canarytrap.net

[Originally written for the Convergence Culture Consortium blog]

This weekend, as some of you might know, is the 6th Media in Transition conference here at MIT. The theme this year is “Stone and Papyrus, Storage and Transmission” and centers on question around the preservation, circulation, and migration of media between places, formats, platforms, and text and the cultural implications these changes carry:

What are the implications of these trends for historians who seek to understand the place of media in our own culture? What challenges confront librarians and archivists who must supervise the migration of print culture to digital formats and who must also find ways to preserve and catalogue the vast and increasing range of words and images generated by new technologies? How are shifts in distribution and circulation affecting the stories we tell, the art we produce, the social structures and policies we construct? What are the implications of this tension between storage and transmission for education, for individual and national identities, for notions of what is public and what is private?

I will myself be speaking on transnational audiences and fan-driven circulation of East Asian television dramas on Saturday.

Though the bulk of activities begins today, the conference has its official launch last night, with a communications forum on Global Media featuring C3 consulting researchers Jonathan Gray and Aswin Punathambekar alongside University of Georgia professor Carolina Acosta-Alzuru and award-winning African filmmaker Abderrahamane Sissako, moderated by our own Henry Jenkins.

A few of the key points and provocations brought up during the panel:

Looking carefully at the flows of media circulation in addition to production and consumption, provides us with a new and important means to understanding media on a global scale.
Brought up by Aswin towards the beginning of the panel but echoed in different ways by all of the speakers, the importance of circulation as a site of media power was one of the central problematics discussed. The question of how media gets from one place to another, through what channels, at whose behest (or against whose wishes) reappeared in different forms throughout the talk. Aswin discussed the varied, criss-crossing flows of Bollywood content. Carolina’s discussed different national forms of the telenovela throughout Latin America and which ones travels with the help of or despite national governments. Jonathan described the almost entirely pirate-led circulation of VCD and DVD films in Malawi and how media circulation into spaces neglected by corporations due to their unprofitability forces us to rethink the temporality, as well as the spatiality of global media. And Abderrahamane linked the power of distribution, of being able to show and export your media, to representation. He suggested that the unevenness in the transmission of media perpetuated the cultural domination upon Africa because as a place that often receives media from the outside but does not produce and distribute its own images, Africa is constructed as a place that has no culture to share.

Not just a question of legal versus illegal circulation
Another key issue was that role of piracy in global media, since illegal distribution channels are often the only means through which much of this media can move. Aswin was first quick to point out that illegal/extralegal versus legal was a false binary, that in actuality the systems are far more complex and overlapping. Jonathan added that, in a case such as Malawi, piracy takes multiple forms, the first being that piracy is the only way to bring outside media in because there is so little profit to be made in Malawi that media corporations never address the area. The second is that piracy stops production of local media because it makes it incredibly difficult for Malawian musicians to make money. In the case of telenovelas, piracy can also be an act of resistance, when national governments crack down on the export of media through official channels. And in Africa, the routes of media circulation are so complex and it is often difficult to trace where any given film comes from. Ultimately, the false binary between legal and illegal circulation makes us overlook the fact that cultures of distribution are simultaneously cultures of production

Down with “industry lore”
Finally, coming out of a discussion of which genres of media circulate, the panelists warned against the trap of “industry lore.” As Jonathan points out in the case of Malawi, that even as general patterns emerge as to what genres and forms are popular, there are constantly exceptions to every rule. Thus we must be careful not to make too broad of generalizations about what audiences want to see and why based on assumptions and speculations.

In preparation for the C3 sponsoring partner’s retreat in May, I though I’d share a brief(ish) summary of the research I’m getting ready to present there.

More then Money Can Buy: Locating Value in Spreadable Media

In our white paper “If It Doesn’t Spread, It’s Dead,” we propose that information and cultural materials — such as brands and advertisements — now circulate within a media landscape that is governed by both “commodity” market exchanges and non-market “gift” exchanges. Stemming from that work, the central goal of this white paper is map out and compare the social and cultural mechanisms that regulate these different systems of exchange. In doing so, I hope to provide insights on how to think about what value means in a spreadable media environment.

