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3.20.2008

CBS Shocker - Internet TV Viewing Should Count

Big media has been somewhat slow to change, but today's CBS news shows a promising shift for the television industry. Patrick Keane, Vice President and Chief Marketing Officer for CBS Interactive, proposed a move to an aggregate ratings system, which would combine TV viewing with online video consumption. These combined ratings could then provide advertisers with a cross-platform option that is more detailed in terms of data, thanks to online metrics.

Keane cited internet darling "Jericho" as an example: the online viewers of one episode boosted the ratings from 4.2 to 5.1 - nearly a whole percentage point. Although Keane didn't mention the online campaign that did, in fact, save Jericho from cancellation, had these online ratings been taken into account from the beginning, desperate measures by hardcore fans would never have been needed.

Internet fans save Jericho

Another example Keane used was this year's Grammys. TV viewers accounted for 16.9 million of the viewers for the annual music awards show - down 15% from the previous year. But taking into account the web viewers, an additional 7.9 video streams could be added to that number, as well as 4.9 million page views, making the decline in viewership not as bad as previously thought

http://www.readwriteweb.com/archives/a_good_day_for_internet_tv.php

March Madness

Free Web broadcasts of U.S. college basketball let CBS reach the sports fan at the office, and turned the Web-advertising model on its head

GRANT ROBERTSON
MEDIA REPORTER
March 20, 2008

It's one of the fastest-growing, most lucrative departments at CBS Corp. right now. But the company's president, Les Moonves, has a far more blunt way to describe how the network has turned March Madness basketball into an Internet gold mine.

"People sit at their computers and waste away their afternoons watching basketball games while their bosses are looking the other way," Mr. Moonves told analysts recently in New York.

When asked about the advertising dollars CBS expects this year from online broadcasts of the annual U.S. college tournament starting today, Mr. Moonves simply added: "We are having our best year, by far. Ever."

It started almost as a joke three years ago when CBS began offering the online games at no charge to see how many slackers at the office would tune in during the first two days of the competition.

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The massive response in 2006 nearly bogged down the network's servers, proving the at-work audience for Web TV was formidable. Revenue surged from $250,000 (U.S.) the year before, when a subscription model was used, to about $4-million from advertising alone.

Despite a jittery economy that threatens to throw a wet blanket on the advertising market this year, CBS said yesterday it expects to rake in $23-million of ad revenue over the next few weeks. Advertising space during the online broadcasts was 95 per cent sold out by late February, a number more suited to events like the Super Bowl than to college basketball.

But the secret that has turned March Madness into one of the shining examples of how TV can work on the Internet lies in a deal struck 10 years ago between CBS and the National College Athletic Association (NCAA), which governs U.S. college athletics.

With the Internet still in its infancy, the contract placed almost no restrictions on how the digital rights to the games could be exploited by the network. CBS has been allowed to experiment online like few other TV networks, using the tournament as its proving ground.

"We're very fortunate that the rights with the NCAA, back when they were done in the late nineties, were all encompassing," said Jason Kint, senior vice-president of CBSSports.com. "The people in charge appreciated where this was headed."

The move to a no-charge, ad-supported model pushed the online audience to more than a million, almost immediately. This year, the network has unshackled things further by eliminating blackouts that were in place to protect local CBS stations. The company doesn't expect TV ad sales will be cannibalized.

CBS is also pushing the games further onto the Internet this year, allowing social networking sites such as Facebook and MySpace to link to the games directly. The network expects to shatter last year's record of 1.4 million unique users, which will also drive up ad rates for next year.

"Rather than trying to get a user to come to one specific [website] to find the content, we're bringing it to them, wherever they are on the Web," Mr. Kint said.

Most TV networks, particularly in Canada, are tangled up in numerous rights restrictions with studios and producers that prevent them from going online in a big way. Even CBS, which has most of its prime-time programming online in the United States, remains conservative, not allowing shows to be shared, and blocking them from being viewed in other countries.

March Madness, on the other hand, can be accessed anywhere in the world where there is a high-speed Internet connection. Mr. Moonves couldn't help but marvel at the model: The $23-million CBS expects this year is "brand new revenue for the same old content," he said.

In Canada, the broadcast rights to the tournament are held by cable network The Score, but the online rights remain with CBS.

THEN

In 1939, the only way to see the first NCAA March Madness basketball championship game was to be among the 15,025 people packed into Patten Gymnasium in Evanston, Ill. Television was still considered new media back then. The first televised baseball game was another two months away, and live basketball wouldn't arrive on TV until 1940.

NOW

In 2008, all 63 games will be streamed live over the Internet for the first time. Because the NCAA places few restrictions on the broadcast rights, CBS is free to package highlights for smart phones and video mash-ups and let social networks such as Facebook and MySpace link directly into live games.

THE VIEWERS

March Madness viewership on CBS.com last year

2.6 million hours of video streamed.

1.4-million unique visitors.

REVENUE

Revenue has more than doubled each year.

2005: $250,000

2006: $4-million

2007: $10-million

2008: $23-million

3.17.2008

JAPAN'S FOUR INTERNET PROVERS TEAM UP TO RUB OUT ILLEGAL DOWNLOADERS

JAPAN'S FOUR INTERNET PROVERS TEAM UP TO RUB OUT ILLEGAL DOWNLOADERS
Peter Olszewski
17 March 2008
Media Blab

Japan's four internet provider organisations have agreed to forcibly cut the internet connection of users found to repeatedly use Winny and other file-sharing programs to illegally copy gaming software and music.

The move aims to deal with the rise in illegal copying of music, gaming software and images that has resulted in huge infringements on the rights of copyright holders.

Cutting off the Internet connection of copyright violators has been considered before but never resorted to over fears the practice might involve violations of privacy rights and the freedom of use of telecommunications.

The Yomiuri Shimbun reported that the internet provider organisations have, however, judged it possible to disconnect specific users or cancel provider contracts with them if they are identified as particularly flagrant transgressors in cooperation with copyright-related organisations, according to sources.

The four organisations include the Telecom Service Association and the Telecommunications Carriers Association. About 1,000 major and smaller domestic providers belong to the four associations, which means the measure would become the first counter-measure against

The number of users of file-sharing software such as Winny in the country is estimated to be about 1.75 million, with most of the files exchanged using the software believed to be illegal copies.

A brief six-hour survey by a copyright organisation monitoring the internet found about 3.55 million examples of illegally copied gaming software, worth about 9.5 billion yen at regular software prices, and 610,000 examples of illegally copied music files, worth 440 million yen, that could be freely downloaded into personal computers using such software, the sources said. In other words, this survey alone, uncovered damages amounting to 10 billion yen.