Google TV = Opportunity
According to the The WallStreet Journal, Google is trying to enter the TV market by offering an online alternative. Many might see this as a threat to the traditional TV ecosystem. However, this represents an opportunity for advertisers and filmmakers. It can help advertisers target consumers more effectively and increase the demand for TV content from filmmakers. (If you’re a filmmaker, check the video at the bottom: Only 8 types of TV shows)
Venturing into the TV market makes sense for Google, because it aligns with their business model of generating revenue through advertising. Currently, Google is one of the leaders in online advertising. This new technology will allow Google to capture market share from the traditional TV market.
In 2012 ad spending for TV was $350 billion in 2012. That’s a lot. It’s enough to buy a Chipotle everyday for the rest of your life. It’s way better than trying to beat Chipotle’s puzzle competition to win a burrito for the next 20 years. Heck, you can buy your
The first graph on the left shows the portion of spending by media type. The market potential is 62.8% The next graph shows the growth by percent change in each media type. Both internet media and television grew from the previous year, by 4.3% and 9.9% respectively.
A full report can be found at Nielsen’s site.
Barriers To Entry
Most opportunities also come with barriers. There a few barriers that will prevent Google or any other tech company to get into this space.
Traditional TV Coalition
Current pay TV-operators such as Comcast, TW, and satellite providers will work to prevent this entry. They are already struggling to retain their customers due to online alternatives such as Netflix and Hulu. You can be sure that these traditional companies will form a coalition to prevent this entry.
The biggest barrier comes from the studios’ control of content. Studios and media companies will be more likely to sell their content to the largest distributors and the highest bidders. This brings a few problems: price and content availability. Google will likely have to pay a premium to license any content. Additionally, Google will have to accept content that might not be as popular. Media distributors like to bundle their shows. They sell the good shows bundled with the less popular shows. Finally, the studios have a lot more negotiation power because they control the content. This hints at the reason why Netflix, Hulu and other networks produce original content.
Advertising Opportunity: Big Data
The opportunity for advertisers can be a game changer. Currently, it is hard to track a customer’s actions from ad impression to a purchase. Many systems are limited and force advertisers to use ‘spray and pray method“: Buy as much ad space to target a demographic and hope that it will be effective. New technologies are already solving this pain, but Google’s TV technology can expedite this process. Google can combine their big data with the network’s current targeting strategy. Google could offer advertisers more analytics and metrics.
Imagine this: You’re sitting a home watching your favorite show via Google TV and a Sketchers commercial comes up. It sparked your interest so, you google: sketchers. Now Google can provide this information to sketcher’s advertiser to more precisely target you and influence you. This opportunity allows advertisers to receive more data points than ever. Obviously it is more technical than this, but you get the idea.
Filmmaker Opportunity: Golden Age of TV
Google’s approach highlights a very important point that a Nielsen Executive said during last year’s IGNITION conference.
This new technology presents a great opportunity for young filmmakers. Companies like Google, Amazon, Netlflix, and Hulu, are seeking original content. In this case, Google is seeking to license content from the studios. As a filmmaker this is exciting, because there are more alternatives to creating content other than the traditional studio route. However, the primary rule to remember is that CONTENT IS KING. It doesn’t matter if you have the next best 4K camera or the latest Hackintosh. What matters is the content. There will always be technological innovations and companies like Google seeking great content.
If you are a filmmaker you should consider focusing on writing episodic format content for TV. To find why Television is here to stay check this insightful articles:”Role Reversal” and Netflix, ‘House of Cards,’ and the Golden Age of Television“.
If you don’t know how to tackle a TV project, then check this video out. Theres really only 8 types of TV shows.
The Only 8 Types of TV Shows That Get Made — powered by Cracked.com