ON Networks Trying Revenue Models

We wrote about ON Networks back in July as they were cranking up the pace at which they were creating original, short-form video content for the internet. One of the cool things about the content was that it was in HD, you could download it via iTunes, and shortly after the iPhone introduction they tuned their content for the iPhone format. Today they announced to the public one way in which they intend to make money doing this.

They signed up some top notch advertising agencies including Carmichael Lynch, GSD&M, and SicolaMartin as partners. ON Networks will embedd pre-roll and post-roll ads from their clients. Executives say that they can also be more creative by doing things like in-show survey’s, click to purchase, and click to learn links.

For example, check out their show Stump the Chef, in particular the Alligator, Licorice, and Mystery Can episode, which is sponsored by Jack Link’s Beef Jerky. Since it’s filmed in HD, it looks great on my computer, and also on my iPhone.

Despite market research which says that 85% of the population watches the commercials on TV, my brief survey of friends reveals that 0% watch commercials on TV because they fast forward through them. Advertisers are having to find new ways to reach consumers, and interesting custom content online is certainly a growing delivery mechanism for messages.

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About Bryan Menell

Bryan is the Managing Editor for AustinStartup and the Director of the Collaboratory at Dachis Group. He is a co-founder of Capital Factory, on the board of Texchange, and runs the popular Austin Tech Happy Hour with his wife. He advises early stage technology companies including Socialware, SpeedMenu, and AudiencePoint.

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