Would you pay $30 a month to watch TV via iTunes?
That’s the pitch Apple has been making to TV networks in recent weeks. The company is trying to round up support for a monthly subscription service that would deliver TV programs via its multimedia software, multiple sources tell me. The industry finds this idea both tempting and terrifying.
Last month, the New York Times was attacked by hackers who bought fake Web ads from the publisher. And one of the world’s biggest ad companies says that won’t be the last assault. But the solution runs counter to industry trends.
Start-ups whose business plans are based on selling advertising are having a very hard time raising money. But start-ups that want to make money by helping other people sell advertising? That’s another story.
Today’s example: Rubicon Project, a Los Angeles-based advertising-optimization start-up, has raised a $9 million C round led by Peacock Equity, the joint venture co-owned by GE Capital and GE’s NBC Universal.
Another feather for the “we’ve got real stuff” cap that YouTube is showing off these days: Google’s video site has hammered out a deal with Time Warner to show clips from the media conglomerate’s cable networks, TV shows and movies. But you won’t be seeing full-length shows or movies from Time Warner on the world’s biggest video site–it’s saving those for cable companies that play along with its “TV Everywhere” plan.
Here’s the beginning of the inevitable online video shakeout: Joost, the once-hyped video service that was supposed to rival Google’s YouTube, is restructuring to focus on “white label” services, i.e., a back end for other video players.
The site is laying off the majority of its 100-plus employees, and CEO Mike Volpi is out, replaced by Matt Zelesko, who had been SVP of engineering.
Did you hear about Jimmy Kimmel’s shocking rant at ABC’s “upfront” sales presentation this week? The New York Times said the comedian’s routine, presented to an auditorium full of potential ad buyers, generated a “mixture of uneasy laughs and the occasional gasp.” But this was pretty tame stuff. See for yourself.
One big reason why very few ad dollars have yet to make their way from television to the Web, even though online video is booming: TV viewing isn’t shrinking. Yet. Nielsen says more Americans are watching TV than ever before–up 1.2 percent in the last quarter–and they’re spending more time watching TV, too–that’s up 1.9 percent, to a staggering 153-plus hours per month.
What does it take to add a third player to a joint venture between two media conglomerates? More than four months of negotiations. Tens of millions of dollars help, too. That’s what finally got Disney to join up with GE’s NBC and News Corp.’s Fox in Hulu, the fast-growing Web video site. Here’s what that means for the three networks and the rest of the Web video business.
Media giant Zenith Optimedia says the ad market is in worse shape than it had previously suspected. This is what Zenith Optimedia, along with just about every other ad forecaster, has been saying every three months or so for the past year. So it’s hard to get worked up about this stuff. The upside is also old news: Online advertising is doing better than traditional ads.
More fuel for the online advertising pessimists among you: Advertising revenues at AOL dropped six percent in the third quarter. Given that those results cover the three-month period that ended Sept. 30, which only included a couple weeks of flat-out economic collapse, there will be worse news in store for the last quarter of the year.
Peter Kafka has been covering media and technology since 1997, when he joined the staff of Forbes magazine. Most recently, he has been the managing editor of the tech and media Web site, Silicon Alley Insider. Read more »
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