A Business Model For TV Everywhere
Adam Cahan is the CEO of Auditude, a Palo Alto, Calif.-based technology company that provides an ad platform for video management and monetization. He has also worked at MTV Networks (NYSE: VIA), Google (NSDQ: GOOG), NBC Universal (NYSE: GE) and McKinsey & Co.
The world of online video is abuzz with the concepts of TV Everywhere and On Demand Online, with their promise to significantly increase the amount of television content on the internet. What
well written and informative article
Subscription is the only way to make money — cable and dth platform show you can make customers pay for a good service. Why cant they get it online? WATCHINDIA.TV for more
this article is entirely about ad revenue, which is one small piece of the TV Everywhere business model.
i don't disagree with some of the good ideas to improve advertising.
but…
for most cable channels (excluding nbc, cbs, abc, fox) ad revenue is in addition to monthly, predictable subscriber revenue.
a lot of the TV everywhere companies are recreating subscription models, rolling up and packaging a suite of networks across platforms (web, mobile), which makes networks happy.
networks also have to balance not upsetting the hand that feeds them (cable operators). if a cable operator sees a network providing the same live (or on-demand) feed for free online (and ad supported), the cable operator will negotiate down the per subscriber monthly fee because the value of the subscription is now lower. the consumer can find the same content elsewhere for free. so the network has to decide what is more important in the short term – low advertising revenue through online and mobile OR healthy, guaranteed monthly subscriber fees from cable operators and / or the emerging TV Everywhere players.
peter
ScribeMedia.org
Great advice and perspective for sites. I especially like the advice on how to leverage time and events for premium placements — a great new toolset for online publishers.