Content owners seem to be concluding there is no good way to put professional content online and earn a reasonable return based exclusively on advertising. That means more exploration of pay walls, subscription services and ways to tie online consumption to other for-fee services, such as cable TV subscriptions.
"Online pennies compared to network dollars" is one way of looking at the problem. Hulu, for example, seems to be pulling in about $100 million and says it now is profitable, but that's a lot less than its owners had been expecting.
Some products apparently can be monetized and provided to end users for no incremental cost. But it is starting to look as though professionally-created video, with the possible exception of some online video provided as part of existing cable TV subscriptions, for example, is not one of those types of products.
Thursday, June 3, 2010
Content Owners Sour on Ad-Supported Online Video
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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