welcome to hit mojo show 15 i’m your
host Afghan Constitution and I’m CT more
and today we’re going to talk about
content creators are they actually
potentially disruptors or as content
only intended to be disrupted as well
we’re going to talk about the potential
shake out in the online advertising
market basically is the online ad market
about to go boom or bust and then as
always we got lots of things to cover in
lightning round all right and before we
get started speaking of content creators
watchmojo has been nominated alongside
CBS and HBO but no nominated by digit a
why don’t you tell us something about
that yeah I mean to be honest with you
were a bit shocked we submitted
watchmojo com for the best entertainment
category and you know we thought we
might get some consideration and then
when I heard we were nominated I was on
my I was in a cab going to LAX and you
know I thought we would get nominated
with other traditional sari with other
new media producers but the fact that
we’re nominated obviously along with HBO
and CBS is really cool I sort of
understand when people say now when they
go it’s just nice to be nominated but we
obviously want to win so we’re signing
some checks bribing them making sure it
happens I’m just kidding no bribe you
know what you’re nominated alongside two
huge names I think that’s pretty
impressive congratulations it’s a
testament to the team I think it’s very
easy to say you know let’s do this let’s
do that the fact that the team can go
out there and make it happen they
deserve all the credit let’s get crackin
okay so um what do you think ash can
content producers be disruptors or is it
always going to be tech companies that
disrupt well I think if you’re going to
talk about content you first have to
break it up into a few different sort of
branches I think amongst content
creators I think traditional media
companies who produce content have
really high cost structures so they like
the print industry and the and the music
industry are going to get disrupted
their cost structures are out of whack
so that’s going to make their businesses
shrink they might remain huge businesses
but I do think that they’re going to
face a lot of pressure the notion of you
know spending millions of dollars to
produce a sitcom I think that’s going to
become harder and harder to justify now
that being said amongst the sort of big
companies I don’t necessarily think that
the gatekeepers like the comcast
Verizon’s you know basically those who a
great the audiences and distribute the
content I think they’re going to be just
fine now they are not going to be seeing
eye to eye with the you know Viacom’s
and the news corp’s and the NBC com cats
like the content owners because Verizon
and Comcast want to give more to end
users they want to take all that content
the the D what used to be in theatrical
what used to be at home release what
used to be on TV you know they’re going
to want to put all that to their users
on every street where business models
access they do TV they do the internet
and blob yeah but but just to finish but
i think the ones who offers before going
on to who amongst content creators can
disrupt what do you think about do you
think that you know it is TV going to
suffer first of all the same fate as
radio sorry well yeah radio but mainly
print and the the music industry um well
TV in the sense of me sitting in front
of something that’s coming in through a
piece of fiber-optic maybe I think that
kind of TV style of content will always
be there and even to that extent he’ll
probably it could still be delivered via
fiber-optic but it’ll be more through my
I guess my internet connection than you
know conventional cable connection as
much as their cost structures are out of
whack I think what’s interesting is when
it comes to producing kick-ass content
you’re getting into something that’s
kick-ass creative and at the end of the
day that is something that’s really
expensive to produce it’s a lot harder
and I haven’t even heard of a web series
eating into the audience of a
traditional media series ever one
because the web you can watch it
whenever you want you’re not competing
for time slots and to content startups
like they just don’t have the capital
like if you think what goes in to think
about what went into making the pilot of
Boardwalk Empire like right there that
would probably be enough to float a web
series for five seasons yeah I think
that’s half of it the other half is like
when Herman Cain wants to go and set the
record straight or when you know the
Sandusky perv their alleged perv wants
to go and talk to Bob Costas it’s always
still on television that’s the big
audience hang out that’s what you know
moves news stories and all that I think
it’s great but I actually think more and
more than like online media
professionals we need to get our head
out of our butt and realize that TV is
doing fine TV ratings are sure maybe
they’re eroding a bit but but at the end
of the day they’re producing a kind of
probe
timing that remains unparalleled online
and to you can still can get news you
still can’t get sports sure CBS props to
them despite competing with us in the
category but props to cbs4 occasionally
putting like a sporting event at the
same time on your tablet or whatever but
I think we’re still quite a bit far off
now who I think can create some kind of
disruption to use that word are actually
the watch modules the revision threes
the machinima is that all of the new
media producers that don’t have a
traditional business because at the end
of the day it did take newspapers a good
decade before they felt the economic
impact of audiences fleeing to the web
so I think just because right now you’re
still seeing TV cable and broadcast
making more money than ever I don’t
necessarily think it means that okay
their hedge their sheltered I think
you’re going to see in like the next few
years already now you walk into an ad
agency yes the big checks are being
written for TV but it is almost like a
digital first strategy in that everybody
realizes that okay even if we do a TV ad
how do we get people on social media to
you know talk about it and all that and
I think there’s going to come a moment
where you you’d think of mary meeker
former morgan stanley analysts currently
a vc with kleiner perkins who says at
