Thursday, November 08, 2007

Slowly Does It

It seems that we are heading into recession as the woes inflicted by overpaid bankers affects everyone.

The effects on the TV industry are difficult to predict, but the initial effects will be that people will seek to cut household budgets - and mobile and cable and satellite bills are significant costs when your mortgage has gone up by two hundred pounds. So, 'frilly' services will have a hard time as viewers retrench.

Both Virgin and Sky have already launched attractive bundle deals, but for competitive, not recessionary reasons.

At the same time advertising budgets will have to work harder. I believe that this will be a good thing for internet TV, which is more measurable than traditional TV

Ad recessions tend to result in more 'off-the-page' advertising and experience shows that ecommerce videos work particularly well.

Internet TV isn't recession-proof, but a slowdown in the economy might, ironically, be the catalyst that it needs.

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