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Online Entertainment – What’s more important – Content or Technology?

Mary Meeker - Morgan Stanley Slide on the Online Advertising Market

At the Web 2.0 Summit 2010, internet analyst Mary Meeker presented data, shown above. The chart she offered drives home an important point to media and entertainment companies -- 28% of our time spent with media in the US is on the internet -- so we expect our media brands to deliver online. And Nielsen also released data this summer  showing 22% of the time people spend on the internet is with social media. In aggregate, Web users spend a total of 110 billion minutes on social Web sites and blogs each month. Therefore media companies must tailor and create engaging digital content to speak to the audiences who want to interact with content brands online and across social media sites. But what’s more important when trying to create appealing media experiences for socially engaged audiences who are spending 28% of their media time online: Is the technology experience more important than the content? Or is the content more important than the technology experience? Vivi Zigler, President of NBC Universal Digital Entertainment (bio link here), attempted to address this question at the Digital Media Conference West in San Francisco:

Vivi Zigler tells us in the clip that NBC Universal has to tailor and tweak existing technologies to the story lines of the NBC TV shows and to the shifting tastes of the online audiences to create engaging experiences.  How does NBC Universal adapt technology to changing television story lines and still create an engaging and quality experiences? (continued ..)
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TV Network Websites Draw Eager Web Video Viewers

Brightcove Tube Mogul Research on Web Video

Brightcove / TubeMogul research chart showing web video consumption on broadcast TV network web sites far outstrips web video related to any other type of content -- magazines, music videos, radio, etc.

We recently blogged about NBC and how the TV network leads all others in terms of producing original content for the web. During the Fall 2009 to Spring 2010 TV season, we estimate NBC produced approximately 88 ‘web extensions’ related to the network’s TV programs.  CBS, the #1 rated TV network by Nielsen for that same period, we estimate produced less than half that amount -- 32 web extensions. Meanwhile, for Q12010, NBC.com maintained its spot as the top TV network web site with 9.1 million unique visitors while CBS.com only had 5.6 million uniques, even though CBS was tops in the TV ratings.

The traffic numbers seem to show that NBC has the right idea in terms of focusing on the production of web content for NBC.com – we believe their focus on web content production is leading to more web traffic to NBC.com versus CBS.com.  Now there’s new data investigating the consumption of web video content related to the TV networks ; the data supports the idea that original content is crucial to a TV website’s strategy. For this new research report, video platform Brightcove and analytics firm TubeMogul surveyed nearly 2,000 news and entertainment websites representing 3.4 billion video streams (report link)

A main take away from the Brightcove / TubeMogul report -- web audiences are indeed primarily dwelling on the TV sites to watch video related to TV show content.  

Following are a few example data points that support the finding:

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