NBC Universal’s as-yet-unnamed video distribution JV with News Corp. is not intended to compete with YouTube as the JV focus is on professional fare rather than user-generated content, George Kliavkoff, the network’s chief digital officer, told attendees at Tuesday’s PricewaterhouseCoopers media conference. Still, Kliavkoff said that media companies’ programming methods will have to become more interactive or they risk missing the boat, according to The Hollywood Reporter.
During a Q&A with PwC partner Michael Kelley, Kliavkoff outlined NBCU’s current digital media plans:
— YouTube: Kliavkoff says the Google site has streamed more than 300 million NBC-owned videos, including 120 million full episodes.
— NewCo: Kliavkoff: “We just need more scale.” With that in mind, NewCo already has the potential to reach most U.S. internet users. He sees an opportunity with download-to-own content as a non-exclusive part of the JV; he says 45-50 percent of iTunes’ best-selling TV content comes from NBCU.
— More partnerships: Networks will need to broaden their scope to include teaming with tech firms and tying e-commerce more closely with content. Kliavkoff said marketers are increasingly looking for “three-screen solutions,” as most ad deals have TV, online and mobile components. And with the possibility that gaming could possibly make up 10-20 percent of online usage, networks need to explore that area much more intensely as well.
— Other Voices: Others argued over the importance of online revenue to traditional media firms. Richard Bilotti, a retired Morgan Stanley entertainment and media analyst, said media companies’ digital businesses account for only 2 percent of average operating profit. On the other side, Lawrence Haverty, portfolio manager at Gamco Investors, said News Corp., through its purchase of MySpace, has “found a way to win,” and Time Warner Inc. has done well by growing AOL’s value from what he said was about $20 billion last year to his current estimate of more than $30 billion.
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