TV v.2014 -- “When The Walls Come Crumblin’ Down ..."

John Mellencamp’s campy song is back with a vengeance in the world of television.

Just in the past two days -- and in rapid succession -- two fairly remarkable announcements that should be rocking the media business even more than they likely are.  Make no mistake -- these are big deals, in every sense of the word.  

First, Viacom licenses 22 of its live and VOD premium network to Sony for its new OTT service for PlayStation, Sony TVs and other Sony connected devices.  And, second, Verizon announces an early 2015 launch for its long-anticipated “virtual” MSO which is so virtual, that it is wireless.  This ain't no FiOS TV -- this is TV re-imagined for your 24/7 companion.  In other words, your small screen ....  

Yes, Verizon announced that its down-sized, “bite-sized” cable-lite programming package will include the big 4 broadcasters and NFL games (via its existing exclusive smartphone deal).  But, even more symbolically and, therefore, significantly, Verizon -- in the same breath as referencing the traditional content of those august institutions -- also announced the featuring (yes, featuring!) -- of new-fangled “bite-sized” AwesomenessTV programming.  And, with that acknowledgement, Verizon elevated (rightfully!) YouTube economy premium short-form content to the ranks of “mattering” to at least some in the most senior ranks of media (a process that started earlier this year with Disney’s landmark $500-$950 million acquisition of Maker Studios -- a deal which, I believe, will be seen as a shrewd move a few years from now ... Google buying YouTube anyone?).

When making his announcement yesterday at Goldman Sachs’ annual mega-media conference (funded, no doubt, by the bank’s own special form of technical prowess during the past decade), Verizon Chairman and CEO Lowell McAdam proudly exclaimed the almost unthinkable -- that (as reported by intrepid reporter Todd Spangler of Variety, one of my favorites) “among cable programmers, there’s been an attitude shift among cable programmers toward accepting a new over-the-top model for delivering pay TV.”  In McAdam’s own words -- perhaps a bit unfortunately chosen in terms of its NFL-like imagery at this particular moment in time -- “It’s moved from almost a stiff-arm to much more of an embrace.”

And, Verizon’s McAdam was not alone.  CEO Jeff Bewkes of Time Warner emphasized the company’s growing interest in offering HBO Go as a stand-alone OTT service -- absolute heresy ... until now.  

In other words, the times, they are a-changin’ ... and consumers soon will be able to choose never-before-available smaller, more affordable premium programming packages.  

Doubt we are seeing much “embracing” about this transformation in the ranks of traditional media.  But, we are seeing acceptance.  And, acceptance is the first step in the road to recovery.  Eyeballs -- especially coveted young eyeballs -- are increasingly off traditional MSO services and on YouTube and leading MCNs (and increasingly viewing that content on mobile).  That means those younger eyeballs are increasingly less likely to pay in a “traditional” way (a reality underscored by a new study concluding that cord cutting will rise in the next 12 months -- also reported by Spangler -- and the words of Disney’s CFO Jay Rasulo).  That disruptive reality calls for non-traditional thinking -- and that is precisely what we are seeing here.

The long anticipated -- and inevitable -- dismantling of the traditional cable “bundle” is happening right before our eyes.  And, once the dam opens, it can never be closed.

2014 will be seen as a pivotal year in the world of media -- and not just because all of us are here at this moment and in this time.

Just look around you.  Watch how others around you are watching.  Especially the kids .... 

MUST CHECK OUT App -- Video Star

If you haven't heard of the free app "Video Star," run, don't walk to your local App Store (especially if you have kids 8-18, which is the app's core demographic).  Video Star gives anyone the ability to easily create compelling music videos.  I recently caught up and spoke with Video Star's co-founder, Barry Bracksick.

Video Star is a ... er ... star.  It's just about everything a video-focused app should be.  Fun.  Easy-to-use.  Creative.  Compelling.  "Share-worthy" videos.  Where virtually all other public share-focused "Instagram for video" apps fail, Video Star succeeds.

Video Star understands that it is the content, stupid, that matters -- i.e., sharing is not enough.  Without compelling video content, videos (unlike Instagram-like still photos) are not share-worthy.  Why?  Because mobile video is fundamentally different as a medium compared to mobile photos.  Engagement with videos -- i.e., finding those that are worthy of your time -- is a very different animal.  Story-telling is important here.  So are navigational short-hands or guideposts to separate the wheat from the chafe.  Virtually no current mobile video apps (even those with significant initial traction) embrace these fundamental differences -- they simply focus on general mobile video sharing.  And, they will ultimately fail because of it.

Back to Video Star -- which is no "Instagram for video" clone.  Video Star, of course, lives in the milieu of music.  And, music solves these fundamental video issues/challenges.  An underlying music soundtrack – especially one known to a broad audience – becomes a central part of the “story” and adds the critical ingredient of relevance.  And, that means more engagement and virality amongst already-rabid fans.  Music also can help the audience efficiently find the videos that matter to them.  Artists and songs – especially those known to a broad audience – can serve as critical navigational guideposts.  They certainly convey more universality than a video thumbnail.

Music gives Video Star users their underlying narrative drive (i.e., the story's foundation), and the app fosters creativity and thought before video capture begins.  It also offers instant filters and automates editing (the video is always in synch with the music) to optimize ease-of-use – in other words, the technology gets out of the way so that users can focus on the act of creation.  That means better content, and that means enhanced universality, video engagement and sharing.  

I have seen Video Star in action with my own Instagram-using kids who made their own shockingly good Skrillex video (note to self: always look to what the kids are using).  They herded together a bunch of their friends for a few hours for that video alone.  It was fun for them.  And, it was highly creative and collaborative film-making.  Certainly beat watching TV or playing video games solo.  The end result was quite incredible, really.  In fact, the kids screened the video for us -- and we parents were quite impressed (and not just because our kids were involved).  It was just a damn good video.  So much so that one of the parents wanted to instantly share it with the anonymous world of YouTube (until I thought the better of it for privacy reasons).

I could imagine youth/kid-focused companies like Disney or Viacom/Nickelodeon being interested in acquiring the company behind Video Star, as well as music-focused services – like Vevo.  The app is definitely fueled by passion.  And, it isn't just for kids.  The company tells me that Video Star is so good that real bonified musical artists now use it to create their own music videos.