History Channel Partners With Ad-Supported OTT Xumo To Expand Reach

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Originally published at VideoInk.

Linear viewing on traditional cable and satellite outlets is—surprise—on the decline. With an increasing amount of consumers cutting the cord for OTT options, networks have started to partner with “skinny bundle” providers in an attempt to stay relevant. Most networks have teamed up with companies like YouTube TV, Hulu with Live TV and Sling, where their content is offered via a smaller, more affordable package.

Following this trend, the History Channel has made its content available on most pay OTTs including Philo, DirecTV Now and Fubo. But now the network is taking it a step further by offering its content on the free OTT service Xumo, which is home to over 100 channels.

Through a partnership with Xumo, History is bringing select award-winning short-form content to the platform that includes Minute Marvels, History Flashback and Bet You Didn’t Know. The new channel will also feature highlights and short-form scene lifts from some of the networks most popular series such as The Curse of Oak Island, Forged in Fire, Alone, Pawn Stars and American Pickers.

The choice to launch the channel with only short-form content is likely an attempt to appeal to younger generations that are used to consuming short two to five-minute video clips on social media (though, in recent months, many social platforms like Facebook and Instagram have pushed further into long-form content).

Xumo’s new History channel, which can be found on channel 350, provides a new means of discovery for the 23-year-old network, which, like most, is trying to stay relevant in a digital world. The lean-back experience provided by the OTT sets up a perfect opportunity for History to be found by consumers that are channel surfing through Xumo’s collection of content, which hopefully leads them to download the History Go app, subscribe to any of the networks social pages, or pay for a “Skinny Bundle” that carries the content. The new distribution outlet also presents a way for History to breathe life back into old content by placing it in front of consumers who may be unfamiliar with the network’s programming.

“We are excited to launch on Xumo as we continue our push to serve History fans on all their favorite platforms,” said Mark Garner, SVP, Distribution and Digital Content Licensing, A+E Networks (History’s parent organization). “We are confident that History’s unique brand of factual entertainment will be a hit with the growing Xumo audience.”

Roku Launches Targeted Ad-Sales Marketplace With Fox, Turner And Viacom On Board

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Roku launched the Audience Marketplace on Wednesday, introducing a new way for advertising buyers and sellers to effectively target US audiences on the OTT platform. Media giants including Fox, Turner and Viacom are expected to participate and advertisers can take advantage of the marketplace using programmatic or traditional direct selling methods.

The Audience Marketplace leverages Roku’s first-party data and technology such as the Roku Ad Insights Measurement suite, created in partnership with Nielsen, so that publishers can sell targeted audiences to advertisers. Roku also said that marketers will benefit from the ability to more precisely message viewers across the TV streaming platform. By extending its advanced targeting capabilities to major publishers, Roku is looking to enhance the advertising flow through its platform while helping “publishers make their offering more compelling in an increasingly programmatic, data-driven TV advertising market.”

In a statement, Turner’s VP of ad innovation and programmatic solutions Larry Allen said: “Over-the-top distribution has been a key audience driver for Turner’s portfolio of premium content, with Roku being one of the preeminent partner platforms. Participating in Roku’s Audience Marketplace gives us access to rich insights and enhanced audience targeting capabilities, extending the ability for ad buyers to reach and engage with streaming viewing audiences that are critical to grow their business.”

The Roku platform boasts extensive insights on millions of OTT streamers, with the ability to precisely target specific segments at a household level. In April 2017, Nielsen found that Roku delivers 10.2 percent incremental reach over linear TV among adults aged 18-34.

‘Jurassic World: Fallen Kingdom’ Rules Box Office With Behemoth Marketing Push

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Jurassic World: Fallen Kingdom debuted at number one at the domestic box office, riding high on nostalgia, mass appeal and Universal’s most expensive marketing campaign to date.

Universal’s hit dinosaur franchise earned $150 million domestically over the weekend pushing Incredibles 2 down to second place. Ahead of its debut, Jurassic World: Fallen Kingdom relied heavily on its star, Chris Pratt to promote the film on social media with pre-recorded interviews. He may be riding high on a string of successful movies, but Pratt’s charming personality isn’t the biggest star on screen.

