MCN’s Mark Frain tunes into business of reinventing ads

Multi Channel Network’s new chief executive, Mark Frain, has outlined aims to reinvent ads in the subscription-TV market.

Multi Channel Network chief executive Mark Frain.

Multi Channel Network’s new chief executive, Mark Frain, has outlined ambitions to reinvent advertisements in the Australian ­subscription-TV market as Foxtel moves to unveil a new streaming strategy this week.

In an interview with The Australian, Mr Frain revealed MCN was considering significantly ­“reduced ad loads” during an hour of broadcast, accompanied by plans to trial ads shorter than 10 seconds, a big change in Australia’s $16 billion ad market.

Ad time averages about 13 minutes during an hour of broadcast. Ads typically last 30 seconds.

Mr Frain said the shake-up — mirroring a move by Fox Networks Group in the US — was subject to the industry introducing new ­pricing models based on time spent with content, versus the number of views.

The idea is to create ads with more impact to capture the fleeting attention of consumers as new devices and a proliferation of ­online platforms suck up time once spent with legacy forms of media and entertainment.

“There’s an emerging battle around the attention economy. As viewership moves away from live viewing to streaming and different platforms, we’ve got to be more considered about the new experiences we take to customers in terms of ad loads and ad ­models,” Frain said.

“The challenge is to continually treat viewers and advertisers with respect in a new viewing ­environ­ment by building ad ­models aligned to that. If we get that right, we will have a greater ability to cut through in the attention economy.”

Mr Frain thinks the view­ability and advertising metric problems ­plaguing Facebook and Google have created a “big opportunity” to show marketers and adver­tisers that a TV ad is far more ­valuable than a digital impression, which might be watched with the sound off in the bottom corner of the screen.

Mr Frain’s strategy is in step with a broader trend as consumers take up ad-free streaming platforms such as Netflix and Stan.

“All reach isn’t necessarily created equal. We will assess which ad loads and ad durations are going to be more effective on different platforms moving forward. There’s a lot of testing and learning to be done.”

It comes as Foxtel and Fox Sports, joint shareholders in MCN, work on plans to launch a dedicated 24/7 cricket channel from October in a major shake-up of the sport. Foxtel is majority owned by News Corp, the publisher of The Australian.

From October, Fox Sports will broadcast men’s and women’s ­internationals, one-day, Twenty­20 and Big Bash League cricket matches as part of a six-year, $1.182 billion media-rights deal with Cricket Australia and broadcast partner Seven.

“There’s going to be a number of new non-interruptive ad ­models and innovations developed between overs. We’re going to weave brands into that and ­generate new ideas around Fox Cricket,” Frain said.

Frain stepped into the top job just weeks before CBS-owned Network Ten walked away from an advertising sales alliance with MCN, a long-expected move.

CBS exercised a break clause in the MCN contract on August 1, as revealed by The Australian, ­effectively giving up its 24.99 per cent stake in the TV sales house.

Foxtel chief executive Patrick Delany said MCN could prosper without Ten. “I am very comfortable with Ten going,” he said.

“In the subscription-TV business, we have always been about getting to masses through niches. We’ve sold our product in a very specific way. With the advent of streaming and more niche programming, I see that as a huge ­opportunity for us. And these days, our niches are not so small and our mass is pretty big.”

Mr Delany will unveil a new-look Foxtel at an industry event ­tomorrow as it changes how sport, drama and movies are distributed. New a la carte streaming services will ­deliver programming direct to consumers.

"The whole idea is to reposition Foxtel. It has always been a premium product and will remain premium, but we will deliver value and TV innovation like never ­before. We’re not moving away from live TV, but you will see us sprint towards streaming,” ­Mr Delany said.

News Corp chief executive Robert Thomson said the company continued to pursue plans to float Foxtel-Fox Sports on the stockmarket. “That continues to be our goal,” he said, adding the company was “absolutely foc­used” on the integration of the two businesses.

Mr Frain said the split with Ten would allow MCN to focus more on Foxtel and Fox Sports as the newly merged subscription-TV business moves more aggressively into streaming to take on Netflix and other online services.