1 Episode results for "Martine Manufacturers"
Digiday's reporters on what 2020 holds for the publishing industry, from the streaming wars to the end of the cookie
"Welcome to the digital podcast and Brian Marcy. This week we have a special episode for you and we will be looking ahead to twenty twenty and what it may may have in store for the media world and did you so I want to bring in a variety of Arab reporters to talk about this. I we have Tim Peterson our senior reporter reporter who is focused on the exploding world streaming video services. That's everything from net flicks and Lewd Disney. Plus Pika would be a Tim. He's usually holding down our San Diego outpost but he was in town last week for Holiday Party. Some meetings and we got to talk All Right Tim. Welcome to the PODCAST. Thanks wherever this is your first ever I okay I nervous little bit hit. Okay fine all right. So we're heading twenty twenty You've been doing an amazing job In a biased way. Say This uncovering the rise of volley streaming platforms and what we sort of think of the future of TV. I want to look forward to to twenty twenty but I like what what do you think. Twenty nine thousand nine was the year of if you will is your growth like there was a lot of growth of everyone obviously talks about the growth. A lot of people were moving industry mean and and I think that kind of sets up twenty two thousand for that's when the growing pains are going to start but like what's Gimme specifics. Well so in the upfront this year with advertisers and the TV now works digital played a bigger part in getting those budgets because in the past digital had been an add on for the networks and the also the prices had been higher then especially when it comes to like the cable networks. Their digital inventory was priced a lot higher than their linear inventory and so that had been a pain point but now with linear viewership decline Kline in they had to lower the prices for the digital inventory in order to get the bigger volume commitments. So it seems like when we're talking about the streaming wars and a a lot of people talk about distributors. We're actually talking about a bunch of different worse right. This is like what is it the thirteen years war. I don't remember but there. There's a lot of different people fighting writing. So how do you group them. What I'm thinking about is like I'm thinking net flicks is going up against Disney and interest and that is like this Inter Galactic Battle But then there are other battles going on. Yeah because then you have like the Nisha Suad Services and s fat come on subscription streamers But then then there's the free ad supported streaming TV services like the Pluto. TV's Zuma's Samsung TV plus roku channel. I N BTV and that's becoming more of of a war because right now there they all look the same. They all have the same old programming the same like movies that you would normally watch on like yeah Sunday afternoon on cable. TV So when you're looking at twenty twenty. Are we looking at a typical middle market crunch. I mean we're seeing this across pretty much every area we cover in in cross glossy with fashion and beauty and in Monterey retail with retail. I mean we're seeing the middle get crunched everywhere and that's going to happen and folks folks are concerned about it like BEEN MEETING WITH TV network executives and also you know digital entertainment executives and they're concerned about it because they they recognize that that's going to be the case that with connected TV. It's like mobile all over again for publishers where it doesn't really make sense for a lot of these companies to have their own connected. TV CBS because people aren't gonNA use them. They're going to stick with like a Netflix at Disney Youtube Pluto the aggregate. There's right and so there. It's the bundle all over again cowboy What about on the advertiser's side I think we've been doing a lot of coverage around you know some very core basic issues when it comes to connected. TV advertising. Like why the hell do I see the same ad repeatedly and why can And I thought you got into like a lot of the good details but why that what's happening. What what kind of growing pains you expect to see for the industry In Two thousand twenty when it comes to to connected. TV advertising a think the growth is still an issue there when it comes to getting more dollars because there was Someone Outta Holding Agency. I was talking to saying that you don't have to spend and is much when it comes to connected TV because you can be more targeted and because the ad loads are lighter to there just isn't as much inventory to be buy in so for anyone who's expecting gene TV dollars to shift entirely into digital. That's not gonNA happen because they don't have to shift entirely. You actually save money. If you're not retired Sir I mean as a a too simplistic to say that I mean there's so much of this viewing is going on That you there's no advertising involved everyone wants subscriptions right Yeah who has a different model but Scott Galloway talks about advertising becoming a tax on the poor I are we. We seen this actually play out Where there just isn't places for this TV advertising to move to because so much of the streaming viewing is an Anon- at environment? Well you have. I mean who the interesting thing with them is. They're