Media Wonk

Link This | Email this | Comments (0)

TV, or not TV? - January 23, 2008

That was the question National Academy of Television Arts & Sciences Shelly Palmer posed at the Future TV conference in New York this week with respect to online video.“It looks like television, but it’s not television,” Palmer said, answering his own question. “It’s not at all like television.”

Why not? Different “value chains,” for one reason.

In a typical hour of network television, Palmer noted, there are 44 minutes of programming and 16 minutes of advertising (including promotional spots).

“What’s your tolerance for advertising online?” he asked, rhetorically. “The same ratio [of advertising to programming] would mean 90 seconds of ads for every six minutes of online video. Is anyone going to watch that?”

The obvious answer is, no. The somewhat less obvious implication is that online programmers will never be able to embed enough advertising to sustain a comparable level of programming quality for online video to be “like television.”

The other significant difference between online and broadcast video, according to Palmer, is that the Internet is an open network while traditional television is a closed network.

“On a closed network, I can tell you exactly where your ad ran, when it ran and how many people saw it,” Palmer said. “How will you know which ad is supposed to be where on an open network?”

The result is that advertising on an open network can’t command the same price per eyeball as on a closed network.
What to do?

“Online video needs to be something else,” according to Palmer. “There are other currencies online,” besides advertising CPMs. “On the Internet, passion is a currency. Bloggers are very passionate about what they and that creates value. Fame is an currency on the Internet.”

The trick, Palmer noted, is to create something that will convert online currencies into off-line wealth.
“TMZ built a valid translator for turning Paris Hilton’s fame into wealth, and they did it online and on TV,” he offered by way of example. “What online video providers need to do is build an effective translation engine.”

[Consumer Trends]  [E-Content]  [Streams & Downloads]   LEAVE A COMMENT