Tackling Video through the Internet

Over recent years, online advertising has really started to take a serious chunk out of the offline world, except in TV advertising. TV advertising has continued to grow as other old media of print, radio etc have struggled, and continued to remain the largest segment by a long way. However, in the world of fast broadband and streaming video, where does online video advertising end and TV advertising begin.
Hulu must make this particularly problematic, since it's service is all around core TV programming. It has done a great job facilitating the watching of TV online, but the current discussions around it's sale, or rather the complexities of its sale, throw light onto this world of blurry edges. Content producers wanting to protect their content, but also trying to learn the lessons of the music business and find ways to move along with the trend.
Meanwhile, from the online world, Youtube and others lead the charge to support, distribute and even create content for the online world. 

We saw in the upfront season plenty of commentary from Advertising Age, Hollywood Reporter etc

- "plenty of other media companies vying for marketers' TV budgets are trying upfronts of their own -- everyone from The Wall Street Journal to Zynga....Right now it's all about the NewFronts, where digital media sellers will try to imitate TV's approach -- and success."
- "the digital insurgency is accelerating at the second annual "newfront" that began April 29 and featured announcements with A-list auspices. (Ed Helms created a comedy for Yahoo; Cheryl Hines will star in another; Saturday Night Live's Seth Meyers is producing an animated comedy for Hulu.)"

However, are the ad dollars really ready to move where people are spending more time. Or is the world of the 30sec and less video segment really where they want to go? Is there enough quality content to put their advertising against through traditional channels, and safe channels, like Hulu, Netflix, amazon and Xfinity apps?


Meanwhile, Vimeo has gone for 10 percent revenue share to show a new Kristen Bell movie on the same day as the theatres. An interesting move to build up their own profile through distribution.


Really interesting too is the debate on measurement, with the Hollywood Reporter writing
"The hot issue leading into the upfront continues to be the debate over currency on which ad buyers accept guarantees. Seven years after adopting C3 (three days of delayed viewing), TV execs want to tack on another four days of playback....Although C7 could boost ratings by 2 percent to 3 percent, Senno wrote, "price deflation could offset some of the upside."

I think in the short term, video will be no quick fix for those trying to extend into it, like the traditional print players (New York Times, Conde Nast, Wall Street Journal) or even substantial yet non-video focused internet players like Yahoo or AOL. 

You Tube has the scale and Google backing to continue to build up slowly, and perhaps will create some successes out of smaller production companies using their platform, but my thought is that again the world is already full of content, and the dollars are unlikely to be there in any sustainable way. But happy to find out that there can be different sustainable business models out of the big media content creators/owners/distributors.
And I imagine Hulu will be kept close to its current owners or close relations, as much to hedge against others while complementing their own more traditional channels.

Big Four Networks Face Big Pain at TV Upfronts - The Hollywood Reporter

2013 TV Upfront/Digital NewFront Calendar | Special Report: TV Upfront - Advertising Age
Pretty enough for TV? Conde Nast and Wall Street Journal strut for online video dollars — paidContent
Vimeo to exclusively carry new Kristen Bell movie the same day as theaters
Hulu Faces a Nebulous Future as It Seeks a New Owner - NYTimes.com

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