LA Mayor Garcetti at SXSW - VIDEO - "If You Really Want to Know What Tech Looks Like, Come to LA!"

Proud to feature LA Mayor Eric Garcetti as our special guest at SXSW yesterday -- where Manatt Digital Media hosted a special private digital media/tech event with boutique investment bank/VC firm Siemer/Wavemaker.  He is one smart and charismatic guy -- and a true champion of LA's fast-growing and impactful tech scene.  Watch the video -- and here is a choice "cut" from his impromptu speech:

"This morning I was asked by a reporter on the way here, 'so what do you do to become the next Silicon Valley?'  And, I said, we don't want to be the next Silicon Valley.  We love Silicon Valley, but we're LA .... We disrupt space.  We disrupt fashion.  We disrupt content.  We disrupt so many things, that I tell people, 'if you really want to know what tech looks like, come to LA.'  And, that's before I start talking about our superior weather, our superior diverse people, our amazing geography ...."

Well said, Mr. Mayor, well said.  A great meetup it was ....

Disney/Maker, 1 Year Later -- Your "Must Read" for SXSW (or, "Studios, Do Not Go Gentle Into That Good Night ...")

It's SXSW time.  Are you ready?

Well, I'm here to help.  Here's some easy prep for the endless conversations you will face while clutching your drink.  Here's my SXSW digital media ice-breaker.

TOPIC?  Disney/Maker Studios.

CONTEXT?  It's been almost exactly one year since Disney snapped up mega-MCN Maker Studios for a mega-price-tag ranging from $500 Million to $950 Million.

THOUGHT-PROVOKING 2-PART QUESTION?  Too high, too low?  Smart deal, dumb deal?

I know, I know, the vast majority of you will immediately dismiss the question itself -- undermining its essence by refusing to give it any semblance of merit.  In other words, most of you will now excuse yourselves, find the nearest bartender, and ask for your next drink.

But, hold on there Cowboy.  Not so fast.  Lots of reasons for Disney to do that Maker deal.  Lots of good reasons.  In fact, lots of excellent reasons (I wrote these down in my year-ending Variety piece titled "3 Digital Media Mega-Deals That Defined the Year").

So, here we are, one year later.  SXSW-ing.  How are things different now in the video world from where we were one year ago when we last partied in Austin?

Alas, how do I count the ways?

Just think about the last 12 months.  Just think about the pure exhaustion you felt (and continue to feel) every time you checked your favorite digital media publication -- only to find yet another mega-deal or mega-investment in the MCN/YouTube economy.  Since Disney/Maker, we have heard a steady -- and accelerating -- drumbeat of hundreds of millions of dollars of investment and hundreds of millions of dollars of M&A in connection with new digital-first video companies (my company, Manatt Digital Media, laid these out in this year-ending Infographic -- and also in this MCN "Score Card").  I recently discussed related themes in this recent post where I laid out some of the most recent deals in this space.  Consider these you relevant "cheat sheets" for plane reading as you fly to Austin.

But, here's the main point of all of this -- IT IS HAPPENING!  MCNs are "happening."  MCNs are real.  Very real and very now.  They are not a fad.  Why?  Because an MCN represents so much more than its frequently dismissed and limiting acronym suggests.  An MCN symbolizes the fundamental transformation of the media and entertainment business in which we find ourselves today -- a transformation fueled by mobile-first, millennial-focused video content that is significantly more advanced today than it was when we found ourselves in Austin one year ago.  The pace of this transformation, in fact, is incredible.  And this breakneck pace demands bold actions that may make or break companies.  Companies big and small.  Including major media and entertainment companies.  It is "go" time.  Time to take action.  There is little time to study.  Get smart, fast!  It's time for all-nighters -- and grab your favorite study-buddy.

We are seeing (nay, feeling!) this sense of urgency at real scale for the very first time in the "traditional" media and entertainment business.  I hear it in virtually all of my conversations with industry insiders.  Only one year ago, the vast majority of senior level studio execs (I'd peg the number at 90% or more) had one of 4 reactions to news of the Disney/Maker deal: (1) "who is Maker and what is an MCN?"; (2) "why do I care about Maker and MCNs when I have a real media business to run?"; (3) "why would anyone pay anything for an MCN (let alone what Disney paid)? - they aren't profitable, after all, are they?", or -- at best -- (4) "interesting, let's see how things play out and learn from the other guys' mistakes."

