CBS announced yesterday that it will allow Yahoo! to stream two entire episodes of its television comedies, “Two and a Half Men” and “How I met Your Mother”, from Dec. 27 through Jan. 2 via www.tv.yahoo.com. We are clearly watching the continuing media shift that has major implications for marketers and advertisers alike.
We are witnessing advertisers and branders experiment with new ways to distribute their content while at the same time searching for revenue sources other than traditional television advertisers. It is an interesting process to witness. It is also a process that can teach a lesson to all marketers and branders: Test and measure to quantify branding ROI.
When we consider the ol’ P’s of the Marketing Mix, the P for “Place” involves distribution. Let’s talk about that for a minute.
With television content now being digitized, it no longer is necessary for content to be “aired” at certain times at which everyone who wants to view must tune in. Television shows can be distributed in any number of ways, not necessarily by advertiser-supported television broadcast. Even when they are, consumers may record the broadcast and view it later at a shifted time while zapping out commercials.
Apple with its iTunes is clearly the leader in the distribution of digital entertainment content. Disney chose to distribute some of its content via iTunes for a fee and now CBS chooses Yahoo! at no charge to the consumer. Interestingly enough, although you may be receiving Disney content, you are doing it within the context of the Apple-branded environment and brand experience. CBS’s content is delivered within the Yahoo!-branded experience. Even of more interest, CBS does not even produce the shows it is making available, they are licensed for network airing from Warner Bros. and 20th Century Fox.
What is going here?
There is a grand experiment taking place that involves not only distribution but also the brand management of digital entertainment content. This involves many issues that are carefully being tested and measured.
Some of the questions being explored are:
If programming is distributed by alternate outlets, does the financial benefit of wider reach and distribution outweigh the loss of control over a portion of the brand experience?
If content is distributed via one’s own or a partner's website or online service, how will this affect revenues from existing television advertising?
Can new distribution methods capture new revenue streams?
Are consumers willing to accept commercial marketing messages in their digital content in exchange for better programming, easier access or lower prices?
Is there any long-term financial benefit to the brand of getting wider reach with entertainment content if one does not immediately increase revenues as a result?
Can the revenue generated by a distribution partner deal outweigh the financial loss from advertisers and loss of direct control over the brand?
If we can achieve wide content distribution, will advertisers then come to us willing to pay for access in this alternative media? If so, will consumers accept the ensuing intrusion...or does that just get us back to where we started?
Media and market fragmentation continue to destroy the old model of advertiser-supported television. Television is becoming a direct marketing, direct response medium. Studios are grasping to hang on to their exorbitant rate cards until they find new sources of revenue and advertisers are finding it increasingly difficult to pay for expensive television advertising in the face of shrinking audiences and consumer disdain for marketing messages. This shift from a mass market approach to a direct or niche approach will have long-term ramifications.
The winners of this new age will be those companies who find ways to get quality programming into the hands and hearts of those consumers who will gladly give something back in return. Be it direct financial support by paying for content or a willingness to support advertisers and information intermediaries who make easier or better distribution possible.
Now that we take a closer look at it, nothing has really changed at all.
Smart marketers and branders realized all along that strong brands must attract loyal and passionate customers who are willing to make some sort of financial commitment to the brand.
There is and never was any such thing as a free lunch because brands must financially benefit the company in some way or the rest is academic. Capturing eyeballs and ears without action in return is not enough.
The brands who find ways to get the desired content to the right people in the best way for those consumers will be the winners. Consumers will gladly respond with support for the brand as long as the promise is made and reciprocity agreement is understood and reached up-front. Those brands will show a measurable, financial return.
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