digital music/video

10/19/2005, 11:30am, EDT

Wednesday, October 19th

iTunes' ad-free video content worries industry

Apple move to sell ad-free video content for its iPod via iTunes 6 is worrying the advertising industry. Reuters says that the pay-per-ad-free episode strategy has the industry rethinking its reach to users with portable media players. "The announcement sent a new chill through an advertising industry struggling to reach consumers amid an explosion of media outlets. ABC and rivals like Viacom's CBS are seeking new ways to deliver entertainment out of the television box, whether on the Internet or with new devices. The bigger fear, and some say opportunity, for advertisers is how to keep their brand messages in front of consumers as iPods, other portable media players and increasingly sophisticated cellular phones pick up speed and vie for time once dominated by television and the 30-second commercial."

While Apple won't allowing advertising on its iPod/iTunes platform, the report notes that both TiVo and satellite radio have warmed up to advertising and advertisers/sponsors themselves may request to be part of the content delivery--regardless of platform.

"It's a great concern to advertisers," said Jason Maltby, co-president of national broadcast for media buyer Mindshare, part of WPP. "Why spend a couple hundred thousand dollars for an ad unit on 'Desperate Housewives'? The value keeps eroding."

The article says that Apple could offer pre-video messages from sponsors that download to the beginning of each purchased video or content producers could turn to integrated advertising within the program to help combat ad-skipping technology.


Filed under: industry
Other story tags: digital music/video

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iTunes' ad-free video
0
10/19, 12:20pm, EDT
There's plenty more for advertisers to worry about than iVideo. I edit out all commercials from shows I watch before I watch them. If the industry inserts such advertising before program content it will be edited out using digital editing software. No one needs the marketing and advertising garbage that is put forth by that industry. The studios need to figure out another business model for revenue. This reeks of the intrusion that has happened in movie theaters--where now you sit through 5 minutes of ads with no reduction (in fact, increases) in ticket prices. Get rid of the ads!
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As opposed to . . .
0
10/19, 3:28pm, EDT
videos and DVD bought in store?
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Joined Jul 2005
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Further
0
10/19, 3:49pm, EDT
Well, there is another business model for studios to get revenue - it's called 'subscription'. Then there is 'pay per view'. And finally 'product placement' - where you turn your whole programs into adverts.

Or maybe there's a magic Underpants Gnomes business model where the studios can make money while we get everything for free. If anyone finds it, can they let me know?
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