? Legacy media companies like 21st Century Fox Inc. are beginning to consider social video as more than a marketing platform.
? Fox's "The Rundown" video series lives in the app for its new film "The Predator" coming out this summer and supports the intellectual property fans want between major motion picture releases, straddling the line between entertainment content and marketing content.
? Studio executives are open to creating social-first content, but shifting the infrastructure and proving the value remains difficult.
Fox is one of many traditional media companies learning to navigate new digital and social waters. While turning such large ships can seem slow and difficult compared to smaller, nimble startups, the company is investing heavily in its digital strategy.
Scott Norville, vice president of digital audience development at Fox, said the creation of his position at Fox is evidence that the company is taking digital and social media more seriously. Currently, the large legacy companies are using social media, particularly social video, as a marketing tool, but Norville sees that strategy expanding to supplementary content and perhaps eventually stand-alone content.
S&P Global Market Intelligence caught up with Norville at SXSW to chat about the integration of social video in his company's strategy. What follows is an edited version of that interview.
S&P Global Market Intelligence: With Facebook Inc. and YouTube and others investing in original native content, including short-form video, why do you think legacy studios like Fox are using social channels more as marketing platforms, supplementary platforms, and less often creating content specifically for them?
Scott Norville:
And that content between seasons or film debuts would be premium, native content, not recycled cutting-room floor footage?
Both. It's easier to repurpose old stuff, cut things together and create new fun ways to exhibit old content. That's cool and it's easier, but for sure there's new interest in certain groups saying, "Hey, maybe we should actually develop a show." "The Rundown," a show living inside "The Predator" [film] app ... is a brand new show talking about that particular franchise that is available only, or mostly, through this [digital] portal.
So that would be to engage existing audiences while also maybe developing new fans?
And hopefully get some data about them too.
If you wanted to create some kind of intellectual property that lived on social media, a show made specifically for Facebook, for example, what would be the monetization path? A partnership with Facebook for ad share, or something else?
There would have to be some kind of arrangement. I think we're always trying to explore what makes sense, and Facebook monetization is a tricky thing. I haven't negotiated any deals in that respect. The reach is great, but what's the return? Or can you demonstrate some value maybe that isn't directly money, some value that could perhaps stand-in that makes this worthy of our time.
So at their own pace, you'd say these legacy media companies are considering the range of content possibilities these new platforms can offer?
The legacy media companies, they're recruiting people from these platforms. It's funny to see this rotation of studio people going to Netflix Inc. and Google, and then people from Google and Netflix coming to studios to help them out. I think they're very open minded, I really do. I think they understand the importance of exploring these new means of distribution, these new means of engagement, and I have only detected very, very open minds as far as that is concerned.
So the perceived slowness compared to smaller, younger companies isn't necessarily market bias, but the work of shifting the legacy infrastructure to make sense in these new platforms at the margins the company expects?
Absolutely.
