Broadcasters could be left behind as cablecos become ad brokers: Maffin

Cable companies will be the next advertising power brokers, according to business technology futurist and radio and TV host Tod Maffin. "As a cablevision company you have a role to play as truly a power broker in the advertising world," he said during his address at the Canadian Cable Systems Alliance (CCSA) annual meeting last week. Maffin believes that broadcasting or channel brands will become less important as video-on-demand (VOD) and personal video recorders (PVRs) allow customers to directly access programming at any time. As customers become less loyal to brands, they will become more interested in actual programming that can be delivered to them whenever they want, he said, and broadcasters will be cut out of the loop because they have no direct relationship with TV viewers. Cablecos on the other hand, he said, would become the conveyor belt supplying the bits and pieces of programming from their servers to consumers on demand. He talked about viewers paying $8.95 to a cableco to watch any show they wanted one night, or perhaps forking over $75 a month for the right to access any TV show made in the last 10 years over cable pipes. He likened the situation to there being one channel - the cable platform - with 500 programs rather than the 500-channel universe that many talk about today. "TV station brands as we know them today will become irrelevant in the eyes of the consumers," he stated. "Programming (from producers) will be sold to managers of massive hard drives, such as cable providers." TV viewers won’t be looking for broadcast channels, but rather trusted delivery platforms that can pick and choose appropriate programming for them, or make it available to them when they want it. With broadband technology, the cablecos will be able to customize the TV programming that is sent to particular subscribers and when it is sent, said Maffin. Cablecos will also be able to immediately track viewership numbers and other demographics, rather than having to wait for the ratings release from BBM Canada. Since advertising is about reaching the right people at the right time, he noted that cablecos will be in a better position than broadcasters to fulfill that role. He also predicted that cablecos would be running banner ads along the bottom of TV screens targeted at specific viewers based on previous viewing patterns and known demographics. In a universe of on-demand viewing and customized TV programming watching, Maffin pointed out there will still be a place for linear or real-time viewing of events - but that it will take the backseat in terms of premium customized advertising. Live sporting matches, breaking news and reality TV will be watched in real time, because TV will still be a shared common experience, he stated, and some viewers may be too lazy or not want to set their own viewing schedule. "Real-time commercial radio and television will become the poor ghetto of media content," he said. "Yet pay-per-item and predictive viewing from a multitude of content servers will be the rich neighbour."

Broadcasters could be left behind as cablecos become ad brokers: Maffin

News | 10/07/2005 4:00 am EDT

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