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Despite Low Bids, Hulu Could Prove to be Lucrative Digital Acquisition

Posted by Sheila Shayon on May 29, 2013 01:08 PM

While anticipation continues to build around the possible buyout of video streaming service Hulu, the price, however, is a bit underwhelming. 

Despite its $2 billion valuation, the service is attracting bids from big players like Yahoo, DirecTV and Time Warner Cable somewhere in the $500 million to $800 million range—arguably a small amount of money compared to recent deals like Tumblr's $1.1 billion price tag and Instagram's $1 billion one. Yahoo’s bid (between $600 million and $800 million) is the largest so far while others, like Chernin Group, have issued a $500 million bid. Other companies interested in the service include private equity firms Guggenheim Digital, KKR & Co and Silverlake Partners. 

One reason for the low-ball bids could be the fact that Hulu has been hemorrhaging market share to Google's YouTube as well as ad-supported services including LiveRail, Adap.TV, and BrightRoll. It served up only 1.4 million ads in April 2013, down 13 percent from 1.6 million video ads in March, according to comScore.Continue reading...

video killed the _____ star

Broadcasters Step Up Their Streaming Abilities as Digital Competition Heats Up

Posted by Sheila Shayon on May 17, 2013 11:42 AM

If you can’t beat ‘em, join ‘em. Major US broadcasters are lining up their digital offerings for consumers, whether they like it or not.

"Television networks increasingly need to make content available to fans no matter where those fans are and what devices they are using," said Greg Ireland, IDC research manager.

Disney-owned ABC is the first major broadcaster to live-stream programming to iPhones and iPads starting this summer for residents of New York City and Philadelphia via WATCH ABC, including local news, daytime talk shows and prime-time dramas. Plans include expansion to Los Angeles, San Francisco and Chicago and eventually, buy-in from all ABC affiliates.

"Many people are starting to wonder if cable is worth keeping, and they're thinking of cutting the cord and going online only since they can get content from Netflix, Amazon and other places,” notes NPR. “Live streaming is a way the broadcast industry is trying to cement the system they've had in place for a long time, even as more people are watching TV and video online. So, they're going where the viewers are going, but they're scared that people are going to cancel their cable subscriptions."Continue reading...

brand news

In the News: Walmart, Abercrombie & Fitch, Microsoft and more

Posted by Dale Buss on May 16, 2013 09:20 AM

In the News

Walmart posts mixed results, expects "challenging" quarter; earnings report also discloses $73M expenses related to foreign bribery probes.

Microsoft to Google: We need APIs to fix YouTube app.

Abercrombie & Fitch signs Bangladesh safety agreement as deadline passes for Gap deal.

Apple defends brand (but not Steve Jobs) in US book price-fixing suit.

Boeing and GE hunt for engine defect in 777s.

Campbell Soup uses digital marketing to target Millennials.

Capri-Sun targeted by German ad watchdog for misleading marketing.

Cisco profit is boosted by services.Continue reading...

brand news

In the News: Google, Apple, Burger King and more

Posted by Dale Buss on May 15, 2013 09:20 AM

In the News

Google CEO Larry Page discloses vocal-cord condition as company plans music-streaming service.

Apple is being investigated for its role in e-book pricing.

Burger King rolls out BK Rib to bust McRib by McDonald's.

ABC tests expanding Nielsen ratings to mobile and plans to consolidate Dancing with the Stars to Monday evenings.

Amy's Baking Company goes rogue after Kitchen Nightmares rejection, shows what brands shouldn't do on social.

Bloomberg terminal-use issue highlights stress in corporate culture as Wall Street firms begin to regard it as competitor.

Dell will miss profit estimates.

Dollar General looks to hire 10,000 new employees this month.Continue reading...

brand news

In the News: Bangladesh, ABC, Yum! and more

Posted by Dale Buss on May 13, 2013 09:33 AM

In the News

Bangladesh plans to raise pay for garment workers and allow unions.

ABC veteran Barbara Walters announces 2014 retirement as Disney plans to live-stream ABC programming via app and cloud.

Yum! sales in China fall 29 percent in April.

ABB says CEO plans to resign.

Audi outsells BMW brand globally — again.

Bloomberg admits use of its terminals for data snooping.

CBS chief touts TV over digital engagement.

Cisco tries reinvention in tough time.

Danone sets deal to acquire Happy Family brand.Continue reading...

digital advertising

Advertisers Adapt Strategies to Harness Dual-Screen Engagement

Posted by Sheila Shayon on April 16, 2013 07:47 PM

In living rooms across the country, consumers are not watching just one screen, nor are they engaging with content in just one way as marketers and brands create increasingly innovative campaigns to keep consumers' eyes and ears on products.

Social media is now the acknowledged ‘elephant in the room’ as consumers increasingly engage in social activities while tuning into more traditional forms of content. According to Nielson's 2012 State of the Media report, nearly 41 percent of tablet owners and 38 percent of smartphone owners use the devices while watching television. 

While some broadcasts like the Oscars and ABC's The Bachelor benefit from such a social tie-in, most brands and advertisers are trying to figure out how to better leverage multiple media channels to build viewership and engagement without losing ground elsewhere. This season, The Bachelor incorporated live Twitter feeds into its broadcast. "I think it is fair to say that the integration of social media into live broadcasting is still in its infancy," Tim Bock, VP of production, alternative series and specials ABC told Mashable. "There are other entities utilizing these technologies on a show by show basis. But we at ABC are looking at the bigger picture of large scale implementation of audience interaction capabilities.”Continue reading...

brand news

In the News; AB InBev, GE, PepsiCo and more

Posted by Dale Buss on April 8, 2013 09:02 AM

In the News

AB InBev reachedtentative agreement with the U.S. Department of Justice over its disputed $20.1 billion acquisition of Mexican brewer Grupo Modelo, which faces inquiry over Mexico worker deaths.

GE to buy Lufkin for $3 billion in oil-and-gas-industry play.

PepsiCo seeks to patent novel high-protein nutrition beverages.

Adidas stops controversial sale of t-shirts around injured Louisville player Kevin Ware.

AOL CEO Tim Armstrong to be honored for pro-women Makers series.

Apple's former advisor to Steve Jobs admits brand screwed up iPhone naming system.Continue reading...

media brands

CBS Buys Stake in TV Guide in its Latest Move to Create More Content

Posted by Sheila Shayon on March 27, 2013 05:18 PM

“America's Most Watched Network” is moving aggressively to maintain its moniker.

In what's been a great week for CBS, the network just bought 50 percent ownership of TV Guide, including the eponymous cable channel and TVguide.com, for about $100 million. The cable channel reaches 80 million plus homes but its iconic website programming grid stretches even further via mobile apps, entertainment news coverage and content recommendations.

The deal adds a basic cable network to CBS’ current television portfolio which includes broadcast networks (CBS and the CW), pay cable network (Showtime), international TV channels, a TV studio syndication unit, sports network and the Smithsonian Channel.Continue reading...

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