Editor's Note: this is a guest post was written by Frank Barbieri, SVP of new platforms to YuMe. You can follow him @ frankba
Every five years over the past two decades, introducing the connection to the Internet to a new type of device creates a boom in disruptive companies. Most of these rods, computers and mobile phones, game consoles and now tablets — clearly a success. Other (remember network computer?) were ill-timed.
Now manufacturers and growing ecosystem of partners to support them, are betting big that consumers finally ready to accept connections to the Internet in their most cherished basis technology, living room, television. Players from Samsung, Sony and the so-called connected TV (CTV) market to the masses and you'll see a big push this holiday season. There are already more than 14 million KT in North America and about 65 per cent of television sets sold in 2012 will KT.
With each platform changes to try to grab a share of the transfer fee, which inevitably comes when consumers change their habits are both new and established companies. North America TV advertising is certainly no exception as many companies, the old and the new line up to try to grab their share of the advertising annual holiday that $ 62 billion.
Although some preparation to date, the incumbents have a very difficult time, cannibalizing existing revenue streams for cultivation, but nevertheless to reach maturity, new sources of income. We've seen it all from books for brokerages. And worldwide TV, we see it on display with the recent stuttering Hulu, pioneering the archetype, catching arrows at them back on once the obligation of partners as they boldly move forward.
That is the nature of distribution, when business advantage hinges mainly on the pricing and bundling and carefully limited access, not on real consumers showed desire and behavior.
Technology has always been in the side of consumers, especially in the field of view television. You may not remember now, but broadcasters brutally fought of the arrival of cable in the 1970s and although it is now seems absurd, he has created hundreds of billions of revenue, the Studio struggled against the arrival of the DVD in the late 1990s. The beginning of the title are a handful of b movies released by Warner Brothers in connection with Toshiba. This was all Toshiba can be obtained at the time.
We can see another violation today. With the new wave of CTV application content can dispel pricing and access the benefits of cable television. Imagine downloading the application directly from the programme, TNT, Turner rather than pay the cable company to access the contents of the Turner. Content providers are already, or soon will have the tools to their audience directly on the big screen. Turner can pocket 100% of any subscription fees and advertising revenue rather than to share with a partner distribution.
The traditional distribution of players, but not banking on the fact that the new television distribution will look much the old distribution of television. They are expanding their services include on-demand viewing and hoping that things will continue as before with consumers, content bundles.
But what if it isn't, it goes down? What if both mobile phones and PCS to consumers choose to snack on content delivered directly to their content providers, effectively removing the pricing, bundling and advantage of traditional distribution of cable and satellite television. In this world power delivery and advertising insertions, changes directly to content providers and device manufactures direct online business ecosystem of partners that they surround themselves with in this case Internet advertising businesses have a distinct advantage over traditional distribution businesses, as they are already on the market pumping billions of video ads through existing devices such as computers, mobile phones and tablets.
Of course the distribution of staff as Comcast can do IP set-top box connection consumers use to access content directly, loose or a la carte, but it undermines their existing revenue models around cable pricing. Industry calls on the people who run the end of the cable to get their content directly from the content of the company, "cord cutters" in a recent Morgan Stanley report concluded that cable companies will have to double charges for Internet access from the so-called "cord cutters" to compensate for lost revenue on packages of cable television.
There are changes brewing. Years in this business and witness the booms and busts have taught all of us to be careful of the absolutist rhetoric, opens at the end of any particular distribution channels. Consumers have demonstrated a remarkable opportunity to expand their appetites, and new consumption habits prove largely additive, not cannibalism (except my poor printing of friends, of course). So be suspect of those who argues that all programming or advertising will be fully implemented in a certain way. But the numbers are so huge and so large that even 10 percent swing in consumer viewing habits, cable and satellite TV connection and cord scissors would represent a shift in the $ 6.2 (b) advertising costs. It seems to me, is a script is prepared.
Sources include market analysis, GFK, Piper Jaffray and Deutsche Bank.
Frank founded Transpera with vision, helping normal people enjoy new types of mobile video experience. Frank previously ran the media products at InfoSpace and prior to that, ran ...
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