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dmendyk
dmendyk
7/21/2016 10:10:56 AM
User Rank
Platinum
Digital dilemma
Adi -- It sounds like video content providers are running into the same problem that non-video content providers for the most part still haven't solved -- how to turn a decent profit on the stuff that everyone seems to want but is less than willing to pay for. Digital ads bring in pennies on the dollar compared with last-generation print and broadcast ads. That's been the case for two decades. Meanwhile, users are mightily resistant to paying for content subscriptions that don't represent a perceived significant bargain.

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afwriter
afwriter
7/21/2016 10:42:12 AM
User Rank
Platinum
Advertising
I know that Netflix tested comercials in some areas.  I personally would not be opposed to having to watch a 15 second comercial before an entire movie it if helped to keep the costs down. 

Does anyone know if Netflix or Amazon have any product placement deals worked out for their original programming?

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Adi
Adi
7/21/2016 11:07:57 AM
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Author
Re: Digital dilemma
@Dennis - I think that's exactly it. Its been the big challenge for all forms of media. The good old days where you had a powerful brand and could just rely on advertising to pay the bills are well behind us. In a million channel universe consumer eyeballs are scattered, and now everyone is scrabbling to grab as many as they can --and monetize them somehow. If you can manage to get a monthly cheque out of your viewers, then you're doing pretty well. But for many, I think it might have to be a mix of 2-3 different models specially as time goes on.

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Adi
Adi
7/21/2016 11:10:58 AM
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Author
Re: Advertising
@afwriter - There was some press around House of Cards product placements a while back. I think Anheuser-Busch gave them free beer initially (!!), but there's actual monetized deals in place. I think samsung maybe, and a couple of others. Fairly limited though -- they are careful not to make it too obvious. 

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clrmoney
clrmoney
7/21/2016 11:26:59 AM
User Rank
Platinum
Ott Video Business Model
I'm not sure but I think that have a lot of suscriber would dram more people to your business model or you can come up with another marketing idea for OTT Video.

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dmendyk
dmendyk
7/21/2016 11:30:52 AM
User Rank
Platinum
Re: Advertising
Free Budweiser -- or as it's called this summer, America -- probably isn't enough to keep Kevin Spacey et al engaged. But that's where video may be heading -- pennies on the dollar as far as content value goes. Audience aggregation will continue to be the key differentiator for content companies. But the value of video content is facing the potential for a sharp and painful decline.

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Adi
Adi
7/21/2016 11:37:15 AM
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Author
Re: Advertising
America??!! Really? I thought that was Jeb Bush's gun.

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dmendyk
dmendyk
7/21/2016 11:39:28 AM
User Rank
Platinum
Re: Advertising
http://www.usatoday.com/story/money/nation-now/2016/05/10/budweiser-renames-cans-beer-america-anheuser-busch/84176886/

The good news is, they spelled it right.

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jbtombes
jbtombes
7/21/2016 1:44:12 PM
User Rank
Platinum
Re: Advertising
@afwriter - Netflix did some work with trailers but Hastings has been adamant about 'no ads.' Amazon has experimented on Prime - but that's what Amazon does, kick things around first. Adi seems correct about Hulu being a hybrid. 

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jbtombes
jbtombes
7/21/2016 1:56:32 PM
User Rank
Platinum
Re: Digital dilemma
@Adi - How's Crackle doing? The Art of More was a good watch, even with ads. Toplined by Dennis Quaid, who plays a real-estate mogul who tries to bully his way into politics. Real star plays an Iraq war vet who somehow gets into the art auction world. On another note: Would you consider low-end niche market video that shares rev with Google ad-supported?

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