3. A Marketplace for Content
If my last two posts are on the money, it follows that some real opportunities exist in this space. For one thing, there should be an expansion of content production as advertisers wake up to the fact that they can make entire shows for the cost of 30sec ads. But that's just production - what excites me is the need for a marketplace. Traditionally delegates from channels have gone to XXXX and made bids for the rights to shows under YYYY. If the aforementioned changes continue, this sheltered world is about to be blown right open.
What will be needed is a marketplace where disparate companies can come together and bid for the rights to content. There needs to be a mechanism that brings producers together with advertisers. The idea is for advertisers to be able to make offers right alongside the networks both for shows and for 'pilots' or ideas for shows. So Myer could buy Housewives, Coke could bid on the pilot of the next show from the creator of the OC. The market would work both ways - Ferrari could put up its need for a car enthusiast show, and invite tenders/pilots from seasoned producers.
Such a system would need to embrace regional controls - not to create unwanted distortions but to increase efficiency - there is no point in a purely regional player like Myer buying eyeballs in the US. However, the marketplace would be agnostic about the underlying technology of distribution - if an advertiser wanted to distribute over the internet, DVD, flash drives, mobile phones, or even by buying time on a network, this would become a part of the negotiation.
A lot needs to happen for this to become a reality. For one thing, BitTorrent-type downloading needs to become much simpler. iTunes is showing how easy the interface should be for the end user - if it is anything harder than pressing 'subscribe' or 'download' it is too hard. The living room also needs to be colonised. It needs to be as easy to sit down in front of a Myer sponsored-internet downloaded show as it is to watch the footy. This is because the value proposition will not be as good for advertisers until all content is on an equal footing. Once these obstacles are overcome, piracy will cease to be as much of a concern (at least for advertiser supported content) because the shows will be free and much more convenient to access.
