[opendtv] ABC and Cox to trial on-demand services

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 10 May 2007 11:26:50 -0400

The ABC online catch-up streaming service already works this way. They
now offer their own viewer software, or you can still choose to use
Flash Player, and they prevent fast forward. The thing is, if you are
only interrupted maybe 4 times during the show, and each time for just
30 seconds, who would object to watching the ads?

This is what I don't understand about broadcasting and advertizing.
People are now being subjected to almost 5 minutes of ads for each ad
break. Why is it so hard to understand that no one will put up with
that? They'll either skip the ads or fast forward, if given those
options, or they will pick up a book, go grab something to eat, or visit
the lieu, if not given fast forward options. Or worse, they'll pick up
the phone and lose interest in the show altogether.

It seems obvious to me that the revenue potential of an ad should depend
on more than just how long it is and the time slot. An advertizer should
pay less if his ad is diluted by a long barrage of other ads. That sort
of formula is the only way to make the current scheme self-regulating,
and you don't need any special technology gizmos to make it work.

In economics, a similar effect is expressed by the Laffer Curve, as I've
suggested in the past.

http://en.wikipedia.org/wiki/Laffer_curve

If the tax rate is set too high, the actual revenue to the govt goes
down. Too many ads should similarly mean less revenue to broadcasters.

Bert

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http://www.dtg.org.uk/news/news.php?class=countries&subclass=0&id=2421

ABC and Cox to trial on-demand services

US television network ABC is to test a range of interactive and
on-demand technologies with cable operator Cox Communications this
autumn. Under a strategic partnership, Disney-owned ABC's media player
will appear on Cox's web site, marking ABC's first syndicated media
player deal.

The duo will also test technology which inserts advertising into Cox's
video-on-demand service, targeting viewers by postcode.

Episodes from hit ABC shows such as Lost and Desperate Housewives will
appear on the free-to-view on-demand service, but significantly, Cox
will disable the fast-forward feature, thereby forcing subscribers to
watch ads.

The trial will begin in Orange County, California, and then be rolled
out to other Cox markets.

Lovelace Consulting 10.05.2007
 
 
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