in Hollywood to anchor their own subscription service, but in it a new format of shows produced specifically for the vertically oriented, distraction-filled screen of a smartphone.

Mobile video is going premium

Of the 6+ hours per day that Americans spend on digital media, the majority on that is now on their phone (most of it on social and entertainment activities) and video viewing has grown with it. In addition to the decline in linear television viewing and rise of “over-the-top” streaming services like Netflix and Hulu, we’ve seen the creation of a whole new category of video: mobile native video.

Starting at its most basic iteration with everyday users’ recordings for Snapchat Stories, Instagram Stories and YouTube vlogs, mobile video is a very different viewing environment with a lot more competition for attention. Mobile video is watched as people are going about their day. They might commit a few minutes at a time, but not hour-long blocks, and there are distracting text messages and push notifications overlaid on the screen as they watch.

“Stories” on the major social apps have advanced vertically oriented, mobile native videos as their own content format

When I spoke recently with Jesús Chavez, CEO of the mobile-focused production company Vertical Networks in Los Angeles, he emphasized that successful episodic videos on mobile aren’t just normal TV clips with changes to the “packaging” (cropped for vertical, thumbnails selected to get clicks, etc.). The way episodes are written and shot has to be completely different to succeed. Chavez put it in terms of the higher “density” of mobile-native videos: packing more activity into a short time window, with faster dialogue, fewer setup shots, split screens and other tactics.

With the growing amount of time people spend watching videos on their social apps each day — and the flood of subpar videos chasing view counts — it makes sense that they would desire a premium content option. We have seen this scenario before as ad-dependent radio gave rise to subscription satellite radio like Sirius XM and ad-dependent network TV gave rise to pay-TV channels like HBO. What that looks like in this context is a trusted service with the same high bar for riveting storytelling of popular films and TV series — and often featuring famous talent from those — but native to the vertical, smartphone environment.

If IGTV pursues this path, it would compete most directly with Quibi, the new venture that Jeffrey Katzenberg and Meg Whitman are raising $2 billion to launch (and was temporarily called NewTV until their announcement at Vanity Fair’s New Establishment Summit last Wednesday). They are developing a big library of exclusive shows by iconic directors like Guillermo del Toro and Jason Blum crafted specifically for smartphones through their upcoming subscription-based app.

Quibi’s funding is coming from the world’s largest studios (Disney, Fox, Sony, Lionsgate, MGM, NBCU, Viacom, Alibaba, etc.) whose executives see substantial enough opportunity in such a platform — which they could then produce content for — to write nine-figure checks.

TechCrunch’s Josh Constine argued last year Snapchat should go in a similar “HBO of mobile” direction as well, albeit ad-supported rather than a subscription model. The company indeed seems to be stepping further in this direction with last week’s announcement of Snapchat Originals, although it has announced and then canceled original content plans before.

Snapchat announced its Snap Originals last week

Facebook is the best positioned to win

Facebook is the best positioned to seize this opportunity, and IGTV is the vehicle for doing so. Without even considering integrations with the Facebook, Messenger or WhatsApp apps, Facebook is starting with a base of more than 1 billion monthly active users on Instagram alone. That’s an enormous audience to expose these original shows to, and an audience who don’t need to create or sign into a separate account to explore what’s playing on IGTV. Broader distribution is also a selling point for creative talent: They want their shows to be seen by large audiences.

The user data that makes Facebook rivaled only by Google in targeted advertising would give IGTV’s recommendation algorithms a distinct advantage in pushing users to the IGTV shows most relevant to their interests and most popular among their friends.

The social nature of Instagram is an advantage in driving awareness and engagement around IGTV shows: Instagram users could see when someone they follow watches or “likes” a show (pending their privacy settings). An obvious feature would be to allow users to discuss or review a show by sharing it to their main Instagram feed with a comment; their followers would see a clip or trailer, then be able to click-through to the full show in IGTV with one tap.

Developing and acquiring a library of must-see, high-quality original productions is massively capital-intensive — just ask Netflix about the $13 billion it’s spending this year. Targeting premium-quality mobile video will be no different. That’s why Katzenberg and Whitman are raising a $2 billion war chest for Quibi and budgeting production costs of $100,000-150,000 per minute on par with top TV shows. Facebook has $42 billion in cash and equivalents on its balance sheet. It can easily outspend Quibi and Snap in financing and marketing original shows by a mix of newcomers and Hollywood icons.

