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January 24, 2007

Comments

richard

I have literally no idea what the IPA is on about - literally none.

Simon

I have a question.

For arguments sake lets look to a future where due to increased penetration and use of PVRs, media fragmentation and the growth of online, TV advertising is significantly less effective than it is today.

Naturally, advertisers will move funds to more effective media, as is already happening. We're already busy working out ways to get consumers to come to us, as we can't rely on interrupting their beloved TV.

So as broadcaster's advertising revenues continue to decline, where will the money come from to make the TV programmes?

If we follow the "death of TV advertising" to its logical conclusion, there will be no money from advertising to fund programme production.

Programme funding is additionally under pressure due to the BBC's license fee going down in real terms, and Channel 4's public funding is threatened.

Will we get to the point where viewers will understand the relationship between advertising revenue and the programmes they watch?

Will they be given the choice between extremely high subscriptions and no ads, and a cheaper subscription where they watch ads?

Channel 4 now makes a massive part of their back catalogue available from 49p per show. Yet their own research shows that viewers would prefer it to be free in return for watching some ads.

Thoughts?

john

Five models to think about:

C4 online
Sky Sports
HBO
LoveFilm
ITV

And there are others, obviously.

I forsee a televisual class system emerging.

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