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« President Bush gets handsy with Chinese President | Main | Now South Carolina wants to ban sex toys »

April 22, 2006

Network TV catches a clue, Goes Online

This is old. Sat on the other box for weeks. But no less interesting. Seeing corporations adapt new business models.

It's nice seeing the children finally learning to grow out of old habits.

Analysts say networks have little choice but to try multiple strategies as viewers watch less TV in primetime and embrace technology that lets them watch shows whenever and wherever they want, including on computers and portable devices, such as an iPod.

Studios also want to offer a legal alternative to the many file-swapping services that offer pirated copies of shows.

[...]

"If you want to make money from television, you have to find something a million people want to watch," said Josh Bernoff, principal analyst for Forrester Research. "If you want to make money on the internet, maybe all you need is thousands or even hundreds."

ABC said it has learned important lessons so far about offering online content. Among them is that TV ratings of hit shows haven't been hurt.

"We've only increased overall media consumption for some of our hit shows and some of the shows we're trying to promote," said Albert Cheng, executive vice president of digital media for the Disney-ABC television group.

One analyst said digital delivery can be more valuable for promoting shows than generating revenue.

"If digital can help drive a movie's box office and DVD sales or help a TV show be successful, the actual digital revenues are secondary," Richard Greenfield, an analyst at Pali Research, said in a recent note to clients.

(via wired news)

Posted by Groonk at April 22, 2006 09:48 AM | Ministry of Marketing

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