This research challenges the recent buzz around so-called “free” economies, led by wired editor Chris Anderson. I suggest that these examples of “free” goods and services available online are in fact, not free at all. They are only free if we continue to operate on the assumption that money remains the only thing of value. Moreover, this type of language is precisely what causes misunderstandings and controversy between companies and their user-base, such as the recent blow-up over facebook terms of services. In we continue to talk about these systems as “free,” we perpetuate the perception that there is no transaction taking place and overlook the forms of value that users are returning to companies in exchange for services. We must stop speaking as if social worth, brand goodwill, and fan advocacy are lucky byproducts and begin to examine what the new standards and regulations of value is in these emergent systems.

Central to this paper is a careful breakdown of the different forms of value present in every system of exchange — use-value, exchange-value, and symbolic value — as well as how these values operate differently and are worth different things and carry different meanings in market and non-market regulated exchanges. I outline some of the defining social logics of market exchanges beyond the use of money in order to better understand the potential accordances and challenges in trying to operate between market and non-market systems.

From there, the paper discusses models of what I’ve come to call “divergence” economies that characterize the Spreadable Media environment. Here, the use of “divergence” instead of “hybrid” is deliberate. It is meant to signal that we are looking at systems of exchange that move media and value back and forth between market and non-market systems, rather than fusing the two seamlessly. I seek to make the point that we must consider how to accomodate and transform the different types of value involved and satisfy the terms of both systems of exchange. Finally, through case studies, outline how — and perhaps more importantly where — we can find value in the spreadable media landscape.

Here then is part 3 of the full interview transcript with Seung Bak and Suk Park, the founders of the Asian Media streaming site Dramafever.This section deals with issues of audience measurement and engagement metric, as well as the challenges and opportunities licensed online video platforms face in light of the many unofficial sources of content out there.

Part 1 and part 2 of the interview are available, and the rest will be up soon.

And again, for an introduction to this case check here and a summary of the key points of the interview can be found here.

Xiaochang: One of the big questions that always comes up is how do you measure audience engagement for advertisers?

Seung: Actually, that’s very easy for us. We have a video platform, so we know basically when people hit play and when they drop out. Mind you, all of our videos are pretty long, about an hour long each. And looking at all the aggregate stuff from traffic to date it was shocking. About half the people stay on until about the 90% of the video. On most video sites I think people drop off after about the first minute or so, but what we’re finding is that our drop off rate is very minimal, every 10 minutes 10% drop off, every five minutes another 2% drop off. We’re finding that about half the people are watching the whole episode every given time. So that’s just on the per drama episode basis and we’ll have to do more research but based on what we’re seeing now, our engagement rate is one of the highest on the internet from a video site perspective. These are very addictive dramas from what you’ve probably personally experienced.

Suk: When you talk about how do you measure audience engagement, what sort of advertisement are you referring to? Banners? Or TV ads? Or mostly online or other platforms?

Xiaochang: I mean, whatever you guys are using. Part of the question is just what sort of numbers are you presenting to your advertisers to tell them ‘this is the amount of people who are paying attention’ to your content?

Suk: It’s interesting because different metrics apply to different advertising platforms, so when you’re talking about impressions on a banner it gets tricky because it depends on the clicking of the banner and so forth. That’s when click-through rates when click through rates become a measure of ROI. When we’re talking about video ads, the conversation with the agency changes a little bit because although click-through rates are asked because they’re curious about what the regular click-through rates are, but what’s understood it that when these ads show up, 100% of the attention is focused on the ads. You cannot click forward, you cannot stop the ads, and if you want to watch the content — and 50% remain until the 95th percentile — you are watching the bulk of the ads. For branding opportunities, it’s as good as it gets in terms of getting attention and relate that particular advertisement to that particular audience.

Seung: Just to add to that, the way we’re distributing videos right now is pure streaming. This is not one of those things where you click play and you wait for the whole thing to download and you go away. Our site doesn’t work like that. It’s only streaming the bit of information you’re looking at at the moment, so if you click pause, that’s not getting accounted for in the engagement metrics. That’s why we’re very pleasantly surprised at the level of engagement that we’re having because these are long videos and to have 50% of the people stick through the end is pretty interesting.

Xiaochang: Where do you think the appeal of this content is for your audience? What makes Asian dramas, or Korean dramas, different from what else is out there?

