[opendtv] Re: News: DIGITAL TV OPENS UP TWO-WAY OPPORTUNITIES

  • From: "John Willkie" <johnwillkie@xxxxxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Fri, 29 Feb 2008 10:10:23 -0800

Could you name one of those "successful" jukebox services?  And, you can't
use the Video Jukebox Network (I think my first customer still has one of
their devices), since it was only "successful" for a few months (until the
phone bills came home to roost).  The last time I checked, it was NEVER in
operation at a customer location for more than 12 months.

John Willkie

-----Mensaje original-----
De: opendtv-bounce@xxxxxxxxxxxxx [mailto:opendtv-bounce@xxxxxxxxxxxxx] En
nombre de Craig Birkmaier
Enviado el: Friday, February 29, 2008 7:12 AM
Para: opendtv@xxxxxxxxxxxxx
Asunto: [opendtv] Re: News: DIGITAL TV OPENS UP TWO-WAY OPPORTUNITIES

At 8:53 PM -0500 2/28/08, Albert Manfredi wrote:
>Craig Birkmaier wrote:
>
>>  Targeted advertising is going to be VERY important. But it will
>>  probably need a back channel to close the loop with the
>>  audience.
>
>As always, I disagree on the "back channel." This would take away 
>two of the biggest advantages of OTA broadcast: simplicity and 
>scalability.

Clearly you do not have a clue about what i am talking about.

Broadcasters need to know who is watching, not just vague 
demographics provided by the ratings services. Cable systems know 
what you are watching; DBS systems know when you order a NVOD 
program. Tivo knows a great deal about what you are watching. And 
Internet download sites ARE ALREADY inserting ads that are targeted 
to you.

This is not about simplicity or scalability. It is about the survival 
of the medium.

I am not suggesting that consumers would use the back channel to 
initiate a program or commercial download, although this is possible 
and has been done with analog television - there have been a number 
of successful music video "jukebox" services where you call a phone 
number and ask for a particular title, which is then placed into the 
playback queue.

And it is NOT about Directed Channel Change, which is a complex, 
real-time kludge to deliver targeted ads. DCC can be useful for 
localization; for example, an electronic equivalent of the various 
local editions that many newspapers publish in large markets. With 
DCC a station could have multiple local news inserts that would cover 
specific zip codes. By entering your zip code into your receiver/STB, 
DCC would switch to the correct local insert for your zip code.

The back channel is a valuable tool that broadcasters can use for two 
main things:

1. to develop a personal relationship with each viewer. This would be 
viewer initiated, and would allow the viewer to enter a profile that 
would then be used to allow for localization and customization.

2. To download content directly to a receiver via  the back channel - 
content that can then be switched to - NOT SPLICED - allowing for 
localization and customization.

By the way, it is not necessary to use the back channel to download 
customized content to your receiver. This can alos be done by pushing 
content to your receiver via OTA broadcasts. For example, a station 
could broadcast all kinds of ads overnight - your receiver would 
record those ads that match your profile, and these ads would be 
inserted when you watch broadcasts from that station.

I could go on and on, but I think most of the people on this list 
understand what i am trying to convey.


>
>And as we saw with the RAI "interactive" channel, so far anyway, it 
>does not depend on any such return channel. Instead, you tune to the 
>subchannel, wait some, and then you get the "interactive" info 
>stored in your STB. So interactivity stops at the STB. They will 
>provide phone numbers or URLs, if you need real interactivity. Just 
>move over to the telephone or PC and get interactive. (I'd like to 
>know how successful that has proven, in the test markets.)

Yes, this is also a viable way to deliver interactive content. But 
with a back channel, you could just connect to the stations server to 
gain access to this extra info.

>
>Others have commented on the economics. My only addition would be 
>that the only way for such a scheme to pay for itself is for 
>advertizers to pay a meaningful premium to broadcasters, for the 
>privilege of having their ads directed. This could be done in a 
>one-way broadcast, but only with a small number of ad options. And 
>you don't need any form of IP encapsulation either, unless you want 
>it for snob appeal.

Advertisers are DYING for the ability to do this. They fully 
understand that shot-gun advertising is WASTED on the majority of the 
audience.

I have used an example in the past that goes like this. You go to a 
car dealership and take a test drive, and the salesman gets some info 
about you. Rather than calling, or sending you  stuff in the mail, 
the dealership buys some ads that are inserted JUST FOR YOU. These 
ads could even have personalization. The station would deliver these 
ads to your local cache, then when you watch one of their programs 
these ads would be inserted just for you. ALL OF THIS IS QUITE 
FEASIBLE TODAY.

>
>With or without "back channel," the broadcasters would have to 
>figure out how to get the new-design STBs or integrated receivers 
>out to customers. It would take another FCC mandate. The NAB doesn't 
>seem to have much clout with the CE vendors. And I would expect that 
>the MVPDs would oppose any such NAB attempt strenuously, for 
>instance, which in turn would make the broadcasters quickly back off.

It WOULD NOT TAKE ANOTHER FCC MANDATE. It would only require that 
broadcasters start innovating so that they can survive. If the 
industry developed and supported a useful STB with caching and an 
Internet connection they could promote it easily, just like cable 
system fill up unsold avails with promos for their services. All that 
would be necessary is for the stations to deliver some services that 
people want - like a cheap movie rental service not unlike Moviebeam.

>
>Same objections to this would also exist in the MVPD nets, if more 
>customers would resist having proprietary STBs installed in their 
>homes. If customers don't resist, such boxes could be designed for 
>the MVPDs, who will in turn take the additional ad revenue and 
>charge the marginal extra cost of the boxes back to the customers, 
>via the monthly fee. Will the customers be given the option, or will 
>they be graced with these boxes no matter what?

These boxes are already starting to become available. Apple TV is an 
excellent example. With the addition of an ATSC tuner and some 
software stations could do this today. And Apple would have a big 
pipe to download HD movies to their customers...

Regards
Craig
 
 
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