[opendtv] Re: Speaking of business models

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Fri, 16 Mar 2007 08:35:49 -0500

At 8:41 PM -0400 3/15/07, Manfredi, Albert E wrote:
If ABC and CBS can make full length episodes (sub SD quality) available
online with perhaps four 30-second commercials, is this because there's
other advertizing on the web site? Or is it just an experiment, and they
don't really expect this medium to pay for itself?


Do you have more details?

Many of the download services such as the iTunes store charge directly for the programming.

Others are using an ad supported model. The ads one sees when using the website do contribute to the overall economics, IF the content provider operates the website - if not then that money goes to the web site operator.

The other factor that may help mitigate the situation is that there there is some exchange of information and possibly some customization of the ads for the person who is downloading. Most broadcast TV ads are less effective since there is little correlation between what is being advertised and what the viewer may be interested in. And the new services that insert ads make it impossible to skip them, although you can still go to the bathroom or the fridge for a beer.

My guess is that the ability to better target the ads and the demographic data that is collected make this form of ad supported distribution more effective.


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