David Goldberg -- Shocking, Sad (& Reminder to Us All ...)

I, like you, was shocked and saddened by the sudden loss of serial digital media entrepreneur David Goldberg this past weekend.  I certainly didn't know David well -- but I interacted with him "back in the day" during my time at online music pioneer Musicmatch and his time as head of digital music at Yahoo!  Those were heady, thrilling, "wild west" digital music/media times.  There were few precedents back then -- we made them up.  We created streaming deals where none existed.  David was a key media/tech innovator who made it happen and led the way.  And, among other things, he was a key driver of Yahoo!'s acquisition of Musicmatch after his own digital music company Launch had been acquired by the purple "Y."  I respected David -- and, like you, have admired his continuous string of entrepreneurial successes.

David's "gone-way-too-soon" loss is poignant in so many ways.  His family -- his wife, his kids.  Tragic.  His friends.  Colleagues.  Can't define it.  Won't even try.  But, for some reason, I had to write about it -- at least briefly.

At these tragic times, it is important to stop.  To reflect.  To prioritize.  And, to stick with those priorities.

Those of you who are reading this likely are, like me, driven, passionate, and intense.  We have so many things to do.  So many things we want to accomplish.  And, not enough hours to accomplish them.

But, here's the thing.  Yes, we do (I am saying this to myself right now, by the way).  And, yes, we can -- and must -- turn "it" off some times.  What really matters?  What's it all about?  What's lasting?  Certainly not new questions -- am breaking no new ground here.  But, these questions are timeless.  We, on the other hand, are not.  David's tragic death reminds us of that with a blunt senseless hammer.

None of us, of course, know what the future will bring.  That's precisely why sucking the marrow out of life we must.

So, take the time to create and immerse yourself in real-world, non-virtual experiences.  Share them with those closest to you.  Music festivals have become "that thing" -- that obsession -- for me.  And, my family joins me now in that obsession.  Now it has become "our thing."

These are lasting when much of the other "stuff" is not.

The digital media/tech world has absolutely lost a true leader and innovator in David.  But, more importantly -- far more importantly (by an order of magnitude) -- his family has lost a husband, a father.

But, they will never lose those experiences they shared together ....

Yahoo! Kills Its YouTube "Killer" - So, What's Still Alive?

Last week VideoInk broke a story that floored me -- "Yahoo Shutters Video Platform for Creators One Year After Anticipated Launch."  Yet, seems like I was the only one who was floored.  I searched all over for others reporting the news, but couldn't find it anywhere.  I reached out to two key reporters at top media/digital media publications and, shockingly, one hadn't even heard the news (nor seemed to think it was a big deal) while the other had heard, but was still sniffing around.  Out of an abundance of caution, I asked VideoInk to verify the story again -- which they did -- pointing to the leaked Yahoo! email that started the whole thing in the first place and verifying its authenticity.

So, people -- hear me out here -- and make no mistake.  This IS big news in the OTT video world.  Very big news.  If true -- if, in fact, Yahoo! is closing its self-publishing platform for video creators -- this development deeply demonstrates Yahoo!'s continued indecision and overall flailing (failing?) in the OTT video content space.  And, this certainly is not an opportune time for flailing -- for an unfocused/scattered/disrupted (you choose the word) video strategy (or complete lack thereof?) when the video focus/strategy/execution of others (behemoths like Facebook and Snapchat and others like Vessel) are ever more sharp, precise, resourced, abundantly clear ... and, with some, massively successful (by all accounts, Facebook is killing it).

Here's the relevant timeline leading to this apparent "leak."

Almost exactly one year ago, reports everywhere indicated that Yahoo! was only months away from launching its own video creator platform -- its own YouTube "Killer."  This was very big news at the time -- everyone covered it.  So, we all waited in anticipation.  After all, Yahoo! managed unique and uniquely compelling resources and ingredients (that I discussed long ago in a blog post from 2013) that gave Yahoo! the potential to drive real success as an alternative to YouTube.  But months ticked on and, alas, it never came.  Instead, silence.