Seung: I think for the most part, the stuff that we’re showing isn’t just any type of content. We’re curating some of the blockbusters from Korea, and certainly it’s heavily geared towards content that’s proven pretty popular throughout Asia. I think the common thread through Asian dramas and telenovelas and so forth is that it’s somewhat of a refreshing change from what you’re getting in American media. The story lines tend to be, for the most part, wholesome. They’re very engaging and it’s very linear — you can’t start from episode 24, you have to start at episode one and the story kind of pulls you in so that you watch the whole thing. The content itself has proven throughout the world that there’s tremendous appeal in it. What we’re proving here is that in the US where this content hasn’t been distributed in a way where the mainstream has been exposed to it and we’re hoping to be the platform that does that.

Suk: I would that it’s not that the content is better or worse. It is what it is. But we know that there’s a demand for it and we want to make it available in a legal way.

Seung: We had some initial assumptions before we launched our beta, and the whole idea was always to take information as we were getting it and be able to adapt and add new features. So when we lauched beta, we basically had one goal and that was to prove that there is a market for this by providing by far the best experience for viewing Korean dramas online right now. As you can see it’s pretty high quality. There’s almost no wait time. We feel pretty good about the results we’ve seen. It’s only been about a month and we’ve kept it pretty under the radar. We’ve only engaged the select sort of bloggers that cater to this audience. Very niche blogs. And while working with them, we got about 13,000 beta registrations within the first month, which is pretty good. And there’s an additional 20,000 – 30,000 people who came to our site who didn’t register and I think that’s the experience with closed beta in general. I think it shows that even with minimal marketing to date, and with a very small base of content, we were able to prove that there is a demand for all of this. I don’t want to extrapolate too much from a limited sample pool, but we’re getting lots of feedback from people and we feel good that this could easily spill over into somewhat of a mainstream audience based on what we’ve seen so far.

Xiaochang: If the does spill over into a mainstream audience, do you see it going on to some broadcast channels? Do you think will be different sorts of distribution channels for the content that’s not just online?

Seung: That could be. What our content licensers decide to do on their own is ultimately up to them. What we’re focusing on with Asian media companies is to offer them new audiences, to create a platform for them to monetize existing content. So we’re fundamentally web-focused. We want to create a destination site where people can experience the best content from Asia in an english-supported format so people can understand it.

Xiaochang: One of the appeals of sites like Mysoju and sites like d-addicts is that there’s such a wide array of content and this is one of the things that limited the rental circuit and certainly limited the broadcast channels in terms of limiting their audience, so where do you think you guys fit in with that? I mean, it does take time to get licensing deals and you can’t provide the range of content and be as responsive as the fansubbing groups who can turn around content in a day after it airs on TV in Korea.

Seung: That was one of our biggest concerns going into this. We started up the site with basically 10 titles. Even now we only have 14 titles and all of our titles are stuff that’s already been aired and a lot of people have already consumed it throughout the web. But in spite of the fact we have a very limited selection, we’re still able to get 13,000 beta registrations in month one. We’re getting consistent traffic everyday and we’re getting consistent feedback. A lot of this is people who’ve already watched the same content on mysoju but they want to watch it again. There’s also a lot of people who always felt a little weird going to an illegal pirated site, so they come to our site.

Suk: Your question is very interesting. There are other sites that have a wider variety of content, and immediate content that is broadcasting right now. How can we compete in that market? What Seung said it’s right — there are people who come to our site because of the better quality and because we’re a legal site. It’s exponentially harder to do things legally. The assumption that we made in the beginning, that we still hold to this day, is that going forward, maintaining these illegal sites will be harder and harder to do. From two different points: the first one is the advertising model. When you have an illegal site, you cannot bring direct sponsors to that site. You have to live by the advertising network that is willing to sponsor sites that infringe on intellectual property laws and so forth. The second one is that most of these sites, because they are smaller operations, they have to base a lot of their infrastructure on existing platforms. Mysoju loads all of their videos onto Veoh, youtube, etc. These companies also need to abide by much more stringent rules and regulations meant to protect IP, so if there is a site that consistently uploads material that doesn’t belong to them, it is their responsibility upon notification to take it down immediately.

