The topic of the evening:

How do content providers attract consumers ‘where they are, when they are’ in a marketplace which is filled with numerous digital offerings and seems to be adding more choices every day? Beyond fine-tuning search and discovery, more than optimizing SEO, how do content provider/marketers rise to the top of viewers minds and win a share of the growing amount of time consumers spend consuming mobile media?

As co-sponsor, we chose this topic (in consultation with the folks at OVGuide and the EMA) so that we could get a better understanding of the challenges faced by the digital entertainment merchants so that we can work better with them. We weren’t participating to offer answers, but we definitely want to learn more about the challenges faced by the digital entertainment merchants (DMAs) to better align our business with theirs, whether indirectly through Giant’s digital encoding/prep services or directly through our digital marketing team.

Our co-sponsor, OVGuide, operates in just this space. They’ve built their business specifically to direct viewers to digital content wherever it may be found. CEO Sanjay Reddy made a powerful case for OVGuide as both a clearhouse of information as well as a content exhibitor as well.

Yet this was only one part of the answer to the question at hand, and a part that marketers have very little control over. As the discussion progressed, several speakers noted that establishing and nurturing a relationship with the marketing executive of the content distribution platform is critical in getting a foothold on the front page or the ‘featured’ list. This real estate is in high demand since such spots are the first areas seen and the largest draw for traffic. Being able to make the case for a particular title to the platform marketing executive, supported by a theatrical box office history, a marketing campaign and strong fundamentals (i.e.: cast, story, genre) was critical in capturing that real estate.

But it wasn’t long before one of the chief themes of the evening emerged: the increasing reliance on social media to inform viewers of content AND where to find it. How important is it? According to one survey, the value of social media, as demonstrated by the perceived value of  one Facebook ‘like’, has grown in value to brands, from $110 in 2010 to $178 now, a 28% increase. Giant’s own Dave Nichols spoke of the success that our work with Roadside Attractions in promoting recent indie releases like Much Ado About Nothing.

Recommendation engines were also mentioned as being an critical part of drawing users to content once they were within a platform. Yet some participants noted that a recommendation engine, even as good as they have become, would still provide a less than completely satisfactory experience. No engine would be able to correlate information in real time, measuring a viewers mood and present state of mind. The potential contribution of social media again was again noted — if your friends were interested in superhero movies, would you be likely to welcome recommendations leaning toward that genre. The discussion become more lively as the evening wore on, but no definite solution was reached.

Several important challenges continue to challenge DMAs.

(1) Real estate..how do INDEPENDENT companies, transporting content without the benefit of a high profile theatrical can key placement, let alone marketing gain, traction (and viewers) in the digital marketplace?

(2) What are the tools to both create awareness of the existence of these titles and then foster actual engagement or better yet, monetization?

(3) Content can be everywhere..but there is a cost to get it there and how do DMAs recover that cost most efficiently?

As the digital marketplace continues to evolve, so will the answers to these questions. We look forward to listening the continuing discussion…and contributing when we can.

The Most Interesting Man in the World has something to say about binge viewing.

I was a little frustrated when I discovered that Hulu only had season 4 of Parks & Recreation. Though I’m a little late to the party for this smart comedy, I had dreams of binge-viewing the entire run…and now those hopes were dashed.

Thinking that I’d have to start at Season 1 on disc, I turned to old reliable Red (aka Netflix) to put those DVDs into my queue and then endure the interminable one day wait for them to start arriving in my mailbox.

I was surprised AND pleased to discover, however, that Seasons 1-3 were available to stream. Huzzah! I needn’t even leave my couch (AND no commercials). This happy occurrence  got me thinking about the nature of the current ‘always on’ TV universe. So many shows are available on one platform or another at one time or another…here now, there later…as the giant streaming brands jockey for market position and leadership.