limited commercials. Subscriptions since here is their most popular beer and with like their sprint and their spotify deals they've been doing a lot to push subscribers specifically for that here and so that that serves as something of a model but again then it's an aggregate or thing where people can sign up for Hulu because they'll get a bunch of different shows and movies that they can watch for someone WHO's smaller publisher. I don't know if people are going to be as tolerant of that okay so final thing Working on all these bold calls Going into two thousand twenty predictions right but Give us Keeps winning bowl calls. I think this martine manufacturers will band together and try to negotiate harder carriage deals when it comes to connected. TV with the different media companies. Okay so give me an example of that Well well it's already the case in the cable market where you have like the regional cable providers who they negotiate together as a group and I think the SMART ATV manufacturers are going to start doing that because you have Samsung already selling ads on its smart TV platform Now starting to same and I think more and more of them are seeing. There's an opportunity there because people don't buy. TV's they buy TV's like once every seven years or so and so these smart TV manufacturers have to figure out okay where can we get revenue in between. Ah People buy new. TV's okay cool. Thanks Tom Thank you. Now have Laura Riley via Google. Hang out from our London office. Large joined us a few months ago to cover the big global stories immediate Lauren. I talk about the outlook for the continued media. Consolidation next year and the fallout from the death of of digital advertising workhorse. The third party cookie all right Laura. Welcome Anki let's Talk I mean one of the The big stories of this year and then going run into next year is digital media consolidation. We saw a lot of a lot of big names. Come off the board this year The megamerger that was mooted never her never came to pass. But what do you expect to see in twenty twenty. I think you're right. Most the mega-deals appear to be done at twenty twenty will be a lot about lays can big giant so the Disney Fox's in Time Warner. At and T.. Just kind of working for the integration of those acquisitions as you say. We sold lots of their smaller. Mola digital players uniting and we still some more controversial deals say things like maiden buying sports illustrated and laying off miss the team. We saw so that happened with Bloomberg City lab reportedly laying off some of the editorial stuff that intensive looking ahead. I think there's there's still lots loss of appetite out there. People still need scale. People still need revenue diversification. So there's lots appetite out there for Lou Interesting digital media players. We've had people like Ziff. Davis and DOT Dash. Are you. Police say that the hungry to make more transactions. But I think also what we're guide to see is You'll saying lots of tech players move into different areas. So we saw things like spotify acquiring Gamla and Ankara this year. We also saw people google moving into gaming with stadia at everyone from Amazon to apple has a TV strategy nowadays. So so I think we're going to see lots of different types of deals as you said the big roll up the buzzfeed Vice Fox megamerger. That was posed never happened. I'm I'm not sure whether that were what you think. Yeah I mean I think the big roll up is probably not going to happen. There's just too many interests at stake there. I think the big big unknown is The economy I mean. I think we're going into our third year in which Top economists have predicted a recession. So it's really hard hard exactly to know when this recession is going to hit at least in the US. Were in our tenth year of expansion But I think you know that was driving being a Lotta people wanting to You know to to get out And just enter prepare for digital media has never been an easy business. But it's it's is bound to get a lot more difficult when the economy inevitably turns downward definitely am when you have the downturn it usually fillets the advertises sizes spend less say again revenue diversification for those players is going to be key as those players look to rely a lot less on computer play the advertising revenue. I'd say what other big topic that I wanted to discuss with. You is the scramble for identity but this I mean the collapse of the third party cookie. Okay And this is an area that we've been covering quite a bit And there's a lot that went on this year where regulation really bit into to track it. And we've got the California Consumer Privacy Act now coming up in just a couple of weeks so the more immediate thing has been the impact of the browsers turning this grace on digital tracking at at trucking across different sites across the web. We seen in places like Germany. The impact to five folks astounding on its trucker prevention fate and revenues fooling off a cliff because folks is really strong in Germany obviously with Safari Nights. Pay We've seen seen a huge impact the value of the Fed policy clicky is being slowly depreciate it across the web because of the browsers I think initially and move sir. I think You know crime is the biggest web browser out there. It's about sixty sixty five percent of the market most observed