Wednesday, April 01, 2009

Back To The Future

It seems that more and more US content providers are retrenching away from ad driven content and looking at PPV models for their Internet TV content. The math is simple. At top whack, ten ad views in an hour show will get you 60c, whereas a PPV payment will get you $0.99, or even $1.99.

But this is a model that has already widely failed. Will revisiting it now that internet TV viewing is more established actually work ? I think not.

So, some of the service providers in the US are looking at the model Sky has adopted in the UK - you only get to view online if you've paid for it offline, or rather, on your traditional service.  They're undoubtedly doing this with one eye on the competitions from other, new service providers, trying to shore up their traditional services whilst extending them online.

I can't help feeling that it's one step forwards, two steps backwards.

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