Snap can’t afford (financially) to compete head-on and doesn’t have the same scale of distribution. It is at 188 million daily active users and no longer growing rapidly (up 8 percent over the last year, but DAUs actually shrunk by 3 million last quarter). Snapchat is also a much more private interface: it doesn’t enable users to see each others’ activity like Facebook, Instagram, LinkedIn, YouTube, Spotify and others do to encourage content discovery. Snap is more likely to create a hub for ad-supported mobile-first shows for teens and early-twentysomethings rather than rival Quibi or IGTV in creating a more broadly popular Netflix or Hulu of mobile-native shows.

It’s time to go freemium

Investing substantial capital upfront is especially necessary for a company launching a subscription tier: consumers must see enough compelling content behind the paywall from the start, and enough new content regularly added, to find an ongoing subscription worthwhile.

There is currently no monetization of IGTV. It is sitting in experimentation mode as Facebook watches how people use it. If any company can drive enough ad revenue solely from short commercials to still profit on high-cost, high-quality episodic shows on mobile, it’s Facebook. But a freemium subscription model makes more sense for IGTV. From a financial standpoint, building IGTV into its own profitable P&L while making substantial content investments likely demands more revenue than ads alone will generate.

Of equal importance is incentive alignment. Subscriptions are defined by “time well spent” rather time spent and clicks made: quality over quantity. This is the environment in which premium content of other formats has thrived too; Sirius XM as the breakout on radio, HBO on linear TV, Netflix in OTT originals. The type of content IGTV will incentivize, and the creative talent they’ll attract, will be much higher quality when the incentives are to create must-see shows that drive new subscribers than when the incentives are to create videos that optimize for views.

Could there be a “Netflix for mobile native video” with shows shot in vertical format specifically for viewing on smartphone?

The optimization for views (to drive ad revenue) have been the model that media companies creating content for Facebook have operated on for the last decade. The toxicity of this has been a top news story over the last year with Facebook acknowledging many of the issues with clickbait and sensationalism and vowing changes.

Over the years, Facebook has dragged media companies up and down with changes to its newsfeed algorithm that forced them to make dramatic changes to their content strategies (often with layoffs and restructuring). It has burned bridges with media companies in the process; especially after last January, how to reduce dependence on Facebook platforms has become a common discussion point among digital content executives. If Facebook wants to get top producers, directors and production companies investing their time and resources in developing a new format of high-quality video series for IGTV, it needs an incentives-aligned business model they can trust to stay consistent.

Imagine a free, ad-supported tier for videos by influencers and media partners (plus select “IGTV Originals”) to draw in Instagram users, then a $3-8/month subscription tier for access to all IGTV Originals and an ad-free viewing experience. (By comparison, Quibi plans to charge a $5/month subscription with ads with the option of $8/month for its ad-free tier.)

Looking at the growth of Netflix in traditional TV streaming, a subscription-based business should be a welcome addition to Facebook’s portfolio of leading content-sharing platforms. This wouldn’t be its first expansion beyond ad revenue: the newest major division of Facebook, Oculus, generates revenue from hardware sales and a 30 percent cut of the revenue to VR apps in the Oculus app store (similar to Apple’s cut of iOS app revenue). Facebook is also testing a dating app which — based on the freemium business model Tinder, Bumble, Hinge, and other leading dating apps have proven to work — would be natural to add a subscription tier to.

Facebook is facing more public scrutiny (and government regulation) on data privacy and its ad targeting than ever before. Incorporating subscriptions and transaction fees as revenue streams benefits the company financially, creates a healthier alignment of incentives with users and eases the public criticism of how Facebook is using people’s data. Facebook is already testing subscriptions to Facebook Groups and has even explored offering a subscription alternative to advertising across its core social platforms. It is quite unlikely to do the latter, but developing revenue streams beyond ads is clearly something the company’s leadership is contemplating.

The path forward

IGTV needs to make product changes if it heads in this direction. Right now videos can’t link together to form a series (i.e. one show with multiple episodes) and discoverability is very weak. Beyond seeing recent videos by those you follow, videos that are trending and a selection of recommendations, you can only search for channels to follow (based on name). There’s no way to search for specific videos or shows, no way to browse channels or videos by topic and no way to see what people you follow are watching.

It would be a missed opportunity not to vie for this. The upside is enormous — owning the Netflix of a new content category — while the downside is fairly minimal for a company with such a large balance sheet.

