Internet TV - Strategic Marketing

Internet TV

This summer, my kids and I watched Lost. ALL six seasons. After watching the first episode on a DVD rented from Blockbuster, we were completely hooked. Unlike my kids and for my own personal reasons, I almost never watch broadcast TV.  So besides having to face my almost obsessive-like behavior, we really had it made: hours and hours (and hours) of engaging TV devoid of commercial interruptions. When we got to season six, which was not yet out on DVD, we discovered online TV.

For most Americans, linear television is still king. The availability of more and more online content coupled with increasing awareness of the new technology, is causing more consumers to watch TV shows online. New research has found that there is an increasing number of consumers watching Internet-based on-demand TV/video every week. Internet TV is still a new medium but growth is imminent. New patterns of consumption will evolve as consumers get to decide how, when and where to watch their favorite shows. More content will become available to watch online and more content will be created specifically for the Web.

So obviously, the line between the Internet and television is beginning to blur as televisions become Internet-enabled and/or computer screens grow larger and serve as “TV screens.” One of the questions that arises is what happens to advertising? On one hand there is television for which ads are sold by Gross Rating Points (GRPs) with the points being determined by Nielsen C3 ratings of viewership. On the other hand, advertising for Internet models has started out much differently, with one company sponsoring the entire show. Hulu even allows consumers to make choices about their ad experience with interactive features. Where is it headed and how will the two merge? Most agree that the advertising of the future will be much more targeted, relevant and interactive.

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