Immediate Future of TV and Movies as Zero-Sum Game

JupiterResearch:Despite all the excitement about new digital markets for TV and filmed entertainment, near-term revenues will be minimal and potentially neutralized by ad-spending threats.

New platforms will generate only $5 billion in yearly spending by 2011, while DVR ad-skipping puts $12 billion at risk.

The projected figures will account for only two percent of advertiser and consumer spending, while five percent is at risk. This assumes that advertisers will actively reduce spending-so far they have not-and that they don't adopt new advertising formats and platforms.

Television and filmed entertainment programmers and studios must treat new platforms and consumption models as relatively small revenue streams whose primary value is promotion,. Advertisers should continue to refuse to pay for delayed viewing, and experiment aggressively with new platforms, branded entertainment and product placement.

Evolving Business Models for Television & Filmed Entertainment Publ 20060925