Report: YouTube Top ‘Most Intimate Brand’ Among Millennials

YouTube ranked the “most intimate brand” among millennials for the first time, climbing from third last year, according to MBLM’s Brand Intimacy 2019 Study, a study of brands based on emotions.

The firm defines brand intimacy as something that leverages and strengthens the emotional bonds between a person and a brand.

“YouTube ranked 10th with millennials just two short years ago and has steadily made its way to the top,” said Mario Natarelli, managing partner, MBLM, in a statement. “The brand has demonstrated an ability to entertain a diverse millennial audience through its extensive content. It is also continuing its expansion of services, including the launch of YouTube Music in 2018, as it finds new ways to connect with consumers. Millennials in particular bond strongly with the media and entertainment industry, and YouTube is doing a good job at building a brand that caters to the wants and needs of this audience.”

Apple and Netflix ranked as the second and third most intimate brands for this generation. Comparatively, in MBLM’s 2018 study, Apple placed first followed by Disney and YouTube.

The other brands that rounded out the top 10 were, in order: Disney, Nike, Target, Xbox, PlayStation, Google and Walmart. Millennial men selected Xbox, PlayStation and Spotify as their top three and millennial women selected Target, Amazon and Disney.

The Brand Intimacy 2019 Report, to be released in full Feb. 14, contains the most comprehensive rankings of brands based on emotion, analyzing the responses of 6,200 consumers and 56,000 brand evaluations across 15 industries in the United States, Mexico and the United Arab Emirates, according to MBLM.

Netflix Overcomes Brazil Hurdle

In 2011 Netflix launched service in 43 Latin America countries, beginning with Brazil. Expansion into Brazil — the fifth-largest media market in the world, after China, India, the U.S. and Indonesia, was fraught with challenges.

Consumers were less familiar with using credit cards to pay for recurring charges such as over-the-top video. In addition to spotty broadband penetration, the lack of localized content (at the time) on Netflix alienated potential subscribers.

“Brazilians enjoy different things, like UFC and stand-up comedies, while hating telenovelas that are made in other Latin American countries,” former chief communications officer Jonathan Friedland told the Brazilian press.

Long-time Netflix bear Michael Pachter, digital media analyst with Wedbush Securities in Los Angeles, went so far as to predict Netflix wouldn’t make it in Latin America.

“This just won’t work in Ecuador or Costa Rica or even Mexico as it has in the U.S.,” Pachter told the Associated Press. “It’s going to depend on how many households have broadband access and what the quality of the content will be like.”

Fast-forward to the present and Netflix is a shining star in Brazil.

Along with Google’s YouTube, Netflix is the first OTT video choice across all devices, according to new data from IHS Markit. About 28% of respondents claim they turn to Netflix first when looking for something to watch, followed by YouTube at 24%. More than 63% of Internet users in Brazil, between the ages of 18 and 64, had access to Netflix, of which 86% claimed to use the service at least once a week.

IHS says that along with growth in OTT video, the installed base of Internet-connected devices grew by 10%, rising to more than 310 million devices in 2018.

More than 40% of survey respondents said they have a personal computer connected to their primary TV screens, while 35% claim to mostly use their smart TV apps to access video content on their primary TVs.

IHS contends that with on-demand video becoming ubiquitous around the world, and Brazil is no exception.

“The country has been experiencing a significant economic slump in recent years and, like other Latin American markets, Brazil’s legitimate pay TV and OTT subscription video-on-demand (SVOD) service providers have seen subscriptions fall or suffer reduced growth,” Erik Brannon, associate director of research and analysis, wrote in a note.“Laptops, tablets, streaming sticks and other devices increasingly pose a threat to cable TV and other traditional TV services.”

In terms of perceived quality, Netflix and YouTube were significantly ahead of pay-TV providers in the following categories: ease of use, flexibility (i.e., “ability to watch what I want when I want”), largest catalog of content, quality of content, and value for the money.

Although this finding is a victory for OTT providers, Netflix and other OTT video services must focus on local language content to remain relevant in the long term, according to Brannon.

