Broadband Cable Association of Pennsylvania


July 31, 2012

It is with sadness that I note the passing of Joe Gans Sr. He died early this morning in the company of his family. Joe was a true pioneer who exemplified the spirit and resourcefulness of this industry. Following his service in WW II, Joe began his cable career as chief engineer with Mountain City Cable in Hazleton, and founded his own system, Gans Multimedia Partnership in 1954. He was a friend to all in the industry, and served on the boards of NCTA and PCTA (now BCAP) where he was chairman in 1968. He also gave much to his community through service to his church, the Red Cross, Easter Seals and the American Cancer Society.

Joe was a true gentleman whose smile was infectious. He was one of the first to greet me when I entered the cable sector over a decade ago, and our friendship was immediate. His advice was backed by years of knowledge and the wisdom that comes from doing it yourself. He helped build this industry from the ground up, and his legacy is visible in millions of households across our nation. Our condolences go to his partner in life, Irene, and to Joey and Janice and the entire family. We will miss you, Joe. God bless you.

Dan Tunnell

For Google Inc.'s YouTube it was a $150 million experiment: Seed dozens of new video "channels" on its Web service and see what works. So far, Google likes what it sees from the eight-month effort. The company says it will put in another $200 million to market the channels as it attempts to upgrade its content from simple user-generated videos and to lure more viewers and advertising. The site has launched nearly 100 new channels so far this year, attracting talent such as actor Amy Poehler to create or star in original episodes in an effort to draw new audiences-and blue-chip advertisers.

YouTube has secured commitments from advertisers to run more than $150 million of ads on the channels this year, according to a person with direct knowledge of the sales. YouTube officials declined to comment on the figures. The channels themselves, meanwhile, are working to find their place, with a lot of trial and error along the way. "Just because you build it doesn't mean they'll come," says former television executive Larry Aidem, talking about YouTube viewers.

In February, Mr. Aidem launched a YouTube channel about emerging music artists. The channel, called MyISH, got off to a slow start, featuring many videos in which presenters simply talked about their favorite artists. "It was crickets," said Mr. Aidem, previously chief executive of the Sundance cable-TV channel. After studying viewer feedback, MyISH realized "the audience wasn't big on talking heads" and wasn't interested in a wide variety of musical genres. So Mr. Aidem and his team retooled the channel, hiring well-known YouTube personality Michael Buckley to anchor funny videos about pop stars like Katy Perry that also featured music clips. They also narrowed the channel's focus to pop music. Within weeks, MyISH shot up the rankings. It became the 120th-most-viewed YouTube channel in June with more than 700,000 unique visitors, up from a No. 803 ranking and 130,000 unique visitors in April, according to comScore Inc.

Mr. Aidem's experience, which mirrors that of several other first-time YouTube producers, shows how finding the right formula to make a new channel stand out on the world's leading video site remains a work in progress. Robert Kyncl, a YouTube vice president and architect of the channels initiative, said his team and the channel creators are "feeling our way through" the process to find a "great blueprint" for the content will work best on the site. He added that he's pleased with the "very healthy growth" of the new channels so far. Among the new channels, 10 of them average more than one million video views per week, he said. YouTube plans to expand its channels initiative to Europe by funding a couple dozen video channels for British and French viewers by next year, according to people familiar with its initiative. Mr. Kyncl declined to comment.

In contrast with TV, YouTube's fast production process and the lower costs of online video means producers can make near-instant changes to their programs in response to viewer feedback. As a result, YouTube channel producers say the rapid evolution of their content will eventually allow them to find the best way to attract large audiences for the long term. YouTube has tens of thousands of channels, created by active users who frequently post videos; some are much better than others. The new, funded channels are designed to produce high-quality shows that are "brand safe" for advertisers, which pay a premium to put ads there. Other ads on the site could end up randomly next to, say, videos of funny cats or people demonstrating their New York accents.

YouTube's channels initiative is a means to an end. By investing in the creation of professional-grade content and showing that there's a viable economic model for it, YouTube hopes to encourage other professional video creators to join the site. Overall, user growth for YouTube is picking up. People now watch four billion hours of video on the site per month, up from three billion earlier this year, said Mr. Kyncl. The number of people who subscribe to channels has doubled since last year, he said, though YouTube won't release specific figures.

Several YouTube channels that target the site's core demographic of teenagers and young adults have quickly built up audiences. A comedy channel called YOMYOMF, launched in June by "The Fast and the Furious" director Justin Lin and featuring well-known YouTube video personalities such as Ryan Higa, has 412,000 subscribers and more than 15 million video views. Other fast-rising channels include WIGS, a romance channel for women that became the No. 67 YouTube channel in terms of visitors in June, its second month of operation. Its lineup includes actors Jennifer Garner and America Ferrera. (WIGS is marketed by News Corp., owner of The Wall Street Journal, which also has its own YouTube channel. The WSJ channel has 28,000 subscribers.)

Brian Robbins, who has produced young-adult TV shows such as "One Tree Hill" and "Smallville," in mid-June launched the AwesomenessTV channel on YouTube. Since then, it has attracted more than 76,000 subscribers and nearly 10 million video views with programs such as sports highlights narrated by NBA star Blake Griffin and IMO ("In My Opinion"), a talk show for teen girls that resembles the TV show "The View." "There's really an audience out there for girls talking about things that are important to them," Mr. Robbins said. He adds that he meets daily with several partners to make changes to the channel's programming and relishes not having the "bloat of a major TV network" involved in the production process.

But not every demographic can be easily lured to watch regular episodes on YouTube. KinCommunity, a women's-interests channel that launched in December, has around 28,000 subscribers. Its creator, Michael Wayne, acknowledged that adult women "haven't organized themselves around specific" channels on YouTube, but added it means the opportunity exists to "become the big online brand for women." Mr. Wayne, also CEO of production company DECA, said his team has been "very aggressive in analyzing data" on what viewers like and don't like, and that the channel has made substantive changes, such as redesigning the look of its cooking clips. Wall Street Journal

Federal antitrust authorities have cleared Comcast Corp.'s more than $3 billion sale of its 15.8 percent stake in A&E Television Networks to the Walt Disney Co. and Hearst Communications Inc. The Federal Trade Commission said Monday that an early end to its 30-day review period for the deal was granted on Friday. The A&E networks include History Channel, Lifetime and Biography as well as its namesake network. Comcast, Philadelphia, said in May that it exercised the option requiring Disney and Hearst to buy back its stake. Comcast will receive about $1.95 billion in cash and a note from A&E for $1.072 billion. Associated Press