Friday, July 10, 2009

Will Project Canoe Succeed or Fail

Came across this opinion and thought it was worth sharing. According to Phil Leigh, Senior Analyst at Inside Digital Media, Project Canoe is doomed for failure.

He argues that the web is better suited for interactive video and cable is late to the game. he also suggests that cable programmers are less than thrilled to support the cable operator's attempt at targeted advertising, as it potentially could hurt their own advertising sales activities. It is ultimately up to Project Canoe to disprove their critics.

Cable programmers have enjoyed a healthy license fee from cable operators and would be hard pressed to pursue a web based distribution strategy and risk the loss of "cable dollars for digital pennies." The cable financial model requires a two tier revenue strategy of subscription and advertising. As long as that remains healthy, programming will mainly be served through the cable box.

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