That report, of course, followed Yahoo!'s attempt -- almost exactly 2 years ago -- to buy a 75% controlling interest in Dailymotion, the European YouTube (certainly not of the scale of YouTube, but still a force in its own right).  Alas, that never came either -- but this time, not for lack of trying.  Rather, French regulators killed it.  Movie over.  Fin.

Meanwhile, throughout this entire time-line -- these past two years covered by these major non-developments at Yahoo! -- the OTT video world changed radically.  What once was, in essence, a YouTube-only video world for creators ... is now a world of multiple competing video platforms.  And a rapidly growing "multiple" it is -- in which YouTube is no longer the only game in town for creators (case in point, Facebook once again).

And, what was happening at Yahoo!?  Senior video executives came and went and apparently took their individual video strategies with them out that revolving door.  Those that remained found themselves in an environment apparently emitting, shall we say, not the highest level of morale.  I have spoken with several of these video execs who have come and gone (I will keep their names confidential) and have heard one theme that is focused -- i.e., Yahoo!'s video "strategy" has been overtaken by confusing multiple layers of decision-making, internal conflict, and what some even called "chaos."  Not trying to be a muckraker here -- it gives me no joy reporting this (because I believe Yahoo! could succeed in some very meaningful) -- but am just reporting the current state of affairs as I have come to understand them from multiple sources.  And, Yahoo! is running out of time amidst the current great OTT video land grab of 2015.

So, what do we have now at Yahoo!?  We have a media regime headed by Kathy Savitt, an accomplished marketing executive, but whose official title itself is split -- "CMO and Head of Media" -- which alone connotes a certain lack of corporate focus and commitment.  We have had some major exclusive and very expensive video content announcements -- including Yahoo!'s exclusive rights to cult television favorite Community -- but Yahoo! does not actively promote that programming (it is mentioned nowhere on Yahoo!'s home page).  We have "Yahoo TV" and "Yahoo Screen" -- Yahoo!'s two primary video initiatives.  But have you even heard of them?  I hadn't ... at least not really.  Those two also are essentially invisible on Yahoo!'s home page, which is a major head-scratcher (to say the least) in this "new golden age of video" (and, again, with all the reach and resources Yahoo! continues to have).  Once I did find them, I can't really tell how "Yahoo TV" and "Yahoo Screen" are the same ... different ... complementary?

One thing we apparently do know now, however, is this.  Yahoo! is giving up on the mega YouTube-esque "killer" opportunity.  Throwing up the white flag ...

... at least, and unless, Yahoo! has a major Dailymotion-like acquisition trick up its sleep that will soon come to light and finally catapult it into the OTT video big leagues (where it absolutely could belong if it had the will and focus).

But, sadly, I don't see that coming.

Hope I'm wrong -- and will be the first to fall on my sword if Yahoo! works some mystical sleight of hand.

ESPN, the New YouTube for Brands? Welcome to The Age of Lifestyle Media Companies

ESPN is not just for us couch potatoes anymore.  It is now a home for those selling those very potatoes from which the chips-we-eat-as-we-watch are made -- i.e., major consumer brands.  Huh?  What?

Here’s the story.  ESPN just announced -- nay, invited -- major brands to develop programming for their distribution platform, initially focusing on its TV Everywhere app.  Not commercials.  Not ads.  Not traditional sponsorships.  Actual entertainment programming.  Engaging video.  Case in point -- major media company, Dick’s Sporting Goods (well, perhaps not “major” yet, but possibly with major aspirations to become one some day -- Marriott anyone?) developed the documentary series “Hell Week” for ESPN.

Pause and chew on that for a moment.  Dick’s didn’t go to YouTube first with its videos -- historically, the standard path for brand-backed videos.  It went to ESPN first.  And, it paid ESPN for that privilege.  That is precisely ESPN’s goal -- to become the first choice for major brands to produce original, differentiated and compelling programming for its audience.  Outside the YouTube ecosystem.  And, here’s the beauty of it -- not only does ESPN get compelling (hopefully) new programming developed on someone else’s dime, they also get paid by that content creator (in this case, Dick’s) for that privilege AND ... wait for it ... ESPN also gets to run their traditional ads against that programming which pay yet again.  That is some Trifecta!  Kudos to you ESPN!

