April 13, 2010

Prediction: NanoGaming Will Replace Nielsen


Years from now it will seem obvious how LifeHive Systems replaced the A.C. Nielsen company as the source advertisers, agencies and TV programmers use to rate what consumers will like or dislike.

By then everyone will understand the dynamics of NanoGaming and how it changed how we live our lives. It will show us on a minute-by-minute basis that nothing is assured. This will ultimately make people question their actions before they make them. Who knows, it could even make people think twice about doing something rash and lead to world peace :--)

But that's nothing as compared to the effect it will have on Madison Avenue! It will break the lock Nielsen has on our main media vehicle of business, television.

The funny thing is NanoGaming has little interest in going after Nielsen. TV ratings are not their business. Actually, that is not exactly true. Rating TV, or predicting TV events, is.


The driving force behind NanoGaming, LifeHive Systems enables people to rate the outcome of TV events. Nielsen rates programs after they happen. Through LiveHive, TV viewers are empowered to rate them before they happen.

That's because a viewer won't have to be an expert. Sure, experts may make more predictions, but NanoGaming will give viewers the opportunity to make dozens of predictions about both large and small things. Plus, experts will be dependent on the program.

For example, Mr. Smith is an expert on the NY Rangers but Mrs. Smith knows what's doing on Grey's Anatomy. Their daughter Sharon is the expert on the Academy Awards and their son Cliff is the expert on MTV's Real World. LiveHive's will enable each of these viewers vote on both large and small events in each, such as these:


1. Will Chuck swear if he falls in the mud?
2. Dick and Jane gang up on Joe?
3. Will Harvey get voted off first?
4. Will Bob fall off the beam?


1. What team is going to be ahead at the half?
2. Who is going to get the most yards this game?
3. How many interceptions will be thrown during the 1st Qtr?
4. Will they make this field goal?
5. Will he make the pass?


1. Will Scorsese thank more than 10 people?
2. Will Joan Rivers or her daughter Melissa talk to Brad Pitt first?
2. Will J-Lo cry?
3. Will Jon Stewart flub one of his opening lines?
4. How many laughs will Chris Rock get?
5. Who's going to win best male vocalist?


TV Shows/Grey's Anatomy
1. Will Addison argue with Alex?
2. How many surgeries will there be in the episode?
3. How many scenes will Miranda be in?
4. Will Christina appear in a scene at home?

LiveHive's metrics system measures the number of people who are engaged in the program and how involved they are on a minute-by-minute basis. Predictive opportunities will be offered rapidly. This type of excitement will in many respects, get viewers "glued" to the program. We're talking bringing video gaming-level involvement with no need for Xbox smarts. However, viewers will have same thrill of the outcome, which will eventually expanding to almost every form of content on TV.


Sample sizes will no longer be in the anemic Nielsen-level respondent counts. It will be in the thousands, or hundreds of thousands, maybe millions. It's all synchronized with the TV show you're watching. While this is not the purpose of LiveHive, any smart advertiser will see the comparisons to viewer involvement combined with probability of national viewership versus Nielsen ratings which get flatter and less relevant as time goes on.

This new technology debuted just last night on, of all things, a program titled, "BIG BROTHER 8" broadcast on CanWest MediaWorks Inc, in Canada. Who could have predicted that!

For those of you in the lower 48, Big Brother 8 is a popular reality TV program, structured like many other reality TV shows. It brings together 14 strangers in an isolated house full of cameras, who compete for an ultimate cash prize of $500,000. As the show unfolds, viewers can now answer real time prediction questions and trivia, while competing with other fans for prizes and a position on the leader board.

In 2006, while in Beta, LiveHive Systems deployed NanoGaming for the NFL season on its SpeedofSport.com fantasy site, and this past spring launched NanoGaming for Major League Baseball.


"This is a ground-breaking event in Canadian television, and Global's proud to be a part of it," said Neil Sweeney, Director of Business Development, CanWest MediaWorks Inc. "We see the NanoGaming application as a way for us to interact with our viewers, turning a passive viewing experience into a 'lean forward' online community game, adding digital depth to the Big Brother brand."

A veteran of Microsoft with partners coming from IBM, RMS and others, Robert Riopelle, Co-Founder and Vice President of Business Development for LiveHive Systems has been mum about what tech company has been funding LiveHive. What he will share is, "NanoGaming is a technology that will change how viewers watch television, and it will have a major impact, especially on reality TV, game shows, and sports".


As time has shown, Nielsen is nowhere equipped to measure 21st century-level post-viewing, let alone measure what TV viewers predict will occur on an average quarter hour basis. The LiveHive application will potentially have hundreds of thousands of people playing at the same time.

For advertisers, having the commercial breaks already structured into the flow of the game is great! When the game cuts away to the commercial break it's clearly an opportunity to run advertising without any clutter in the game itself. If you wanted to run say, a 30-second spot you would ideally time it to coincide with the commercial break on TV.

However, because this is a game or any of the programs it will cover, an advertiser can be more creative. For example, alerting the user that an ad for BMW is coming on and you, the player, have the opportunity to win extra points, "you can do so by entering into a contest etc..." Then when the commercial break is over, BMW can ask questions about the ad or "sponsor" the next prediction. With this application anything is possible.

Life is a gamble. Whether it's the stock market or what you're having for dinner. It's human nature for people attempt to predict the future. LiveHive's system has no relationship with any gambling organization and never will. It simply provides TV viewers the opportunity to measure the success of their own predictions about what they are watching. They are creating blogs around each program so people will be able to communicate with other viewers about each program as it is happening.


LiveHive is located in Waterloo, Ontario the Redmond, WA, Cupertino, CA, equivalents in Canada. It was recently named the world's top intelligent community by the New York-based Intelligent Communities Forum.

LiveHive's model is B2B and is marketing itself to TV networks, sports affiliations, syndicated programs and other producers of YV content. In turn, their clients will incorporate it into integrated packages for their current list of advertisers.

LiveHive Systems is the most intelligent thing to help programmers and advertisers measure their effectiveness since A.C. Nielsen discovered a new purpose for the slide rule. You can bet they've done their research.


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