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Live streams of karate and niche sports are terrifying major sports leagues

Posted by | Endeavor, Entertainment, espn, esports, Facebook Live, Gaming, Hulu, Media, mlb, NBA, Netflix, nfl, Sports, streaming TV, Twitch, ufc, Video, YouTube Live | No Comments

Of the 100 most-watched live telecasts in the US in 2005, 14 were sporting events; in 2015, sporting events comprised 93 of the top 100 telecasts. That shift occurred because TV shows are shifting to online or on-demand viewing, and live broadcasts of the biggest sports are the main thing TV networks have left to draw in live audiences. But the need to keep those sports on TV and off streaming services is only accelerating the rate at which young people are tuning into other sports leagues instead.

The rapid adoption of subscription video streaming services like Netflix and Hulu and of social live streams on Facebook, YouTube, and Twitch is enabling massive growth by sports leagues that you won’t normally see on TV. In the streaming era, more sports – and new types of sports like esports – keep thriving while interest in traditional pro leagues like the NFL and MLB declines.

OTT is where the growth is

The central narrative in the global film/TV industry right now is the response of incumbent companies to the growing dominance of Netflix, Amazon, and other streaming (aka “OTT” or over-the-top) services. The incumbents are merging to consolidate ownership of must-have shows onto a smaller number of new OTT services that will each be stronger.

The majority of American households have a Netflix subscription (i.e. access to one of Netflix’s 56M US accounts), another 20M have a Hulu subscription, the number of OTT-only households has tripled in 5 years, and 50% of US internet users use a subscription OTT service at least weekly. Almost one-third (29%) of Americans say they watch more streaming TV than linear TV, and among those age 18-29 it’s 54% (with 29% having cut the cord on linear TV entirely). People, especially young people, want to watch shows on their own time and on any device, and they get more value from a few $8-40 per month subscription platforms than a $100+ per month cable bill.

Meanwhile, social live-streaming platforms that got their start enabling people to either vlog or watch video gaming are expanding to all sorts of live broadcasting: Twitch averaged 1 million viewers at any given point of day in January, and there were 3.5 billion broadcasts over Facebook Live in the first two years after it launched (with 2 billion users viewing at least one).

We’ve hit the pivot point where media is streaming-first. Netflix is now the leading studio in Hollywood, spending $13 billion this year on content. Linear TV viewing is declining: every major cable network (except NBC Sports) has declining viewership and aging viewers. Between 2007 and 2017, the median age of primetime viewers on ABC, CBS, NBC, and Fox went up 8-11 years and are all in the 50s or 60s.

Major pro sporting events are the last bastion of TV networks because the dominant brands are, for the most part, only available live on TV. Beyond those, the only content getting large audiences to tune in simultaneously are a couple Hollywood awards shows and premieres or finales of a couple hit shows (Big Bang Theory and NCIS).

The exclusive broadcast rights to those live sports events – particularly the NFL, NBA, MLB, and top NCAA basketball and football games – are the last defense for major broadcast networks. They are the reason for younger Americans to not cut the cord. ESPN makes $7.6 billion per year in carriage fees from cable companies paying for the right to carry the main ESPN channel (the other ESPN channels add another $1 billion); that number is increasing even as ESPN’s viewership is declining.

Disney (ESPN’s owner) and other leading broadcasters don’t want to let people watch major sporting events online instead (at least not easily or cheaply) because doing so would pull the rug out from under their traditional revenue stream and OTT revenue (subscription + ads) won’t make up for it quickly enough. This problem is only exacerbated by the fact that TV networks are paying record sums for exclusive broadcast rights to top sports leagues out of fear that losing them to a rival could be a nail in their coffin.

This strategy is delaying, not stopping the shift in consumption habits. More and more young people are tuning out (or never tuning in) to the major pro sports on TV, and the median age of their audiences shows that: 64 for the PGA Tour, 58 for NASCAR, 57 for MLB, 52 for NCAA football and men’s basketball, and 50 for the NFL…and all are getting older. (Cable news networks, the other holdouts who are still doing well on live TV face the same situation: the average age of Fox News, MSNBC, and CNN viewers is now 65, 65, and 61 respectively.)

The major pro sports staying on linear TV has expanded the market opening for new sports to fill the open space with young people who mainly consume content online. In fact, a growing marketplace of different sports leagues (including esports) developing their own fanbases is an inevitability of the shift to OTT video as it lowers the barrier to entry to near-zero and let’s geographically dispersed fans unify in one place.