ESPN is not alone in its goal of being “the first choice” over YouTube for video creators, including brands.  This “divorce” from YouTube -- perhaps not a complete divorce, but at least a trial separation -- is a persistent theme in digital media circles these days.  Content creators of all stripes increasingly loudly express dismay (that’s a soft way of putting it for some) over YouTube’s 55/45 revenue split to creators.  The result is a burgeoning number of YouTube alternative platforms that promise better times for those video creators who enter their world first.  Think big OTT guns like Netflix and Amazon.  Think old stalwarts like Yahoo!, Comcast and Xbox.  Think major MCNs like Disney-fied Maker Studios, Otter-ized Fullscreen and hot young MCN Whistle Sports (which bills itself as a new kind of ESPN for millennials).  And, think newbies like Vessel and Zealot Networks.  Something is most definitely in the air ... on the air?  Yes, in more places than ever before.  High times indeed for the creative community.

Which brings us back to Dick’s.  Dick’s is not alone.  Marriott, as glibly noted above, just recently busted a move (reference, too dated?).  Pepsi just made major “noises” to that effect.  Starbuck’s.  And an increasing list of “others” all trying to pull a Red Bull and smartly transform themselves into lifestyle media companies that are significantly more interesting -- and engaging -- to consumers (especially to the coveted mobile-savvy millennial).

In any event, ESPN’s bold move is not to be denied.  Or overlooked.  It is yet another major data point demonstrating that brands increasingly see (or strategically want others to see) themselves as becoming media companies.  My business team and I at Manatt Digital Media see this directly.  We have already guided brands in this kind of media morphology.  We just recently finished a media transformation engagement for a respected beauty brand.  

This is real.  It is not fashion or fad.  And it is accelerating ...

Brands -- grab your lifestyles now while they last!  And, become storytellers, not just marketeers ...

Yahoo! Finally Buys Hulu? What It Should Do with Its $8.3 Billion Alibaba Windfall

Ready, set, GO! It is Alibaba IPO time ... right now. Set to be the biggest IPO in US history (that’s $22 billion). And, prescient Yahoo! is set to get $8.3 billion of it.What should Yahoo! do with that windfall?

VIDEO, that’s what! Video is Yahoo!’s future, plain and simple. With this massive cash infusion, Yahoo! now has the means -- like never before -- to take on YouTube ... and potentially big cable operators themselves. The BIG VISION is the massive 1-2 punch of premium broadcast television on-demand and live linear programming. All wrapped with a nice purple bow.  (I also discussed my thoughts on this subject, together with others, in Todd Spangler’s article in Variety).

Yes, Yahoo! tried to buy its way via massive M&A before -- making bids for Hulu and outright acquiring France’s Dailymotion (in an ultimately failed attempt due to French regulators). But, that was then, and this is now. Yahoo! could go back to Hulu and go for M&A v2.0.

With that single move, and if it negotiates “right” (getting the rights it needs), Yahoo! would be the differentiated home for the deepest catalog of premium television broadcaster content. Content that YouTube does not have. And, Yahoo! could significantly ramp up Hulu’s own original programming efforts to further differentiate itself from YouTube and others a la an HBO-like strategy.

One more critical ingredient -- Yahoo! could use some of that cash hoard to woo key tent-pole YouTube creators over to its platform, perhaps offering better economics among other things. And, why stop there? Why just woo? Go all in! Buy! Multi-channel networks (MCNs) are for sale right now -- and deals are happening fast and furiously (just one being Disney’s recent $500-$950 million acquisition of Maker Studios). That would give Yahoo! immediate scale for the kind of authentic, grass-roots-driven short-form video content that is absolutely critical to millennials. And, marketers need to reach those millennials in an increasingly fragmented world. Yahoo! should offer the full spectrum of content -- from long-form to short-form -- to truly do it right. Different platforms demand different premium content.