Parks & Rec is just one case in point. Another case, perhaps more clear cut, is Viacom’s properties Dora and Blues Clues which were on Netflix quite recently. However, Netflix let the rights to these family favorites lapse, prompting Amazon to snapped them up with the addition of a dash of exclusivity. (Well played, Amazon.) Of course, Netflix isn’t backing away from family viewing. Nay, nay. The recent deal for Disney family-friendly content keeps them in the game.

How different the major platforms can be if they’re merely shuffling around content from one portal to the next? Will customers really see the brand delivering content to their homes, or will the delivery service ID be overshadowed by the much stronger show identity and brand? Will parents really care where they can get 98 episodes of SpongeBob or will they simply be happy being able to access it anywhere? (I don’t; my SpongeBob-loving daughter doesn’t.)

The major streaming platforms are working to differentiating themselves with new original content, producing their own shows viewable nowhere else (unless you’re an unabashed pirate). When watching an original production like Arrested Development, the connection between Netflix and the show is easier make. But what about the other content? I’d argue that it’s hard to tell.

Could it be long before the major streaming platforms introduce something identify themselves and their ‘exclusive’ (or ‘exclusive-for-now’) content? For example, the ‘bug’ you see in the corner of live television broadcasts was introduced to provide a “…permanent visual station identification, increasing brand recognition and asserting ownership of the video signal.“ It first arrived on American television screens in 1993, introduced first by VH-1, the MTV and finally the big four networks in the fall of that year and has become a staple of broadcast television.

For reasons such as this, it seems as though the streaming portals are inching toward a familiar model — the television network. It’s no secret that Netflix aspires to be HBO, a destination channel which itself pioneered a whole new segment of home entertainment back int the 1980′s, just as Netflix has done and continues to do. While the manner of delivery  may be different, streaming via over-the-air-broadcast or cable, the parallels are unmistakable.

Fifteen months ago, I was pessimistic about Netflix’s future, but Netflix has made some pretty smart moves lately, moves which are defining this new consumer segment and the future of home-viewed entertainment.

The future is an exciting time in which to live.

For those readers who have been following the mobile and tablet industry news over the last 24 hours, you already know the significance of the number 50B. That’s the official tally of apps which have been downloaded from the Apple App Store since its opening five years ago.

Just 18 months ago, that number stood at just 18B, impressive at the time, but only a modest 36% of the Wednesday’s record-setting total. In one of our first blog posts, “18 Billion Apps. That’s a Big Number” we shared our thoughts on this, marveling on the quick uptake of the app market in such a short time.

(Don’t worry if you didn’t read this post — you can now. Go ahead. We’ll wait.)

Great, thanks for coming back.

That lucky App store customer, the downloader of the 50 billionth app, was one Brandon Ashmore of Mentor, OH. He’s now the proud owner of a $10,000 iTunes gift card, the leader of a tribe of 50 other winners of ‘additional prizes’ valued at $500. (Congratulations Mr. Ashmore. Use your power wisely.)

We’re pleased that our app development team had a part to play in the amassing of this total. Between yoga practitioners, clean air advocates, indie film buffs, friends looking to meet friends and short film-o-philes, we’re proud to have added to this multi-billion tally.

But like Apple and its millions of fans, we’re not going to stop there. We’ve got new projects in the pipeline and more ideas dropping in impromptu brainstorming sessions every week. Every one of them may not be officially published in the store, but we like to keep our app development minds focused and sharp.

A couple impressive facts which bear noting: The first 18B apps too over 3 years to download. The next 32B apps, however, only took 18 months. At this rate, we’re likely to see 100B by 2016. And at the rate that iPhones and iPads continue to sell, that day may be here even sooner.

Yet for all the good press heaped upon Apple this week, we shouldn’t ignore that the fact that there are other, competing platforms in the marketplace…and they’re doing pretty well at catching up to Apple. According to the LA Times, the number of app downloads from the Google Play store have also nearly approached this same number.

But Apple’s celebration may be short-lived. The search giant on Wednesday announced that its own digital store, Google Play, was only about 1 billion downloads behind Apple and was close to hitting the 50 billion app downloads mark.