Seung: I think Suk is addressing very good long term considerations that ultimately favor out business. You’re addressing very real concerns that we have, which is that we’re competing with these guys that basically have none of the hurdles that we face because they’re doing it illegally. But in the first month of our beta, we’re competing head-on with these guys. The illegal sites are still up and running, they’re running the same content that we have, and yet in spite of it we’re getting consistent traffic. And in fact, we’re adding new content every week and we’re noticing that every time we add content, we’re getting a spike in traffic. For all these reasons we feel pretty good that even though we’re at a competetive disadvantage when it comes to content selection, the simple fact that we’re offering an experience that is clearly superior to the illegal sites out there, that’s winning over an audience. And we feel that as we add more content, the audience will come, because they’re already coming with just 12, 13 titles.

[Screencap from hugely popular Korean Drama "Boys Over Flowers"]

Here then is part 2 of a multipart full interview transcript with Seung Bak and Suk Park, the founders of the Asian Media streaming site Dramafever. In this section, Seung and Suk talk about surprising audience demographics that reveal that the audience for Korean dramas might be more broad and more diverse in the US than previously imagined by the Broadcast networks.

Part 1 of the interview was posted last week. Keep an eye out for more of the interview in coming weeks as I get around to transcribing the recording.

And again, for an introduction to this case check here and a summary of the key points of the interview can be found here.

Xiaochang: How did you go about approaching advertisers about this?

Suk Park: Advertising: it’s tricky. Right now, we’re using a bigger agency because our traffic is still small, being a closed beta. What we’re doing right now is we’re using the revenue from the Ad Network for the beta stage, and when we launch the full site later this year, we’re building direct relationship with the agencies and the advertisers to bring them in. We actually don’t need that many advertisers now because in the first couple of months the traffic won’t be that substantial.

Xiaochang: Along those lines, what do you tell your advertisers your target audience is? Who do you see as being the bulk of dramafever viewers?

Suk Park: That’s a great question because there’s current a couple of ways to analyze our current traffic. The licensing partners really care, as 40% of our audience is non-Asian. It’s a very easy way for individuals, without premium international TV satellite channel, or without having to go to sketchy Koreatown supermarkets to rent these DVDs, to access this type of content. So as a way of introducing their content into mainstream America, it’s a very low-risk offer for them.

Seung Bak: The current state of the market we found for the Korean broadcasters in this country is that their primary audience is basically Koreans, Koreans who are heavily geared toward the first generation. And their distribution, like Suk mentioned, are basically cable channels and supermarket DVD rentals. And here we’re coming out with this interesting concept and telling them that we’re going to take all the stuff they’ve already aired, to start with, and then we’re going to bring and introduce them to all this new potential audience, which is a very exciting prospect for someone like MBC. We’re talking about people who normally don’t consume this content, or if they do consume it it’s through illegal channels which they have no control over whatsoever. So one of the strongest value propositions we bring to the table is that we are broadening and expanding the audience in ways that they couldn’t in the current state. And as Suk just mentioned, we’re looking at the beta registrations and even we were somewhat surprised. We expected a lot of non-Koreans to sign up for this service, but I’ll say a very small minority are Korean-Americans, with the vast majority being other Asians and a lot of non-Asians.

Xiaochang: So the previous distribution channels seem to be limited in that they could only target what they already knew existed as an audience.

Suk Park: Now, mind you, because these are numbers based on a closed beta, there’s also a discrepancy with small numbers when we do any type of analysis. What’s interesting is that we can clearly assume that people who are registered for the beta are enthusiasts for this content. It turns out there was a lot of demand for this product outside of the first-generation Korean demographic, which brings us to what do we tell the advertisers? Our first iteration that was you would be able to brand yourself within the Asian-American population, or the Asian immigrant community in the US. And now we have upgraded to two basic concepts. One is the female audience — over 75% percent of the audience is female. So everybody who wants to attract a female audience, we would be a very good destination for branding and advertising. The second is an audience that we call Asian-content enthusiasts, but it’s an audience that watches international movies and international content outside of what would be classified as mainstream in the US.

Xiaochang: So you’re slightly changing the message to advertisers as you’ve seen a lot more non-Asian audience share come in, or was that the plan form the beginning that you would broaden it?