But wait, there’s more. Yahoo! could use its significantly expanded war chest to take on cable and satellite bundled services themselves. The studios have accelerated the pace of their “noises” in the past two weeks alone indicating that they may now be ready to license in an unbundled world (take Viacom and Sony for example). And, if Yahoo! succeeds in convincing its Hulu broadcasting partners to play in that world, Yahoo! has the potential to offer live linear television programming as well (i.e., a true virtual/OTT MSO). That would be potent. Yahoo! could be THE place for both premium television on-demand and linear programming. Programming that could also be re-packaged in myriad ways -- including into “bite-sized” smaller packages that are optimized for mobile viewing. That too is a critical ingredient, because mobile is increasingly where the eyeballs are -- especially those coveted millennial eyeballs.

Now, don’t get me wrong, that’s a lot of things that must go “just right” in order to make the big “IT” happen.

But, you gotta dream big, right?

And, NOW is the time for Yahoo! to do that kind of dreaming ....

Happy Birthday Manatt Digital Media -- Our First Year ... And The Long-Awaited Promise of “Convergence” ...

Today we celebrate the first anniversary of our launch of MDM (Manatt Digital Media).  And, what a year it’s been.  Yes, I am proud of our accomplishments in Year 1 (click here or see the full press release below).  But, even more exciting to me is the passion of those on the MDM team.  For MDM’ers, it’s not just a job.  That’s why we blog at 4 am.  That’s why we finalize pitches at 2 am.  That’s why we enthusiastically make business introductions and connections.  That’s why we host Digital Media Meetups in LA, NYC, and SF.  That’s why we invest our own cold hard cash in innovative startups like DanceOn, MovieLaLa, Ninja Metrics, Trailerpop, Adomic, StrikeAd, Vadio and eXacly.me (all of these were made in the past 12 months).

Most significantly, however, is how much the digital media landscape has changed this past year.  Think about it.  Not a week goes by without some massive billion dollar plus deal (or rumored deal) in the world of convergence -- where the promise of content meeting technology to create “magic” is finally coming of age.

Facebook/Oculus Rift.  Disney/Maker Studios.  Apple/Beats.  Google/Twitch.  Yahoo!/RayV.

Who has time to sleep?

But, that’s the point!  All of us in the midst of this maelstrom should feel energized to be in the midst of it all -- not knowing exactly where it is going, but adding our own individual ingredients to push it slightly more this way than that.

We are in the midst of transformative engagement.

That’s our Year 1.

So, it's not so much that we are celebrating ourselves (although, it’s always good to fete landmark occasions).  Rather, think of it more like we are celebrating the fast-transforming eco-system all around us.  The transformative eco-system that, yes, can be daunting at times -- but which, at the same time, is full of massive opportunity with active engagement, experimentation and good old-fashioned creativity, innovation, tenacity and hard work.

(But, for those of you who want a more “traditional” Year 1 anniversary pronouncement, here it is ....)

MANATT DIGITAL MEDIA MARKS FIRST YEAR WITH SIGNIFICANT GROWTH, ENGAGEMENTS WITH LEADING INNOVATORS, EXPANDED BUSINESS CONSULTING TEAM AND RECOGNIZED THOUGHT LEADERSHIP

·       Firm Emerges as Innovative Market and Recognized Thought Leader in Providing Diversified Professional Services and Deep Industry Connections With Growing Client Base of Innovators

·       Manatt Digital Media Demonstrates Industry Expertise and Commitment With Significant Strategic Investments And Leadership in Prominent Digital Media Events

LOS ANGELES, CA — May 21, 2014 — Manatt Digital Media, a fully-integrated professional services division within Manatt, Phelps & Philips, LLP, today announced that within its first year, it has established itself as a leader in digital media and technology through the growth of its client base, strategic expansion of its business consulting team, and by providing overall thought leadership and connections in the worlds of media, entertainment, advertising and technology.

Since May 2013, Manatt Digital Media has engaged with and invested in high-visibility digital media and technology companies, including leading multichannel network DanceOn; innovative content-driven and social media-focused companies MovieLaLa, If You Can and Vadio; market-leading ad-tech companies Ninja Metrics, Trailerpop, StrikeAd and eXacly.me; and data-driven company Adomic.

