Over the past three years, the Internet has become a major secondary distribution platform for free-to-air broadcast programming. Whether through network programmers’ own sites, such as ABC.com, or through aggregators like Hulu and TV.com, ad-supported broadcast programming today is generally available online shortly after its initial airing at no cost to the user. However, programming such as ESPN, TNT and the Discovery Channel, which originates on pay-TV platforms (i.e. cable, satellite and telco TV services) has been a different story.
Cable system operators and other multichannel video program distributors (MVPDs) are loathe to see the programming for which they are charging subscribers hefty monthly fees made available “over-the-top” without a subscription. Over time, they fear, consumers would be tempted to drop their expensive cable service if they could access their favorite programs online.
Cable networks, for their part, collect hefty fees from MVPDs for the right to retransmit their programming, from a few cents per subscriber per month, to as much as $3.75 per subscriber per month, for the most popular channels like Disney’s ESPN. In aggregate, cable networks collect about $25 billion per year in “affiliate fees” from MVPDs, about the same amount as they generate collectively from advertising sales.
As a result, much of the original programming on pay-TV networks is not currently available online, and that which is often doesn’t appear until well after its original air date. The popularity of portals like Hulu (not to mention illegal sources of TV content), however, has accustomed consumers to expect access to their favorite shows online, putting pressure on the industry to respond. Network programmers and marketers, meanwhile, are also anxious to extend their programming franchises by tapping the broad, online audience.
TV Everywhere, which aims to make subscription programming available online exclusively to current pay-TV subscribers, represents an effort to square that circle. In this report, we look at the players, potential costs, and emerging opportunities of these efforts. Read more »
Auditude this week announced that it is powering video ads for MTV Networks’ various sites, including MTV, Comedy Central and Nickelodeon, as well as the company’s syndicated content on Dailymotion, Comcast and others. Previously Auditude had a deal with MTV to serve ads alongside its content […] Read more »
Kyte Launches Pro Service; allows publishers to broadcast HD streams from multiple sources; TV Guide using the service for red carpet coverage at the Emmys. (Kyte Blog) MTV Video Awards Generated More than 5 Million Streams; Kanye West’s controversial comments help drive plays within 24 hours […] Read more »
In recent years, virtual worlds (also known as massively multiplayer online games, or MMOs) have shown tremendous growth in terms of user numbers and revenue. However, the market for them is currently in tremendous flux, with the most well-known sub-genre — the subscriber-based fantasy role playing games (MMORPGs) — suffering a growth plateau, due to the dominating success of World of Warcraft. At the same time, user activity in “freemium” virtual worlds continues to explode, most especially in the tween/adolescent market, which is likely to reach a market saturation point soon, though monetization prospects for all but the established players remain uncertain. The explosion of social networks, which share numerous traits with virtual worlds, have created a new potential audience for this genre, while the mass adoption of web plug-ins and smartphones like the iPhone have opened up new markets for the genre.
In this transitional period, many of the best investment and growth opportunities to watch are not the worlds themselves, but the solution providers offering developers the means to better monetize their existing MMOs. Opportunities also exist in niche MMOs that appeal to consumers seeking entertainment outside the established fantasy and kids social MMO space. However, new players that would enter this already crowded market must foster a community of users by rewarding user-created content and continued engagement, while also being architected with multiple revenue streams and play platforms. Read more at GigaOM Pro »
Brightcove CEO Says Company is Profitable, Cash-Flow Positive; Jeremy Allaire credits the revenue growth, in part, to traction in the enterprise and government verticals. (Business Insider) What’s Going on With Move Networks? After keeping quiet for a couple of months, company plans to shift strategy to […] Read more »
New MTV Show Will Split Ad Revenue with Twitter and Facebook; What You’re Watching with Alexa Chung will be a joint venture between the three, incorporating social media aspects — while paying for them. (paidContent) Jesse Alexander’s Day One Gets Picked Up; NBC to run this […] Read more »
MTV has ordered nine new series and brought back new seasons of five others, according to Broadcasting & Cable. A Lauren Conrad-less The Hills will return, as well as Run’s House, Rob Dyrdek’s Fantasy Factory, Nitro Circus and America’s Best Dance Crew. Still awaiting word on […] Read more »
The CollegeHumor Show (CHS) finishes up its first cycle on MTV this Sunday, and though we weren’t huge fans of the show at the beginning, it has grown on us. The question is, did it grow enough to keep it on air? MTV won’t make a […] Read more »
