PC-TV Convergence

The New York Times writes:

The point of all these new video-content deals being struck by networks and studios is, of course, to avoid making the mistakes of the music industry, which focused too much on rear-guard actions like lawsuits and not enough on figuring out new ways to give the fans what they wanted.

The music analogy only goes so far, however. The way music is promoted and sold and listened to bears scant resemblance to TV and video products. Ventures like the one announced by Warner and the big networks are not really an alternative way of receiving conventional TV, but rather an alternative to buying or renting DVD’s coupled with an intriguing new market opportunity to reach viewers on their desktop or mobile devices.

David G. Sanderson, who heads the media consulting practice at Bain & Company, offers four reasons most people won’t be downloading their favorite shows onto their TV’s any time soon: limitations in broadband infrastructure, the degree of readiness among electronics makers to provide a product with mass appeal, the behavior of consumers and the agenda of the players in the TV ecosystem.

Cringely on Google and Microsoft

Robert Cringely writes:

Where Microsoft’s theory of business is built around the platform and its domination, Google has built a theory of business that is independent of the platform, and therefore their software runs (or can run) on any platform. The issue around “advertising based revenue” isn’t really the key differentiator. What counts is that for Microsoft the platform is the PC while for Google the platform is the Internet and nobody can hope to control the Internet — not Microsoft OR Google.

Maybe Microsoft’s new Internet ad business will turn the tide. Wrong! How many web sites do you visit primarily for the advertising? Not anything from Microsoft to be sure, yet that’s essentially what people do with Google – going TO the ads.

And look at those Google ads. Here’s the most important key to Google’s success: Most Google advertisers don’t advertise ANYWHERE else. Its mainly small and medium sized companies whose advertisements the average person would NEVER have seen before the Internet. Google is making a ton of money from people who never advertised before. Heck, Google is making a ton of money from people who never were even in business before. This is not only a fundamental change in how advertising is done; it is a fundamental change in how BUSINESS is done.

Snap’s New Ad Model

MercuryNews writes about the search engine’s pay-per-action model:

With Snap, advertisers decide how much they are willing to pay if a customer completes a certain action — like buying a product or filling out a form. Advertisers submit their bids and create a keyword campaign.

If a Snap user visits an advertiser’s site and completes the desired action, the advertiser pays Snap. Otherwise, the only cost is a $50 non-refundable sign-up deposit.

“For the advertiser, it’s the ultimate,” said Snap Chief Executive Tom McGovern. “They only pay when they ring the register.”