“People love dinosaurs,” Karie Bible, box office analyst and film historian at Exhibitor Relations, told AListDaily. “Let’s face it, [the Jurassic Park franchise is] pretty much the same story every time with ‘life finds a way,’ but people [of all ages] love to watch it. It’s what they call a four-quadrant where [a film reaches] every demo—something that studios definitely look for. That’s not easy to find.”

Universal reportedly spent a whopping $185 million to market Fallen Kingdom, making it one of the studio’s biggest-ever marketing and publicity campaigns to date. The most powerful part of the campaign, Bible noted, is the ubiquity of it all—wherever audiences have gone over the past few months, chances are good that Jurassic World marketing was there.

“There’s no way that you can possibly miss it, even if you don’t watch TV. It’s absolutely everywhere,” said Bible. “Basically if you open your medicine cabinet, there’s going to be a dinosaur that pops out at you.”

Universal staged several takeovers, including Kings Cross Station that included a giant T-Rex and Raptor installation, gyrosphere, VR and more. Hundreds of “Blue” the raptor statues were installed across the world in movie theaters and shopping malls.

In the film, dinosaurs are being transported off the island, so Amazon helped out with a marketing campaign called #AmazonFindsAway. The brand delivered a T-Rex to Hollywood, California where it was unboxed live on social media.

TV spots aired during key sporting events like the Super Bowl and World Cup, the first of which marked a first-time partnership with Jeep for the Jurassic franchise. Doritos delivered giant chips to members of the press and supermarkets have been filled with specially-marked packages of everything from candy to waffles.

But, sometimes the most powerful marketing tool is nostalgia. Jurassic Park celebrated its 25th anniversary this year that included theme park events, social media blasts and fan contests.

The timing of a release doesn’t hurt, either. A blockbuster usually begins to drop off in its second week, but Bible expects Jurassic World: Fallen Kingdom to hold its box office course over fourth of July weekend.

Digital Game Sales Top $9.1B In May; ‘Pokémon GO’ Surges For Summer

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Global video game sales rose 25 percent year-over-year in May to an estimated $9.1 billion, according to the latest figures by SuperData Research.

The worldwide digital game market saw continued growth on mobile, driven in part by “battle royale mania” sweeping the globe. For example, NetEase’s battle royale title Knives Out didn’t make the charts in April but held the number five spot in May.

Pokémon GO Gears Up For Summer

Pokémon GO enjoyed one of its best months ever in May. Niantic’s hit AR game generated $104 million last month, an increase of 174 percent year-over-year. The player base increased to the highest level since the game’s peak in 2016, SuperData noted, just in time for the usual summer bump that comes when warm weather meets Pokemon hunting outdoors.

As a result of its large engagement in May, Pokémon GO rose three spots on the mobile charts to number four.

Sony Proves That Single-Player’s Still Got It

Detroit: Become Human launched at number six on the console charts in May in terms of digital sales, selling 291,000 digital units at launch. For a brand-new, console-exclusive IP, this is a solid reception, SuperData notes.

While multiplayer and battle royale sweep global platforms and drive revenue, Sony proves once again that single-player isn’t dead. In April, God of War sold an estimated 2.1 million digital units at launch, becoming the largest console exclusive digital launch to date. Kratos’ father and son tale slipped three spots to number five in May.

Fortnite Players Pump The Brakes

Epic Game’s Fortnite hit a new high in May, bringing in a whopping $318 million across all platforms in May—and increase of seven percent from April. The game may have held its number one spot for console (earning an estimated $200 million) but SuperData senses a slow down. Mobile and PC revenue came in flat compared to April, the analyst firm noted.

The Force Is Weak With Star Wars Microtransactions

In April, EA reintroduced paid add-ons to Star Wars: Battlefront II after months of backlash over its original model at launch, which was perceived as “pay-to-win.” Cosmetic purchases can be purchased with Crystals, earned through gameplay or purchased with real money. This time, however, DICE assured fans that in-game currency can only be redeemed for cosmetic items. Credits are earned through in-game activity and can be redeemed toward appearances, as well.

Star Wars: Battlefront II additional content in May fell short of the levels seen across other top games this year.

Players Name ‘Enjoyment’ And ‘Trust’ As Top Reasons To Spend In Games

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While gamers in the US, UK and Germany spend more time on mobile games, they are more likely to spend actual money on consoles, according to findings by Newzoo and ACI Worldwide.