“Manatt Digital Media is servicing players who are redefining the space through innovative technology and entirely new digital media business models,” said T. Hale Boggs, chairman of Manatt Digital Media. “We are gratified that in the course of a single year, Manatt has built a strong name for itself and emerged as a formidable influential player in Los Angeles — the entertainment and digital media center of the world — as well as other key digital media and investment hubs, such as New York City, San Francisco and Palo Alto.”

“Our aim is to disrupt the traditional professional services approach to bring differentiated real-world entrepreneurial and operational digital media and technology insights to our clients through our wealth of expertise, relationships and venture capital experience,” said Peter Csathy, CEO of Manatt Digital Media. “We embrace disruptive new technologies and seek to empower our clients to be market leaders who further differentiate themselves from competitors by leveraging their innovative ideas as significant new business models and revenue streams.”

Key to its innovative approach, Manatt Digital Media has built a uniquely diversified team to provide its clients the industry’s most comprehensive and meaningful digital media professional services. As one example, the firm recently deepened its business consulting team by hiring leading consulting expert Eunice Shin, who brings more than 18 years of experience and deep relationships and connections in the media and entertainment industries. The firm’s expertise in content and intellectual property at the heart of digital media also separates it from all other consultancies, along with its unique combination of expertise in social media policy, privacy and data security.

“Today’s digital media world is interconnected and incredibly fast-paced, and it demands a bold and creative approach to professional, business consulting and legal services,” said Boggs. “With the growth of our client portfolio and the widely specialized executive team across legal, business and venture capital, we are building on the firm’s recognized legal experience to offer a full spectrum of world-class professional services, and we’ve seen that model benefit our clients of every size and every stage of development. We are not aware of any other organization that coherently ties together these capabilities in the digital media, entertainment or tech worlds.”

In addition to its growing team and clientele, Manatt Digital Media is widely recognized by top-tier media for its thought leadership and industry expertise. The company has hosted a number of high-level industry meet-ups and participated in several key industry events in the past year:

·       Manatt Digital Media Meet-Up — As part of Manatt Digital Media’s focus on supporting innovative entrepreneurs in digital media companies big and small, elevating new ideas, and creating a network of beneficial relationships in the digital media industry, the company hosted a number of exclusive Digital Media Meet-ups in Los Angeles, New York, and San Francisco. The events brought together a select mix of entrepreneurs, media company executives, artists, financiers, and key industry press and thought leaders.

·       UCLA Entertainment Symposium — Csathy participated as a moderator at the March 2014 UCLA Entertainment Symposium on its multichannel networks panel in the days preceding the recent acceleration of M&A activity in that space. The panel, titled “Multi-Channel Networks & Other New Premium Video Players — Their Impact on (& Opportunity for) Hollywood,” featured high-level executives of major players in the field, including Machinima, ICM Partners, Fox Networks and YouTube.

·       Siemer Summit— In October 2013, Manatt Digital Media sponsored the Siemer Summit, an invitation-only event that drew more than 500 of the most influential leaders in digital media and emerging technologies from around the world. Manatt Digital Media also provided joint funding to the winning startup of the Siemer WaveMaker Award’s Best in Show, which awarded the startup with the most innovative platform that was most poised for growth. The company will return as a leading sponsor in 2014.

·       Digital Entertainment World Expo — Manatt Digital Media sponsored Digital Entertainment World Expo in February 2014. The company served as the main sponsor of the 2014 DEW Startup Competition. Of the total prize, the winner received a $25,000 investment from Manatt Digital Media in the form of a convertible note, as well $25,000 of professional and business services from Manatt, Phelps & Phillips, LLP.

“Our active involvement in the digital media space keeps us attuned to the leading ideas and technologies that drive the industry forward,” Csathy added. “As we continuously deepen our relationships among key digital media players and develop, sponsor and participate in major events — not just at the heart of content creation in Los Angeles, but around the world — we are ensuring that our clients are the first to know about critical trends and disruptive, innovative technologies and how they can positively impact their business.”

