Monday, November 17, 2008

Web Video Chips Away at TV

One study says that online usage complements TV viewing, others say it cannibalizes. Can we have it both ways? This study suggests the latter, but it also says "online viewers don't mind the commercials too much." My feeling is that compared to the glut on TV, web video advertising is a pleasure. Sites like Hulu limit commercials to just one spot compared to TV which could have 3 minutes of ads. Comparatively, of course you wouldn't mind online commercials.

Another interesting analysis, "almost 60 percent of the respondents said they were willing to provide to advertisers some personal information about themselves in exchange for something of value, such as access to high-quality music videos, store discounts or airline frequent-flyer points." If TV would cut back on the glut of spots and use its technology to target spots and offer interactivity, it would find a more willing viewer as well. Just imagine clicking on a TV spot that would email you a coupon to download and take in to the store. The web may have the connection, but viewers still prefer long form content on their TV set. It will be the interactive potential that will make TV the better choice for the advertising dollar. And this is what Canoe will be able to offer.

TiVo, Domino's Offer Pizza Delivery Service for DVR Subscribers

Order a pizza from your TV, if this sounds familiar, it's because we've seen this before. Now Tivo has announced that it has partnered with Dominoes to let their subscribers order a pizza delivery through their device. "The TiVo service will help Domino's reach customers who might otherwise skip through its commercials on their DVRs, the companies said." As a marketing partnership,it will put the brand in front of customers, but as a service, it will be a dud. Customers are still much more likely to order by phone; they have yet to use their PC to order from a menu. Cable operators used this same marketing ploy years ago to add features to its set top box; it did not work. Customers will gravitate to the device that is easiest and quickest to use. Until the application proves more useful than the phone, customers will find no reason to switch.

"TiVo Chief Executive Officer Thomas Rogers has added shopping and video-on-demand features to attract users as cable and satellite companies roll out their own DVRs. The Alviso, California-based company lost 178,000 net subscribers in the second quarter, finishing with a total of 3.6 million." Tivo should continue to push its partnerships across cable operators as the better DVR for the set top. In addition, it should partner with game boxes like Playstation, Xbox, and Wii, to be their interface as well. It is partnering with those companies that will bring Tivo more customers.