
TV over the Web Shifts Power of Advertisers
by
Allen Weiner
on Mon 28 Nov 2005 11:09 AM PST
We return to the thrilling days of yesterday--the days when advertisers had clout in making programming decisions. If you think what’s happening in Japan will not happen here, you don’t understand the power in the hands of those who pay for your free programming. The TV over the Web business places even more power in the hands of advertisers who will have a clear path of the consumer.
In 2006 and beyond, look for advertisers to create their own content and deliver it to consumers. Look for even more replicas of the model, articulated below in this release on Yahoo! News.
Dentsu Inc., Japan's largest advertising company, and five television networks said on Monday they have started talks on setting up an Internet television joint venture.
Dentsu and Tokyo Broadcasting System Inc., Fuji Television Network Inc., Nippon Television Network Corp., TV Asahi Corp. and TV Tokyo Corp. said they aimed to provide content online, seeking to attract the growing number of high-speed fibre-optic Internet users in Japan.
The proposed alliance comes as Japanese broadcasters face pressure to change with the advance of technology and Internet companies try to take a slice of the lucrative business.
TBS is currently considering a merger offer from Internet shopping mall operator Rakuten Inc., while Fuji earlier this year fought a takeover battle with Internet firm Livedoor Co..
Online advertising is also taking revenue away from TV. Dentsu is focusing on the Web advertising market, forecasting that its Internet-related business would post annual sales growth of about 30 percent over the next few years.