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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>It’s not Myth-TV related but I just posted this novel
concept about television advertising on my blog.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>I’m interested in what people think about the concept,
particularly would you pay the three time multiple of approx 45c in order for
you to watch something commercial free. Now of course most Myth-TV users are
going to brag I never watch live tv yeh well maybe….but for the rest of
you-what do you think?<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>If you’ve got something specific to say you can post
it on the comments section of my blog or just reply here;<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><a
href="http://deancollinsblog.blogspot.com/2007/11/advertisement-free-tv-well-whats-it.html">http://deancollinsblog.blogspot.com/2007/11/advertisement-free-tv-well-whats-it.html</a><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=2 color=black face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:black'>Regards,</span></font><o:p></o:p></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=2 color=black face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:black'>Dean Collins</span></font><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'><br>
<font color=black><span style='color:black'>Cognation Pty Ltd<br>
</span></font></span></font><a href="mailto:dean@cognation.net"
title="mailto:dean@cognation.net"><font size=2 face=Arial
title="mailto:dean@cognation.net"><span title="mailto:dean@cognation.net"><span
style='font-size:10.0pt;font-family:Arial'>dean@cognation.net</span></span></font><span
title="mailto:dean@cognation.net"><font size=2 color=black face=Arial
title="mailto:dean@cognation.net"><span title="mailto:dean@cognation.net"><span
style='font-size:10.0pt;font-family:Arial;color:black'><br
title="mailto:dean@cognation.net">
</span></font><font color=black title="mailto:dean@cognation.net"><span
style='color:windowtext;text-decoration:none'></span></span></font></a></span><font
size=2 color=black face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:black'><u1:dial u2:st="on">+1-212-203-4357</u1:dial> Ph<br>
<u1:dial u2:st="on">+61-2-9016-5642</u1:dial> (<u1:City u3:st="on"><u1:place u3:st="on"><st1:place
w:st="on"><st1:City w:st="on">Sydney</u1:place></u1:City></st1:City></st1:place>
in-dial).</span></font><o:p></o:p></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>P.S. for those of you
who prefer on-list discussions I’ve posted what I wrote in it’s entirety
below but the editing is a little out.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<h2 style='margin-bottom:6.0pt'><b><font size=2 color=black face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:black'>Thursday, November 01,
2007<o:p></o:p></span></font></b></h2>
<h3><a name=2750257978041265771></a><b><font size=2 color=black face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:black'><a
href="http://deancollinsblog.blogspot.com/2007/11/advertisement-free-tv-well-whats-it.html"><font
color=black><span style='color:black'>Advertisement free tv? Well whats it
worth to you?</span></font></a> <o:p></o:p></span></font></b></h3>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>Sometimes you have a great idea but technology
isn't there. Sometimes you have a great idea but the market mindset isn't
there. Sometimes you have an idea and well...you're just plain screwed by the
competition.<br>
<br>
I think I've got an idea that I've been tossing around for a few months that
covers all 3.<br>
<br>
It started when I was watching the premier episode of Burn Notice earlier this
year (yeh I know it's trashy but Fiona his girlfriend is way hot in a "I
can handle myself kind of way") so you've probably watched it at some time
too :)<br>
<br>
The premier episode was sponsored by DirectTV (a satellite tv provider in the <st1:country-region
w:st="on"><st1:place w:st="on">USA</st1:place></st1:country-region>). It's not
a new concept, basically they get some consumer orientated company to sponsor
the premier and it's shown in its entirety without advertisements.<br>
<br>
The sponsor gets mentioned at the start and finish of the show and pretty much
by name for the week before hand each time the premier is mentioned in the 30
second show advertisements.<br>
<br>
You've all seen something similar before, but for some reason it got me
thinking.<br>
<br>
How much did it it cost DirectTV to sponsor Burn Notice for an
"Advertisement Free" premier. And what is my time worth to me?<br>
<br>
So the question is this;<br>
<strong><b><font face=Arial><span style='font-family:Arial'>"What tv do
you watch that you would prefer as an advertisement free show and what is that
worth to you?"</span></font></b></strong><br>
<br>
So here is where the technology part comes in. When watching cable TV
everything that you are watching except live TV is pretty much cached into the
broadcasters servers.<br>
<br>
In addition in the past broadcast headends were limited in the number of
individual streams of "on demand" content they could offer. eg not
everyone could go and watch on demand content at once. Though this has changed
or is pretty close the timeline that 100% of set top boxes can be watching on
demand content.<br>
<br>
(oh and if you think that cable companies ears won't prick up when they realise
this concept would drive up on-demand usage and further increasing their
rivalry over satellite tv, then they do).<br>
<br>
<strong><b><font face=Arial><span style='font-family:Arial'>- how can tv
networks capitalise on this?</span></font></b></strong><br>
So I'm watching an episode of House (best show on tv at the moment even if the