Well, my friends, that ain't the case today.  Now, FOMO is in the air.  It is pervasive.  Disney/Maker and its endless MCN progeny of mega-M&A and mega-strategic investment have flipped the media and entertainment reality (or at least perception of it) on its head.  Now, the MCN alphabet is required learning in the studio classroom.  And now, it's not so much a question of "if" we should get into the mobile-focused, digital-first, millennial-fueled MCN/video game (after all, the majority of thoughtful studio execs now truly believe they are living in transformative times).  Rather, the questions are "how" and "when."  And, many of them now correctly fear that others will take the remaining MCN crown jewels sooner rather than later.  A smell of scarcity is very much in the air (as it should be).

So, my fundamental advice to all who listen -- advice which I pontificate passionately in virtually every conversation -- is this.  TAKE ACTION!  And take it now!  Make your moves -- or at least, a move (perhaps a significant strategic investment at a minimum).  Don't have the business model figured out?  Understand this -- NO ONE DOES!  Business models are evolving as fast as the media landscape is.  But, that doesn't change the fact that you just gotta be there (in the digital-first, mobile-driven millennial world -- where the kids are).  This is no time to waltz delicately and methodically into this feverish dance.  It's time to partner up.  If you hesitate -- if you turn around to grab some punch -- you just may find that your erstwhile dance partner has found another suitor. There are many to be found.  And many who are anxious.

This is a time to be aggressive.  This is a time to be bold.  This is a time to experiment and damn the torpedoes.  It's innovation time.  It's transformation time.

And, it's opportunity time ... for those who have the courage to seize it!

Media executives, "Do not go gentle into that good night ...."

VR 101: Lesson 1 -- DISTRIBUTION (& Its Challenges) -- #1 In a Series

[The following is the first in a series of posts about the burgeoning world of Virtual Reality (VR) by guest blogger Omar Noureldin of Manatt Digital Media.  He previously wrote a VR-focused "Cheat Sheet" overview of the VR space (and key players in it).]

To understand what the virtual reality (VR) distribution pipeline will look like, a stroll down memory lane vis-à-vis online video will be instructive. It took time for the online video ecosystem to develop into what it is today -- and that was largely because of disjointed and competing distribution platforms in its early years. Anyone with a smartphone, tablet or computer knows that YouTube -- despite new "real" significant challengers like Facebook -- continues to dominate this space with over 1 billion users.  But, this took time (and an acquisition by Google, which merged Google’s less than stellar Google Video platform). Still, the vast majority of YouTube’s content is user-generated.

Then there are the premium content platforms like Netflix, Hulu and Amazon, all of which have turned the prime-time TV model on its head. First, by reusing content, and now by creating original content. Vimeo is a growing player in this space (among numerous others) and has laid its stake in the ground by focusing on high-quality, high-resolution content and on content creators -- and it is now dabbling in VOD and SVOD models.

So, what does this mean for VR? What is the opportunity?

Well, the opportunity is for new digital distribution platforms to emerge that focus solely on VR content. The reason some believe nnovation will happen with these new distribution platforms, rather than from giants like YouTube, is because VR distribution will require advancements in packaging and transferring vast amounts of data across existing networks that are not necessarily ready to handle that kind of traffic.

Herein lies a massive challenge. High-quality VR content is not mobile friend ... at least not yet ... for a couple of fundamental reasons. First, current bandwidth capacities limit the amount of data that can be transferred, and mobile devices are limited in their storage capabilities. Second, mobile processors literally overheat and melt when trying to play high-quality VR content that is more than five minutes long.

Today, the big online video distributors are all about mobile, which creates a disconnect in strategy and focus if they want to move full force into VR. Moreover, YouTube is still trying to figure out how to be profitable in the traditional online video space, so many pundits believe that makes little sense for them to spend a lot of time, money and effort to develop new distribution channels for VR (especially when YouTube is now focused on developing its own premium original content, as original premium VR content is a ways away).

Instead, many predict a proliferation of VR-focused distribution platforms and companies experimenting with different ways to deliver the content—Vrideo is one of them. The company recently hosted a VR Meetup and panel discussion on this very topic in Santa Monica. As discussed earlier, there will need to be technological innovation at every level of distribution—packing, transfer, storage and processing.