thank that crime will eventually lean in in a similar kind of direction safari and Fire Fox. Perhaps not quite as militant as apple and employ folks have been about this. But I think if you throw in well I mean if I could jump in Google does have a very large ad business right. It does but you know you've got to throw in the fact that the regulators keeping a close eye on on it's business at the moment as well and proceeds now competitive stumps What apple does crime has has slightly fully? Yes but it does have these different Business interests so as I say I think Roy Moore Lean in the same direction so give us more options on privacy if not kind of the the whole whole Hogan and ten of tracking by defoe but I certainly think that it's going to be moving in that direction But yeah you are right oversee in in in Europe we've had an Vdpor but it does seem as they twenty twenty Israeli the year that will say at the regulators looking into more fines essentially. We're going to start seeing more enforcement and the ICR in the UK has said it's going to update on it thinks about the penalty be market and whether that can be compliant with GDP Arnovitz current full probably knob on December twentieth So yeah everything is going towards the direction of the cookie. He crumbling so with that in mind. You've got this this this kind of Pathak storm of regulation and the browsers. We've had a lot of publishes pushes this year. Look pursuing what they're beyond the cookie strategies. Look like and essentially prioritizing identifying audiences using first party robin third party cookies. So that eating that are in data the other thing that's here is having a logged in users that everyone's said when GDP it came into force. And we'll we'll save CCPA. There is an inaugural the if you're one of the wild garden players your in a stronger position because you're using your rhyme fest policy policy data with which you can control in a in a better way. So that's what the publishers are trying to date Obviously it's it's not as easy you don't have as big audiences they have the scale across the web but obviously if you can offer something in return the membership it benefits and so on then that encourages people people with children ever. I mean publishers will never get to even close to even like seventy five percent of their audience to register with. I mean I would guess I mean these things usually a benefit incumbents right sure I mean one of the interesting things that I've I've been following recently in Europe is Logan alliances so we we've seen a lot over the years. These kind of AD sales alliances now saying it. More with kind of data alliances between different publishes things like one of the famous ones in in the UK but we're seeing and kind of small concentrated markets surpluses like Finland and Portugal. We're seeing some of the publicists Form these logan alliances where they share kind of single logging again across the different websites. So it's not just alliance and Alliance and the advertising side it's actually the the front facing Chima side and they're obviously it's really early he days. It's difficult to do in kind of wider across country market so all the English speaking markets. It's more difficult. But I think as the year progresses. We're we're GONNA see more of these pop up. We'll find out whether these things work what the advantages are. There will be in there really early stages of the moment. I think that's going to be one to watch right so The final topic wanted to discuss is add tax. Next Act if you will Because the Ad Tech Industry was built. It's on the third party cookie to a large extent. So we've seen a lot of shakeout in the sector it continues What what do you think to two thousand twenty holds for tech show? I mean it does feel like I I cover at Second Manet quite classy. And it does feel like everybody's he's kind of up for sale at the moment what we would just saying this as possible downtown coming. We've got in the regulation on its way and Seen by investors as much of a sexy sector as it was a few years ago the visa delays on flowing say. I think we're GONNA see more out tech exits The problem is the pool of buyers has shrunk and we're seeing a fair amount of fire sales we're seeing chapter eleven in some cases And also we're seeing the unraveling of of some some big deals. Where perhaps they just sort of these? I take place weren't quite fit for the parent company. I mean one of the things to be said about Aztec is that there are plenty of growing areas of media the increasingly rely on bidding technology. And now let's six and advertising exchanges and so on if you think about digital out of home when we've been talking about that becoming programmatic quite for quite a while Connected Enter TV and Fox. TV or addressable TV. Whatever you want to call it? Everybody is saying that dog a flowing that way you need something to be able to connect that poke costs in current payment and so on and and I think people are very entrepreneurial and creative and it's going to be the ones that move quickly to effectively jump on those areas are going that'd be the ones that will succeed. Yes seems like the ones that can retrofit for particularly connected. TV I mean that's that's where the dollars are flowing All all the stats. Show that so you know right now. The programmatic