Internet TV
December 06, 2005
Below is an abbreviated version of an article by Jim Hedger from StepForth
Placement Inc about the merging of the Web with the Media.
An interesting phenomenon is coming to a monitor near you, perhaps the one
you are looking at right now.
A decade ago, the traditional media set the pace by telling our stories and
providing practical means of mass-communications. Today, the Internet provides
a globally stable transmission line and the Web serves as both production studio
and broadcast medium. The Internet's growth and more importantly, the ease of
access for anyone with a computer, a connection and a bit of talent, has pushed
the majority of traditional media outlets into a period of survival strategy
and planning.
Recent discussions between Google, Yahoo and CBS about distribution, along
with the combined support of AOL and ASK for Internet TV start-up Brightcove
show a definite shift in thinking among the US TV networks.
In an interview with Reuters, Les Moonves, CBS chairman said, "We're
talking to them [Google] about a whole slew of things including video-on-demand,
including video search."
The TV networks have recognised they need to work with the Internet and to do
so they need to work with the Web's core information providers, the major search
engines.
"They need our content, we need their technology," he said in the
Reuters interview, referring to broader discussions with Internet companies.
"We argue about which is more important. I think ultimately my content,
no matter how you get it, content is still the most important thing."
Google, Yahoo, ASK, AOL, et al, view virtually all "open" information
on the web as freely spiderable. Even without formal agreements signed, Google
and Yahoo have both made video search of TV show snippets uploaded by fans available
on demand. Quotes from the shows can be found based on the transcripts of closed
captioning broadcasts.
For producers of Web-ready television content, it's no use producing content
for mass-distribution over the Internet if you aren't in the new-media version
of the TV guide. The problem for both the search-information providers
and the content creators is how to make a profit providing the service.
While Google, Yahoo and the major TV networks will, for the most part, be able
to rely on current advertisers for revenues, three important factors
threaten to challenge the stability of that traditional marketing environment.
1. Ease of access to the industry.
Making video has never been cheaper or easier and with the proliferation of
broadband, delivery of product is virtually instant and universal. In other
words, consumers no longer have to go to an expensive movie theatre to watch
a production that cost a fortune to produce. Access to the market and means
of production is literally open to anyone. In the near future, there could even
be competition for click-through revenues between traditional commercial driven
television production and the increasingly professional but independent amateur
productions.
2. If there is a sudden increase in quality and availability of independent
productions and those independent producers show credible commercial competition,
what is to become of the massive media machines behind the scenes of
most network shows? Someone has to pay the bills and the predominantly
successful model, (pay-per-click or in this case, pay per view), might not provide
sufficient revenues for the highly expensive network shows against popular independent
productions.
3. Handheld, pocket-sized devices such as Blackberrys and mobiles are
increasingly web-capable and can handle video. Content produced for
the web must also be available where portable media users are looking for it.
Internet TV
…soon we’ll see as many video channels as we see websites today…
Brightcove is a US based Internet TV service that “empowers video producers
and programmers to build broadband businesses and gives viewers more choice
and control over their use of video and television”.
Distribution is the major factor that places the Web far above other forms of
media. Taking a page from Google's early playbook, Brightcove is also working
to harness the massive distributive power of the Internet by inviting website
owners to inquire about syndicating video content. “In the world of Internet
TV, we’ll see as many video channels as we see websites today.”
The opportunities for small business advertisers and website marketers are enormous.
The emergence of the Web as the primary means of delivering video information
offers website marketers a new area to present client products and services.
The Internet and the Web, while already remarkably versatile, has become a vital
link in distribution for the largest traditional media companies, including
the major TV networks. The Web is also absorbing a great deal of the advertising
money that was previously spent on print. It even threatens the mainstay revenue
generator for most urban newspapers, the classified ads section.
Over the past few weeks, stories about Google Automat, a service procedure Google
wrote a patent application for nearly two years ago have emerged. The patent
application, which was published in early September of this year, is for "a
system and method for providing online user-assisted Web-based advertising."
The patent application goes on to describe a service that appears remarkably
similar to Google Base.
"Preferably, such an approach would guide a user in the creation of advertisements
describing offerings of goods or services, creatives associated with the advertisements,
and advertising budgets. Such an approach would also help create and host a
Web presence for individual and other advertisers. Such an approach would also
facilitate driving Web traffïc to hyperlinked advertisements through targeting."
(source: Patent Abstract)
The patent shows Google is preparing to enter the collection and distribution
of small, personal sized classified ads, like the ones printed in the back of
your local newspaper. As Google collects them, many industry analysts expect
them to begin distributing them through the online classified sections of those
same major newspapers.