[opendtv] =?utf-8?Q?Re:_[opendtv]_Re:_NYT:_An_Ad_Buyerâs_Busy_Day_? =?utf-8?Q?as_a_Target_of_the_TV_Upfronts?Date: Sat, 21 May 2016 07:40:40 -0400
- From: Craig Birkmaier <brewmastercraig@xxxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
On May 20, 2016, at 8:30 PM, Manfredi, Albert E
<albert.e.manfredi@xxxxxxxxxx> wrote:
Craig Birkmaier wrote:
The key word here is CHANGE; it is NOT ‘we are not buying ad
inventory anymore.”
Isn't this what they call a "red herring"? Certainly I never claimed that ads
were not being bought or used anymore, because I continue to depend on ads to
fund my TV content. My position has continuously been that just as the vast
majority of Internet content is supported by ads, this additional
TV-over-Internet content fits in perfectly with the Internet model. These
days, online ads are the same as the ads transmitted OTA, as a matter of
fact, and I see them all the time.
If anyone's position, by extension, was that ads would disappear, guess whose
position that was? Guess who keeps claiming that all TV will be going behind
pay walls?
Ads are certainly not going away. And in most cases, the paywalls do not
eliminate them. Content is moving behind pay walls because the revenue from ads
is no longer sufficient to pay for the content. Or perhaps a better way to say
this is: consumers tolerate the double dipping of ads and paying for the
content because they want the content and are willing to pay.
I've never said ads would disappear; ads are too effective, and there will
always be live content - entertainment and sports - where they cannot be
avoided. And there will always be ad supported services for those, like you,
who are unwilling to pay for the bundles.
I have said that ads will evolve, become more targeted, and in some cases that
the added value of targeting may reduce overall ad load. I think this is far
more likely than intrusive ad breaks disappearing, replaced by product
placements.
Truth is, product placements have increased right along with increasing ad
loads.
What we are seeing is more options to pay for content without ads. Netflix is
the prime example, but even Hulu now offers a paid + ad supported and a paid ad
free service.
Bottom line this is the new reality:
1. Live linear networks will continue to thrive as a medium to carry ads - but
these networks will need original content (the rerun networks will disappear).
2. Content will continue to be sold into syndication, and most older content
will be accessed on demand, mostly through SVOD bundles like Netflix and Amazon
Prime.
3. MVPD services will continue to evolve into a hybrid live (ad supported) and
SVOD service based on TV Everywhere. There will be more competition between
facilities based MVPDs and VMVPDs that use the Internet to reach subscribers.
Regards
Craig
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- » [opendtv] =?utf-8?Q?Re:_[opendtv]_Re:_NYT:_An_Ad_Buyerâs_Busy_Day_? =?utf-8?Q?as_a_Target_of_the_TV_Upfronts?Date: Sat, 21 May 2016 07:40:40 -0400 - Craig Birkmaier
