The new tv model: the reason you should be developing video content today

October 25th, 2010

In the past, firms sponsored a tv show by advertising on the ‘spots’, that is when the tv show first airs.

The secondary market (and lower rating) market was on repeats.

You matched up the shows audience with your target market.  Ie financial products advertised during a financial tv show.

The reason this arose is that content became ‘disposable’ once the latest episode of Lost had previewed it only decreased in value, till no one would advertise then it was released on dvd.

However leaving these online, opens up a whole new form of monetisation, hot videos will continue to be watched forever.  People will discover a show and watch the whole back catalog in a matter of months.  And the best thing? Companies can sponsor all of them.

Flipping this, for content producers, what if you develop a niche tv show, shared on YouTube.  Let’s say Gardening, in the future when you sell an advertiser you can sell them not only new episodes but also the whole back catalog (the long tail) and essentially double your revenue.  A whole new market!

It’s not quite there yet, but the market is fast moving that way, so get generating content now – for it’s those whole new networks of videos that are created that will inevitably replace tv.  And you have the opportunity to be in on the ground floor.

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