More ads to come on Web TV?

#1
I remember hearing somewhere recently about how Web TV sites would soon be adding more advertisements, to be more in line with the amount of commercials on regular Television channels.

Has anyone else heard about this, and what are your thoughts?

Hulu currently has little in the way of advertising, but even that small amount is more irritating than on regular TV for some reason, probably because it's usually the same 1 or 2 commercials OVER AND OVER!
 

bicker

DTVUSA Member
#2
Internet video distribution is in its infancy, the objective, at this point, mainly to get people hooked on the distribution channel. Once it is established, the objective changes to monetization. The methods available for monetization are either commercial overlays, commercial breaks, and/or subscription fees. I think Hulu is aiming to focus more on the latter, but they could end up using some combination of the three.
 
#3
I really didn't think Hulu was planning on going the subscription route, but I did suspect that they may ramp up the amount of advertising within the near future.

Whatever they add can't be too annoying though, or else nobody will probably use the service anymore.

The whole thing is a balancing act, trying to make revenue and keep users satisfied as well.
 

bicker

DTVUSA Member
#4
I really didn't think Hulu was planning on going the subscription route, but I did suspect that they may ramp up the amount of advertising within the near future.
Sorry to be the bearer of bad news to you:

Soon, you'll have to pay for Hulu - DailyFinance

Hulu to charge subscription fee – SciTechBlog - CNN.com Blogs

Hulu to Add Subscription Services, Pay-per-View, Hints Murdoch

Hulu May Start Charging for Content in 2010

Hulu's subscription service might run $5 for access to select shows -- Engadget

Whatever they add can't be too annoying though, or else nobody will probably use the service anymore.
If is is any significant percentage less expensive than other options, then some folks will still use the service, cursing Hulu all the way as if Hulu owes them something.
 

bicker

DTVUSA Member
#5
Internet video distribution is in its infancy, the objective, at this point, mainly to get people hooked on the distribution channel. Once it is established, the objective changes to monetization. The methods available for monetization are either commercial overlays, commercial breaks, and/or subscription fees. I think Hulu is aiming to focus more on the latter, but they could end up using some combination of the three.
There is more news on this today...

Hulu pushes forward with $9.95 subscription service | Los Angeles Times
Hulu, the popular online site for watching television shows, plans to begin testing a subscription service as soon as May 24, according to people with knowledge of the plans.​
The most interesting bit of the article is this projection, highlighted in bold.
That's why Hulu is under pressure from its owners to collect a subscription fee to both bolster revenue and train viewers to pay for online access to professionally produced content.​

The price-point they're aiming for also is interesting. I posted links to earlier articles in this message:
http://www.dtvusaforum.com/internet-tv/25358-more-ads-come-web-tv.html#post56173
... but the speculation then was that the fee would be closer to $5 than to $10. For me, I think this signals an intention to go quickly down the path of moving more and more of the free stuff into the subscription service, with Hulu then being able to readily point to calls from its paying subscribers for a fairer arrangement. Having access essentially to "archival" episodes of series makes sense to me at $5, but at $10, I really expect to have a lot of exclusives.
 
#6
the stuff thats online for free will no doubt end up with commercials, heck even the movies at the show have commercials now. I think one area that is going commercial crazy is the games that places like facebook host, wow a commercial before each game, probably generate more revenue then TV ever would.
 

Orrymain

, Blogger: Orry's Orations
#7
It's the test part that is the key. If people would resist and not buy, the strategy could go away. But ... if people pay, then everyone will. I've seen that test strategy in other markets with other products. It ends up a consumer choice of those in the test market.
 

bicker

DTVUSA Member
#8
It's the test part that is the key. If people would resist and not buy, the strategy could go away.
No, not "go away" but rather they'd try other things. There is no way that investors (GE, NBCU, and News Corp.) are going to just give up and let their investment essentially go down the toilet. At the very best, they'll redirect Hulu toward serving as their own network video servers, complete with more invasive advertising models that would be an anathema within the current Hulu offering spec.
 
#9
See what it will probably take is for one internet option to come up with something comparable to what cable or satellite offers at a better price. I think the tehnology is almost there, and I have a feeling we will see this in sports first, like the live internet showing of games that are blacked out in some regions. This would probably be a good thing as people might have to option to start picking a choosing what they really want to see as opposed to being locked in the traditional channel sort of schedule. I would not be surprised if it isn't like your phone is with airtime, as a viewer you purchase airtime as opposed to program packages, you may even have the option for cheaper broadcasts if you allow for commercials, and premium cost for commercil free. I truly think I will see this in my lifetime, TV will go everywhere with you just like your phone, you just pay the bill and there you have it. I saw these $99 mini laptops at verizon, all it will take is for one telcom to make the deal happen and TV like we knew it will change forever-providing theres no regulation or baloney like that to stop it from happening because cable/satellite proviers are to big to fail.
 

JoeM

DTVUSA Member
#10
I would have to say that if you start seeing more commercials on internet tv channels then it would be a good thing. These channels have to make money somehow, so I'd rather see it done this way than having the channels charge a subscription I think.
 

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