The Holy Grail of Web and Mobile VOD? “I like that show…” - Douglas Dicconson - MediaBizBloggers

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Is there significant revenue potential from original video content on web and mobile platforms, or is it just another place for re-runs and trailers? How do the independents gain enough scale to compete with Hulu or Comcast?

The fact is that Internet media properties are awash in video. Major media properties either have, or are currently planning, their video strategies. Most of these plans include revenue from advertising and, in a few cases, subscriptions. It stands to reason that in-video advertising has a higher value than display ads because video is the most powerful communication tool. So, for web publishers seeking advertising revenue, taking the Internet from a text heavy medium to a blend of text and video is an exciting evolution. This shift further validates the migration of advertising spend into the digital space.

So the billion dollar question: How will independent web programming companies develop audiences that enable them to reach ad supported revenue levels on par with television productions? Let’s start with the eyeballs. The value of web and mobile video as an advertising vehicle (read: moneymaker) is proportional to the audience building power of the content. The argument for multi-platform VOD is its availability and measurability. Rather than “tune in at 9pm Thursday”, web and mobile video offer “tune in whenever, wherever.” So, as a way of extending the reach of current programming for major players, it’s a terrific tool. We all know people who catch up on Grey’s Anatomy every Friday morning in their offices… but that’s the challenge to independent web programmers too. Where is the original, independent programming success story?

Until the independent online and mobile producers collectively create programming that directly competes with television programming for consumers’ attention, we will only be making “virals” and “webisodes”. As such, we will only be able to sell in-video ads at declining CPMs against small, highly fragmented audiences. Currently, the number of views that are generated largely defines success in original web and mobile video. Go to any video based entertainment website and you’ll see view counts in the millions on their most popular videos. These millions of views generally come in waves, over months. Say, for instance, a web series episode gets 400,000 views when it’s first released, then pops up again on Facebook 2 months later and gets another 500,000, then six months later rips through the Universities during back-to-school and gets an additional 1 million views. These 2 million views over 9 months are helpful for the producer, but don’t help a brand connect with an audience to deliver a specific message over a specific flight date. To an advertiser, compare that with running ads to a TV audience that delivers the majority of its programming views, even given DVR technology, within the first 36 hours that the program is available.

So, why can’t that original web video series achieve the same audience impact? Someone needs to break the cycle and fully commit to the multi-platform audience. The incentive to making a great web video series is typically… a TV deal. Committing to the power of short-form, multi-platform storytelling as a stage on par with TV and film is a bold step to take, but one that has enormous potential rewards.

There are a lot of economic and creative variables such as quality storytelling, timely and relevant topics, talent and of course, luck. The exciting fact is, it’s going to happen… and when it does it will be as simple as “I like that show”. So, who’s going to get there first?

Douglas Dicconson is Chief Revenue Officer of Babel Networks (www.babelgum.com), an independent programming entity that serves a truly Global audience of early adopters of multi-platform video. Douglas can be reached at Douglas.dicconson@babelgum.com.

Read all Douglas' MediaBizBloggers commentaries at Unlocking Global Web Video & other 'Babelgum' Thoughts - MediaBizBloggers.

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