Blog Post

ITV’s Grade: ‘YouTube’s Boyle Offer Was Derisory’

Outgoing ITV (LSE: ITV) executive chairman Michael Grade is using his last droplets of power to rally the broadcaster toward a micropayment future…

Grade, who last year called YouTube a “parasite”, told Five Live’s Simon Mayo about Susan Boyle’s unmentioned success: “All of us are struggling with this. In the UK, our advertising was sold out on ITV.com, we did okay. YouTube I think lost a lot of money, because it costs money to serve video streaming. The offer they made to us was derisory so we didn’t take it..”

“We are working on it and watch this space, but we’re all going to crack it, either when the advertising market recovers or a combination of advertising and micropayments which is 50p a time or 25p a time to watch it. We may move in time, in the medium term, to micropayments, the same way you pay for stuff on your mobile phone. I think we can make that work extremely well.

“We’ll crack it, we’re on our way to cracking it; there’s stuff I can’t talk about because it’s market-sensitive.” Will it be in place for next year’s Britain’s Got Talent? “I hope so, yes.”

We reported ITV’s micropayment interest last week; but, in lieu of Kangaroo, ITV doesn’t appear yet to have a micropayment technology, let alone a pricing strategy. Perhaps it should work with the Technology Strategy Board, which is due to explore experimental micropayment solutions together with content makers at Digital Britain’s Behest.

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4 Responses to “ITV’s Grade: ‘YouTube’s Boyle Offer Was Derisory’”

  1. ed dunn

    can someone tell me the difference between micropayments and pay-per-view?

    Is the definition of micropayment in ITV context paying for specific television series in a manner of al a carte programming?

    While I don't know about UK, here in the USA this would be a great for IPTV services content.

    I do not want to pay for cable/satellite programming even if they offer it to me in a basic package. I would love to be in a position to pay specifically for HGTV programming and make sure I do not pay for tabloid/pundit cable news.

    I hate the fact I have to pay for some pundit on a news channels as part of a basic cable package and would jump at an alternative if offered.

  2. Marty Scheetz

    Youtube is the reason that Susan Boyle became so well known, thus enabling BGT and company to make an awful lot of money.
    It seems that by making money from youtube, and substantionally reducing views, you'd be biting off the hand that feeds you.
    If anyone should have profited from her clip, it's Susan.
    She paid a very high price.

  3. TEMPO/USA

    MILKING MILKING OUR SWEET SUSAN BOYLE DRY
    NEXT TIME YOU SEND HER TO P[RIORY, WE ARE AL COMING WITH HER.. YOU YOU BLANKING &()bcs—dgbnjm!!!! SON OF b4((%. YOU BLANKING BLANK GREEDY BLANK!!
    LEAVE SUSAN OUT OF THIS. SHE DIDNT WIN YOUR STUPID CONTEST, SO SHE IS FREE OF YOU.
    NOW THAT FEELS BETTER

  4. I'm not sure whether it's literally with the Technology Strategy Board (although unless there's two different bodies doing similar work I imagine it is), but Carolyn Fairbairn, director of group development and strategy at ITV, said in a Tele article last week that they were in fact already "part-funding" Digital Britain research into micropayments