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How TV companies 2.0 can make money

Dan Thornton | August 2, 2008

This all came from two articles by two of my Twitter connections, starting with Charles Arthur writing on the Guardian website about the need for television companies to come to terms with filesharing. In it, he suggested TV media firms could make low quality versions of their shows available as they are broadcast as a way to encourage people to download a high resolution version.

Peeebeee (Peter Bowyer) examined the link Charles had made between music and TV companies and the effect downloads are having, and suggested that the way the music industry can monetise is not necessarily applicable (low quality freebie for driving high quality purchases), mainly because music will be replayed over and over.. .

It’s taken me a while to respond because I wanted to add something to the conversation, and try to hypothesize how I’d monetise online television. (If you think it’s taking me a while, try asking Google about Youtube!) And although I don’t work in television (Aside from the sadly discontinued MCN Daily…*shudders*), my day job consists of working out how it can be possible to fund a large magazine and website company from engaging community.

My theory is that the answer is more obvious than you’d think, because it’s something that film companies have already done, when they sold us on DVDs. Aside from allowing us to posture about the quality on our widescreen television, and pause without burning through a tape, DVDs convinced many people to part with money for the value of the extras which were included – even for films they might already own on video.

So expand the same theory to online. I may already be able to watch a film or TV programme via filesharing or a legitimate streaming channel, but what could be added to a package which would make it worth parting with a small amount of money? Could you include DVD-style extras and outtakes? Could you also include background information? How about putting complete series together online, or the works of a particular writer, director or actor. Which could then be sold on DVD, and as a complete download?

And what about also including all the related links, reading material, and even User Created Content?

Now I could find a lot of this via a fair bit of web searching, but that takes time and effort – and increasingly the exponential growth of material online means people are looking for ways to filter content, and aggregate it efficiently, and are willing to pay for it. As Steve Jobs once pointed out, finding a copy of a song via filesharing can translate into working for less than minimum wage – fine for time-rich teenagers, but not for anyone feeling time-starved.

And providing best-of reading material for certain content would be a incredibly useful for information rich shows. Ironically, while my partner has been watching Hollywood films on DVD over the last two weekends, I’ve had the time to watch the inspirational ‘Last Lecture: Achieving Your Childhood Dreams’ by Randy Pausch, and also ‘An anthropological introduction to Youtube‘ by Michael Wesch.

Both times the Youtube video was an hour or more long, which is fine for me, but would be better in DVD format for the non ‘digital natives’ I’d love to shave them with. They both refer to people, places, and reference works which might be useful to have in digital and print form. Both lecturers have previous work which would be useful to have included (not just videos, but written articles and academic works etc). And neither of those works is likely to even appear on a mainstream (Say Freeview for the sake of argument) TV channel in the UK, where we have to make do with a short internet show once a week on the BBC, and the occasional programme discussing the risks of online networks.

Essentially, any content which doesn’t require high budgets and production values is already legally uploaded and available on Youtube. Anything that does incur a huge cost is losing part of it’s audience to filesharing, or is being served online in ways that can be frustrating (You can’t watch a show on BBC iPlayer after seven days, and that’s about the best of the bunch). None of it is giving me a reason to pay a couple of pounds to get extra value, as opposed to the imported DVD boxsets I own, signed by the director, and containing material I wouldn’t have otherwise seen at the time without a lot of hunting around.

It’s not about criminalizing fans who fileshare and promote your product. It’s about making use of the advantages of being large scale content creators and giving those fans reasons why it makes sense for them to spend an amount to invest. iTunes isn’t the best music store in the history of the world, but if you’ve got an iPod it’s easy to go there and spend a few pounds/dollars, rather than sorting out filesharing software and downloads. Despite access to films online, and the Xbox film service permanently attached to my HDTV, I still subscribe to Lovefilm, because it’s easier to get films delivered than order them online legally, due to the shocking state of broadband speeds outside major cities in the UK. And that’s what has cut my DVD purchasing, way more than availability online.

Give me a reason to pay for TV and film which justifies itself in terms of making my life easier, and giving me more than enough value to justify it to myself, and it won’t just be me who will be tempted…

NB: And actually, artists are already pioneering this in the music industry. Just look at the $1619420 Trent Reznor made from the recent Ghosts album.

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Categories
Broadcasting, Digital Culture, Uncategorized
Tags
business, charles arthur, downloads, dvd, filesharing, future, monetising, monetizing, music industry, peeebeee, plan, strategy, television, youtube
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« It’s all change on the interweb Will the internet reputation ever regulate companies? »

  • Giles Palmer
    Agree with @richard - great post Dan. Sad that the MCN daily was pulled :)

    giles
  • Richard Millington
    Brilliant points. I think you touch upon something quite fundamental about entertainment. The requirements for a product is changing. It's not the means of distribution that have to change, as much as it is the product.

    I blogged about something similar a month or two ago: http://www.feverbee.com/2008/06/wheres-the-mone....

    I really liked this post. You're absolutely spot on about rewarding the true fans with extra. The free stuff (the traditional content) gets attention. Those that want to be more involved can pay a few pounds to access the additional content. Maybe get a code that gives them access to online interviews, contact details to speak with those who produced the show, unique forums, invitations to the next live show/filming/event etc...Maybe even let these people see the next film/show/performance in advance (ahead of the crowd!).

    Alternatively, change the business model. Randy Pausch's last lecture paved the way for his book the following year. Free eBooks and musics are generating more speaking engagements and higher audiences at live events. That's a decent business model.
  • Stirlyn
    Definitely agree with the main comments you've made here. Companies who try to keep to the old models for making money rather than embracing the new business models are going to find themselves in a pickle down the road. It's much easier for me to go to a reputable source to get music than hunt around in the deep porn infested nether-regions of the download sites. If you remove the barriers people will use your service plain and simple, and they won't mind paying for it
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