Posts Tagged ‘Downloads’

Choice Is Good - Ad Supported or Subscription?

Sunday, January 20th, 2008

As we’ve mentioned before on these pages, when we started YuMe, content owners were far less willing to distribute content online than they are now. Over the past few years, the distribution of content online has increased from negligible to a trickle to a veritable flood. At every turn, one sees content owners attempting to maximize viewership and reach by distributing their content online - not only on their Web sites but also on affiliated sites, peer-assisted distribution points, mobile networks, and in a fairly recent trend, through downloads.

Downloading content allows one of the best viewing experiences. Basically, it’s a digital DVD. We could make the argument - and we will - that the experience of watching downloaded content is superior to DVD in the long run. Not only can viewers pause, rewind and stop the video, they can also watch in HD quality and they can often choose to watch from their computers, handheld devices or even TVs (albeit through extension devices and set-top devices). But the best part is that users receive more economic choices related to watching the content. In addition to the usual subscription, pay-per-use and rental services, we also have the option of watching the content on an ad-supported basis, perhaps at a lower cost or even for free. Choice is good, isn’t it?

Now, personally, I’m not a big fan of being spoiled for choice. For those of you who don’t know what I mean, just stand behind someone in line ordering at Starbucks when all you want is an overpriced, weak cup of coffee in a supposedly environmentally friendly holder. I’ve now started frequenting the corner coffee shop or Peet’s instead of Starbucks because my local Starbucks thinks the normal or default latte should be non-fat. Imagine having to say short latte, …pardon? …, no, not non-fat, soy, or 2% milk, regular, normal, plain white milk to receive a 8.0 oz cup of coffee with warm milk. Sheesh.

But I digress. The actual point here is that content distributors now have the option of reaching the digital home through downloads, via an ad-supported model. In our opinion, that allows for a tremendous viewing experience. It is high quality, lean-back, and basically a better DVD. And it comes with the option of being free or subsidised. In the end, both the content owner and users are happy, assuming the ads are contextual and not too intrusive or too numerous. And, of course, those who don’t want those ads have the option of a paying for an ad-free experience. I’m sure most viewers realize that even when they do pay, they still are being subjected to ads, masqueraded as trailers. With YuMe’s technology, even those trailers can be relevant.

We at YuMe are seeing more and more content owners expand their distribution of content to downloads, set-top devices, personal computers and hopefully soon, directly to the TV, thereby reaching more people. After all, that is the goal - and making a bit of money in the process, as well. In the end, all of this goes to show that our mission to help monetise content wherever, whenever and in whatever format seems to be working.

Jayant Kadambi