1. Lower barrier to entry for distribution

Lawn bowling is no longer your grandfather’s sports league. Mint Images/Getty Images

Niche sports leagues – or frankly, even big sports leagues that just aren’t at the scale of professional football, baseball, basketball, and hockey – have always had a hard time getting coverage on television. But you can produce and distribute video for an online audience more cheaply than for a television audience.

In fact with Facebook Live and Twitch, you can stream live video for free, and you can share clips across every social channel to attract interest. To launch your own OTT service or partner with an existing one, you don’t need to start with a massive audience from the beginning and you don’t need millions of dollars from sponsors just to break even.

Having signed over 150 new deals this year alone for its 20+ sports verticals (which will stream 2,500 live events in 2018), Austin-based FloSports has established itself as the go-to OTT partner for sports leagues with an established, passionate following that aren’t massive enough to garner regular ESPN-level coverage.

From rugby, track & field, and wrestling to bowling, competitive marching band, and ballroom dance, millions of Americans have participated in these activities in their youth and through clubs as adults but rarely see them on television. In fact, the rare instances when such sports are on TV – like their national championships – the league is usually paying large sums (potentially hundreds of thousands of dollars) for that airtime rather than getting paid by the broadcasters.

FloSports gives a home to the superfans of its partner leagues, with full coverage of the sport and commentary meant for real fans. It produces events in the manner best fit to highlight the action and turns superfans – who generally pay a subscription – into evangelists who recruit friends. There are numerous sports that have millions of participants yet no active, high-quality event coverage; those are underserved markets.

By tapping into this, FloSports properties (like FloWrestling, FloTrack, etc.) have gained hundreds of thousands of subscribers and created a surge of interest in teams like Oklahoma State’s wrestling team, which saw an 144% increase in live stream viewing and 68% growth in event attendance after joining FloWrestling (leading to them to set an all-time attendance record in the university’s basketball arena of 14,059 people). In the first half of 2018, FloSports’ various Instagram accounts collectively received 307M video views, more than the collective accounts of Fox Sports or of all NFL teams (and NFL Network).

2. Going global right away.

Johanne Defay of France at a World Surf League event. Mark Ralston/AFP/Getty Images

The top pro sports leagues have geographically concentrated fan-bases that fit the geographic restrictions of TV broadcasters, which end at a country’s border. Online streaming empowers sports that have large fan bases who aren’t geographically concentrated to aggregate in the digital sphere with enough eyeballs (and paying subscriptions) to drive engagement with the sport’s content through the roof.

Since being acquired in 2015 and renamed World Surf League, the governing body of professional surfing has developed a large global following – with 6.5M Facebook fans and 2.9M Instagram followers – through the launch of live streams and on-demand video on its website and mobile app, plus partnering with third-parties like Bleacher Report’s OTT service B/R Live. Only 20-25% of WSL’s viewers are in the US but since its competitions are streamed direct-to-consumer online, they were able to reach surfers around the world right away. After seeing WSL’s Facebook Live streams garner over 14M viewers in 2017, Facebook paid up to become the exclusive live-stream provider for WSL competitions for two years, beginning this past March.

3. Immediate data on audience engagement.

As with all offline-to-online shifts, OTT video streaming captures dramatically more data on audience demographics and engagement than television does, and it does it in real-time. This makes it easier for emerging sports leagues to partner with advertisers and show immediate ROI on their sponsorships, plus it informs their understanding of how to produce their particular type of sporting event for maximum audience engagement.

Karate Combat is a year-old league that builds off the existing base of karate participants and fans around the world (numbering in the tens of millions) with a new competition format specifically intended for OTT. The league allows full-contact fighting and sets the match in a pit (rather than a traditional fighting ring) for better camera angles. It also replaces the traditional focus on having a big in-person audience (which is expensive) and instead sets the fights in exotic locations (like the fight this coming Thursday night on top of the World Trade Center).

Like many emerging sports leagues, Karate Combat is vertically integrated: the league organizing the competitions is also the one producing and streaming the event coverage over its website, mobile apps, and social channels. This not only means it captures the content-related revenue from subscribers, advertisers, and numerous OTT distribution partners, but it sees every data point about fans’ viewing behavior and their interaction with various dashboards (like biometrics on each fighter) so they can optimize both online and offline aspects of the production.

