TV Angel

Yesterday on his blog, Mark Cuban wrote about the viability of internet video. Cuban quoted from a recent report titled “Now for the News…The Emperor Has No Clothes,” authored by Craig Moffett of Bernstein Research.

From Moffett’s report:

“Five years into the video-over-the-internet revolution, we have learned two things. First; consumers won’t pay for content on the web, so it will have to be ad supported. And second; it won’t be ad supported.”

I found this statement particularly interesting in light of my interview with Brent Friedman. Brent is operating under a business model that he believes will be successful in the long term. Key to the model is the use of product integration rather than the traditional embedding of ad spots.

From Brent:

“Instead of just putting random ads attached to [Afterworld], there are no ads. There is just embedded product integration. It also allows for some sponsorship opportunities of the show itself, our website, cross-platform marketing opportunities from some of these companies that will take out ads touting new technologies, but at the same time promoting our show. That’s a very viable business model and that’s something that, looking back at Afterworld, we realized we had to change the way we did business, effectively. So you’re going to see a lot more of that with our next show.”

Advertising on the internet necessarily functions differently from television advertising. The two media are very different. While producers are still working to find the best model for monetizing their content, its premature, I think, to say that no successful model will be found. What is true is that doing business on the internet will be different from what networks and advertisers are used to in television. “New” media will require new ideas.

Obviously there is no way to know how successful Brent will be with Afterworld and his new series Gemini Division. However media heavyweights like NBC and Sony have chosen to invest in Brent’s model and he’s attracted blue chip sponsors in Intel and Microsoft, and A-list talent in Rosario Dawson. From talking with Brent it’s clear that he is very cognizant of the unique requirements of operating in digital media and so far he’s been doing pretty well.

Part II of the interview will be up tomorrow.