Despite the vast library of foreign content Netflix has to draw upon, the amount of Brazilian and Portuguese content remains minimal, which is why the company is now partnering with local producers to boost local content in its library.

As the Brazilian economy continues to improve, growth in pay-TV households is expected to resume. At the same time, a surge in growth is expected in the OTT market as well.

IHS found that pay-TV monthly average revenue per user (ARPU) can cost five times or more than the monthly ARPU of Netflix. Subscription sharing also seems to be a profound problem in Brazil, since nearly 63% of survey respondents reported having access to Netflix, while Netflix subscriptions penetrated less than 25% of all broadband households.

“Connected consumers in Brazil are interested in viewing content in non-traditional ways, which will put added pressure on traditional content and distribution systems when the economy recovers,” wrote Brannon.

 

 

UHD Alliance, Blu-ray Disc Association Tout 4K UHD at CES

The UHD Alliance and the Blu-ray Disc Association were at the 2019 CES in Las Vegas to tout the success of the 4K Ultra HD format and new promotional efforts.

The UHD Alliance currently has 43 members — comprised of electronics manufacturers, film and television studios, content distributors, and technology companies — with such companies as Charter Communications and Google joining last year to better understand how to deliver high dynamic range (HDR) content, said UHDA president Mike Fidler.

“Google of course brought out the Pixel 3 and that is a certified Mobile HDR Premium product,” he said.

The group also continues to certify products as Ultra HD Premium, with 46 new products added in 2018 to bring the total to 63 products (TVs, computer monitors, mobile devices and Ultra HD Blu-ray Players) and 10 companies offering certified products. The UHDA has also offered new broadcast recommendations to facilitate broadcast of Ultra HD Premium certified content.

The group continues to educate at such events as IFA, the 4K Summit, MWC, CEDIA and, of course, CES.

“We’re out at trade shows on an ongoing basis,” Fidler said.

Its educational website, ExperienceUHD.com, which launched in 2017, has been upgraded in the past year. It offers “how to” home theater set up information; educational information on HDR, 4K resolution, wider color spectrum, color bit depth and immersive audio; and social media links. Its biggest reach is with Millennials and Generation Z, according to Fidler.

Educational information on interoperability of different products went up on the site in October 2018.

“We are spending considerable resources,” Fidler said, to identify interoperability problems and offer steps on the website to fix them. The UHDA buys product at retail to test.

For instance, the website shows consumers how to set up TVs with screen shots of menus.

“It’s been really popular from a usage standpoint,” Fidler said, adding that every year the menus change “so we continue to do this.”

Sometime in the first quarter, the UHDA plans to put test patterns on the sight to help consumers see if they are getting true HDR.

The UHDA collaborated with Amazon on a section of the online behemoth’s site — which also offers a link to ExperienceUHD.com — to better educate consumers about the format. That product launched in August 2018.

“Other retailers have gotten in touch with us recently [about helping with sites],” Fidler said.

The group also unveiled a dynamic typograph asset at CES (developed in collaboration with the Digital Entertainment Group Europe), available for retailers and partners.

The UHDA is expanding its efforts into Europe, especially Germany, France and the United Kingdom, Fidler said.

In another initiative, the UHDA surveyed the creative community, getting close to 400 responses from cinematographers, colorists, directors, digital imaging specialists, editors, producers, VFX supervisors, writers and others on their preferences for and the importance of the format. The effort was recognized at the fall 4K UHD summit. In the survey, 86.1% answered “Most Important” to the question: “How important is it to you to have a simple way to get your home TV setup similar to monitors in the color grading suite for viewing content that YOU created?”

Actor Tom Cruise’s recent Twitter missive about motion smoothing was inspired by the survey, Fidler said.

Meanwhile, the 4K UHD market continues to grow with all 55-inch and larger panels available in UHD only and 100% of 50-inch and larger TV shipments expected to be in the format by the end of this year, according to IHS Markit data cited by the UHDA.

