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BREAKING NEWS & VIEWS
Online Video: TV Is Your Main Rival .jpg) For third parties like Joost, YouTube and others without direct alignment with an on-air TV brand, it will be a struggle to aggregate enough TV and film content to compete effectively with the sales juggernauts TV properties may become. YouTube, Break.com, DailyMotion and other video portals have launched film and music channels designed to accomodate assets from TV, music and movie companies. But major rights holders will restrict the deals they cut with third parties and instead develop their own portals like Sony’s Crackle, CBS’s Audience Network, or News Corp./NBC’s Hulu. For magazine publishers who have been developing their own video properties, Screen Digest’s findings underscore a core challenge to the digital video market. Users may be frequenting a wide variety of video sites and consuming ever more streaming media on a range of sites. But advertisers continue to focus their dollars on the tried and true, reliable properties and environments that the TV networks represent. Magazine brands must go head-to-head for video ad dollars against a very different platform that brings to the table massive media assets and sales leverage. Of course, the news for TV isn’t altogether rosy either. Screen Digest predicts that online TV by network providers could generate as much revenue per viewer as on-air TV in just a few years. The problem is that Web TV still will represent such a small share of overall TV advertising that the networks will not be able to retrieve the $2 billion in ad revenue they are expected to lose from TV spending by then. Even mighty TV is not immune to the basic, cheaper economics of digital. If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com COMMENTS
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