A new study from ABI Research indicates that revenues from these new technologies will total $284 million in 2006, but that the equivalent figure for 2011 will be approximately $1.8 billion.
"Trials have shown that while many consumers don't mind paying a few dollars to download a movie, they are less willing to do so for TV programs," says principal analyst Michael Arden. "So cable companies and content providers want to generate revenue from their video-on-demand (VOD) and other services without having to charge a fee. In some trials, VOD viewer numbers increased dramatically when the service became advertising-based instead of fee-based."
What do these new technologies offer that older ones did not? Traditional ad insertion is a one-size-fits-all affair, while effective advertising is all about customizing the message for specific demographics. That is where the new generation of ad-splicers and VOD servers with ad-server capabilities shine.
If one takes out the scream element and think in terms of being able to offer opportunities for interactivity and community building and there is a considerable opportunit for PR here.
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