CMO Today: Hulu Shutters Free Service to Focus on Premium Subscriptions
August 09 2016 - 8:04AM
Dow Jones News
By Mike Shields
ALOHA, FREE HULU: It's easy to forget, but Hulu was founded as a
way for the broadcast networks to make sure their content was
available online in a controlled, copyright-respecting and
piracy-free safe place. Many saw it as a reaction to the growth of
YouTube. Today, Hulu has its sights set on challenging Netflix and
Amazon in premium subscription streaming, and that means shutting
down its free streaming option, reports The Wall Street Journal.
Hulu's owners -- Comcast Corp., 21st Century Fox, Walt Disney Co.
and now Time Warner Inc.--are trying to steer the future of the pay
TV model in their favor, with Hulu focusing on its planned virtual
cable TV service and original series. If you want to stream free
episodes with ads, there are still options, like the broadcast
networks' websites and even Yahoo, which is now licensing Hulu's
free content. But Hulu's bet is that you'd rather just pay a small
fee to get everything you want in one place.
JET DRY: Wal-Mart is making the biggest acquisition ever of a
U.S. e-commerce startup, agreeing to purchase Jet.com, the
unprofitable Amazon challenger that launched last year, for $3.3
billion. The deal marks the second time Jet founder Marc Lore has
sold an e-commerce startup to a retail giant, making him one of the
most revered pitchmen in Silicon Valley, reports The Wall Street
Journal. Mr. Lore -- who also founded Diapers.com and, ironically,
sold it to Amazon in 2010 -- was able to move Jet.com incredibly
quickly, even after having to ditch its membership-driven business
model early on. But what about pitching Jet.com to consumers as a
cheaper Amazon? The startup was spending $20 million to $25 million
a month in ads -- money that may now evaporate from the ad market,
Digiday reports. However, there's reason to believe Wal-Mart won't
totally bail on that marketing, given that most people don't know
what Jet is yet.
IT'S NOT NBC, IT'S YOU: Man, those Olympic ads -- it's worse
than ever, right? Viewers have flocked to social media to object to
the frequency of the ads, with one user sarcastically complaining
that NBC was interrupting commercial breaks for coverage of the
opening ceremony in Rio. But, in fact, Kantar Media found that this
year's opening ceremony featured 19% less ad time than the same
night of coverage during the 2012 London Games, reports CMO Today.
If you've ever gone from a Netflix marathon to, say, March Madness,
you know that the forced commercial breaks can feel jarring. The
opening ceremony was the latest example that we've conditioned
ourselves to expect content without interruption. An NBC Sports
spokesman even acknowledged this: "We believe that consumption
habits, such as binge-watching and 'marathoning,' have changed
perceptions among the viewing audience regarding commercials."
That's great news for advertisers that paid big money to appear in
this year's Games, almost as good as the 35% ratings drop for the
opening ceremony.
OLIVER KNIFE TWIST: The newspaper industry is finding it tough
to take a joke, or at least David Chavern is. The Newspaper
Association of America president and chief executive felt the need
to respond to HBO host John Oliver's lengthy commentary on the
state of the newspaper business. Mr. Oliver both praised print
reporters and mocked the state of the industry, such as Tribune
Publishing's already infamous digital rebranding as " Tronc." As
CMO Today reports, Mr. Chavern issued a statement complaining that
Mr. Oliver "doesn't seem to have any better ideas." Sure, Mr.
Oliver was taking some cheap shots at the newspaper industry (and
CNN and his own show). But what did Mr. Chavern expect exactly --
an analysis from Mr. Oliver on whether a programmatic ad strategy
makes more sense for newspapers versus ramping up branded
content?
Elsewhere
Mashable takes a long look at the growing number of allegations
of harassment and inappropriate relationships between YouTube stars
and their young fans. [ Mashable]
Vanity Fair reports that 21st Century Fox, parent company of Fox
News, is discussing a settlement with Gretchen Carlson, who filed a
sexual harassment lawsuit against former Fox News boss Roger Ailes.
The company is requesting that Mr. Ailes, who has denied the
allegations, pay for part of the settlement, the magazine reported,
citing people familiar with the negotiations. A spokesperson for
21st Century Fox declined to comment for the story. [ Vanity
Fair]
After providing some memorable live commentary on Twitter,
"Saturday Night Live" star Leslie Jones will now join NBC's Rio
Olympics coverage. [ Variety]
Facebook has begun testing letting people stream videos,
including live streams, on their TVs using Apple TV or Google
Chromecast devices. [ MarketingLand]
News Corp reported that revenue in its latest quarter increased
5% to $2.2 billion, buoyed by a recent legal settlement and growth
in the book and digital real estate divisions. Advertising revenue
slipped 5% at the company's news and information division. [ CMO
Today]
During the Rio Olympics, CNN is producing content for the social
messaging app Kik, which is popular among teens, as well as Line
and Facebook Messenger. [ Digiday]
The Federal Trade Commission filed an administrative complaint
against 1-800-Contacts, alleging that the online retailer
restricted competition in search advertising by preventing rivals
from running ads alongside results for its name. [ Ad Age]
Altice NV reported earnings that topped expectations, helped by
its recent acquisitions of Cablevision and Suddenlink in the U.S. [
WSJ]
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(END) Dow Jones Newswires
August 09, 2016 07:49 ET (11:49 GMT)
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