According to latest reports from Cisco, video currently generates more traffic in the US than was transmitted across the entire Internet backbone in 2000. Even though video online collapsed for a short while after the internet bubble burst, the technology, bandwidth and desire to watch video online has bounced right back and this time, it’s no bubble.

Additional research is showing that people, and in particular, young men, are moving their entertainment centers to their computers and watching content online: what they want, when they want it. Along with the heightened experience, data shows that users/viewers are watching longer segments than before, further enforcing the idea that the computer is fast becoming a viable and desirable entertainment device. Interestingly, these migrants from TV to internet are much more accepting of inline ads (pre-roll, mid-roll, post-roll).

Content developers and other people involved i the traditional TV industry still argue against the ‘a la carte model’ and online remains to poor cousin. Despite of lower quality compression for online, people are voting with their feet and marching straight to their computers to watch only the (quality) shows they want to watch at time that suit them.

In my opinion, the advertising opportunities are far great here as we can truly create a targeted ad model against a medium that affords us 100% accountability. What’s not to love, eh?

Rather than preaching about why computers, internet and pay per view / a la carte are the future, I want to redirect my observations and questions to the delivery mechanisms themselves and the skill behind programming. For me, there are two things that must carry over from TV to our smaller screens:

1. Programming: I truly believe that web 2.0 has forgotten an important part of passive viewing, listening. We watch TV and used to listen to radio because we trusted the presenters, programmers, DJs to introduce us to something we might not have found by ourselves or via our peer groups. We need to re-introduce an element of programming and taste along with the content we create. Portals such as YouTube are good at what they do, but a vast majority of users only ever view content that is sent to them by the (much smaller) group of people who create or crawl. So much of YouTube’s audience is highly ephemeral and the related videos stream manages to capture the casual user for, perhaps, one more viewing.

My assertion here is that we need to find a new device for keeping people at the new sites/entertainment portals we create and the first part of this is a new approach to programming, perhaps though targeted content based on user profiles/behaviour. Pretty similar to how traditional programming is currently done on TV.

2. Interface Design: in response to this new targeted content, advertising and programming model we need to develop new GUIs for watching video that allow people to interact with the device in a simplified, more linear fashion. We still need to offer tools for customization, search, sharing etc. for the smaller percentage of more active people, but we must identify the elements that will keep people viewing longer and enjoy the experience more.

Apple does their part with the constant development of video codecs and even adobe with their Flash video platform is coming on leaps and bounds in terms of higher quality whilst maintaining, seemingly unfeasible, small file sizes. HD content is cropping up more and more to make our high pixel density screens sing and 5.1 surround sound is a reality. So, for 2009 I think we need to see video line take a different path to the less effective web 2.0 approaches we’ve seen so far.

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Lucy Woodward has just (finally) launched her latest, self written, performed, produced and managed album. Away from the overbearing management of a large record label, Lucy has spread her wings and found a groove that not just suits her but suits the audience just nicely thank you very much! A rollicking mixture of styles rooted in a soul groove. Go buy it at Barnes & Noble.

But what I really wanted to say was how fantastic it is that artists have access to many vehicles for self promotion, though a balance of new world and old world techniques is vital. Lucy has utilized the internet to great effect (and and we designed/built her website) whilst keeping a more traditional promotional manager busy and networking like crazy! What a studio album and most marketing tools can not convey though is how fantastic Lucy is live. So, I think it would be great for her to build out a HD video video player and to capture as much live content as possible. Perhaps she can use MOLI’s platform to do that?

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Funny how even though I spent hours and hours and bundles of cash setting up an awesome home entertainment system, that the television remains predominantly my wife’s domain. It’s OK, because mostly I think TV is filled with crap. We enjoy movies together and show photos and home video (thanks to AppleTV), so I get my slice. So last night I took advantage of having the apartment to myself (oh and my dogs) to turn the volume up, crank up the sub-woofer and watch the animated Batman - Gotham Knight. Navigating the AppleTV interface is, as you would expect, perfectly intuitive and quite enjoyable, and when I landed on said movie, I thought that maybe I’d want to own it. However, my options were restricted to: Rent, Rent HD and buy, but with the buy option you only get the standard definition version.

