NBC announced a new, ad-supported, VOD service, NBC Direct, today. Starting in October, Consumers will be able download episodes of some new and returning programming to view on their PCs (episodes expire in 7 days). The subscription service allows people to automatically download new episodes as they become available.
At the beginning, this new software will only be Windows-supported; however, NBC expects to eventually let people flick their downloads to their iPods, so Mac-supported software is hopefully in the works.
Meanwhile, Hulu.com, the much anticipated collaboration between News Corp and NBC, has made nary a ripple. Except for being sued by LuLu.com over trademark infringement.
NBC Direct has potential if they take a few a additional steps.
1) Open all their primetime programming to this VOD service. Consumers like choice, and a couple of executives trying to think like tech savvy consumers, doesn’t tend to end well.
2) Invite the other major broadcast networks to join them: FOX, CBS, ABC, the CW. Let the other networks kick in for a share of ongoing R&D, whether by flat fee per quarter or by keeping a share of ad revenue for other network’s shows. My guess is that the former would be more lucrative for NBC to start.
3) Allow users to search for programming by genre and by show title. It wouldn’t hurt to add in a recommendation section that looks at how a consumer rates other shows they’ve seen past and present, to suggest other shows that might be worthwhile for that consumer.
4) Maximize portability. Don’t just allow a transfer to an iPod. Give users the option to slap it on a flash drive or to a Sling Box or to AppleTV. Let them take it and watch it where and when they want before the content expires.
5) Build forums and chats around each show, allowing fans to find each other and bond. These official forums provide free feedback to networks about what consumers like and don’t like, as well as create community, encouraging viewers to keep watching.
6) Brace yourself. Invite cable networks to join them: HBO, Showtime, FX, Lifetime, USA Network, TNT. Let’s face it, innovation in scripted programming happens in cable. They can cover more risque topics (I for one LOVE Nip/Tuck and Rescue Me) and take bigger risks because the FCC can’t touch them. At the end of the day, some people just aren’t going to pay extra for HBO, but there’s no reason not to reach out to them via other ancilliary distribution windows.
Take a look at film:
Theatrical –> DVD –> PPV & VOD –> network –> cable.
Home video pulls in more revenue for the film industry than theatrical runs.
Let’s look at TV
Full Original Season Run/Reruns –> iTunes/DVD –> syndication on cable (once 100 original episodes have aired)
Me thinks there might be a few untapped revenue streams here, say before Season 8 of Law and Order: Special Victim’s Unit hits DVD. An ad-supported digital release window that runs tandem with the original season run.
Basically, collaboration is key. Each broadcast and cable network can go it alone and design separate sites for their library of product, requiring viewers to visit multiple sites. Or, they can join together and bank it one place that’s easy to navigate. The odds are good if you like NBC’s Law & Order or CBS’s Without a Trace, you might like TNT’s The Closer. No one network would win in this scenario; all parties would get to pad the coffers.
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