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Does Google have the key to monetising online video?

Google CEO Eric Schmidt came out earlier this week saying that he hasn’t yet figured out the perfect solution for making money from online video. His comments come after Google’s earnings report revealed that the $1.65bn acquisition of YouTube is yet to reap the kind of financial rewards that were hoped for.

But across the board, advertising in online video is something that still hasn’t been addressed properly, and the PCTV market is going through an interesting phase. Lack of content has already forced the once heralded Joost to retreat to the US and niche content areas. Hulu is doing well with content, but finding many of the same issues with advertising as the rest of the market. Meanwhile others such as Vuze are hoping that a technology advantage in delivering high-def content will help them gain cut-through.  

But while different online video providers are fighting to carve out their own niche, none has yet addressed the major issue for driving advertising revenue – and that is finding a genuine format and solution that works for advertisers – and educating them about it.

Schmidt was typically cryptic about what answers Google has planned saying only that top secret new products would be launched this year and that the advertising format – whatever it is – will be valuable to consumers as well as advertisers themselves. He insisted they will go far beyond the in-line text ads, overlays and top and tail ads that are already common with online video.

 Until then, plenty of others are just playing catch-up and trying to squeeze more value out of a model that is far from perfect. Warner Bros has just announced that it will offer its DVD film titles online, on-demand on the same day they release the DVDs, which is progress, but a long time coming… Will Google come to the rescue?

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MTV is no Jackass
December 13, 2007, 10:43 pm
Filed under: Blockbuster, Joost, MTV, online TV, TV, Veoh | Tags: , , , ,

JackassMTV is to release the new Jackass movie entirely online on 19 December in a partnership with Blockbuster. Beyond milking the Jackass franchise for as much as it’s worth (and well beyond its sell-by date – those guys were only ever REALLY funny before they got rich) it’s an interesting move for Blockbuster which finds itself on the back-foot, trying to catch up with the web TV boom and the impact on-demand TV will continue to have on its retail presence footfall.

It’s also a big deal for Paramount in general as it tries to understand more about online as a distribution channel, rather than relying on the old tape and DVD models. Hollywood has been slow carve out the online opportunities in its favour – even slower than the music industry – but the fact remains that media audiences are fragmenting and online TV services like Joost, Veoh, Babelgum and Vuze continue to swell their viewer numbers. The challenge for the online TV services is to attract the advertisers as the medium wrongly retains a ‘cutting edge’ scepticism among the major media players.