DAMN!!! Content providers are still, unbelievably fighting digital distribution and hiding behind ignorance and paranoia. Their fear being that if they allowed you to buy the HD version, that you would automatically go rip it, burn it, duplicate it and sell it buy the thousands down on New York,s Canal Street , thus financially crippling the studios, networks and anyone else who’s cowering in the ignorance corner.

The fact remains and always will that piracy will always be here but will always be restricted to those making a (small) business out of it or/and are bothered to go through the countless steps to do so. Personally, I have the ability, technology and infrastructure to rip/download movies strip out the DRM and share with my friends and family. But I don’t because I can’t be bothered. I have endless better things to do with my time and sooner charge my time out to clients, who need me, for multiples over the value of a $15 movie.

As we all know, Apple boldly made this step with iTunes much to the derision of the entertainment community who mostly believed it wouldn’t work and that everyone would continue to download music via peer-peer networks. Wrong. Give people the right way to do things in an easy to use manner representing an enjoyable and utilitarian experience and they will (well over a billion songs sold on iTunes so far). Yes, the big record companies are still crying in their milk but their just too big and too old to change quickly. So is it just me, or is it crazy that the studios and networks are still fighting it?

Back to last night and my personal experience: I rented the HD movie for $4.99. I wouldn’t buy the SD version for $10, not with my awesome home entertainment system, no sir!! But, I would have gladly given them $15 of my hard earned moolah for a copy of the HD version, which would have sat very happily on my AppleTV, without ever being ripped, burned and shared with anyone else.

The next in my line of fire is the Telcos - an industry which has basically devolved into a monopoly once again - and the slow development of wireless technology in infrastructure and handsets compared with the rest of the world. Again, we see Apple rock the boat . Regardless of the shambles demonstrated at time of launch for the new 3G iPhone and regardless of what you or I think of the device. The most important aspect has been the incredible approach to digital distribution, here in terms of the developers kit and the application store. Super Monkey Ball has already made approximately $5million for Sega! Bloody incredible. I read a fantastic blog posting regarding mobile app development this morning. Worth a read and further evidence that traditional distribution channels are altering - significantly.

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Last Exit has just (soft) launched a new campaign for our clients MOLI. The campaign is based around a series of 5 short films about a character called Marcus - an insufferable control freak - who runs a young ad agency. Though he’s rather hateful, the aim was for us, the creative class, to see something of ourselves in this insidious person. The question is, whether we rejoice in this or bow our heads in shame. Well, the site goes some way into celebrating control freaks. Yes, it’s something we have to learn to let go of and ultimately chill out as our companies grow but in the early days it may be seen as essential.

So, the site is hosted by the good doctor, Dr. Zizberg - the foremost authority on control freakism. He has developed an elaborate brain scan test which reverse engineers your computer monitor to scan your cranium when pressed against the screen. Amazing!!

The site was a lot of fun to work on and a lot fun to use. And, MOLI are giving away 25 iPod touches as part of a sweepstakes competition. So go in, create a profile, take the test and GOOD LUCK!!!

http://www.controlfreaktv.com/

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OK, so I’m a little behind the times on this one but the campaign for the Dark Night Batman movie is really bloody good. Seeded by dropping “I Believe in Harvey Dent” cards into comic book and around comic book stores, the campaign focuses around the Harvey Dent campaign for DA site, where users gather clues that slowly reveal the emerging second face of the guy and help set up the next movie.Cudos to 42 entertainment. I believe do you?I BELIEVE IN HARVEY DENT

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We love Christine, and apparently so does the Today Program.

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A good friend and occasional partner of Last Exit is Mack Industries, headed by the inimitable Willie Mack.  This coming Friday sees the final day of the amazing Absolute Machines installation.  It’s the corner stone of a campaign expressing the possibilities of “artificial creativity” where robots sing and play instruments via an impressively vast contraption of Heath Robinson proportions and complexity.Hats off to Willie Mack for putting this all together on behalf of his long term client Absolut.  An amazing opportunity, beautifully put together. 

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