Saturday, April 22, 2006

TV Networks Distribution Model Adapts

Over the past year we have followed the movement of video content from the Major Network and other providers to the Internet. Kenneth Musante writes for the interactive advertising blog Here is an excerpt from a recent post: "... It’s obvious to anyone that the future of video is distribution via some form of the Internet. It’s not just traditional TV advertising that’s dying; it’s TV itself. It‘s not just about ratings and statistics. Video distributed over the Internet is interactive, engaging, and on-demand. While the Internet pipes aren’t yet big enough to warrant direct streaming of HD-quality TV shows, TV networks should at least be preparing for the day when their primary business of broadcasting content over the airwaves becomes pushed aside by the distribution of content over IP. With today’s online advertising technology, it should be possible to serve appropriate video ad segments according to a person’s viewing habits, how they found the video in the first place, where they are located, and what content is contained in the show. Advertising over the air, or even via cable is too static. All you can do with them is estimate the number of viewers by a score determined by a third-party rating service. In other words, a targeted video advertisement delivered via IP is worth more per second than a 30-second spot delivered to a broad, un-targeted audience via TV. ..." Link: - Watching the Nervous Little TV Networks

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