The TV Network Challenge Part 1 – Does blip.tv Have The Silver Bullet?

Sitting on the couch at blip.tv’s offices in Manhattan, chatting with Dina Kaplan, the company’s COO and Mike Hudak, CEO, I realized that one thing that Dina said was the true story behind this small company – that probably their content and distribution is the biggest and most unnoticed threat to TV networks.

Blip.tv is a video distribution and monetization platform. it offers distribution services to its customers, such an embedable player, distribution to main video sites, twitter notifications, and cross posting to blogs. The company also cut sponsorship deals for its customers with brands, as well as using basic advertisement technology to provide CPM/CPC of deals.

Their uniqueness is in their business strategy – focusing on independent producers of online shows:

Independent producers are in most cases the ones who are not linked to major TV networks, the guys who just go out there with their own money (or, in some cases, investment money) and produce their own shows.

Shows are not the dog on skateboard videos you see on YouTube, but an episodic content, just like regular TV shows.

Blip is hosting different kinds of shows, such as cooking shows, drama, comedy, technology and news.

Here’s an example of such a show, Political Lunch:

[blip.tv ?posts_id=1067725&dest=-1]

So, what’s the big news?

Well, couple of weeks ago, Mike and Dina showed me one cool thing – their integration with Sony Bravia. Sony Bravia has an Ethernet socket. And what I saw at blip’s offices is their content on a large screen TV with blip’s menu and interface.

Though Internet and TV integration is not a huge news, blip’s move into this area is significant.

Till now, independent creators had to face two challenges:

– The limited user experience web video offers

– How to promote their shows without the huge marketing budgets the networks have.

Now, blip’s player is no longer confined to the limitations of web video viewing experience. If users can just as easily see Political Lunch or The Closer, the competitive landscape is fundamentally different that the traditional separation of Internet video and TV experience. And again – the key here is that the content we are talking about is not the regular UGC low end content, but well produced shows, that are not a part of the TV industry.

In this new deal, blip.tv challenges the TV networks as they are providing new kind of content, from a new kind of creators, but on the same display vehicle – TV. By breaking the walls around web video user experience, and increasing the exposure to independently created shows, blip.tv are on a heads on attack on TV networks. Sure, they don’t have the money the big guys have – TV advertisement models and price range are much more profitable than what blip.tv and other online video communities can get today. However, like every innovation, things might take time, but they are definitely changing the landscape in a fundamental way.

It is yet to be seen if blip.tv will be around 3 years from now. I believe that they will be successful and snatched by one of gorillas in this market.

However their success or failure will not only indicate if they are good business people. It would be a clear sign for things to come in the market niche of independent content creators.

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4 Responses to “The TV Network Challenge Part 1 – Does blip.tv Have The Silver Bullet?”


  1. 1 Michael Hoffman July 13, 2008 at 4:41 am

    I find it interesting that the example of Bliptv that you used was from a YouTube embed. Does that mean it’s hard to find or hard to embed from Blip?

    Also, I see no monetization in the video you showed above. Were are we with that? And how does production costs compare to the current revenue models for independent producers? Is there a break-even traffic number? Are the models moving away from CPM and more to integrated sponsorships on a per episode basis?

    Maybe you can do a follow up on these points.

  2. 2 Kfir Pravda July 13, 2008 at 6:31 am

    Michael, Thanks for your comment.
    Please see the updated post with blip’s player. As I am hosting this blog on wordpress.com, not all embeds are possible. Mike touched base with me and explained how I can embed their player – and here wpe go…
    c
    The video you saw was from YouTube. There is monetization based on overlay ads and sponsorship.
    Your questions are very interesting. When looking to production cost – they vary drastically. Some are just a guy in a room. Some of the producers already have the facilities and are just spending their time on producing the show instead of working on external projects.

    I am working on a post covering the monetization aspect – does advertises love this new niche. Stay tuned for more on this topic.

  3. 3 Dina Kaplan July 14, 2008 at 11:46 pm

    Michael,

    Thanks for your great question.

    One of our top goals at blip.tv is to make money for the best original content creators producing shows for the Web. We have two ways to do that: (1) through a run of site network that anyone can opt into, where payments are based on a CPM and (2) through sponsorships of top shows, which are often done as brand matches and not always based on a CPM. In both cases we split all advertising revenues with content creators 50/50.

    The market for video advertising is admittedly nascent – but we have a number of sponsorship campaigns running on blip.tv right now, including for The Smart Show, which was created by Holiday Inn Express, and Puma (which is sponsoring Pilates on 5th and David Jr.). I’d be happy to speak with you about this more if you’d like – feel free to reach out to me at dinaATblip.tv anytime to set something up.

    Thanks again,

    Dina


  1. 1 TV Challenge Part 2: Mark Cuban, Platforms and Messages « Pravda on Media, Technology, and Rebel Filmmaking Trackback on August 17, 2008 at 5:55 am

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