According to the Wall Street Journal, ITV is about to roll out a "live streaming of all its television channels, a 30-day "catch-up" television service and access to a program archive stretching back to the 1950s."
Let's take a look at streaming of full-length programming on the three major US broadcaster Web sites…
- NBC offers streaming of some shows, but not all, of its programming. For the shows that are available, "all full-length episodes are posted by 5am ET the day after they air. Episodes are available for a limited time only," according to the NBC site. There is some level of IP detection, since I can't access the programming ("We're sorry, but the clip you selected isn't available from your location. Please select another clip."). In any case, NBC is missing the point – people want access in real time, when the show airs – and later down the road. NBC business approach is fundamentally flawed; users want content on demand, not when the network dictates they can have access to it.
- ABC offers a wider range of programming. The site limits viewing online to the geographic US, but doesn't hold back from publishing ads for US brands or offers (e.g. Target.com) to Canadians. Smart move – slap with one hand; take ad dollars from the other. Classic media slight of hand.
- CBS offered by far the best experience online. Not only could I not access full length programming ("not available outside the US"), I got to enjoy an endless loop of Advil and Verizon ads. You know the brand is getting the bill for the "stream." Why can't the networks act ethically and suppress advertising for visitors outside of the target market? I guess that would be asking for too much.
ABC and CBS "get it," but only a little – certainly more so than NBC.
But all the major networks are completely out to lunch by not enabling the back catalogue.
As a lead marketer for Columbia House, I learned very well about some distinct user segments. Their motivations and behaviours are markedly different. DVD buyers are product-centric – they want to own DVDs. It doesn't matter that the DVD might get watched three times, and the cost to rent could be $12 versus a $22 purchase. It's a moot point. DVD buyers are driven by commodity ownership.
Then, there's the on-demand segment – give me my programming, when I want it. I don't want to own a DVD to perpetuity; I just want to watch content when I want to, how often I want.
The latter group's needs set is not being addressed by any of the major US broadcasters.
ITV gets it – and understands that in enabling access to content going back to the 1950s, is a wise business decision, and engages people further with the ITV site, and brand. Access to the content can be supported with ads. As NBC learned recently when it attempted to charge for commercial-free content, people balked.
It is only a matter of time before the US based major networks avail more of their "vault" online, as streaming video. ITV's likely success, and the activity on Torrent networks for back catalog, will only serve as further evidence that the current business approach is shortsighted.
(WSJ article --> http://online.wsj.com/article/SB117802957764488158.html)