While the debate over how competing video delivery methods might hurt each other has raged on for some time, executives at the aptly named Future Television 2007 conference agree that there is a future for TV – and believe the Internet and wireless channels are complimentary rather than cannibalistic.
“Everything new is supposed to be a replacement method,” said Todd Herman, general manager for global media strategy at Microsoft Corp.’s MSN unit, in reference to new media. “The TV was supposed to replace theatre, movies and radio, but didn’t. The Internet wasn’t a replacement media either.”
Herman and other speakers said other channels supplement traditional TV or exist in addition to it, without taking away from it.
The MSN exec believes that those accessing streamed video using the Internet are the group least satisfied by network TV. Herman calls the group, which he said represents 17 percent of the population, “New Enthusiasts.”
Herman said Web surfers see advances in new media opportunities differently from other groups. “They see technology as a cure for boredom,” he said, adding that this group loathes service providers and commitments of any type.
Other means for accessing video are seen as a positive by David Poltrack, chief research officer for CBS Corp. “They increase the level of engagement with the viewer which builds audiences for the broadcaster,” he said.
“Everything new is supposed to knock out the old,” Poltrack said. “But we see opportunities.” He cited research claiming that 20 percent of those that view TV shows also regularly visit network TV Web sites.
Given this reality, Poltrack also sees important work to be done.
“Our critical challenge is to get them trial exposure to new programs to build an audience,” admitted Poltrack. CBS is working to do just that by taking its popular network TV programs across multiple platforms, with streaming video playing a core role in the integrated effort.
BBC Interactive is using an additional means to build audiences for its network shows. The London-based media giant is using what it calls “mobisodes” to extend the programming out to viewers with wireless devices.
Unlike teaser or promotional content, however, the BBC’s mobisodes consist of original programming content that can’t be found elsewhere, explained Phillip Jay, executive producer for the company.
“It’s all about keeping the viewer engaged,” Jay said. “And there are plenty of ways to do that.” One means on the wireline side of the business for BBCi is interactive TV, which he said is very successful because the audience participates in the programming, or some stage of it, using a TV remote.
Back in the United States, where Tier-one providers such as AT&T Inc. and Verizon Communications Inc. have pushed multiple-screen video delivery efforts for some time, one option isn’t viewed as hurting another. Wireless is an example.
“Mobile is part of a total delivery system, not a paradigm shift,” said Terry Denson, vice-president of programming and marketing for Verizon, which now offers its video-driven FiOS service bundle in parts of 10 states. “TV gives us the opportunity to market broadband services.”
The availability of multiple ways to views video has affected the way content companies approach their sales opportunities.
“When we sell now, it’s not just the network, it’s a 360-degree approach which also includes online and wireless,” said Lisa Hsia, senior vice-president of new media, for Bravo/NBC Universal. The company recently teamed wit CBS and others to provide video programming for Verizon Wireless’ planned mobile video service.
AT&T Inc. www.att.com
BBC www.bbc.co.uk
CBS Corp. www.cbs.com
MSN www.msn.com
NBC Corp. www.nbc.com
Verizon Communications Inc. www.verizon.com
