Comments on: Wal-Mart Releasing Movie Downloads Versus TiVo Adding Commercials

By: Why Netflix Will Make Online Movie Watching a Reality | Bob Caswell

Why Netflix Will Make Online Movie Watching a Reality | Bob Caswell — Wed, 20 Aug 2008 17:34:06 +0000

[...] out with formats that only work in this or that way but cost this much. Wal-Mart is even trying the pay-a-few-bucks-more-to-get-your-movie-in-two-places move. But I don’t want to pay more to adopt your new technology. I want to pay what I was [...]

By: Tom

Tom — Wed, 07 Feb 2007 21:05:26 +0000

I used to download music from Walmart and Itunes but their digital rights management schemes got to be to big of a hastle and I quit. Maybe the same thing with the videos.

By: Bob Caswell

Bob Caswell — Wed, 29 Nov 2006 16:00:51 +0000

Davis,

The issue with TiVo’s new initiative is that it’s not really a sustainable solution. Networks blasting 30 seconds at everyone, even if annoying, is what pays for TV to be what it is (some might argue that it’s not that good even with the hoards of money flowing).

But if the old system is falling apart because more people are opting out of noise partly due to technology (TiVo, etc.), then what it preventing them from continuing their same behavior with these new ads? I’m really not convinced that these ads developed for TiVo are all of a sudden going to be better. Actually, I think they’re likely to be the exact same ads with different timing (shown at the end of the show).

Though I hope what you say is true (i.e. that this will “encourage advertisers to make longform entertaining commercials.”), making such commercials is extremely expensive, probably more expensive than the commercials they already have. So why would an advertiser spend more money to make a different commercial to show to a smaller audience that is known for skipping commercials?

I guess we’ll have to see what the initial data brings back, but I’m skeptical…

By: davis freeberg

davis freeberg — Wed, 29 Nov 2006 15:30:28 +0000

I don’t really see what’s so bad with TiVo putting opt in ads at the end of their programs. I don’t think ads themselves are so terrrible, but rather that the current model is broken. Right now the networks just blast 30 seconds at everyone and you get a lot of noise. By allowing an opt in ad, some will choose to watch it, some won’t it’s up to the consumer. As long as the consumer stays in control how is this a bad thing?

I think what TiVo’s program is more likely to do is encourage advertisers to make longform entertaining commercials. If Burger wants to make their own mini sitcom, I might actually tune into that if it’s funny. Sure there would be product placements in the sitcom, but at least it would be good. Do the product placements in The Office make the show any less appealing? It’s up to the advertisers to make their content as appealing as mainstream TV if they want this to work.

On the other hand, blasting the same 30 seconds over and over may lead to an interesting commercial every now and then, but the truth is even funny commericals will get old.

As far as Walmart’s crazy download scheme goes, well I don’t even know where to start with that. Let’s just call it weaksauce and we’ll watch it fail like all of their other digital initives.