PSound
04-25-09, 01:07 PM
Great article talking about the large video online market, and the challenges and opportunities facing various broadcasters.
Online video content is finally not only real, but commonplace, with more consumers watching programming delivered over IP versus a traditional broadcast network. The Obama presidential inauguration was watched by more people online than on broadcast television. While much popular online content is enabled by broadcasters that put their programming online, business models, content strategy, and long-term monetization issues are still in play across the industry, with many broadcasters really not sure of what strategy to take.
To decode the secret to success online, I spoke with representatives from several traditional broadcasters (some with multiple channels of broadcast TV), an online content aggregator, a channel designing exclusively for the internet, and a few technology companies that help enable the online experience. Intriguingly, not one approach emerged as a leading strategy today, let alone in the future, suggesting an industry on the precipice of something big.
Also notable are what appear to be emerging mythologies. For one, while everyone talks about cannibalization of eyeballs from the TV to the PC, little or no data supports it—at least not yet. Rights issues, while still key, are quickly being fixed with new contracts that start to address online content (remember that digital rights issues were a major part of the 2007 writers’ strike, and the cost of not managing these rights is apparent). And technology, while still a challenge in some respects, cannot be used as an excuse anymore. Advances in streaming technology, transcoding, HD, ad insertion, and localization mean fewer reasons to wait. More important than knowing what might go wrong is understanding what is right about online content, and I’ve witnessed multiple approaches, none of which are perfect nor the final answer for the industry.
The kind of broadcaster you are dictates, in large part, how you view the potential for online video. I identified six major types of broadcasters:
Major over-the-air broadcasters with very broad content portfolios (such as ABC, CBS, NBC, and FOX) that typically have rights to only some of their content
Specialty networks (such as HSN, ESPN, MTV, TLC, Discovery Channel, and MLB) that typically own the rights to some or most of their content
Subscription-driven broadcasters (such as Showtime and HBO)
Local broadcasters
Internet-only broadcasters with unique content designed for online consumption
Online aggregators that rebroadcast content from many sources (such as Joost and Hulu)
The major traditional over-the-air broadcasters have the most content to share online (disregarding rights issues for a moment) but also the most complicated business models. Historical, complex models with content holders, multiple system operators (MSOs), and other partner relationships must evolve before these broadcasters revolutionize their strategies.
http://www.streamingmedia.com/article.asp?id=11109
Online video content is finally not only real, but commonplace, with more consumers watching programming delivered over IP versus a traditional broadcast network. The Obama presidential inauguration was watched by more people online than on broadcast television. While much popular online content is enabled by broadcasters that put their programming online, business models, content strategy, and long-term monetization issues are still in play across the industry, with many broadcasters really not sure of what strategy to take.
To decode the secret to success online, I spoke with representatives from several traditional broadcasters (some with multiple channels of broadcast TV), an online content aggregator, a channel designing exclusively for the internet, and a few technology companies that help enable the online experience. Intriguingly, not one approach emerged as a leading strategy today, let alone in the future, suggesting an industry on the precipice of something big.
Also notable are what appear to be emerging mythologies. For one, while everyone talks about cannibalization of eyeballs from the TV to the PC, little or no data supports it—at least not yet. Rights issues, while still key, are quickly being fixed with new contracts that start to address online content (remember that digital rights issues were a major part of the 2007 writers’ strike, and the cost of not managing these rights is apparent). And technology, while still a challenge in some respects, cannot be used as an excuse anymore. Advances in streaming technology, transcoding, HD, ad insertion, and localization mean fewer reasons to wait. More important than knowing what might go wrong is understanding what is right about online content, and I’ve witnessed multiple approaches, none of which are perfect nor the final answer for the industry.
The kind of broadcaster you are dictates, in large part, how you view the potential for online video. I identified six major types of broadcasters:
Major over-the-air broadcasters with very broad content portfolios (such as ABC, CBS, NBC, and FOX) that typically have rights to only some of their content
Specialty networks (such as HSN, ESPN, MTV, TLC, Discovery Channel, and MLB) that typically own the rights to some or most of their content
Subscription-driven broadcasters (such as Showtime and HBO)
Local broadcasters
Internet-only broadcasters with unique content designed for online consumption
Online aggregators that rebroadcast content from many sources (such as Joost and Hulu)
The major traditional over-the-air broadcasters have the most content to share online (disregarding rights issues for a moment) but also the most complicated business models. Historical, complex models with content holders, multiple system operators (MSOs), and other partner relationships must evolve before these broadcasters revolutionize their strategies.
http://www.streamingmedia.com/article.asp?id=11109