original ducklings have moved on). And I really like House the opening scenes
look great I'm enthralled and happy to settle in and watch for the next 60
minutes (well 45 minutes of content and 15 minutes of advertisements) and then
just when it was getting to the good bits the first advertisement comes on ....<br>
<br>
<br>
<strong><b><font face=Arial><span style='font-family:Arial'>- and I think my
time is worth more than this....</span></font></b></strong><br>
<br>
so I push the magic button on my remote and the set top box gives me a figure
(I'm expecting around about 45c - I'll explain the number later) and I click
yes.<br>
<br>
<br>
<br>
The commercial stops, it returns to the House episode and I continue watching,
for the next 40 minutes of uninterrupted tv content and love every ad free
minute. happy with my interaction with House, happy with my interaction with
Time Warner and to be honest not even noticing that I just spent 45c.<br>
<br>
<br>
<br>
<strong><b><font face=Arial><span style='font-family:Arial'>- So what just
happened?</span></font></b></strong><br>
<br>
It's simple.<o:p></o:p></span></font></p>
<ul type=disc>
<li class=MsoNormal style='color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:
auto;mso-list:l1 level1 lfo1'><font size=2 color=black face=Arial><span
style='font-size:10.0pt;font-family:Arial'>By pushing the magic button on
my remote it told the set top box that I was moving from broadcast to
streaming at that point in time.<o:p></o:p></span></font></li>
<li class=MsoNormal style='color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:
auto;mso-list:l1 level1 lfo1'><font size=2 color=black face=Arial><span
style='font-size:10.0pt;font-family:Arial'>The set top box told the
billing platform to add 45c to my monthly bill.<o:p></o:p></span></font></li>
<li class=MsoNormal style='color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:
auto;mso-list:l1 level1 lfo1'><font size=2 color=black face=Arial><span
style='font-size:10.0pt;font-family:Arial'>The content servers in the
headend then cut out the pre-programmed commercials, delivering only the
House video content uninterrupted until the end of the show.<o:p></o:p></span></font></li>
<li class=MsoNormal style='color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:
auto;mso-list:l1 level1 lfo1'><font size=2 color=black face=Arial><span
style='font-size:10.0pt;font-family:Arial'>At the end of the show the set
top box went back to broadcast and returned me to "normal running
time", this is important - I cant just watch 3 shows back to back
without breaks otherwise the headends would overload and I would cause a
rip in the fabric of the time space continuum.<o:p></o:p></span></font></li>
</ul>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'><o:p> </o:p></span></font></p>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>Now I could have just have just hit pause on my
DVR, gotten up, walked away for 20 mins, read a book, walked the dog, written a
blog post - whatever.<o:p></o:p></span></font></p>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>But that's not the way human interactions work.
Spontaneous, continuous, one-off content purchases work through the novelty of
their immediacy.<o:p></o:p></span></font></p>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>That's why it's worth 45c and that's what will
make Time Warner more profitable.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'><o:p> </o:p></span></font></p>
<p><strong><b><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>- So how did I come up with the figure of 45c</span></font></b></strong><font
size=2 color=black face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:black'><br>
Easy, It's my estimation of <strong><b><font face=Arial><span style='font-family:
Arial'>three times </span></font></b></strong>how much each advertisement earns
Time Warner for each subscriber to watch 15 minutes of advertisements.<o:p></o:p></span></font></p>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>With each 30 second spot being purchased for X
number of dollars and X number of viewers expected to be watching any given
show the broadcasters and advertisers can pretty much come up with an expected
number of viewers and what the cost per viewer is going to be. <o:p></o:p></span></font></p>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>Or in my example I figure it costs the
advertiser 1c to reach each viewer for their 30 second spot.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'><o:p> </o:p></span></font></p>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>Now this figure is going to vary based on any
number of external factors - how's a show rating, what's it up against, how
cold/warm is it outside, who's doing well in the world series etc etc. but it's
realistic to come up with a fairly accurate number.<o:p></o:p></span></font></p>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>Now I'm sure cable companies are going to get
greedy, fat and lazy and try and round this figure up to a $1 per show kind of
system but that's not what i-Mediacy is about (yeh I know the term is a little
web 2.0 but you get the point), it's about replacing the advertisements not
implementing PPV for every show - we're bored with ipod purchases, on demand
purchases, dvd to own purchases. This is about recognising my time is valuable
and allowing me the choice to 'outbid' the advertisers for my time.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'><o:p> </o:p></span></font></p>
<p><strong><b><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>- Why multiple of "three" and what
benefits are there for advertisers?</span></font></b></strong><font size=2
