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Cable networks should address on-demand programming
Global connectivity expert, the Yankee Group, has identified a significant shift in the advertising industry, predicting that cable and IPTV operators will lose out to internet video platforms in the competition for the incremental advertising revenue that supports investments in interactive television.
By the time cable and IPTV operators will be able to deliver interactivity to a large number of households, content owners and advertisers will have already made long-term interactive platform investments online.
Digital and interactive advertising is imperative for the infrastructure investments necessary to support interactive programming.
Cable networks will continue to command large linear audiences and above-the-line advertising revenue, but cable operators will be limited in their ability to deliver interactive experiences that can compete with internet video.
There will be numerous opportunities for advertising revenue to grow as internet video becomes the predominant platform for interactive television.
Both programming and advertising will become more focused and viewer-driven, and content owners will develop media brands and viewer relationships. Campaign performance will be measured by the viewer click.
Targeting and digital ad insertion technologies in linear and on-demand programming will drive television advertising revenue from non-traditional television budgets, including local and direct response.
The Yankee Group’s report signalling that cable networks must step back from interactive video and address on-demand programming is titled: The High-Water Mark for Interactive Cable.
The US group provides a major source of insight and counsel for builders, operators and users of connectivity solutions, using primary research to chart the pace of technology change and its effect on networks, consumers and enterprises.
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