Tuesday, April 25, 2006

Video For Satellite Radio

April 25, 2006

Sirius Satellite Radio and XM Satellite Radio have both been pursuing the idea of offering video over their respective services. The concept might be well received by consumers, and some are already experiencing video clips over their cell phones such as V Cast from Verizon.

Having cell phone companies in the video mix has to impact the business models revolving around implementing a live video service for both SDARS providers. One way that may be helpful is to generate two revenue streams from the video concept. The first revenue stream being the subscriber, and the second being advertisements. The question is what is the proper mix of ads that can be aired without aggravating your subscriber.

Satellite Standard Group (SSG) came across an article that relates to the development of 5 second ads. While the article does not reference satellite radio, you can easily see how something such as the 5 second ad can become a part of a video service offered by Sirius or XM.

Metacafe offers video content over the web, and currently sells 5 second ad slots to companies such as H & R Block. Meatcafe CEO Arik Czerniak stated, "Why not five-second video ads?" he said. "I would gladly put those in front of videos. But I will never put 30-second ads in front of videos. It's too much. It ruins the experience for viewers."

The 5 second ad concept seems simple enough and non-intrusive enough that it may well be a concept that will garner consideration from Sirius and XM as they delve into the video arena. What shape will the business model for the video portion of satellite radio take? Only time will tell.

Readers can read the whole article here via AdAge.

Readers can visit MetaCafe here.

Readers who are interested in winning a free Starmate Replay can register by going here

The link to this write up is http://tinyurl.com/s9ll3

4/25/2006 10:22:00 AM

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