color=black face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:black'><br>
So the first outcry from the 'marketers' is this would be terrible, we rely on
a certain number of 30 second spots to be available in order to get our message
out there. (in fact certain times eg. presidential season, the available slots
often tighten and pricing goes up-or goes down in non ratings season).<o:p></o:p></span></font></p>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>So here's why the advertisers are going to like
the idea. When I select buy, the amount I as the viewer pays is three times
what the consumer company paid for the slot, yes they don't get to advertise
their product but not only doesn't it cost them nothing to advertise they
actually get a rebate equal to the amount of twice what they would have
otherwise spent.<o:p></o:p></span></font></p>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>So get this, I could spend $200k on a weeks
advertising and actually make money back on my investment (eg for the 100,000
people that chose not to watch my commercial i made back twice the amount of
money they would have cost me).<o:p></o:p></span></font></p>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>- That's the beauty of the novel concept, not
only are the advertisement free viewers getting to watch content for a small -
unnoticeable in the grand scheme of things fee happy.<o:p></o:p></span></font></p>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>- And the advertisers are happy because in
certain instances they actually get a refund from the cable networks on the
money they might have spent with them.<o:p></o:p></span></font></p>
<p><strong><b><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>- The cable networks are happiest of all.</span></font></b></strong><font
size=2 color=black face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:black'> <o:p></o:p></span></font></p>
<ul type=disc>
<li class=MsoNormal style='color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:
auto;mso-list:l0 level1 lfo2'><font size=2 color=black face=Arial><span
style='font-size:10.0pt;font-family:Arial'>They get the original 15c cut
that the commercial was going to bring in as revenue. <o:p></o:p></span></font></li>
<li class=MsoNormal style='color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:
auto;mso-list:l0 level1 lfo2'><font size=2 color=black face=Arial><span
style='font-size:10.0pt;font-family:Arial'>With diminished spot numbers
natural market forces will increase the average spend per 30 spot. <o:p></o:p></span></font></li>
<li class=MsoNormal style='color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:
auto;mso-list:l0 level1 lfo2'><font size=2 color=black face=Arial><span
style='font-size:10.0pt;font-family:Arial'>BUT most importantly with the
consumer vendors knowing that there is the strong possibility that their
advertisements will be usurped will have a natural tendency to overbid on
their 30 second spots. eg trying to outbid the consumer. In doing so the
profit point percentages for the cable operators increases substantially.<o:p></o:p></span></font></li>
</ul>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>This increase per 30second spot must be
reflected as a multiple in what people pay to watch advertisement free. If the
figure is a flat rate they will feel ripped off.<br>
<br>
Times have changed, you need to make your content viewing consumers feel
valuable - there are too many alternatives out there (and getting more enticing
by the day). <o:p></o:p></span></font></p>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>By opening the kimono and showing them exactly
what you make by them participating and watching your vendors commercials they
will feel inclusive and more valued. You may even find some brand loyalty at
what a great job the cable company is actually doing.<o:p></o:p></span></font></p>
<p><font size=2 color=black face=Arial><span style='font-size:10.0pt;
font-family:Arial;color:black'>Well there it is. As far as I can tell from my
research it's a novel idea. i-Mediacy is there as a concept and I'd really like
to hear your thoughts.<br>
<br>
<br>
Cheers,<br>
Dean<br>
P.S. I've also got another idea about how consumers can make money watching
those ads with that magic button....but that's for another time and another
venue.<o:p></o:p></span></font></p>
<p class=post-footer-linepost-footer-line-1 style='line-height:16.8pt'><span
class=post-authorvcard><font size=2 color=black face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:black;text-transform:uppercase;
letter-spacing:1.2pt'>Posted by </span></font></span><span class=fn><font
size=2 color=black face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:black;text-transform:uppercase;letter-spacing:1.2pt'>Dean Collins</span></font></span><span
class=post-authorvcard><font size=2 color=black face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:black;text-transform:uppercase;
letter-spacing:1.2pt'> </span></font></span><span class=post-timestamp><font
size=2 color=black face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:black;text-transform:uppercase;letter-spacing:1.2pt'>at <a
href="http://deancollinsblog.blogspot.com/2007/11/advertisement-free-tv-well-whats-it.html"
title="permanent link"><font color=black><span style='color:black'><ABBR class=published title=2007-11-01T10:15:00-04:00>10:15
A</span></font><font color=black><span style='color:black'>M</span></font></ABBR></a>
</span></font></span><font size=2 color=black face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:black;text-transform:uppercase;
letter-spacing:1.2pt'><o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
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