Suk Park: There was only a certain degree of what we could plan for from the beginning and a certain need for adaptability. We’re now adapting to what the reality is. The audience isn’t 90% or 100% Asian, it’s a wide spectrum of individuals. A lot of them female, that’s for sure, but a wide spectrum of age and race.

Xiaochang: Can I ask how you measure your audience?

Seung Bak: At the most direct level, we know how many people are registering and the information they use to register. Right now, we’re not asking people for a whole lot of info, just their gender and their birth date. But there’s a lot to be learned from the type of feedback they’re giving us and we’re getting a lot of feedback. And you notice that just by looking at names — and this is a very imperfect way of looking at it — but based on our sample, there are a lot of non-Asian last names in there. And even account for people having either been adopted, or interracially married and there’s still an overwhelming number. And we have a facebook group, which has around five hundred members right now, and if you look at the images of people who are leaving comments, we’re seeing caucausian ladies from the midwest. There’s a lot of non-Asian people in the facebook group as far as people writing on our walls. We’re still seeing a lot of Kim’s, Li’s, and Park’s, but they’re definitely in the minority.

[interviewer's note: this next bit is from a little later in the interview, but I decided to put it here for thematic continuity]

Seung Bak: We knew that there were a lot of Chinese and Filipinos and Asian demographics interested in this, but we really didn’t expect non-Asians to be big fans. We were hoping that we could get a lot of these people to watch this, but we were pretty surprised that even in the initial beta that there were people who you wouldn’t expect to consume this stuff who were actively consuming dramas. And they’re consuming dramas right now in a way where you kind of have to jump through hoops to watch them. Mysoju.com is a good example. I mean, these guys are blatantly ripping content left and right from every major Asian company out there, and if you notice they break stuff off into parts and if you’re watching something, there’s parts missing, the subtitles are weird, the quality is different because one part is on Veoh and another part is on Youtube and so forth. Yet people are still watching it. And there’s another set of people who are basically downloading through bittorrent. You click download before you go to bed and when you wake up you have a new drama to watch and then they go and find some fansub on a different site and figure out how to merge the two. So in spite of all these problems, there’s still a fair number of people who are consuming content this way. So the assumption was, what if you make this site very easy to use, what if you make it very high quality, and what if you just make the overall experience great. You could probably grab that audience and get more, and we’re starting to see some of that even at this very early stage.

So I have been lax on blogging lately because I am currently in the deepest depths of thesis crunch time, with some 80-100 pages to produce in the next three weeks. I do have a number of hopefully interesting pieces in the works, including one on hybrid and divergence economies that will be a deeper glimpse into some of the C3 work I’ve been doing that is sort of a follow-up to the post on the Fallacy of Free, as well as a rundown of the Transmedia as narrative entanglement and platform co-dependence presentation I gave while in Brazil.

In the mean time I thought I’d share the full transcript of my Dramafever.com interview from earlier this year. For anyone not yet aware, Dramafever.com is an ad-supported, fully-licensed online video platform dedicated to full-length Asian media content, in particular Korean TV dramas. For more details, I wrote an introduction to this case here and a summary of the key points of the interview can be found here.

Part 1 of the full interview (which will run roughly 4 or 5 parts) focuses on how the company came to exist and the goals and motivations behind it, including the presence of a very visible and undercatered (at least, through authorized channels) audience.

Xiaochang Li: Can you remind me when you were planning on launching officially?

Seung Bak: It’s sort of a floating date right now, but we’re targeting end of Q1, beginning of Q2, so I guess around a March/April time frame. And the reason we’re in closed beta right now is to work through some kinks and develop some cool new features. We want to fully vet those things and have more content before we open it up so everyone can see it.

Xiaochang Li: Can you tell me about these ‘cool new features’ you’re planning on developing?

