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Streaming With the Major Media

Viacom
Key streaming properties: MTV Overdrive, Comedy Central MotherLoad, VH1 VSPOT, BET On Blast, CBS Innertube

Viacom’s key differentiator amongst the media giants is its understanding of the value of centralizing backend technology and franchising products across brands and into new content genres.

MTV did not take a first-mover stance in the early days of streaming video when ESPN and Microsoft were starting to play around in the space. MTV employed the "wait and see" approach and then released MTV Overdrive in 2005. While there was nothing revolutionary about the Overdrive player, MTV did take some innovative strides in programming content across platforms and promoting their online products on television, and vice-versa.

Figure 5

Viacom’s real innovation with Overdrive was the decision to franchise the platform across all properties back-to-back. Soon after MTV launched Overdrive, Comedy Central, VH1, and BET all had similar offerings. While MotherLoad looks different in terms of color, branding, and programming, it uses the same underlying code and infrastructure as Overdrive. MTV also used the Overdrive platform to create new properties like MTV Über, a broadband channel targeting college students.

All of Viacom’s streaming media efforts are still based on the ad-supported revenue model. However, MTV recently partnered with Microsoft to launch URGE, an online storefront for purchasing content; once again following the "wait and see" approach and entering the pay-per-download market only after players like iTunes and Napster had tested the waters.

Key streaming lesson: Create a platform that centralizes technology, yet allows for customizable branding; then franchise. Leverage your investment to the fullest. Maybe waiting isn’t such a bad idea.

Time Warner
Key streaming properties: CNN, AOL

Time Warner can play an interesting role in the industry because of its ownership of both content properties and a distribution pipe. We have yet to see a major push from Time Warner to offer its cable and data customers access to premium content.

CNN has been experimenting with streaming media for a while. They used to have a subscription-only product and have since shifted to a hybrid ad-supported and premium upsell model. CNN Pipeline, the premium subscription product, offers viewers live feeds, more in-depth content, and searchable archives. CNN.com’s free video is integrated throughout the site.

Figure 4

AOL has made the shift from ISP to media company, and the transition has not been a smooth one. From its heyday as the premium dialup provider, and after its high-profile merger with Time Warner, AOL has been positioning itself as an aggregator, owner, and producer of content. AOL’s In2TV offers access to classic television programming and ancillary content. While AOL’s content identity is yet to be defined in consumers’ minds, AOL can leverage its instant messaging products to encourage the viral spreading of content.

Key streaming lesson: Leverage all your properties (software, distribution, content) to maximize access and awareness of your content.

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