So actually, if you count ALL the apps in play in the mobile and tablet marketplace, we’re already well beyond 100B apps downloaded, used, updated and improved.

With apologies to Everett Dirksen, ”A billion here, a billion there, pretty soon, you’re talking…a real app revolution.”

The future sure is great to live in.

We went silent there for a couple months while Giant Interactive went through a growth spurt, but now we’re settling into a steady rhythm and ready to pick up where we left off.

But where, indeed, did we leave off?

These are proving to be interesting times. The entertainment industry continues to undergo significant shifts, particularly in distribution, consumption and marketing. While consumer spending levels have finally taken a turn for the better, and ended 2012 improved from a year ago, certain segments of the business are still struggling to adapt to the new economic realities.

Home Media Magazine’s Weekly Disc Sales Revenue Chart

My favorite standard reference for the health of the DVD/Blu-ray business, the Home Media Magazine weekly Total Disc Sales Revenue chart, shows that the Blu-ray business continues to grow, while on the flip side of the coin, the DVD business continues to take a beating. Consumers just aren’t buying discs as a method of content enjoyment as the way they once did.

Yet while the disc business is mixed, digital downloads and VOD continue to grow.

“People do still purchase and rent physical DVDs and Blu-ray Discs, but streaming services such as Netflix and Hulu continue to gain traction as a convenient alternative, accessible through a variety of devices,” noted a recent report from Nielsen. “32% more of consumers surveyed said they preferred streaming a rental movie in the past six months of 2012 compared with 2011, while 29% more opted for transactional VOD for TV shows. According to Nielsen, 12% more preferred using Netflix to watch movies, while 24% upped use of a subscription video-on-demand service to watch TV programs.”

Engaging a focus group of four – my wife, my two children and myself –  I note that between Netflix, Hulu, FlixFling and Amazon, my household is now much more likely to be streaming our entertainment than we were just twelve months ago. Between these services, which are aggressively seeking to acquire more, different and exclusive content (as reported here and here), there’s plenty to occupy my leisure time.

This shift in consumer habits is problematic to companies at every stage of the home entertainment life cycle. Content providers, technology partners (like Giant) and other players in the entertainment pipeline are all trying to adapt to a different marketplace than that which existed just 5 years ago, changing business plans, making strategic moves, acquiring new talent and expertise…

At a recent salon hosted by the Entertainment Merchant’s Association in New York, we listened and contributed to a fluid and candid conversation about how to navigate these new waters.

There don’t seem to be easy answers. Thinking ‘out of the box’ appears to be the order of the day. For example, a representative from Cinedigm noted that they’d begun a promotional partnership with BitTorrent. While BitTorrent is perhaps better known for illegal fire sharing, the folks at Cinedigm see an opportunity there to connect with a different audience than they’ve traditionally engaged (perhaps along with the chance to foil some of that same illicit file sharing). Studios are exploring how to incorporate mobile devices into their distribution strategies, providing added value to fans everywhere. At Giant, we’ve made a strategic move into digital marketing with the addition of the Backward Heroes team and ramped up our capabilities to service digital and VOD platforms, welcoming Nima Ourmazdi, our new Director of Digital Platform Initiatives.

As the entertainment marketplace continues to evolve, you can bet that, as they say, there’ll be no constant but change. Yet in our experience, this needn’t be all bad. The changing mediascape has brought the ‘old’ Giant Interactive together with a talented group who are savvy in many of these emerging areas.  Our new, larger team is better for the change, more capable and more experienced. I’m willing to bet that the industry as a whole will be better for these changes too.

Check back. We’ll be exploring the events, trends and innovations that are of interest to us and our business. We hope you’ll join us for the ride.

Producer/Director David Naylor gets a little quality time with Drew Brees.

Masi Oka, who plays Dr. Max Bergman, was on hand too.

Seems like David and his crew had fun. Hopefully David brought back some autographs and souvenirs. Look for the results on an upcoming Hawaii Five-O disc. Look for it under BONUS!