VON Live blogging – Business model for Web TV

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I am here with Kathryn Jones, waiting for the panel about business models for web TV.

Fred Seibert, Next New Networks CEO, Tad Davis, VP marketing Tremor media, and Jeff Sundheim from doubleclick are on stage.

Stay Tuned.

Update 1

NNN – media company for niche audience market. Running 15 networks.

Tremor media – focus on rich media and video add insertion. 1000 publishers, pre-roll is the main application.

What is the consumer doing? So much free TV on the internet. Why should consumers watch advertisement?

Fred – there is a lot of free stuff but it is not new. More of us spend more of our time on something someone else paid for. There is a cycle where all the free things overwhelm the viewers, and people will pay to have quality material, picked by others.

Quality – do I like it or not? not production value. People I am going to the internet cause they have there what they want.

Jeff – writer strike changed the way that content on the web is done. semi pro are going to this market. people understand that they will need to pay for good content.

Tad – time shifting is the interesting part. People understand that production costs money.

Update 2

Tad – ads are not bad, they need to be relevant.

Which format is the most promising and which ones are the most used? Jeff – A lot is pre-roll, mid-roll and post roll. Research shows that a lot of users don’t like it, especially in short form. in 8 minutes. The overlay is also there. Publisher don’t have commercials for the web, and pre-roll is the easiest one to sell. Tad – sight/sound emotion is a great way to communicate adds. It is still a very effective way, and pre-roll won’t disappear. the dollars are not pouring to overlays. It is also problematic cause it covers the bottom third info.

Fred – pre-roll is anti consumer, while internet is pro consumer. someone will find the way to help consumers, and they will win the market.

What’s about targeting? Jeff- Pre-roll won’t die, but it would shift. In TV content is the proxy. Metadata is important. Visible World, a partner of doubleclick, does geo-targeting.

Tad – targeted ads have privacy issues.

Fred – we don’t know what would work. but we should be a part of it.

Publishers are looking for something scalable, creative, different and have a matrix.

Wrapping it up

It was interesting to see that though the panel title was business model for web TV, the panelists talked only about one thing – advertisement. When I asked about alternative models, and gave the NIN example, Fred had a very good answer – NIN are well known brand, their methods won’t work for the unknown shows.

An edited version will be uploaded soon.


1 Response to “VON Live blogging – Business model for Web TV”

  1. 1 Christophe August 14, 2008 at 8:28 am

    I wish the edited version was available…

    For example, I’d like to know what is this “NIN example”. I never heard of that “well known brand”, and wikipedia seems to refer to a rock band … or a National Identification Number ?

    I also fully concur with the fact that advertising is only one of the component of the business model. Subscription is the obvious other one, and “Hosting” (the content provider pays for the service) is also very successful for some niche content. Note that the latter could also be used for “Live” TV.

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