Seung Bak: Sure. Right now when we launched the beta, it’s essentially to make sure we get the core experience right — to put it simply: that you can watch dramas and [the experience] is high quality and enjoyable. And we for the most part accomplished that. Some of the features we want to build on are really to build on the experience. So you’re watching a Korean drama and you want to know everything about it, so there will be ancillary assets like pictures. You could have fun playing with, maybe with simple downloads, or you could add your pictures to pictures with actors. There’s also an opportunity to become an aggregator for news related to Asian entertainment that’ll help people save time and discover all these cool blogs that are out there that you would know if you spent all your time hanging out at Soompi, but which for the most part are sort of obscure. We would be a place that brings all of these good blogs to light and help people discover them. And there’s all kinds of stuff we could do around adding all this meta-data to dramas and actors and a lot of people could really engage in the storylines and really be able to discover new stories and really feel like they’re getting to know a certain celebrity. So, lot’s of ideas.

Suk Park: To add to what Seung said, basically we want to be able to create a community for people who enjoy this content as well as an information site for all the content relevant to the dramas, the actors, and so forth.

Xiaochang Li: So you guys see yourself as more of an Asian media content hub, instead of just a distribution platform?

Suk Park: Exactly. We wanted to build a place where you can watch the best of what Asia has to offer in terms of videos. We started out with kdramas, but it doesn’t have to be just kdramas. We’re going to get dramas from other parts of Asia, as well as other types of video content including TV variety shows and potentially movies and material related to music. And then we want to build all these tools for people not just to consume media but also have some fun on the site and be able to engage with other users.

Xiaochang Li: So what made you start out with kdrama?

Suk Park: So Seung and I met in college a long time ago — 1995, 1996—

Seung Bak: We’re both Korean, by the way.

Suk Park: And we always talked about doing something together. Because of our prior jobs, we had traveled across Asia and we noticed about two years ago that throughout East Asia — China, Japan, and Korea — and Southeast Asia —a lot of the Korean dramas were being played in prime time, either dubbed or subtitled. The Korean wave was taking over in a very obvious fashion. We came back to New York and we spent some time doing research to see if people in the US were consuming this type of content. And we saw the regular mediums: the television broadcasts, the DVD rentals, but it just didn’t seem like those were the only two distribution channels. We go online and we find about a dozen or two sites that feature this content, with very strong traffic numbers and every single one of these sites illegally using this content. My background is in international business and licensing so I jumped on a flight back to Korea to meet with the broadcasters, followed by trips bySeung and I to LA to visit the [Korean] broadcaster headquarters in the US and after going back and forth a couple of times, we were able to get the licensing for the for the dramas we have now.

Xiaochang Li: Can you give me a sense of when this was happening?

Suk Park: We went to China around the end of ‘07 and we started conversations with the broadcasters in the beginning of ‘08 which lasted for about eight or nine months before we signed the first contract.

Xiaochang Li: And why did you start out with MBC? And not KBS or SBS, for example?

Suk Park: Those guys were very forward thinking. They’re a group from LA. The other two companies were also very supportive of this idea. KBS is a little more cautious because they have to work within a strong hierarchy from Korea, and because they are government owned. MBC was really supportive and we were able to actually sign a contract with MBC to launch the beta site and move forward to the formal launch. From there we expect the other broadcasters to join us.

Seung Bak: We have active conversations with the other media companies right now. We just happen to have all the MBC stuff already done and prepared. But we’re going to be rolling out content from other sources throughout the year.

Xiaochang Li: So when you say that MBC was really forward thinking, what sort of reaction did you get when you guys first approached them?

Suk Park: There was a certain unfamiliarity with licensing for the online space. A couple of things we noticed with all the broadcasters were that everybody was struggling with online piracyand they were faced with serious doubt about the existing business model from cable and DVD rentals. Both of them were declining — television because the CPMs you get for television ads have been hurting badly and DVD rentals because it’s an obsolete form of consumption. We were able to address those issues with our business model, which presented to them a new revenue channel. Of course, by having a free product which is advertiser-supported and better than the existing pirated product, it becomes a strong weapon against piracy. That’s why all the broadcasters were actually very supportive of our model. The second question that came up though was “who the hell are you guys?” Because all we had was a powerpoint and a lot of passion. We had to prove to them that through our network of advisors and through our career history that we could pull this off. I managed the licensing aspect and Seung managed the operational aspect.Concurrently, I approaching and establishing a strong relationship with the licensing sources while Seung was building something that we could show them. And towards the end of last year we were able to launch the beta site and everyone was very happy with the results.