Disney: You will watch the ads

Disney have shaken up the US by announcing that they'll show their top  shows ( incl. Lost, Desperate Housewives, Alias) on the web for free the day after they're broadcast. The business model is for the shows to have ads embedded in that can't be fast forwarded.

The Wall Street Journal (sub. req.)says this could turn a decades old business model on its head. Forrester see it as very significant too - ABC’s move will lock in loyal viewers, generate revenues, broaden relationships with advertisers, and turn its Web site into a high-traffic destination.

But we wonder if forcing people to watch ads is really going to work.

As more and more people have PVRs won't they choose to watch the show on their TV when they're ready ( and fast forward through the ads)? Don't enforced ads annoy people? We were looking for a music video on AOL and were annoyed that we had to watch a 30 second Dell ad before the 3 minute video played.

Now for Dell that counts as an impression, but to us it's back to the forgotten 99% - who find the ad irrelevant, unentertaining and totally useless - its only effect to frustrate the user. As video on the web takes off lots of brands want to get involved - Klipmart is building a big business facilitating advertising within video. But most of these campaigns are using TV commercials. At least the ads in the ABC shows will be shorter and specifically made for the web.

We believe that advertising will support content on the web just as it does on mobile, but for it to work brands need to develop ads that people want to see - useful, relevant, entertaining ads.

And how long before someone comes up with a hack that allows the ABC ads to be avoided?

UPDATE - excellent post on this new business model by Grant McCracken

Comments

[Christopher Bennett]

Love your blog. Great stuff man, I'm curious to see what this new Disney will mean for iTunes and other content providers - stay on it.

CB

[Asi]

As you said Simon, unless the ads will be hugely relevant and entertaining, people will find ways to avoid them - faster than any of them marketers can blink! but this is a good lesson for brands - very soon, if not already, it is going to be: be great or F**k off my sight...

viva la' revolution!

[free advertising]

Most of this ads are boring and interrupting. Please make them few and avoid repetition.

[makethelogobigger]

I’m just wondering who at Disney thought, "Hmmm, since PVRs are killing the ads on our shows, let's release a lesser quality version online AFTER the original broadcast."

Unless I'm missing something, why would I ever choose a downloaded version of a show with commercials (that I can't avoid) over a PVR version that I can?

[Surinder]

At a panel discussion today, Disney's ABC dismissed the significance of online TV despite this experimentation.

via Steve Rubel
http://www.micropersuasion.com/2006/04/_this_morning_i.html

[Simon Andrews]

I think that Disney has picked up on our mantra - its time to experiment. Smart media companies are trying lots of things to see what works. Do i think this example will work? No. But i'm glad they're thinking about what to do next.