A new whitepaper entitled “What Turns Players Into Payers” presents the habits and spending motivations of 2,051 gamers between the ages of 18-40 that play at least two hours per week on any platform across the US, UK and Germany. Players in these countries account for nearly 30 percent of global games market revenues in 2018.

More than 90 percent of respondents in all three countries play mobile games, making it the most popular segment in this study. Respondents also spend the most time on mobile, with 33 percent of mobile gamers playing for more than six hours a week.

However, gamers proved to enjoy a wide variety of platforms—over 70 percent of gamers play games on mobile, console and PC. In fact, despite spending more time on their phones, Newzoo found that gamers are more likely to spend money on console.

“Mobile gamers have always had access to a huge variety of free gaming content across genres, ranging from casual to midcore,” Newzoo senior market analyst Tom Wijman told AListDaily. “Despite the fact that a relatively small share of mobile gamers pay for games, there is a small group of them who pay significant amounts, helping drive up the revenue. Console gamers on the other hand, have access to less free content and have historically always paid a premium price tag for their games. Although this will change as more and more free-to-play (F2P) console titles are being released, the spending culture on the two platforms is very different.”

When asked why they are inclined to spend, 39 percent of gamers cite enjoyment as their main reason. Redeeming a gift card or treating themselves tied in second place at 27 percent. The least popular reason for breaking out the wallet was “frustration” at just nine percent—showing that players aren’t just paying out of necessity.

Among gamers, spending preferences vary by age and platform. For example, players aged 30-40 that spend at least $5 per month are more likely to spend money on console and mobile, at 73 and 58 percent, respectively. Younger gamers between the ages of 18-29 spend less on mobile titles at 55 percent, compared to 72 percent on console and 71 percent on PC.

PayPal is the most popular method of payment across all segments, followed by pre-paid/gift cards. Apple Play is the least-preferred across all age groups. Trust is the most important factor to gamers, followed by the quickest service. In Germany, however, offering a seamless experience was nearly as important as trust according to respondents.

“PayPal is known as a trusted online payment method that has been at the forefront of digital transformation. It carries strong brand value and trust, is very well known in all countries and very easy to pay with,” Andy McDonald, vice president of merchant payments at ACI Worldwide told AListDaily. “That’s what gamers want—quick and hassle-free payment options. A generation of players as well as publishers have worked successfully with this payment method which is available cross-border, and provides brand recognition and security for its users.”

Its reputation may help PayPal hold its number one preferred spot with gamers, but other payment methods are on the horizon.

“Research reveals that gamers are certainly becoming more accepting of other alternative payment methods,” added McDonald. “Google Pay and Apple Pay in particular, and even cryptocurrencies are viewed favorably. Preferences might change quickly and businesses in the sector need to be prepared for that in order to stay ahead of the game.”

Top 50 iOS Games Take 76 Percent Of Revenue, But Most Don’t Last Long

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A new study conducted by Apptopia analyzed the top 50 Apple App Store games in the US using data gathered from 2014 to 2017. The results paint a stark picture of the gaming app market, with the top 50 games taking in 76 percent of the total revenue, leaving all others to fight over the remaining 24 percent.

On average, the top 50 grossing games retain their positions for 27.7 days, and in those years, only 14 games from 10 publishers managed to take the number one spot, and an elite three—Supercell, Machine Zone and Bandai Namco—had multiple number one games.

About two-thirds of the games studied dropped off the list within five days, with a third of titles lasting a single day. Only six games stayed among the top 50 throughout all the years studied: Game of War: Fire Age, DoubleDown Casino Slots & More, Big Fish Casino: Slots & Games, Slotomania Slots: Vegas Casino, Candy Crush Saga and Clash of Clans. The three top genres among the 25 games with the longest consecutive streaks on the top 50 list are casino and puzzle, with a four-way tie between arcade, role-playing, simulation and strategy.

“Since we’re talking money, it’s no surprise that three of these are casino games,” wrote Apptopia.

Meanwhile, non-casino titles such as Game of War: Fire Age invested $40 million into a massive advertising blitz in 2014, with Kate Upton becoming the chief spokesmodel who starred in the famously risqué Superbowl XLIX trailer and helped propel the game to the top of the charts. In comparison, Candy Crush Saga began its rise by focusing heavily on social media, as it was originally launched as a Facebook game that quickly caught on. Developer King continually engaged with that user base, which included about 1 in 23 Facebook users in 2017, who in turn spread the word and invited others to play when Candy Crush Saga launched on mobile devices.

