Is the TV industry headed the iTunes way  

Posted by Dr. Raj Murthy in , , ,

Ashley Highfield of Microsoft UK believes that TV needs to find ways to generate significant revenue from online video and to make it easy for advertisers to buy ads in bulk for online TV.

The real question is, would consumers continue to embrace TV shows online if advertising increased to broadcast TV levels? Is this a reflection of an overall cultural change of consumers demanding TV on their terms.

Read more at
http://www.guardian.co.uk/media/2009/aug/29/ashley-highfield-edinburgh-tv-festival

3 comments

I think that adding more advertising to online TV shows wouldn't really do much to the population that watches online. I watch multiple shows online mostly for the convenience of being able to watch them whenever I feel like it. I really dislike watching the one or two ads that they put on already, and if they put even more on to the same extent as on television I would be extremely annoyed and most likely be very irritated whenever I was trying to watch a show, but I think the convenience of watching it whenever I feel like it will still triumph.

Well there was a study done last year about TV watching and the level of happiness experienced when there was no commercials and when there was several different ads spread throughout a half-hour show. The research found that TV watching with advertisements created an enjoyment rate that looked like this

|__|__|__|

Whereas a TV show without any ads actually generated enjoyment like this:

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Which really is interesting. I'm not sure if the same thing applies to TV shows online or not, but it raises an interesting question about whether or not ads are actually truly irritating.

I'm not surprised mobile users tend not to click on advertisements. I frequently listen to Pandora and for non-paying users there are occasional advertisements. Many of these advertisements are for product recognition and often aren't selling an item through the advertisement. Instead, the next to the grocery store you may see the product advertised.

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