Do not get me wrong, there is already talk of the big media and online video companies (Google, Amazon, Netflix, Disney, etc.) and telecoms (AT&T, Verizon, etc.) eventually going to war to acquire these smaller VR distribution companies.  But, it is likely to be an M&A war, not a technological advancement war.  Google has already invested a whopping $500 million into MagicLeap, which is developing VR technology that merges the real and virtual worlds -- so-called augmented reality.

Massive sums of money are being poured into VR right now -- and distribution is one of the keys to unlocking its potential.

[NEXT IN OMAR'S CONTINUING VR SERIES WILL BE LESSON 2 -- SOCIAL, followed by Lesson 3 -- Hardware, Lesson 4 -- Advertising, and Lesson 5 -- VR Rights.  Stay tuned ...].

LinkedIn Video Coming Soon?

LinkedIn -- everyone's on it -- literally, everyone of us.  And, the majority of its traffic is now mobile.

But, it still remains virtually nothing but text.

In this mobile-focused video world, where is LinkedIn in the video conversation?  And, why isn't it?  (a provocative -- yet little discussed topic -- that came up in my breakfast meeting yesterday).

There's YouTube of course.  And, now virtually every video conversation I have with industry insiders includes Facebook (which is seen as YouTube's first real threat).  Countless others -- like extremely well-funded upstart Vessel (a company I recently profiled which bills itself as being the Hulu for the mobile/digital-first millennial world) - are also frequently mentioned.

So, why isn't LinkedIn part of this conversation?  Why isn't LinkedIn in the video game yet?  It is ripe for video not just because all of us are on it.  It also is ripe for video not just because most usage is now mobile.  It is also ripe -- very -- because many on LinkedIn (especially LinkedIn "Influencers") have massive, passionate audiences who hang on every thought and insight from their individual business "celebs."  Imagine if those celebs of the written word evolve into the far more viral video world?  Some will effectively make that transition, others will not (in a kind of "Video Killed the Radio Star" kind-of-way).  Yes, LinkedIn videos generally would be a different kind of content (i.e., not entertainment first and foremost).  But, that too could be a real strength and differentiator.  And, that unique-ness could very well be LinkedIn's "special sauce" to advertisers (due to its business-driven/buying-power demographic).

But, while video is not yet part of LinkedIn's story, it inevitably will (and absolutely should and must) be fundamental to it.  The company already is killing it (with a market cap of nearly $33 BILLION!). Just imagine when video inevitably enters its lexicon ....

NOW is the time to enter that video conversation.  It is a conversation that is moving at auctioneer warp speed ....

[For more LinkedIn "fun facts", check out this article titled "120+ Amazing LinkedIn Statistics" -- a great summary of all.]

The New Media Shake-Up and M&A Game -- My Interview in Forbes

Forbes recently interviewed me about our ongoing fundamental media and entertainment transformation that is driven by mobile-hungry millennials -- and the resulting M&A and other strategic moves that have gone with it.  In my interview, I give my detailed thoughts about Disney/Maker, Otter Media/Fullscreen, Samsung/Milk Video and more -- including my advice to all major media companies -- which is, "Go swiftly into the mobile night.  Go there now, don't overthink it!"

Here is the full article/interview -- including accompanying infographic.

"Marginal Gains" (That Drive MASSIVE Long-Term Success) -- LESSONS for Entrepreneurs

Last week in San Francisco, I attended an event hosted by British broadcasting giant SKY -- an event that featured Sir Dave Brailsford, Manager of the "Team Sky" professional cycling team, as the speaker.  Why Brailsford and why Team Sky for this tech-driven/digital media event?

Here's why -- the concept (and results) of "marginal gains." (For those of you entrepreneurs who have ADD and want to get to the "lessons" learned from this philosophy, skip to the bottom).

THAT was the core theme of Brailsford's fascinating discussion.


Using British cycling as the backdrop, Brailsford laid out British cycling success (or massive lack thereof) before he joined as manager and implemented his "marginal gains" commitment and strategy -- a strategy that looks at every single detail related to cycling and seeks to improve upon each of them on the margin in order to make realistic and demonstrable steady, incremental gains which -- over time -- offer the real possibility of massive gains and success (rather than improbably shoot for such success in one or more giant leaps).  One example (just one) of the myriad he offered -- his supporting team would arrive in advance at hotels in which his riders would stay during riding events and "fit" each room with individually customized mattresses so that each cyclist would be slightly more rested than otherwise.  Brailsford also identified exciting new technologies that keep British cycling on the forefront of innovation (and ultimately performance).  That's why he was in SF at the time, in fact.

