Insider Chatter by Donna Bogatin

September 25, 2007

NBC, Sling, EchoStar: Television and DVRs, OMMA Report

Sling Media, the self-proclaimed “digtial lifestyle products” disruptor, is selling out to EchoStar, the third largest pay-TV provider in the U.S. and a DVR provider. WHY?

EchoStar, Charlie Ergen, CEO & co-founder: With today’s increasingly mobile lifestyle, EchoStar’s acquisition of Sling Media will allow us to offer innovative and convenient ways for our customers to enjoy their programming on more displays and more locations, including TV’s, computers and mobile phones, both inside and outside the home.

Sling Media, Blake Krikorian, CEO & co-founder: By combining strategies, resources and technologies with EchoStar, Sling Media will be able to rapidly expand our open multi-platform product offerings, not only for DiSH Network sunbscribers, but for digital media enthusiasts around the globe.

Last May, I heard the President of Sling Media, Jason Hirschhorn, tell advertisers and media companies at the IAB Video Forum that revenue generating “windows” are dying: TV, cable, DVD…because consumers are empowered to “watch TV virtually anywhere in the world.”

IS TIME-SHFITING, PLACE SHIFTING MEDIA CONSUMPTION CANNABILIZING TELEVISION? Gerorge Kliavkoff, NBC Universal’s Chief Digital Officer was asked yesterday at the OMMA Conference in New York City.

NO! Television viewership is what “drives everythng else,” Kliavkoff underscored:

Online drives incremental revenues for us. Viewers use the Web as a DVR to watch missed episodes. Our first-run business will be OK for a long-time.

TV 360 ad packages fuel integrated broadcast, online, mobile traction deals. TV 30s are what drives the economics of digital; We are growing our TV business and our digital business.

NBC is in an enviable position: When we sell $5 in TV ads, we charge $5.30, 25 cents for digital puls 5 cents for mobile.

What’s more, televison CPMs will rise, Kliavkoff asserted, as the “algorithms” improve:

We will have better targeting and advertisers will be happy to pay higher CPMs because they will get better ROI.

MORE OMMA REPORTS: OMMA Advertising Cat Fight? Google’s Media Chief Gets Defensive and NBC on Why Hulu.com IS a YouTube Killer and NBC’s Defense Against YouTube IP Abuse? Carrot, NOT Stick

ALSO: Facebook Sex Sting: Will Microsoft, Yahoo, Google Buy Into Scandal? and Yellow Pages Trash Talking: The SEO Dog in the Google Local Fight

CONTACT DONNA BOGATIN

Filed under: General, Video, Conferences, Online Advertising, YouTube, Monetization, NBC Universal, Mobile, OMMA
Written by: Donna Bogatin @ 8:23 am

 

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