Media Bites-November 23 2009

New TV business model causing conflict between broadcast and online platforms

Broadcast television continues to spend analyzing their current business model instead of determining ways to truly partner with online sites. One network exec has stated, " the spending on Hulu versus the network is still small. But the undercutting of broadcast CPM's is something we're all concerned about. It's been more pronounced during the past few months and it's something that Hulu has not addressed." A media buying source confirms their concerns, but goes on to say that, " Hulu doesn't really represent a threat to network TV, today. However, advertisers are considering online video as an alternative to broadcast.'

In my opinion, anything that allows me to consume media when, where and how I want it is a threat to the current broadcast model. Wouldn't it make much more sense to embrace change, develop technologies and produce programming that makes me want to spend time watching?

If Time Warner Cable can develop TV Everywhere beta that lets me watch premium pay per view content on my laptop and Comcast can launch a similar version, as well as a local sports VOD, why can't NBC, CBS, ABC, FOX and the CW do the same?

September 19 2009

Epix HD Launched by Lionsgate, MGM and Paramount
Service will have no advertising and won't appear on your cable bill.

Here's how it will work: The network will broadcast movies that fit into the 'pay TV' window-the time frame weeks before a DVD release, much like HBO or Showtime does now. What makes this completely different is that it will be bundled with cable packages and if the consortium can convince enough cable providers to sign on, they will have an immediate financial advantage over premium pay TV. Additionally, users will be able to get the content online, on demand and at Epixhd.com (http://www.epixhd.com/) Keep in mind that there will be no direct-to-consumer services, only TV distributors including cable companies, Verizon FIOS, AT&T U-Verse and satellite services. In order for the TV viewer to take advantage of this unique network, they'll need to subscribe to both internet and cable service.

The timing of this launch couldn't be better. Case in point-Time Warner Cable has been testing TV Everywhere in select markets. This service allows you to view not only premium pay per view nets online like HBO and Showtime, but other top tier programming as well.

12-24 months from now, TV and internet as we know it will be completely different. It will be one big happy internet/TV universe-At least thats my opinion -:) But that's just me.

September 14 2009

A friend of mine in the ad business had a great line for the newspaper business: 'it's like rearranging deck chairs on the Titanic'. Such a perfect description. The lumbering giants cannot move fast enough to change the business model. Working right now with a property (that shall remain nameless, of course) that won't or can't work with me on a cost per click rather than impressions basis-and this for a unique ad that no one else is doing. They would be showcasing not only the ad, but their ability to run it and generate results. And you wonder why the newspaper business is suffering.

Paying for content is another. I finally figured out why this has me so fired up; I'm not going to pay for something that doesn't have any value for me. And quite frankly, most major publications have still not shown it in paid content. However, several specialty publications like Runners World are moving to a hybrid pay model; bundling interactive tools like show reviews and marathon training with a print subscription for one price.

According to a recent survey from the American Press Institute, 51% of publishers believe they can successfully charge for content. 68% of publishers thought that if they charged for content, users would have a difficult time finding content elsewhere, 38% would limit full story access and 28% would build a micropayment system for specific article purchase. Poll was completed by 118 newspapers of various sizes in small, medium and large media markets.


I think what's happening is publishers will start limiting access to content, watch their audience shrink and lose precious advertising revenue. Find a way to bundle and bring value to the product in new and innovative ways for both consumers and advertisers. Show some creativity and value and then, guess what- you can have your cake AND eat it too -:)