On the content side, the Blu-ray Disc Association (BDA) noted that Ultra HD Blu-ray, both hardware and software, experiencing approximately 40% and 60% growth, respectively, in 2018, with catalog, local/regional and episodic TV titles increasingly joining new release theatricals on the format.

Standalone Ultra HD Blu-ray player sales for 2018 are expected to surpass 2017 by 44%, and growth of another 30% is anticipated for 2019, according to Futuresource data cited by the BDA. Meanwhile, 15% of all Blu-ray players shipped worldwide in 2018 are expected to be Ultra HD Blu-ray, with 25% projected in 2019 (excluding Xbox One sales), according to data cited by the BDA. The worldwide UHD Blu-ray player installed base is expected to reach 4.5 million by the end of 2018. As of December 2018, there were 29 4K UHD BD player models and 11 4K UHD recorder/player models for a total of 40, according to the BDA.

Global 4K Ultra HD Blu-ray sales continue to grow steadily, with an 83% increase in 2018 vs. 2017, and a further growth of 45% forecast for 2019, according to the BDA. Ultra HD Blu-rays are expected to account for 11% of Blu-rays sold worldwide in 2018, rising to 22% by 2020 and 40% by 2022, according to the BDA.

About 430 4K UHD Blu-ray titles were available in the United States by the end of 2018, the BDA reported, with such notable recent catalog releases as 2001: A Space Odyssey, The Matrix and Close Encounters of the Third Kind and such episodic TV releases as “Game of Thrones,” “Planet Earth 2” and “Dr. Who: Twice Upon a Time.”

BDA president Victor Matsuda was especially impressed with Lionsgate’s decision to release Twilight, which skews to a younger audience, on 4K UHD Blu-ray.

“Recognizing the business possibilities in reissuing that type of title was really encouraging,” he said.

With streaming 4K UHD still dependent on the pipeline to the home (Netflix recommends 25Mbps for 4K), the fact that most users’ service is less robust makes the physical disc more compelling, he said. Only 21% in the U.S. manage to meet the Netflix standard, while such European countries as Germany, France and the United Kingdom manage even less of a percentage.

To tout the benefits of 4K UHD Blu-ray, the BDA also unveiled a sizzle reel at CES for members.

Study: Standalone Voice Assistants One of Fastest Adopted Technologies in U.S. History

Standalone voice assistants — or smart speakers — are one of the fastest-adopted technologies in U.S. history and have a 98 percent satisfaction rate among U.S. consumers, according to a new report from Accenture.

Half of online consumers globally now use digital voice assistants, with emerging markets leading the way in adoption, according to the report, based on a global survey of 22,500 consumers across 21 countries.

“Adoption and satisfaction with smart speaker technology is booming,” said Robin Murdoch, co-author of the report and managing director of Accenture’s global software and platforms industry practice, in a statement. “Convenience and accessible price points are helping drive increased use, but maintaining this loyalty will require companies to stay relevant with consumer needs while creating and constantly renewing trust.”

The report, “Reshape to Relevance,” also found 93% of consumers globally expect their home device purchases, such as smart TVs or computers, to easily integrate with their standalone smart speaker.

The relevance of smart speakers is reflected in consumers’ expectations to use these devices for more-advanced tasks beyond routine activities like voice calling, playing music or eBooks, and accessing news, according to the report. They see value in voice assistants managing home security (61% of respondents), providing connected home automation (59%), paying bills and providing payment alerts (55%) — even making restaurant reservations (53%) and providing access to virtual medical advice (52%), according to the report.

However, trust is a potential impediment to greater adoption of smart speakers, with 41% of consumers citing privacy concerns and 40% citing security concerns with the technology. The report found 46% of consumers believe they don’t have control of their data with voice assistants, and 58% are more likely to re-evaluate their trust in this service by continually checking how their information is being used.

“Consumers expect their smart speakers to handle complex workloads and integrate with other products,” said Greg Roberts, co-author of the report and managing director of Accenture’s North America high tech industry practice, in a statement. “Brands that offer advanced artificial intelligence capabilities will be well positioned for success. But to attract more customers, they will have to be transparent in how they store, use and share data. Establishing an agreed trust standard with consumers is essential.”