infrastructure I I feel like for first streaming video is is not obviously as advanced as as it is for display advertising but Yeah I I can't imagine A lot of a lot of businesses sticking to display as a US future facing strategy. Definitely and I think that's just lots of As you mentioned there's lots of problems to be sold within connected. TV and things like frequency and bombardments And just frankly lag so I think this this people that they're going to be able to solve those problems. The ones that are going to be able to see ultimately base successful next year. And and beyond Okay Laura thank you so much. Thank you before we get to our final segment a quick break. Hi Listeners. Sharing Bajic here managing director at digitally jumping in to let you know about a new podcast of hours at the modern retail. PODCAST we're talking to entrepreneurs entrepreneurs were betting big on products aimed at just about everybody and some of the most interesting retailers out there. Like house co-founder Khaleda Price Hambrecht. Who tells tells us about the lightbulb moment that led her to start mailing aperitifs to customers legally of course There's a loophole. 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I think the big I big theme it seems like in in digital publishing this year was diversification This is the nodding the pivot. The pivot paid really took Tuck took hold this year and everyone sort of running away from ad revenue. I make sense to run to where the opportunity is. I would say You see a a lot of media companies realize that they can't either. They can't compete with Google and facebook or they're competing for what's left after Google and facebook have taken an Amazon too doing so Increasingly you sell lots of publishers embrace subscriptions embrace commerce Events Brand licensing. I think commerce commerce in particular turned into a really major component of lots of big media. Companies buzzfeed now think gets upwards of twenty to twenty five percent of their revenue. And how comes from from commerce related stuff and that's projected to grow of for the foreseeable future. They recently expanded their market stuff. Globally it's now available when the UK and Australia when you say commerce. Are you talking about mostly affiliate because I think we need. We need to sort of client Hussein on this because you there's one thing of of writing a gift guide and linking out and using skim links and taking a little cut off that there's another thing about CASSIM media companies sort of become D. C. brands themselves. I mean they're. They're creating product in many permutations of summer. Even the you know they got warehouses is in their holding product and they really act more like a marketing company than than they do a regular media company. That's exactly right. I think that in Buzzfeed's case it is largely originally Affiliate based but they they are looking at this as a a something that can play in in lots of different kinds of ways. They've experimented with selling their own merchant past They're very openly thinking about you. Know kind of marketplace models places were opportunities where they can Be The connective tissue and You you know allow buyers and customers to kind of meet in the middle of a little bit But I think that you see also yeah. Typically people thought that no publisher would have the stomach. For as you say you know. Renting warehouse spaces spaces handling fulfillment but There are publishers. Doing it. I mean her Has has over the last couple of years. Launched a couple of different consumer products They've launched a Yoga Mat. They've launched a bunch of exercise gear. that's something that they're going to continue doing doing. They have sort of the infrastructure necessary to that that which they acquired when they bought Rodale a couple of years ago but I think you're going to start to see more people start to do this. Complex at the very end of the year launch the shop That's built kind of with A third party in the middle helping out a little bit but they plan to do quarterly fulfilment. And that's right. Yeah but they're trying their they have. Their plan is to have monthly. You know drops of of kkob branded co-created merchandise right. I mean this is a this is an area that is very attractive and a lot of lifestyle areas right and we see it in food Probably first and foremost but Complex what what high somebody doing With basically street where But news I mean at the end of the day. You know this is a story it seems to me that of diversification away from ad reliance and Everyone's landed on subs- everybody has landed on subs. Not only only subsidies should say you know. There's a lot of events and other incremental things but subs are the I mean recurring. Revenues is wonderful. It's a it's a beautiful thing. I the thing thing about Subs is that. It's it's we're going to see I think next year We're GONNA find out. Just how valuable some of these these subs arts who To the people that are acquiring them the during Black Friday. You saw a lot of publishers. Roll out very very steep. Discount offers. Twenty dollars a year. Do you know how many I mean. Let's just say Tribune publishing offers six months for a dollar. Yeah so there's always going to be like offers. I guess to get people in the door I think the the thing that that we need to be tracking