In all the years before Brailsford led British cycling, no British rider had won the Tour de France (and only 1 Olympic medal had been won in scores of Olympic years).  But, after Brailsford joined and implemented his "marginal gains" philosophy and strategy -- and recruited riders who internalized this strategy and shared his absolute commitment to it -- Britain achieved success after success in the international arena.  Case in point -- Brailsford-led British riders won both the 2012 and 2013 Tour de France.

Lessons for all entrepreneurs?

(1) Aim high -- very!  Set audacious goals!
(2) Find team players who share that passion and absolute commitment to achieve those goals (and get rid of those who don't ... fast!)
(3) But, be realistic of how to get from here to there -- implement a strategy of incremental, measurable and continuous gains/"wins" (and communicate these tangible wins to boost morale)
(4) No detail is too small -- be relentless in your pursuit of greatness and challenge yourselves to do more than others are willing to do
(5) Drive innovation, don't follow it -- commit to being on the bleeding edge of new technology and be open-minded to experiment

Well said Dave Brailsford, well said ....

5 Questions with Playboy's Chief Product Officer, Phillip Morelock -- EXCLUSIVE Q&A

     

Phillip Morelock is SVP & Chief Product Officer (Digital) of Playboy -- a highly-recognized brand for sure -- and one with an interesting challenge on its hands.  How to transition this long-storied (lurid?) brand into the digital age, a dilemma it has faced for years.  Phillip recently joined Playboy (after stints at Disney, etc.) and is responsible to meet that challenge.  Last August, Phillip overhauled and relaunched Playboy.com (perhaps surprisingly to some, with not a woman on the home page by design -- more of a men's lifestyle magazine in the vein of GQ and Esquire) after previously relaunching Disney.com.  In Phillip's words, he tells his friends that he jumped from "the mouse to the bunny."  And, I believe this Q&A will be illuminating -- and address issues faced by all traditional media companies (even "edgier" ones) in our current transformative mobile-focused, digital-first media times.

     (1)  What is the reason your company exists (and what problem(s) are you looking to solve)?

For more than 60 years, Playboy has been a symbol of sexiness and sophistication and a beacon for an intellectually forward lifestyle.  Although Playboy is perhaps best known for our monthly magazine, I joined Playboy to rebuild the company’s digital business, including Playboy.com which we re-launched this past August.

(2)  How are you different from your competitors?

At Playboy we have built a reputation as an authority on a wide variety of subjects, from fashion and automobiles, to food and drinks, from humor and politics, to, of course, women and sex.  No other brand has the authority to weigh in on such a wide variety of subjects.

On more of a structural level, rather than build the new site on top of older technology, we were able to start from scratch.  That means Playboy.com is a totally responsive site, built truly mobile-first. Mobile and tablet users currently make up over 75% of our online audience. That fact, in combination with the amazing original content only available on Playboy.com, has fueled explosive growth on the site, from about 5 million monthly unique visitors pre-relaunch to about 20 million last month.

(3)  Why will you succeed (and what is your single most important ingredient for success)?

The popularity of our websites, our social media presence, and our mobile apps tells us that we are on the right track – that we are offering a unique user experience that people are really enjoying. The Playboy brand has been successful in every medium it has entered over the past 60 years: print, radio, television, and now the dominant world of social / mobile / digital media.

In the coming post-search world of digital media entertainment, clearly defined brands will matter more than they ever have. Playboy will be able to cut through the noise and reach men in every corner of the world on every platform.

(4)  What makes you unique (and what do you enjoy most outside of building your business)?

I’ve worked to build highly contagious digital experiences my entire career, for companies ranging from startups to multinationals. People seem to get a kick out of it when I tell them I’ve relaunched both Disney.com and Playboy.com in the past three years. (From the mouse to the bunny…)

Outside of business I like to spend time with my kids.

(5)  What digital media trend is most interesting to you (and what is the least)?

I love that true convergence of technology and entertainment has finally really happened. Increasingly the only two screens that matter are the smallest screen you own, and the biggest screen you own. Your mobile and your TV. I love that we can reach people with great content and experiences no matter where they are, at any time of the day or night.