YouTube Streaming ‘The Lego Movie’ Free on Black Friday

To help market the Feb. 9, 2019 theatrical release of The Lego Movie 2: The Second Part, Warner Bros. Pictures and YouTube will include free streaming access to the original Lego Movie on Black Friday (Nov. 23) embedded in an online ad.

The promotion marks the first time YouTube has rolled out a full-length movie within an ad. For 24 hours, anyone checking out the trailer for the upcoming Lego movie can stream a full-length feature showing of the original film.

To launch their own personal screening, users should enter the YouTube search keyword “Brick Friday” and select the promoted video for The Lego Movie 2: The Second Part at the top of the search results.

The Lego Movie 2: The Second Part stars the voices of Chris Pratt, Elizabeth Banks, Tiffany Haddish, Will Arnett, Stephanie Beatriz, Charlie Day and Alison Brie, among others.

 

 

U.S. Supreme Court Refuses to Hear Net Neutrality Appeals Court Ruling

The U.S. Supreme Court Nov. 5 declined to hear a case brought by the telecommunications industry and the Department of Justice seeking to reverse a lower appeals court ruling upholding Obama-era regulations that treated the Internet as a utility.

The Federal Communications Commission under President Trump reversed the regulations in 2017. Through the Obama-era guidelines were no longer in place, the Trump Administration and telecoms were hoping the Supreme Court would remove the precedent set by the 2016 U.S. Court of Appeals for the District of Columbia Circuit’s ruling that upheld them.

The Supreme Court’s lack of action on the case does not reverse the 2017 repeal of the net neutrality guidelines enacted in 2015, and leaves the door open to future litigation for any net neutrality policy.

The FCC reversal had been seen as a win for major ISPs such as Comcast, AT&T and Verizon having greater control of content distribution on the Internet. Indeed, Dish Network this month alleged AT&T-owned HBO and Cinemax wouldn’t renegotiate pay-TV carriage agreements, in part due to AT&T’s competing over-the-top video distribution platforms.

California state lawmakers this year voted to adopt the guidelines affording content providers such as Google, Apple, Facebook, Netflix, Hulu and Amazon Prime Video equal access to high-speed Internet distribution without being subjected to throttling, blocking or paid prioritization by Internet service providers.

Enforcement of the new legislation – set to take effect in January – has been put on hold pending a separate lawsuit by the federal government that argues states seeking their own net neutrality guidelines are violating the supremacy clause.

Digital Hollywood Panelists Ponder Future of Skinny Bundles, Digital Delivery

Skinny bundles and virtual MVPDs are an imperfect solution to the desire of consumers to get the content they want at the price they want, while an a la carte online delivery system that perfectly satisfies consumers’ desires has yet to be fully realized.

That was the consensus of panelists at the “Internet TV Packages” panel at the Digital Hollywood conference Oct. 18 in Los Angeles.

“The consumer cares about two things, value and choice,” noted panelist Thomas K. Arnold, publisher of Media Play News. While choice has expanded over the years from only a few networks to an array of cable channels to videocassettes and discs and digital delivery, finding content is getting more complicated.

“The important thing here is curation. The old manual curation by networks is going away,” said panelist and consultant Robin Wilson, director, RW TV. He said the future is one in which consumers can “self-curate” content or in which curation is automated.

While some pundits say only younger consumers are peeling away from traditional viewing, even Baby Boomers, still working and facing a time crunch, are also moving away from appointment TV, said panelist Josette Bonte, managing director, Digital Content Strategies.

“There is definitely a problem to be solved by the industry,” she said. “I would like to have my own skinny bundle.”

“Current skinny bundles are just a patch up job,” Wilson added.

“It’s the same problem that’s always been the problem,” Arnold noted. “These internet services, they’re great for service, but bad for discovery.”

Consumers who are watching subscription services have a hard time breaking out of that silo, Arnold said.

“Your likely going to stay on Netflix or Amazon after watching a show,” he said.

