Forbes: Will Networks Survive Digital Technology?

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Forbes: Will Networks Survive Digital Technology?

A new article from Forbes "Will Networks Survive Digital Technology?" continues the theme of the earlier Wired article.

An interesting point is made about commercial-skipping technologies like Echostar's DVR and TiVo. Expect to see more product placement in shows and within DVR products themselves. A coca-cola ad hack has an interesting quote:

It is inevitable that technology will give consumers more choices, and that includes when and how many commercials they want to view

Um, is never and zero an acceptable answer? Because that's what your market wants.

by Matt Haughey September 19, 2003 in News

Comments

Well, the way to look at it is this: if the networks lead the way, commercials will decrease towards zero. [Will they still run self-promos for new shows, or try to take advantage of online/guerilla marketing in its stead?] That means you go from 22-minute shows to 30-minute shows. Eight more minutes for egregious product placements!

Actually, it seems like a more reasonable revenue stream for networks to me--you're tying revenue to each individual episode. Having Coca-Cola pay NBC $100k to have Chandler sip on a Coke seems like a way to ensure that each episode is at least breakeven. Tap into the market of what people are actually watching, and then your labor price and your bargaining power will increase.

It's either that or we go to a system of a la carte channel viewing; I think I'd actually prefer that. I'm currently sans cable because I see little reason to pay $35/mo. for the six channels I'd ever want to watch that aren't over-the-air. If basic cable were offered in my market, I'd go for it ... but it's not.

Posted by: Geof at Sep 20, 2003 12:21:13 PM

My only problem with this is that you couldn't have "free" stations. Without advertising, there's no real money in television. You can't say that you want free TV and then turn around and say that the networks shouldn't make any money.

Posted by: Andrew Preston at Sep 22, 2003 3:09:00 AM

also, while individual commercials are annoying, i don't think i want _zero_ advertising out there - it's a catch 22 of wanting to be semi informed of what my choices are, but not through kidnapping me and forcing me to watch a 30 second commercial, especially if that commercial is about dentures and i am a 28 year old with all his teeth.

i was just commenting on the giant billion page fall "vogue" sitting on a friends table, and she was quick to point out that this was the best one because she loved all the advertising, but of course she can turn the pages as fast or as slow as she wants.

also, the part about, "well who is going to pay for it then?" is interesting. if every network operated on the same business plan as HBO, then my 300 channels would be several multiples of my mortgage.

-lewis (who just yesterday upgraded his direct/tivo to 141 hours)

Posted by: lewis at Sep 22, 2003 3:08:06 PM

The networks will survive just fine. They just have to adapt. Todd Lokken.

Posted by: Todd Lokken at Sep 26, 2005 7:56:55 AM