Broadcasters face challenge of armchair revolution

According to analysis seen by The Times, increasingly popular video-on-demand (VOD) is challenging the business model of commercial television.

A report by PricewaterhouseCoopers (PwC), the accountant and business adviser, suggests that consumers’ growing appetite for VOD could lead to broadcasters losing a further £280 million from annual advertising revenues if they continue to focus their efforts on cost-cutting and fail to cash in on the boom.

PwC suggests VOD services needs to sell ads at 3x the CPM (cost-per-thousand) of television to break even. Coincidentally, The Simpsons pulls in $20 per thousand on TV and $60 per thousand on Hulu.

Back in June, Bloomberg reported CBS's David Poltrack saying, “The reason people are paying such a high premium for these ads on the Internet is they do have a captive audience,” Poltrack said. “You know you have eyes on the screen.”

After all, the point of video on the Internet isn't to replace TV. It's to have a two way, and measurable, dialog with each viewer.

Usability week ending November 22nd

Friday, 20th November, 1:11 PM
“If it’s not done well, consumers won’t use it.” User experience could limit TV Everywhere adoption: #ux #broadband #vod

Thursday, 19th November, 6:50 PM
Investing in reducing friction pays off not just in pure money or time, but also pure opportunity cost: #usability

Wednesday, 18th November, 6:31 PM
Tweetie's author, Loren Brichter, invents user interfaces that are "discoverable and explanatory": #ux #ui

Tuesday, 17th November, 1:59 PM
Lack of convergence dooms projects from the start--impossible to pull together a seamless user experience later: #ux #ia

Monday, 16th November, 1:44 PM
Usability rocks: "Simplicity of its interface and ease of use have made Hulu the darling of American TV fans": #ux #ui