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Evolution Of TV: Broadcasting And Monetization Models

We live in an ever changing world, where technological advances are changing the way that we live our lives: we learn differently, work differently, buy and sell differently, and communicate differently. And, of course, we now watch television differently as well. The evolution of TV is making it more accessible, more democratic, than ever before, and it’s opening up a wealth of new opportunities for both viewers and broadcasters.

How Television Broadcasting Has Changed For Ever

It’s hard to believe that the very first, grainy, television broadcast was made only 77 years ago, so huge has been the impact the medium has made in our lives, and so vast have been the evolutionary changes affecting it. For most of the history of TV broadcasting, the changes involved advances in television sets, where they became bigger, and the pictures in sharper, or in the visual technology, such as the introduction of color broadcasting. Recent years, however, have seen the biggest change of all, as we move towards truly mobile viewing models which do away with the need for television sets altogether.

The Online Television Revolution

Three things are fueling the online television revolution:

– More powerful and affordable smart phones;

– Faster processing speeds and increased processing power;

– A demanding audience, led by the millennials, who want things to be made as easy and convenient as possible.

TV evolution

More and more people are eschewing traditional TV viewing habits, and watching video on demand services, or online TV via their smartphone, laptop, or tablet. Modern lives are less structured, and less flexible, than they used to be. The days of 9 to 5 working in an office are gone, but online television broadcasts allow viewers to watch what they want, when they want, where they want.

Modern Television Models

The demand for online TV is huge, and growing exponentially. Research has shown that online television viewing grew by 388% in the year to mid 2014. Broadcasters have realized this and provided ever growing numbers of models to facilitate the demand. There are services such as Comcast’s ‘XFINITY TV Go’, which is one of a number of ‘TV everywhere’ services that are tailored to mobile viewing. There are also standalone streaming services online, such as the CBS offering ‘CBS All Active’. Finally, and potentially the most successful model of them all, are subscription models such as Netflix.

How To Monetize Online Television Viewing

As television has evolved, old ways of monetizing content have been eroded, so it’s essential that both advertisers and broadcasters keep abreast of all the latest developments, and the opportunities that they bring. There are three main monetization models to consider.

1. The first (and most popular to consumers) is validated TV delivery, meaning that viewers have to subscribe to watch the content, and validate their subscription.

2. Others will attempt to monetize through broad and unspecific ad placement on online programming, but this is fraught with difficulties when compared to traditional broadcasting.

3. The third option is dynamic ad insertion, where complex algorithms will determine which ads the individual viewer will value, and will respond to, before inserting them into the online broadcast.

Television is continuing to evolve, so its essential that broadcasters think about their monetization policy, and start implementing it today.

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