To truly curate your own content can be difficult, he said, noting that his family had to “piece together our own skinny bundle” from offerings on Netflix, Amazon and Hulu to watch an entire series of a show they loved.

He predicted that consumers in the future would be paying more for entertainment but in smaller increments, comparing it to gym memberships that have retained consumers by offering ultra-low prices.

“At $10 a month, people are going to get them all [even niche OTT subscription offerings],” he said. “At $10 a month you’re not going to really notice it.”

Bonte said niche SVOD services “definitely have the chance to complement the bundles.”

Technology — perhaps from Google, Amazon or Roku — will overcome the difficulties of getting to different apps and online services to get content, panelists said.

“The idea of switching from HDMI 1 to HDMI 2 will be as archaic as rewinding the videocassette,” Arnold said.

Device integration with artificial intelligence will also assist in content discovery, Bonte said.

Panelists also pondered the growing competition in the SVOD market led by Netflix, Amazon and Hulu, soon to be joined by Disney and WarnerMedia — and the data from SVOD services that is informing what content consumers are fed.

Netflix is “definitely good at use of data” to determine content, Bonte noted. It’s an advantage for the company, Wilson added.

Netflix knows a lot about what consumers are watching, but “they won’t tell us,” Arnold said, adding that research company Parrot Analytics is using social media and other measurements to try to estimate the popularity of SVOD original programs.

One audience member noted that Netflix’s recommendation engine is less than perfect, causing her frustration as it served up the same type of content over and over.

Data targeting with ads, too, needs improving, Wilson noted. The ads served up should be more efficient, “not bombarding” the consumer.

One audience member noted that Rotten Tomatoes, which calculates content ratings based on human reviewers, is one of the most popular content recommendation sites online.

Newfangled content delivery technologies have a way to go, Arnold noted. “People who talk about artificial intelligence forget that first word, artificial,” he said.

Speaking at Digital Hollywood on Oct. 18 were, from left, moderator Patrick Redmond; Media Play News publisher and editorial director Thomas K. Arnold; and consultants Josette Bonte and Robin Wilson.

Netflix Generates 15% of Global Internet Streaming Traffic

Netflix created the subscription streaming video market. It had more than 130 million subscribers globally at the end of June, including 57.3 million in the United States.

The subscription streaming video pioneer now accounts for 15% of the total downstream volume of traffic across the entire (worldwide) Internet, according to new data from Sandvine.com. That percentage, which tops 19% in the United States, is up 3% from the previous-year report.

By comparison, Amazon Prime Video ranked 4thin streaming video traffic in the U.S. – and is now available in 200 countries worldwide and is increasing its share of global traffic.

Streaming video dominates global Internet traffic, generating 58% of global Internet traffic – up more than 22% from last year.

The report said the volume of Netflix traffic in North and South America is what propels the service’s worldwide market domination. At peak hour on fixed networks (not mobile), Netflix’s streaming traffic can top 40% on some operator networks.

Netflix also ranks third (up 5.13%) in the Americas top 10 up-streamers (Google is 7th). Sandvine says the service’s internal analytics technology bookmarks subscribers browsing locations on the site, which results in automatic video previews and increased upload traffic.

Across Europe, the Middle East and Africa, Netflix ranks 10thin streaming video traffic, up 1.7% — but trailing YouTube (up 4%) and Google (9.4%). Sandvine said Google is second in the EMEA region, reflecting the power of the search engine to generate requests and traffic on a wide variety of topics. This is the first region that Google specifically places near the top.

In the Asia Pacific region, which includes Japan, Korea, Taiwan, Singapore, etc., Netflix ranked 3rd(6.3%), behind Facebook Video (6.6%), but ahead of YouTube (4.9%). Sandvine attributed Netflix strong position to improved library of content selections, in addition to delivering more local content.

Apple, Amazon, Netflix, Google Among Top Brands in Survey

Apple, Amazon, Netflix, Google and Samsung placed among the top brands in a new survey from global consultancy firm Prophet.

The firm released its fourth annual Brand Relevance Index, in which it surveyed 12,694 consumers in the United States across 299 brands in 37 categories.