Although it’s hard to believe, Clash of Clans had a slightly slower start, and developer Supercell couldn’t afford to spend much on marketing when it launched. The developer had to rely heavily on free marketing and some degree of luck while constantly improving the game, particularly when Apple’s editorial team chose it to be a featured game on the App Store. Having it be fun, addictive and unique helped a lot, but the fact that the game helped highlight key features like retina screens probably made it more attractive, too. Supercell then used the influx of money to invest heavily in marketing, particularly through ads on Facebook where Supercell could filter its audience to target gamers of specific age ranges and income levels. Clans also had a Super Bowl ad that played alongside Game of War‘s, and now the game brings in more than $5 million a day in revenue.

Ranking among the top 50 is no small feat, and staying there is even more difficult, and doing so means tremendous rewards. Over 800,000 games were listed on the App Store during the multi-year period, and 2,624 of them reached the top 50. Of those games, 119 stayed in the top 50 for over 100 days, 38 remained for over 500 days, and only 15 managed to stay on for over 1,000 days. The few games that managed to stay on the list for longer than a month saw considerable returns, with in-app purchases totaling around $750,000 per day for top five games, while top 10 games brought in about $340,000.

The study only measures in-app purchases and does not take into account potential advertising revenue. However, Apptopia notes that all the top grossing games have something in common: balance between player gender.

“The top grossing mobile games got there because they understand how to incorporate game mechanics and themes that people of all ages and sexes can enjoy,” wrote Apptopia COO Jonathan Kay in a blog post. “While identifying a niche can be lucrative, the serious money is made by catering across demographics.”

But the good news is that, depending on the size of your company, being ranked outside of the top 50 can still be quite lucrative. Mobile gaming continues to grow, with data from MediaKix showing that the number of active mobile gamers has grown to 2.1 billion worldwide, totaling over $50 billion in revenue, which is expected to hit $72 billion by 2020. Games also comprised about 80 percent of all app revenue in 2017.

“State Of Decay 2” Tops May Game Sales, Bringing Down “God Of War”

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The NPD Group has released its monthly report for new physical video game sales, as well as a subset of full-game digital downloads from participating publishers in NPD’s digital panel. Although not intended to cover total market/total consumer spend, the figures give us an idea of industry-wide trends.

Spending across hardware, software, accessories and game cards grew by 13 percent to $685 million in May compared to one year ago. Overall growth has occurred across all categories with year-to-date spending up 15 percent to $4.9 billion compared to last year.

Although software saw a slight decline in sales, it was offset by growth in other categories. Dollar sales of console, portable and PC games reached a combined $274 million in May 2018, which is a 4 percent decrease from last year. NPD analyst Mat Piscatella attributes this decline to the slate of games, with 2017’s release of Injustice 2 proving to be a tough act to follow. But year-to-date software spending has increased by 7 percent to $2.2 billion, led by titles that include Far Cry 5, God of War and Monster Hunter: World.

State Of Decay 2 And Detroit: Become Human Debut To Top Spots

May’s bestselling game was State of Decay 2, with launch sales that nearly doubled that of the previous game. It knocked God of War down to the second-place spot, followed by Detroit: Become Human and Far Cry 5.

Sony was May’s top performing publisher, driven by sales of God of War and Detroit: Become Human. Detroit: Become Human may be in third place, but it still represents a success for its developer Quantic Dream.

“Launch month sales of Detroit: Become Human represent a record high for developer Quantic Dream, with sales growth of over 20 percent when compared to its previous launch month bestseller, Heavy Rain,” said Piscatella.

Ubisoft remains the top revenue-generating publisher this year to date, with Far Cry 5 still reigning as the year’s bestselling game with God of War behind it. Meanwhile, Activision Blizzard is in the lead for top revenues over the 12-month period ending in May.

Software sales for the Nintendo Switch console rose by 90 percent compared to last year, “delivering the highest software revenues for any Nintendo platform in May since the Nintendo Wii in May 2011.” However, The NPD Group does not currently track digital sales for the platform.

