They are the big beasts of the digital-video world. Netflix and Amazon are fast gathering subscribers to their paid, ad-free online video offerings. But, with their platforms gaining traction in the living room, aren’t they ignoring a pretty big TV advertising opportunity?
“They’re all spending millions and millions of dollars to produce this content – so far, they’ve recouped that investment by gaining new subscribers,” Modi Media president Mike Bologna tells Beet.TV in this panel interview. “They’re going to have to start to deploy some type of advertising model to recoup some of the revenue that they’re spending on this programming.
“While I don’t think it’s going to be a traditional television model … I do think it will be an addressable model. They have the ability right now to insert at that one-to-one level. We will look at Netflix just like we look at Roku today or Samsung tomorrow as another MVPD (multichannel video programming distributor).”
Citi senior media manager and SVP Kim O’Connor thinks the kinds of advertising run by these new players will look pretty familiar.
“It’s going to be addressable video – I don’t think we’re going to be talking about TV. When you look at the Hulus and the Amazons and Netflixes of the world, there are going to be dayparts. Maybe not tomorrow, but not too far in the future.”
This sessions was moderated last month by LUMA Partners CEO Terence Kawaja, at an event about the future of addressable TV presented by AT&T AdWorks in association with Beet.TV Please find more videos here