The top 10 in order were Apple, Amazon, Pinterest, Netflix, Android, Google, Samsung, Kitchen Aid, Spotify and Nike.

Among the top 25, media and entertainment companies included YouTube (No. 12), PlayStation (No. 13), Disney (No. 14), Pixar (No. 15), Sony (No. 21) and Xbox (No. 25).

“It’s clear that to be successful, brands need more than size and ubiquity,” said Scott Davis, chief growth officer, Prophet, in a statement. “They must create a product that people love enough to integrate into their everyday lives. The brands that inspire this level of loyalty will ultimately grow the fastest because they are relevant in the moments that matter most to consumers.”

Netflix and Pixar were among top brands that were most “customer obsessed,” according to the survey, while PlayStation, Marvel and Google were most “pervasively innovative.” Netflix was the category leader in the “Media” segment, PlayStation led in “Electronics & Gaming,” Apple led in “Computing & Software,” Amazon led in “Retailers” and Verizon led in “Telecommunications.”

Apple, Netflix, Pinterest, Amazon and Android were the top brands, in order, among females. Amazon, Apple, PlayStation, Spotify and Samsung, in order, were the top brands among males.

Among millennials, the top brands, in order, were Netflix, Amazon, KitchenAid, Apple and Google. Among non-millennials, top brands, in order, were Apple, Amazon, Pinterest, Android and Netflix.

Facebook (No. 205) was the “biggest mover” in the negative direction.

Virtual Reality (VR) Headset Shipments Plummet

Virtual reality headsets – video game technology briefly championed as a home entertainment savior – appear to have lost their mojo among consumers.

Global shipments of VR headsets dropped 33.7% in the second quarter of 2018, according to new data from the International Data Corporation (IDCWorldwide Quarterly Augmented and Virtual Reality Headset Tracker.

Tethered VR headsets declined 37.3% as major brands such as Oculus and Sony were unable to maintain consumer demand following price reductions in the previous-year period, according to IDC.

The report said the two brands managed to ship 102,000 and 93,000 headsets respectively in the period. The category leader, HTC, shipped close to 111,000 headsets (excluding the standalone Vive Focus) thanks to the growing popularity of the Viveport subscription service as well as the launch of the Pro headset.

Screenless viewers, which enjoyed initial popularity when Samsung, Alcatel, and Google bundled the headsets with smartphones, has seen consumer interest dwindle. The category has shrunk from 1 million headsets in Q2 2017 to 409,000 units this year. This category was the largest contributor to the decline in shipments for the overall VR headset market.

“One of the major issues with the VR market is that consumers still find it difficult to try a VR headset,” Jitesh Ubrani, senior research analyst for IDC, said in a statement.

IDC expects this to be a temporary setback as the VR market finds its legs. The arrival of new products, such as the Oculus Go and HTC Vive Pro, and new brands, combined with the need for greater headset fidelity all point to a positive outlook for the quarters ahead.

“This is where the commercial market has an opportunity to shine,” said Ubrani. “HTC’s recent partnership with Dave & Busters or Oculus’ work with schools around the world stand to play an important role in educating and enticing consumers to use VR.”

Indeed, standalone VR headset shipments grew 417.7% in the quarter, largely due to the global availability of the Oculus Go/Xiaomi Mi VR, which managed to ship 212,000 headsets.

While the consumer side of the VR headset market remains the focus of attention, the commercial side is gaining traction. In Q2, roughly 20% of VR headsets were destined for the commercial sector, up from 14% last year. Along with the increase in share, average selling prices have also increased from $333 to $442 during the same period.

“In a market where mainstream VR content is still lacking, a growing number of vendors are looking to commercial as a way to build their business while they wait for the consumers to catch up,” said Tom Mainelli, VP, devices and augmented and virtual reality at IDC. “These vendors are moving beyond entertainment-focused deployments to real-world training scenarios in companies of all sizes, all over the world. IDC expects commercial buyers to represent an increasingly important percentage of the market going forward.”