Console Sales Strong, Accessories Hit All-Time High

The NPD Group reports that hardware spending increased by 26 percent to $186 million in May compared to last year, with sales of the Xbox One and PlayStation 4 driving overall growth. Year-to-date hardware spending is up 15 percent to $1.3 billion, driven by Xbox One, PlayStation 4 and “Plug-N-Play” devices such as the SNES Classic.

Sony’s PlayStation 4 was the bestselling platform, and it remains the top-selling console this year to date. However, all consoles, including the Xbox One and Nintendo Switch, achieved all-time unit sales in May. In fact, May 2018’s hardware sales totals were the highest of any May since 2011, while May 2018 dollar sales reached the highest total since May 2014.

Headset and gamepad also had a good month, with year-to-date sales of both accessories reaching all-time record highs at more than double what they were last year. Spending on headsets alone increased by 83 percent since the start of the year, while gamepad spending grew by 22 percent.

 

Cannes Lions Sessions: Engaging A Billion Users Through Technology And Culture

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Gaining over a billion users is no small feat, but a brand’s job doesn’t end there—at Cannes Lions, Tencent shared the four methods it uses for creating experiences that engage and care for its users in a meaningful way.

Tencent has been the top public gaming company in the world five years running and WeChat recently crossed the one billion user threshold—an impressive feat considering that China’s population is approximately 1.4 billion.

Seng Lee Lau, Tencent’s chairman of group marketing and global branding as well as executive vice president and chairman of Tencent Advertising, took the stage at Cannes to say that the brand’s success can be boiled down to four core values.

Lau described the first company value as “The Founder’s Spirit”—recognizing, honoring and embodying the company’s original values as set forth by its creators. The second value, he said, is an open platform mindset. A company needs to recognize its own limitations and coexist with partners to create and nurture an ecosystem for the industry.

A “Digital Level,” Lau said, means helping others within the industry. He used the Internet Plus initiative as an example. Tencent participates in a nationwide effort between the Chinese government and businesses to create faster and more affordable internet access designed to drive a “new industrial revolution.”

The fourth and most important value Tencent embodies is craftsmanship.

“From the days of our inception, user experience has been the fundamental core value of our company,” said Lau. “As we evolve and we realize that the devotion to excellent user experience could only be created by an unwavering commitment to craftsmanship.”

Lau said that marketers embody craftsmanship to win a Cannes Lion award, but it is in danger of becoming a lost art.

“In order to produce an exceptional user experience, that craftsmanship has to be inculcated as a way of life, culture to produce Cannes-ready user experience almost every day,” he said, adding that loyalty is the ultimate test for a brand.

Lau explained that a “good” experience satisfies individual demand while an “exceptional” experience resonates with human nature. Humans want to share experiences to feel like they belong but they want to be independent and an individual at the same time.

Tencent’s popular photo editing and sharing app, Tiantian P-Tu (天天P图) offers filters and themes that resonate with Chinese residents in an individual way such as celebrating holidays, heroes of the past or each person’s childhood.

The app uses AI and facial recognition to use common themes while allowing each user to feel independent. Tiantian P-Tu went viral in recent months and is currently seeking recognition from the Guinness Book of World Records.

While technology is buzzworthy, it can always be replicated. That’s why Lau says that brands need to create an “interplay of technology and culture” that leads to an exceptional experience. This extends to making the world a better place.

“In today’s world, it’s not enough to confine ourselves in the business of providing good products,” said Lau. “Instead, companies must play a broader and more constructive role in a society over the long term.”

What Instagram’s IGTV Means For Brands

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Instagram has officially reached 1 billion users since its launch in 2010, and the Facebook-owned social platform marked the occasion on Wednesday by launching its IGTV platform at a San Francisco event. IGTV takes on online media giants like YouTube by supporting up to one hour of vertical video content as opposed to the one-minute limit standard posts have. Content featuring online creators such as LaurDIY, King Bach and Ninja can be viewed from both a standalone IGTV app or from within the main Instagram app.

Instagram’s business blog describes IGTV as an evolution for mobile video to match with the times, citing how audiences are watching less television and more digital video, with mobile video expected to make up 78 percent of total mobile traffic by 2021. The blog also states that, according to a 2016 study by BCG, younger audiences prefer to spend time with amateur content creators instead of professionals. That explains the emphasis on online influencers, but celebrities such as Kim Kardashian West, Selena Gomez, Lele Pons and Kevin Hart have already begun to post videos on IGTV.