About Manatt Digital Media

Manatt Digital Media is a full-service digital media platform created by entrepreneurs for entrepreneurs, whatever the size or stage of the company, from startup to growth-stage to mature public companies. Manatt Digital Media uniquely offers a one-stop shop of professional services that is grounded in the legal and business experience of Manatt, Phelps & Phillips, LLP, one of the world’s most respected law firms in the media, entertainment and advertising industries. Manatt Digital Media offers its clients differentiated value and impact in multiple forms and across the life span of their companies — from venture capital to strategic relationship building and artist access to business consulting and creative deal-making, including content licensing, distribution and M&A. For more information, visit www.manattdigitalmedia.com.

About Manatt, Phelps & Phillips, LLP

Manatt, Phelps & Phillips, LLP, is one of the nation's leading law and consulting firms, with offices strategically located in California (Los Angeles, Orange County, Palo Alto, San Francisco and Sacramento), New York (New York City and Albany) and Washington, D.C. The firm represents a sophisticated client base — including Fortune 500, middle-market and emerging companies — across a range of practice areas and industry sectors. For more information, visit www.manatt.com.

Looks Like Yahoo! Took My Advice to Heart -- Focus On Video!

Almost exactly one month ago, I wrote a post about Yahoo! titled, "What's Yahoo! To Do?  Here's What -- Disrupt Video!"  And, my argument -- piggy-backing on an extremely insightful blog post by LA-based business accelerated MuckerLab -- was that a focus on video could unlock tremendous value for Marissa Mayer and her team.

Well, it seems like Marissa and her team have taken that advice to heart (I won't give myself all the credit after all).  Just yesterday, The Wall Street Journal reported that Yahoo! was in advanced talks to take a controlling interest in YouTube-esque online video company Dailymotion (which apparently is valued at about $300 million).

This would be Mayer's first major acquisition since coming on board to steer the Yahoo! ship away from the ice-berg.

And, without comment on the price itself -- or the specific target -- I certainly like the general direction this type of bold move would signify.

Evergram Part II -- Send A Video Message To Larry Page, Marissa Mayer, Even Zuck

Yesterday I wrote about future messaging platform Evergram -- a service definitely worth checking out -- and which is getting nice, and well-deserved, significant attention (TechCrunch being one).

Well, those smart and passionate guys at Evergram are also clever marketers.  First, they pitch themselves in wedding dresses (yes, 'tis true, check this out -- and you will understand why they did).  Now, they are giving you a direct channel (literally a direct video channel) to Google's Larry Page, Yahoo!'s Marissa Mayer, and Facebook's very own Mark Zuckerberg, enabling you to create a message that will be delivered to them on New Year's Day.

Don't understand?  Well then check out the links above -- and you'll see what I mean.  Smart, very smart.  Helps you internalize the power and potential of "future messaging."  And, gives the company great buzz in the process.

Now it's up to Page, Mayer and Zuck to pick up your message on New Year's Day and watch it ....

Here's more about this ambitious service, Evergram.  Yesterday, I gave some of the back-story about how it came to be in the first place -- i.e., THAT moment of inspiration.  More detail is warranted to give that moment justice -- and here it is directly from the founders themselves (which will help you really understand why Evergram is here in the first place -- and the depth of ambition and meaning behind this company -- it's raison d'etre, if you will):

When Evergram’s CEO and Co-Founder, Duncan Seay, was diagnosed with Cancer in December 2010, his business partner and co-founder, Jeff Caden approached Seay with an idea that would allow him to send wisdom messages to his loved ones for delivery in the event of his death. The idea quickly morphed into a solution firmly embedded around life’s important occasions and deeper human connections; a solution the founders believe will profoundly change the way our society uses social media, and social video, in particular.

“When we first learned that the disruption of time fostered the creation of meaningful messaging, we became very excited," says Caden. When video, text or audio messages are sent for future delivery, whether hours, days or even years later, the degree of thoughtfulness and connection typically increases. This is a phenomenon often experienced in letter writing, and one that the Evergram team has integrated into its entire user interface. Evergram further believes that technology has the ability to strengthen human relationships, and not to replace them; an increasing concern studied by MIT’s Science and Technology Professor, Sherry Turkle, who notes “We expect more from technology and less from each other.”