is there's offers you do like you know. Try a month for a dollar and stuff and you really want to get someone's credit card that you'll be able to hit after that but There is some pretty aggressive regular discounting going on Does not like one time thing. What's interesting about all of this is that I think now I feel like nobody pays list price like I? Why would you? I mean that's that's true in in most things though right right I mean like there's always a sale at banana republic and there's businesses are classic metal businesses that are getting crushed And so what. I wonder is whether we're GONNA see the same thing when it comes to news. Publishers Everyone You know when when they do the slide that you know they talk about about the New York Times and the Washington Post and some more B. Two B. type publishers rather like like Wall Street Journal and FDA and stuff but there's a giant swath swath of middling Publishers Yeah I think that's that's fair and you even looking at something like the Los Angeles Times which I think came came out pretty far behind. They were expecting this year with Subscriber targets and. I think what you're seeing. This is true whether you're a news. Publication or a Amorebieta be focused publication. You have to be producing something that people genuinely want. It's not an accident that a lot of publishers are sort of leaning into in the messaging around subscriptions not even not necessarily leaning into by this because it helps you do your job better or makes your life better in some way but you know do it for democracy which is doesn't augur. Well I don't think -sarily will work for for some probably not for for all I mean I think you saw the trump bump and stuff and we're seeing people you know are doing that like hey support our our coverage of Afghanistan and you know buzzfeed. I guess is trying it's It's it's almost like a donations program. Well I think it's interesting to your point that we're going to start seeing a lot more publishers. Lean into almost what you would think of as like this mix between philanthropy and kind of 'cause based reporting the Guardian a lot of this where they say we want to write about climate change. Help US raise one hundred fifty thousand dollars but the New York Times hired somebody away away from the Seattle Times to build a program like this mcclatchy is doing it The Seattle Times has a head. Start on it. I think that you're going to start seeing as publishers get better slicing and dicing their audience and finding pockets of coverage They're going to start leaning into that as a way to gather directory to revenue where it's not just subscribed to newspaper X.. Full stop its support our continuing coverage of insert. You know issue here whether it's education or a some kind of local fees and Final thing is the cultural adjustment that this takes than this necessitates at a lot of publishers. There's a Lotta publishers truth. Be told we're not very customer focus and by that I mean audience focus. The audience was A commodity to sell the customers. It was not The actual the end customer This is an under appreciated dynamic That is a challenge important one for publishers overcome. Oh it's it's profound to your point about you know that business dynamic that creates a kind of pecking order internally. That is going to have to to change. Probably at lots of places if you know if your job is to a`massage audience and then you know make most of your money by selling ads. That probably means that the most important or one of the most important person in the businesses the head of ad sales or the chief revenue officer if all of a sudden switch to a consumer facing mindset and all of a sudden the most important thing is building tight funnel and you know relentless leave Refining Your picture of who your customer is and what they want. All all of a sudden. A different person is more important than their priorities. Take Center stage there. You know asks for investment get more important and You know that that affects people's Egos at Effects Affect Business Strategy and and this is also I think even for publishers like The New York Times or others. That have been faster to this. This is something that's an the very earliest stages we're going to see a lot of stories Unfold in the coming year dealing with Okay so give me a bold call for twenty twenty awhile about the one in company or about the whole not about the knicks. y'All we're going to try to keep it positive here bold call. I think that you're you're going to start to see publishers emerge where they have launched with Commerce says they're like prime area of revenue. Like that's the main way that they make their money they're going to really act like DC brands discussing earlier. Okay thank you thank. Thank you all for listening to this year's final episode. This is our sixty second episode of the year. Sixty five guests of the last twelve months and I want to thank golf for taking the time to come on here and share thoughts but most of all. I want to thank all of you for listening. I always love hearing from listeners. Email me and Brian today or tweet me at B. Marcy on twitter and also love to connect with percenters unlinked in of all places. Make of that what you will enjoy your holidays. We'll be back after the break in the new year with a bunch of new episodes.