Comments on: Lessons from Cable TV re: Advertising

By: Discussion with Philip Hodgetts about the digital TV future.

Discussion with Philip Hodgetts about the digital TV future. — Wed, 04 Jun 2008 14:14:58 +0000

[...] for 85% of the population. And only the first wave is free, later waves are subscription or ppv. http://www.downloadablemedia.org/index.php/lessons-from-cable-tv-re-advertising I suppose this is the biggest sticking point. The over zealous business models being [...]

By: Rob Simon

Rob Simon — Fri, 08 Feb 2008 16:53:15 +0000

The other lesson from cable is that ultimately “Content is King.” If we aren’t producing really great and innovative stuff, and using the medium the right way, then we won’t get advertising OR pay-to-play subscribers.

HBO figured out that it wasn’t about the movies, it was about the new, creative and innovative shows they could produce. That is what people are paying for!

The best monetization strategy is better content.

By: Terri in Tokyo

Terri in Tokyo — Fri, 08 Feb 2008 12:16:46 +0000

This is a very useful viewpoint, Rob, thank you.

By: Philip Hodgetts

Philip Hodgetts — Thu, 07 Feb 2008 21:53:51 +0000

A great historical perspective Rob, useful information and insight. The future will hold an “and/or” model – one size will not fit all. Like you say, some content will be advertising supported and free to the viewer, other content will be better served with a pay-per-download model. Although I do believe the model will have to be simpler than it has been (we’re trying to do that at Open TV Network) and pricing has to be in line with traditional network revenues (or less) – an *average* of about a penny a minute per viewer. Heck Superbowl 08, for all the cost of the ads, actually netted Fox less than half a cent per viewer per minute across the 300 minutes.

Cheers

Philip

By: Jamie Davis

Jamie Davis — Thu, 07 Feb 2008 19:40:18 +0000

Good points, Rob. It’s a lesson for the industry to:

1) remember the more things change, the more they stay the same

2) not to reinvent the wheel

Thanks!

By: Kacin Alexander

Kacin Alexander — Thu, 07 Feb 2008 06:37:20 +0000

I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.

Kacin Alexander