Internet TV is set to fundamentally change all media industry landscape

Egor Yakovlev
General Manager
Tvigle Media
Russia

Frankly speaking, we will witness the cardinal change of the whole media industry during the next 3 years. There is a lot of information proving this fact, especially in American studies. For instance, in 2007 the American internet-commercials amounted up to $470 mln. By 2010 we will have $12 bln, according to conservative synopsis, and $16 bln. – According to optimistic synopsis. At that time there will be only 2 types of internet commercials by 2011 – context and video ADs. Banner advertising is going to stay niche.

One of the leading American research company eMarketer has made a survey among people who watch video in the internet and on mobile. The results showed that 2/3 among them watch professional video and that viewer of UGC-content are going to reject it as they are feed up with professional one. It is natural. So, where is that reshaped technically and psychologically content and the companies which will offer it to the audience? This is the first question to which Russian internet has no answer for now.

Today we have 3 potential sources of receiving money for this new industry.

The first source is TV budgets. It is obvious. Clients, who have their own TV ADs, agree to the internet commercials easier. The second one is on-line budgets, but that's a long story. And the experimental budgets (BTL, f.e.) make the third resource. This is almost the whole advertising connected with on-line videos – 1/3 of the budget.

There are 3 principal hindrances on the way of large business development, development on the commercial model. This is very new media, except common one, that is not clearly understood yet by the advertisers.

First, there are no standards for commercial bearers. We have 3 more or less standard bearers: pre-roll (a clip up to 10- 12'before the video), post-roll (after the program, it is usually sold for ‘clicks', not for contacts, as most people do not watch it and just close the window), an overlay (what we can see at last attempts of YouTube and some other sites – commercials on the content). Creeping lines are the classical example of such as advertisement. But the internet allows not only overviews of the commercials. One can also ‘click'on it and even buy at e-shop. If this is made professionally it wouldn't disturb the watching process. And all the experts agreed that it is the most promising ADs format among those three ones. Second: These are monetization and managing of service structure commercials. Each advertiser wants an outside data. We try to get it within our work: all of our statistics is connected with AdRiver, one of the biggest independent AD network in Russia. However, there are no industrial standards so far. Third: Media dimensions standards. There are 2 points of view how to measure the commercials. These are the opinions of the company which places the ADs and media itself, which is still in conflict so far.

Tvigle Media (www.tvigle.ru) exclusively produces, licenses and distributes short video content through proprietary portal, partner network, broadcasting and mobile networks. Founders of the project — team of professional managers with significant experience in Internet, IT, Entertainment and TV media businesses. We license the best shorties; produce our own content developing new formats and genres. We also make a creative environment for young talented artists, scriptwriters and producers. We strongly believe that premium quality content and its systematic renovation — is the key moment in satisfying consumers demand in entertaining video in new media segment.