FOX TALKS THE TALK ON FEWER COMMERCIALS: Last week I featured a story about NBC cutting their ad breaks by 20% and ad load by 10% during prime time programming as a way to better compete with digital video’s sparse ad load. Now Fox appears to be jumping on the less commercials bandwagon too. As reported by WSJ, Fox’s President of Ad Sales Joe Marchese has publicly committed to decreasing the network’s ad load by 20% (from the current 13 minutes/hr down to 11/hr) by 2020. Admittedly this is “sort of an aspiration or goal . . . and not a declaration.” This differs from NBC who has their hard target decrease planned for this Fall. The problem with making these reductions is that the networks are hooked on the revenue generated by the extra commercials. So if Fox wants to drop its ad load by 20% it would theoretically need to increase rates by 20% just to stay flat. Any economist will tell you scarcity of inventory does drive up price, but that’s easier said than done in media sales. Bottom line – I’m not sure Fox really has the stones to carry out this reduction, but at least they’re publicly talking about TV’s ad load problem too. Any radio execs out there thinking the same thing?!?
PINK SLIPS AT SNAPCHAT: Sadly yesterday’s headline about Snapchat laying off 100 employees isn’t really that unusual in tech. It’s become the reality of life in digital media these days that companies periodically go through RIFs, reorgs, and layoffs. But what made yesterday’s announcement so unusual is Snap’s plan to lay off 100 engineers. Forget unusual, publishers laying off code writers is unheard of. So what does this say about Snapchat? TechCrunch’s hypothesis is that Snap is trying to blaze a completely different trail to create some separation from Instagram. After Instagram cloned the Stories feature Snap’s UX stopped being unique. So they might feel compelled to reinvent themselves as a way to regain some momentum. There’s also rumors that Snap is still putting resources towards an updated version of their Spectacles AR glasses – which seems crazy to me. Maybe Evan Spiegel has a trick or two up his sleeve. I’m just hoping his plan doesn’t require engineers.
MUSIC AS THE NEW SOCIAL?: Finally today, I’d like to leave you with a really interesting thought leadership piece from AdWeek around the idea of music becoming the next important social platform. Humans already self-sort into groups who love certain music genres and artists – think about standing and singing your heart out for two hours straight in a crowd of strangers at the next concert you go to. So it’s only logical that music tribes should also exist online. Streamers like Pandora, Spotify and Apple are already doing this by customizing playlists and music recommendations based on what others with the same musical taste are listening to. Allowing for group curation of online stations and playlists is also starting to happen. And what about the social power of music in the future? Imagine putting on a pair of AR glasses and being transported to a virtual concert with a crowd of fellow fans who are all enjoying the show from their respective living rooms. It’s going to happen thanks to music’s power to connect.
Have a great Thursday guys!
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