the end of the day consumers spend about
thirty percent of their time online on
tablets on mobile but marketers are only
spending about nineteen percent of their
budgets that’s a 20 billion dollar
opportunity for the Foxes the Viacom’s d
nbc’s they have no incentive to go after
that because that’s still a much smaller
chunk than the 75 billion dollar TV ad
market and the 250 million dollar
overall let’s say entertainment market
including dvds and home you know and
theatrical releases but to the watch
modules of the world we have no
traditional business to defend we are
going to go after that 20 billion and
and my last point is this is the reality
is even if our top-line revenues the
machinima is the revision 3 is the watch
modules are category even if our top
lines remain small new like there’s
always the growth aspect so new media
companies will always trade at a higher
price to revenue multiple than old media
and that i think creates an opportunity
so i would say to summarize if you look
at all like traditional companies
gatekeeper like the comcast and verizon
czar fine in fact they’re going to want
to push the envelope the old-school
companies like Viacom and News Corp they
do face some challenges but they’re
going to be fine where there is an
opportunity are for the watch bones was
in the revision 3 s of the world and
that’s exciting now is this this
actually reminds me a few weeks ago we
were talking about whether marketers and
advertisers should actually become
content producers themselves and like if
you think about it the reason why a
television is still capturing the lion’s
share of like I guess video or
television advertising however you want
to frame it is because the the
traditional media content creators these
guys pretty much curate the curate
audience and they curate creative you
know they pilot a lot of shows they test
a lot of things out they run things they
drop them they figure out what’s working
and what’s going to capture that big
audience they’re safe bet but if
advertisers actually start getting smart
and into the content game kind of like
oldspice did and if they can keep
pumping up micro content I think that
might be in they might be also in a
position to disrupt I guess mainstream
entertainment yeah I mean we started
talking about this because of the
TechCrunch article I wrote which which
touched on why VCS prefer to invest in
technology and we didn’t really touch
that at all which is great so we’ll
probably follow up with this next week
and we’ll ask that question is art VC
venture capitalists ever going to
embrace investing in content and after
you know I wish the ash of 2011 could go
back in time to the ash of 2006 and play
this to him and say even five six years
afterwards vc still are not embracing
content they’re very rare so we’ll
probably tackle that next week on a
segment because that’s something we
didn’t touch at all we’re gonna take a
short break we’re going to come back and
we’re going to talk about is the online
ad market the ad networks the ad
exchanges the add content creators are
we about to go through a period of boom
or bust we’ll talk about that right
after the break
uh
host Afghan Constitution and I’m CT more
and today we’re going to talk about
content creators are they actually
potentially disruptors or as content
only intended to be disrupted as well
we’re going to talk about the potential
shake out in the online advertising
market basically is the online ad market
about to go boom or bust and then as
always we got lots of things to cover in
lightning round all right and before we
get started speaking of content creators
watchmojo has been nominated alongside
CBS and HBO but no nominated by digit a
why don’t you tell us something about
that yeah I mean to be honest with you
were a bit shocked we submitted
watchmojo com for the best entertainment
category and you know we thought we
might get some consideration and then
when I heard we were nominated I was on
my I was in a cab going to LAX and you
know I thought we would get nominated
with other traditional sari with other
new media producers but the fact that
we’re nominated obviously along with HBO
and CBS is really cool I sort of
understand when people say now when they
go it’s just nice to be nominated but we
obviously want to win so we’re signing
some checks bribing them making sure it
happens I’m just kidding no bribe you
know what you’re nominated alongside two
huge names I think that’s pretty
impressive congratulations it’s a
testament to the team I think it’s very
easy to say you know let’s do this let’s
do that the fact that the team can go
out there and make it happen they
deserve all the credit let’s get crackin
okay so um what do you think ash can
content producers be disruptors or is it
always going to be tech companies that
disrupt well I think if you’re going to
talk about content you first have to
break it up into a few different sort of
branches I think amongst content
creators I think traditional media
companies who produce content have
really high cost structures so they like
the print industry and the and the music
industry are going to get disrupted
their cost structures are out of whack
so that’s going to make their businesses
shrink they might remain huge businesses
but I do think that they’re going to
face a lot of pressure the notion of you
know spending millions of dollars to
produce a sitcom I think that’s going to
become harder and harder to justify now
that being said amongst the sort of big
companies I don’t necessarily think that
the gatekeepers like the comcast
Verizon’s you know basically those who a
great the audiences and distribute the
content I think they’re going to be just
fine now they are not going to be seeing
eye to eye with the you know Viacom’s
and the news corp’s and the NBC com cats
like the content owners because Verizon
and Comcast want to give more to end
users they want to take all that content
the the D what used to be in theatrical
what used to be at home release what
used to be on TV you know they’re going
to want to put all that to their users
on every street where business models
access they do TV they do the internet
and blob yeah but but just to finish but
i think the ones who offers before going
on to who amongst content creators can
disrupt what do you think about do you
