Tuesday 16 July 2013

Apple Pitches Ad-Skipping for New TV Service – A must-have for fast-forward NAMs?

According to a report by Jessica Lessin a former WSJ reporter and editor, Apple have apparently told media executives it wants to offer a “premium” version of the service that would allow users to skip ads and would compensate television networks for the lost revenue, according to people briefed on the conversations. This would allow users to watch ad-free live and on-demand television over an Apple set-top box or TV.

Whilst many viewers have traditionally 'fast-forwarded' TV recordings to eliminate advertising, the combination of Apple branding and smooth interfacing represents a step-change...making it easy to understand TV networks' reluctance....

However, given the realities of increased media fragmentation and the growth in multichannel delivery of content, perhaps it is time to take this final step towards the meeting of consumer need, testing viewer willingness to pay a premium for ad-free content.

It then remains for advertisers to make their messages so compelling and linked with the total consumption experience that viewers are prepared to accept the trade-off between interruption and break-free viewing...by choice.

In fact, there may even be a niche made up of NAMs that are so focused on their own and competitor advertising that they would pay a premium for back-to-back TV advertising...

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