The MediaPost
recently reported that Akamai Technologies CEO
Paul Sagan warns that television
is about to experience the equivalent of the Big Bang, Akamai Technologies
facilitates more than one-fifth of the world's Web traffic so they have a good
view on the subject. What will cause this transformation? The article states
that, “the ability to match high-def TV picture quality with Internet
interactivity is creating a sea change for online video that will begin
rippling through the television industry in 2010. Only TV station owners that
leap to the new arena, playing the strength of their hyper-local connections,
will survive.”
I am reminded that is a past transformation
when the telegraph appeared, the news outlets of the day came together to form
the Associated Press to capitalize on the new technology and share its
promise. It does not seem that a
similar event will happen here. Now it is everyone for themselves.
Traditional television content producers
and distributors that are among Akamai's deep client base are in peril
according to Sagan. The audiences for this content are rapidly moving to the
Web. The article goes on to report that, “too many broadcasters are obsessing
about cannibalizing their content instead of using the efficiency and
convenience of interactivity to expand their local power base. While increasing
numbers of TV stations are going online with real-time and on-demand local
news, sports and other live events, they do not have the interactive online
advertising in place to fully monetize their content.”
This sounds like what happen to the
Rocky Mountain News. There is a
way out. Take advantage of the ability of the Web to address the long tail of
specialized content. The large players
are global and generic. Sagan says that “the window is still open for
broadcasters to create long- and short-form programming that -- when expertly
presented and searchable -- can be monetized and generate a new audience and
new revenues.”
However making effective use of
interactive advertising is essential for hyperlocal online broadcasting to
become a viable business. They are
not there yet but must make the transformation to realize this opportunity. The increased complexity of programming could benefit from a comprehensive television search capability such as TVissimo.
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