Friday, July 20, 2007
TV Online Reaches Tipping Point
The wall between broadcast and online TV has fallen. CBS is going full force with its Interactive division licensing content to every video service worth a darn including AOL, GooTube, Veoh, and Joost, according to MediaPost.CBS has been the most aggressive network in understanding that it is better to use the web as asset than to attempt to protect its television programming. Quincy Smith, president of CBS Interactive, realizes that it is more important to build brands online and hope that it increases the TV audience and acknowledges that people spending more time at the keyboard is the real threat. "We are not competing with 'American Idol' as much as 'LonelyGirl,' which is being downloaded everywhere," Smith said, per MediaPost.
CBS is dealing from strength as the company controls ad sales and is retaining a whopping 90 percent of all revenue. That also shows how badly the YouTubes of the world want professional video.
So we can expect the other networks to quickly follow suit (lookout for Fox/MySpace), and more unique content being available online. If you can't beat 'em, join 'em.
Posted By John Gartner at 10:26 AM
Permanent Link: TV Online Reaches Tipping Point
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