TV stations' "Lack of Internet vision"
It's been said before that many TV stations view the Web as more of a marketing opportunity than a business opportunity, and a new study from Borrell Associates backs this contention up.The study found that TV station sites generated $72 million in ad dollars in 2002 -- less than 5 percent of total Internet ad dollars. Newspaper sites, on the other hand, generated $655 million in ad dollars, 40 percent of the $1.65 billion spent on local Internet advertising.
"We also found a startling lack of 'Internet vision' among most TV managers and station owners," the report said.
Some stations are making progress, but there's a wide range -- some are generating as much as $300,000 while others in similar markets close to zero, the report says. The report estimates that more than 100 of the 750 TV stations that produce local newscasts are generating no revenue from the Web. What a wasted opportunity!
Perhaps the most interesting -- and promising -- finding is that some stations are generating millions in new broadcast revenue as a result of their online operations. One-fourth of stations surveyed were using Internet applications to entice new TV advertisers, generating $4 in new broadcast revenues for every $1 generated via an on-air, online "convergent" program, the report says.
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Jun 25, 2003 | E-MAIL | SAVE | PRINT | PERMALINK | DISCUSS(1)
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1 comments about 'TV stations' "Lack of Internet vision"'TV stations' lack of Internet vision, by Greg Tingle
One may argue that TV stations dont want to share the vision of traditional Internet broadcasters.
As TV stations, they are in a unique and privileged position.
The new breed of Internet Broadcasters, such as Media Man Australia ( www.mediaman.com.au ) and Listen.com
( www.listen.com ) are a dime a dozen these days. Its no wonder, with the small amount of start-up capital required.
The Internet is an empowering technology that advances the functionality of broadcast networks such as television, radio, cable and satellite.
With numerous examples of Internet Television ventures gone south, such as SCAPE (Network 10 Australia), Rush TV (off-shoot of Channel 7 Australia) and K-Grind, television stations may be wise to stay clear of this dangerous territory.
For top tier players like Microsoft and Telstra Corporation, who wish to develop these technologies, the risk of failure is obviously far less, than their counterparts. Microsoft are in bed with Ultimate TV, and Telstra has been supporting The Basement, with the FOXTEL tie in, so Internet TV is not dead yet.
Its relatively easy, and cheap, to start Internet broadcasting, but television production and broadcasting is a very different animal indeed.
Websites based on successful television programs like Fashion Television ( www.ftv.com ) or The Basement (www.thebasement.com.au ) are a big hit, and are amongst the most visited television related websites globally. It is important to remember that the website addresses are heavily advertised on subscription television programs, that pop the numbers up, that otherwise would likely be unattainable by Internet-only presence and promotion.
Today, there are thousands of webcast stations on the Internet, rebroadcasting radio and TV signals.
Developing at an alarming pace are the Internet-only stations that are broadcasting around the globe. These "Internet stations" have no transmitter, tower or license - all they need is equipment to broadcast in a new configuration.
Internet stations provide both unique content and information, and rebroadcasts of existing audio or video programs.
There are more than 500 Internet only channels serving-up audio 24 hours a day.
A common response by traditional radio and TV management, when questioned about broadcasting TV on the Internet, is that these Internet-only broadcasters are reaching a small audience.
Granted, the Internet does have its limitations concerning how many people can listen to audio or see video in a quality manner. However, this is changing.
Media Man Australia, having recently interviewed respected Internet broadcasting authorities such as Doug Mulray (The Basement), Derrick Wilding (Communications Law Centre) and Lee Tien (Electronic Frontier Foundation), believes the murky water involving Internet broadcasting laws, intellectual property law and other broadcasting laws, may be what is holding up the industry.
Just a few short months ago, Australians public broadcaster, the Australian Broadcasting Authority gave the chop to its digital television programs, FLY TV and ABC Kids. Even so, the ABCs award winning website
( www.abc.net.au ) remains one of the most popular in Australia ( Redsheriff ). Theres no question that NineMSN
( www.ninemsn.com.au ) and Fairfax (www.f2.com.au ) are committed to their own Internet broadcasting plans.
For those broadcasters willing to take the plunge into Internet Broadcasting, the potential is huge.
It is a given that a great many new media companies and programs will fall over, others will evolve and an elite select few will be heralded as the leaders. It is a compelling journey, both dangerous and full of opportunity as broadcasters decide whether their revenues are to go southor rise above the skys limit.
Who will media moguls such as Rupert Murdoch and Kerry Packer, back next? It could just be me, or you!
*Greg Tingle is the author of this article, and the founder and broadcaster of Media Man Australia
( www.mediaman.com.au ). Gregs background is in the sales and marketing of subscription television and ITV (Optus Interactive Television). MMA currently broadcasts audio and plans to broadcast video later this year. When not Internet broadcasting, Greg is often found TV presenting for Sydneys Community Television, Channel 31. Audio interviews with Derrick Wilding, Doug Mulray, Lee Tien and others are available at http://www.mediaman.com.au/multimedia.html
Posted by Greg Tingle at July 29, 2003 11:33 PM
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