Comments on: Second-screen hopefuls hard-pressed to disrupt Hollywood ‘cabal’

By: Jake

Jake — Sun, 18 Nov 2012 23:18:59 +0000

Ad sales result in commissions for ad sales people. If the TV network ad sales guy doesn’t want that commission his competitor TV network might just decide to pick up those dollars. If not that guy, maybe the newspaper ad sales guys want those dollars. Or maybe the ad sales department at the sporting, fashion, music, or whatever magazines that figure out they can sell Second Screen ad spots synced to TV.

By: j f c

j f c — Fri, 16 Nov 2012 11:15:53 +0000

While these are all valid points Matt.

I believe the primary message was that 2nd screen apps have their work cut out for them. Non of the 2nd screen apps have devised the “AH-HA” moment that they have hoped for. Its not to say they will not get to that moment it has not happened. This is not about being Google or Time Warner (both fine companies by the way) it is a reality check and a challenge to be better than yo

By: jgauntt1

jgauntt1 — Fri, 16 Nov 2012 03:39:14 +0000

Right now, the insurgents going up against the TV cabal have to pull off the perfect heist a la Ocean’s Eleven. From a capitalization and industry inertia POV, any competitive misstep brings the full weight of the cabal crashing down on them. Most insurgents are trying to carve off a piece of the business in impressions. Not surprisingly, we haven’t yet had an insurgent take on the core business. Most are content to compete for crumbs, which aren’t insignificant in a $70bn market.

So long as the competitive high ground involves creating an audience for impressions, the TV cabal will have their defense against the perfect heist. However, as the ground shifts toward owning the account (and I’m not talking MSOs but iTunes/Google Apps or Wallet or similar), the big TV guys will be at a disadvantage because the digital and second screen guys will be able to layer on the ability to transact in real time at the point of the advertisement. True, the Hollywood players will be partnering with many of these guys. Also true that many if not most of those partnerships will fail as the walls start dissolving between traditional advertising and sales.

So don’t look for insurgents talking about creating more or better impressions than today’s TV incumbents. Look for those who can pull down the walls between ads and transactions. They will change the game.

By: Matt Eagar

Matt Eagar — Fri, 16 Nov 2012 02:37:16 +0000

One more thing: mobile advertising is just a fraction of total online advertising, but does that mean there is no future in mobile? The fact is that advertisers are slow to catch on to these trends. But eventually they do. 15 years ago, online advertising was peanuts in comparison to print. Today would you rather be Google or Time Warner?

By: Matt Eagar

Matt Eagar — Fri, 16 Nov 2012 02:20:40 +0000

Sure, there’s no problem with the current business — until it falls apart. Execs in the newspaper, book, and music industry will all tell you that there was nothing wrong with their revenue models until they broke down — seemingly overnight.

When you are part of a lucrative business such as TV production and distribution, you have a big, red target painted on your back. Sooner or later, someone is going to figure out a way to knock the legs out from under your business. If you aren’t constantly looking for what’s next, then you risk losing it all.

Already it’s not clear that the existing business is doing particularly well. Pay TV subscriptions are down, as more people are getting their content from alternative sources such as Hulu, Netflix, and YouTube. Live sports and force of habit are about the only things that are keeping the ship propped up right now, but even those will come under assault (see http://mytvchoice.com/ for example).

Yes, the current second screen experience leaves much to be desired, and only a relatively small group of people participate. But that’s not the point. Second screen is an opportunity to stop the slide, to make live TV more of an event again, to give people a reason not to jump ship as these other venues become more enticing.

The TV industry does have problem. They may just not realize it yet.