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batye
batye
8/3/2016 1:46:33 AM
User Rank
Platinum
Re: Finding the Right Business Model
@mhhf1ve  somehow this point does remind me of the present state of youtube and the way adds pops up during the viewing...

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batye
batye
8/3/2016 1:45:04 AM
User Rank
Platinum
Re: Finding the Right Business Model
@dcawrey yes I do see the same trend... as maybe Co. did not tap in it yet...

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afwriter
afwriter
8/2/2016 10:46:57 PM
User Rank
Platinum
Re: Finding the Right Business Model
Some of my favorite movie watching apps on my Roku utilze ads and have a pretty decent selection of movies.  Not only do they have a decent selection, but the movies are free as well.

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DHagar
DHagar
8/2/2016 9:24:48 PM
User Rank
Platinum
Re: Finding the Right Business Model
@mhhf1ve, thanks for info.  Well there you go, that won't work then in the current environment.  You can't run a train where the tracks don't exist!

I was thinking that infrastructure was there.  You are right, sending broadcast ads will be a turn-off.  Can they develop a small data base of their own clients and track the content and then apply the ads until the infrastructure is there?  Or maybe target 2 or 3 key major advertisers that generally would fit their clientele.

I guess like everything else we continue to move from the "known" to the "unknowns".

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mhhf1ve
mhhf1ve
8/2/2016 9:08:51 PM
User Rank
Platinum
Re: Finding the Right Business Model
Advertising with streaming video isn't as simple as it might seem. With traditional broadcasting, the video ads weren't targeted at all, but now there's a capability to serve more relevant ads... if the inventory exists.

However, the ad inventory is still being built, so until it's a much more diverse stockpile of ads, end users are going to be annoyed and frustrated by the random ads and the inconsistency of the ad video quality.

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DHagar
DHagar
8/2/2016 8:06:42 PM
User Rank
Platinum
Re: Finding the Right Business Model
@dcawrey, you are right about that.  That is a missed opportunity.  I think your assessment that they have not built the capability to capitalize on advertising plays a big part.  That certainly seems like a great target and not too difficult to build the capability to support that.  It certainly would offer them new revenue streams and keep them "in play" with their customers.

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dcawrey
dcawrey
8/2/2016 7:49:18 PM
User Rank
Platinum
Re: Finding the Right Business Model
I have noticed some video services aren't utilizing advertising as well as they should. Maybe it is because these services lack the technology or inventory to serve up ads, but I feel like many are missing out on a revenue opportunity. 

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DHagar
DHagar
8/2/2016 6:40:32 PM
User Rank
Platinum
Re: Finding the Right Business Model
@Adit, a very comprehensive listing.  I am not familiar with other business models currently being used by video providers.

Excellent outline and description.  What I am thinking will continue to evolve are hybrids that engage customers and build on the loyalty and then segment the market and the capabilities of the service provider to optimize their content, market position, and partnerships.

I am also wondering if someone won't "fine-tune" the models with loyalty rates for continus subscriptions and bundled services.  Time will tell where the greatest profit margins are created.  The successful companies I believe will keep their eyes on that "sweet spot".

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