Thursday, May 03, 2012

Yes Virginia, Media Companies CAN Monetize Online!

Fear not, media companies!  As I have written for years (literally), the brave new world of online premium media distribution ultimately will lead to more monetization opportunities, rather than less.  Yes, there is much pain during these transitional years.  But, that pain is now leading to gain.

Case in point CBS.  On Tuesday, CBS announced its impressive Q1 2012 results and underscored that online licensing deals had a "huge impact" on its revenues and overall earnings.  Q1 revenues finished at $3.9 billion, while earnings came in at $363 million (up a whopping 80% year-over-year).  The leading driver of this latest success is content and distribution licensing deals to the likes of Netflix and Amazon -- and others, such as Comcast and Intel were mentioned in connection with future online distribution licensing deals.

Bottom line for providers of premium video content -- such as CBS -- the more distribution outlets, the better.  Every single premium video provider (be it Internet TV or IPTV) must offer as deep a pool of content as possible so that customers do not become frustrated by "holes" in their content offerings (and then bolt to someone else).  That means that all of them must offer all shows possible, in addition to their own exclusive original content offerings.

I wrote about this recently in TechCrunch -- an article titled "Online Video v. Music -- Different Game, Same Rules."