think that you know it is TV going to
suffer first of all the same fate as
radio sorry well yeah radio but mainly
print and the the music industry um well
TV in the sense of me sitting in front
of something that’s coming in through a
piece of fiber-optic maybe I think that
kind of TV style of content will always
be there and even to that extent he’ll
probably it could still be delivered via
fiber-optic but it’ll be more through my
I guess my internet connection than you
know conventional cable connection as
much as their cost structures are out of
whack I think what’s interesting is when
it comes to producing kick-ass content
you’re getting into something that’s
kick-ass creative and at the end of the
day that is something that’s really
expensive to produce it’s a lot harder
and I haven’t even heard of a web series
eating into the audience of a
traditional media series ever one
because the web you can watch it
whenever you want you’re not competing
for time slots and to content startups
like they just don’t have the capital
like if you think what goes in to think
about what went into making the pilot of
Boardwalk Empire like right there that
would probably be enough to float a web
series for five seasons yeah I think
that’s half of it the other half is like
when Herman Cain wants to go and set the
record straight or when you know the
Sandusky perv their alleged perv wants
to go and talk to Bob Costas it’s always
still on television that’s the big
audience hang out that’s what you know
moves news stories and all that I think
it’s great but I actually think more and
more than like online media
professionals we need to get our head
out of our butt and realize that TV is
doing fine TV ratings are sure maybe
they’re eroding a bit but but at the end
of the day they’re producing a kind of
probe
timing that remains unparalleled online
and to you can still can get news you
still can’t get sports sure CBS props to
them despite competing with us in the
category but props to cbs4 occasionally
putting like a sporting event at the
same time on your tablet or whatever but
I think we’re still quite a bit far off
now who I think can create some kind of
disruption to use that word are actually
the watch modules the revision threes
the machinima is that all of the new
media producers that don’t have a
traditional business because at the end
of the day it did take newspapers a good
decade before they felt the economic
impact of audiences fleeing to the web
so I think just because right now you’re
still seeing TV cable and broadcast
making more money than ever I don’t
necessarily think it means that okay
their hedge their sheltered I think
you’re going to see in like the next few
years already now you walk into an ad
agency yes the big checks are being
written for TV but it is almost like a
digital first strategy in that everybody
realizes that okay even if we do a TV ad
how do we get people on social media to
you know talk about it and all that and
I think there’s going to come a moment
where you you’d think of mary meeker
former morgan stanley analysts currently
a vc with kleiner perkins who says at
the end of the day consumers spend about
thirty percent of their time online on
tablets on mobile but marketers are only
spending about nineteen percent of their
budgets that’s a 20 billion dollar
opportunity for the Foxes the Viacom’s d
nbc’s they have no incentive to go after
that because that’s still a much smaller
chunk than the 75 billion dollar TV ad
market and the 250 million dollar
overall let’s say entertainment market
including dvds and home you know and
theatrical releases but to the watch
modules of the world we have no
traditional business to defend we are
going to go after that 20 billion and
and my last point is this is the reality
is even if our top-line revenues the
machinima is the revision 3 is the watch
modules are category even if our top
lines remain small new like there’s
always the growth aspect so new media
companies will always trade at a higher
price to revenue multiple than old media
and that i think creates an opportunity
so i would say to summarize if you look
at all like traditional companies
gatekeeper like the comcast and verizon
czar fine in fact they’re going to want
to push the envelope the old-school
companies like Viacom and News Corp they
do face some challenges but they’re
going to be fine where there is an
opportunity are for the watch bones was
in the revision 3 s of the world and
that’s exciting now is this this
actually reminds me a few weeks ago we
were talking about whether marketers and
advertisers should actually become
content producers themselves and like if
you think about it the reason why a
television is still capturing the lion’s
share of like I guess video or
television advertising however you want
to frame it is because the the
traditional media content creators these
guys pretty much curate the curate
audience and they curate creative you
know they pilot a lot of shows they test
a lot of things out they run things they
drop them they figure out what’s working
and what’s going to capture that big
audience they’re safe bet but if
advertisers actually start getting smart
and into the content game kind of like
oldspice did and if they can keep
pumping up micro content I think that
might be in they might be also in a
position to disrupt I guess mainstream
entertainment yeah I mean we started
talking about this because of the
TechCrunch article I wrote which which
touched on why VCS prefer to invest in
technology and we didn’t really touch
that at all which is great so we’ll
probably follow up with this next week
and we’ll ask that question is art VC
venture capitalists ever going to
embrace investing in content and after
you know I wish the ash of 2011 could go
back in time to the ash of 2006 and play
this to him and say even five six years
afterwards vc still are not embracing
content they’re very rare so we’ll
probably tackle that next week on a
segment because that’s something we
didn’t touch at all we’re gonna take a
short break we’re going to come back and
we’re going to talk about is the online
ad market the ad networks the ad
exchanges the add content creators are
we about to go through a period of boom
or bust we’ll talk about that right
after the break
uh
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