4. Online means interactive

Jujitsu fighting is now an OTT service. South_agency/Getty Images

Online viewing creates the opportunity for functionality you can’t achieve with linear TV: interactive displays overlayed on or next to live video. Viewers can pull up and click through real-time stats, change camera views, or switch overlays (think the the yellow first-down line in NFL broadcasts or coloring around a hockey puck to help you track it on the ice). Ultimately, a more interactive experience means a more social and more entertaining experience (and the sort of deep engagement advertisers value too).

FloSports’ ju-jitsu live streams (FloGrappling) give subscribers multiple live cameras each covering simultaneous matches on different mats so they can click between them. This is a more personalized experience than passively watching one broadcast on TV and it gets that subscriber actively engaged, with their behavior providing valuable data points for FloSports and their deeper interaction likely more compelling to event sponsors.

The display might also highlight live comments from friends or friends-of-friends in order to draw viewers into a more social experience. Discussion of a specific live stream with others watching it has been a central feature for Twitch and Facebook Live and enables the league or team streaming the event to directly engage with fans around the world.

An exception to the OTT-first strategy may be in sports that are entirely new and have zero existing base of participants or fans. Karate, surfing, and video-gaming all have millions of passionate participants around the world, going back decades. A new league like the 3-year-old Drone Racing League (DRL), which has raised $21M in venture capital to develop the sport of competitive drone racing, has to artificially stimulate the development of a fanbase if it doesn’t want to wait years for grassroots competitions to create a critical mass of fans even for a niche OTT service. It’s unsurprising then that DRL has focused on striking TV deals with ESPN, Sky Sports, ProSiebenSat.1, and others to thrust it in front of large audiences from the start, like a new game show hoping its format will entice enough people to take interest.

Power is in the hands of the league owners

Ari Emanuel, chief executive officer of William Morris Endeavor Entertainment. Jonathan Alcorn/Bloomberg via Getty Images

The best position to be in right now is the owner of a sports league that’s rapidly growing in popularity. The competition for audience by both traditional media companies and tech platforms leaves a long list of distribution partners eager for must-have, exclusive content – especially content like sports events that fans want to want live together – and willing to pay up.

Moreover, vertical integration to control your fans’ content viewing experience and own your relationship with them has never been easier. There are direct subscriptions, advertisers, event sponsors, event tickets, a portfolio of possible OTT distribution deals, and merchandising. The potential revenue streams a league can develop are only more numerous when you add in launching a fantasy sports league – like World Surf League has done – and the recent nationwide legalization of sports betting in the US.

Endeavor, the parent company of Hollywood’s powerful WME-IMG talent agency, seems to have recognized this and is an early mover in the space. It bought two sports leagues that have relied on TV deals and event attendance revenue – UFC for $4B and the smaller but rapidly growing Professional Bull Riders for $100M – and, since they each own their content, launched direct-to-consumer subscription platforms (UFC Fight Pass and PBR Ridepass) for super-fans and cord-cutters. (Endeavor also paid $250M to acquire Neulion, the technology company whose infrastructure powers the OTT services of the UFC, PBR, World Surf League, and dozens of others.)

There’s opportunity for new streaming platforms focused on being the media partner for these emerging sports leagues. Inevitably, the opportunity for bundling will consolidate many of the niche subscriptions onto a small number of leading sports OTT platforms, and that’s a powerful market position for those platforms.

What is unclear is if they can defend themselves as the incumbent media and tech companies come around to this phenomenon and commit billions toward capturing the market. The leading sports broadcasting companies all have OTT offerings and want to make them as compelling to potential subscribers as possible even if they exclude content from the biggest pro sports. A larger company that can afford to spend huge sums on exclusive sports streaming rights (like Disney with ESPN/ABC, Comcast with NBC/Sky Sports, CBS with CBS Sports Network, or Discovery with Eurosport) might opt to buy a company like FloSports as part of their deep dive into the space or they might just aim to outbid them when a league’s contract comes up for renewal.

The hope for an independent OTT platform devoted to emerging sports leagues is they get big enough, fast enough that they can afford to keep winning the rights to emerging leagues as those leagues grow and offers from competitors bid prices up. These dedicated OTT services will likely have to secure long-term – think ten years – streaming rights deals or acquire control of some popular new sports leagues outright to hold their own.

Like online distribution triggered an explosion of digital publishing brands and social influencers for every imaginable niche, the rise of high-quality live streaming and subscription OTT services will allow a lot more sports leagues to build an audience and revenue base substantial enough to thrive. There’s more variety for consumers and resources than ever for those with a rapidly growing league to attract fans worldwide.

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