Friday, April 28, 2006

ABC Testing On Line Video

April 28, 2006

Rest assured that there will be many sectors interested in ABC's on line video offerings, and satellite radio will likely be one sector keeping a close eye things.

Many companies are exploring how to deliver content to audiences that goes beyond the living room television set. ABC will be rolling out on line versions of popular television shows May 1st, and will run the service through June.

Initial studies indicate that 1 out of 4 people express interest in viewing their favorite shows on line. One of the major concerns settles around advertising. The ABC service will not allow viewers to skip ads. This did have an impact on the level of interest in the service, but the numbers still seem to support the endeavor.

The key items that will interest those that follow the satellite radio equities is just how many people would utilize such a service, and where, if at all, does advertising revenue fit in. Sirius and XM will have to invest a lot of capital into video services, and will also need to commit bandwidth. Bandwidth is not an endless commodity, and the satellite radio companies need to be sure that they are getting a return on their investment of dollars and bandwidth.

As video becomes more widely available, the competitive landscape could play a major role in how the satellite radio companies roll out the services. Partnerships may be necessary simply to defray costs, and lock up content.

You can read the AdAge article by clicking here.

The link to this write up is http://tinyurl.com/jmqmp

4/28/2006 02:34:00 PM

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