Brands may benefit from the platform by both partnering with influencers and creating long-form stories that serve their communities. IGTV content will play as soon as users open the app, and each creator is a channel that followers can quickly tune in to. Users won’t have to search to find content from channels that they’re already following, and swiping upward will bring up related content for them to discover.

“On Instagram, people are watching 60 percent more video than they did just last year,” said Instagram CEO Kevin Systrom at the event. “An entirely new category of video now exists, and it’s being made by creators. Teens may be watching less TV, but they’re watching more creators online.”

Systrom also said that the combined reach of Instagram’s creators is in the hundreds of thousands, giving the photo and video sharing platform “one of the largest and most engaged audiences anywhere in the world.”

Any Instagram user outside of new accounts can upload hour-long videos, but the feature will eventually expand to include everyone, and these videos support links in their descriptions that may drive traffic to external sites. Although Systrom said that the platform doesn’t support ads yet, they are “obvious” and “very reasonable” additions for the future.

Instagram won’t pay creators for content the way Facebook did to launch its Watch platform, but it is exploring ways to make IGTV sustainable by offering creators a way to monetize their content, and ad revenue shares could be among those methods. According to eMarketer, Instagram is expected to pull in $5.48 billion in ad revenues this year, and brands may be eager to address this still-growing audience as they shift spending away from television and Facebook’s rising ad costs.

With IGTV, Instagram is heating up the competition with both YouTube and Snapchat, and although the latter platform has vertical TV shows that attract 20 to 30 million viewers per month, they tend to be either short—around three to five minutes—or comprised of multiple Snaps.

US Ad Spending To Grow 6 Percent In 2018, Driven Mostly By Facebook And Google

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A new report released by Morgan Stanley indicates that overall ad spending in the US will grow by six percent in 2018, which is slightly revised from an earlier 5.9 percent growth forecast. However, the report also states that the areas of decline outnumber the areas of growth.

The report states that Facebook and Google are driving 95 percent of online ad growth, growing the market share year-over-year through their massive scale. The research team at Morgan Stanley, headed by analyst Benjamin Swinburne, also mentions that cyclical events such as the World Cup, the mid-term elections and the Winter Olympics helped to lift the forecast.

TV upfront 2018-19 pricing is expected to grow nine to 10 percent, but double-digit declines in ratings may leave upfronts at a loss. According to the report, TV ratings are down 30 to 40 percent compared to the last five years.

Swinburne writes that having broadcast networks, particularly NBC, reduce their advertising inventory could drive additional scarcity, leading to higher upfront units sold compared to the previous year. In contrast to primetime television, Swinburne points out that sports, most notably the NFL, has an increase in supply so that pricing is “less robust.”

With all this in mind, Morgan Stanley states that the viability of TV depends on its ability to monetize OTT and implement addressable ads.

“The modest declines seen in underlying TV advertising are a testament to TV’s audience reach and pricing power,” wrote Swinburne. “Historically, the growth in OTT consumption was led predominantly by adoption of ad-free platforms like Netflix and Amazon Prime Video, but appetite for ad-supported premium TV content is evidenced by Hulu (over $1B in advertising annually) and Roku (more than doubling its ad sales off a small base to $160M in 2017).”

However, there is plenty of room for growth in OTT, even as platforms like Netflix continue to grow. Morgan Stanley’s eighth annual Streaming Video Survey, released in June, confirmed that subscription-based VOD platforms such as Netflix are fueled by massive investments in original content. Netflix subscriptions added 7.4 million new members by the end of its 2018 first quarter, 2 million from the US alone, totaling 7.4 million subscribers worldwide. The company plans to spend $8 billion on programming this year to possibly grow even further.

But the survey also points out that users tend to subscribe to multiple services, with about 46 percent of Netflix users stating that they also watch Prime Video, while 58 percent of Prime members subscribe to Netflix. Additionally, viewers that use either platform are far more likely to subscribe to other over-the-top services, with 16 percent of Netflix users also subscribing to Hulu, which could be good news for media companies such as Disney and Warner Bros., which are both in the process of developing their own OTT platforms.