Wait a second. Wasn’t it just yesterday I said “Content is King?” Yep. Thanks for noticing.
My old pal, Michael Somerville, is one of the best comics on the planet. His content is King. When he’s on stage, Michael is King. Michael is King because of his content. Michael gets paid. Bank. For a really great comic, like Michael, the system works. Content is King. Cash is King. They work hand in hand.
Harkening back one more time to Bill Gate’s 1996 essay, “Content is King,” Bill goes on to say, “For the Internet to thrive, content providers must be paid for their work.” That, in a nutshell, is the inflection point we are at with OTT.
From the advent of cable, consumers became accustomed to paying subscription fees. The early OTT entrants replicated that model. You pay a monthly fee and you get a bunch of channels. Simple. But what about free? People love free.
Free will play a huge part in the future of OTT. Here’s why:
Back during one of Michael’s many visits to the David Letterman Show, we all saw commercials during the breaks. Before the advent of OTT, advertisers sought out programming that a) delivered the largest audience numbers, and/or b) appealed to an audience that might actually buy their product. The price they paid for the ad running was based on some guestimate of how many people actually were going to watch, or did watch.
OTT is going to personalize your advertising experience.
Therein lies the opportunity. The more an advertiser knows about you, the more they are willing to pay to reach you. Sticking with the “Michael is King” analogy, let’s look at the numbers. Michael, Liza De Guia and I have been friends for years. Both Liza and I follow Michael’s video podcasts religiously. We both want to watch his amazing interview with former Bausch and Lomb CEO, Steve Robins.
At the first commercial break, Liza sees ads about cooking, or travel or music. I’m a fledgling woodworker schlepping around town on weekends getting materials in my Ford F-150, so I see ads for tools, trucks and oil changes.
Liza’s advertisers and my advertisers pay more because their message to us is on point.
In the past, my Ford F-150 advertisers paid to reach both me and Liza even though it is highly unlikely that Liza will ever buy an F-150. OTT fixes that and, while advertisers may not understand that just yet, it is happening and it will continue to evolve.
Back to Michael and “Cash is, was, and always will be King.” Michael’s content drove me and Liza to OTT. The price we paid to watch Michael’s video podcast was $0.00. And, while we laughed, cried and giggled through Michael’s entire episode, ads played. When ads are delivered, Michael gets paid.
Come to think of it, Cash is King…but so is Content 😉