When TV shows first started appearing online, some analysts predicted that heavy consumer migration to the Web would impact the advertising business model. But that has not been entirely the case. Writing for the New York Times, Stuart Elliott notes that there has been more synergy than erosion as marketers increase their presence online rather than replacing what they have been doing via TV.

Elliott highlights how Jim Beam is using a Web series on ESPN.com to promote its products. But excerpts of the videos will also appear on the ESPN cable channel.  Similarly, the Web series Pairings, sponsored by American Express and Constellation Brands, may soon be appearing on a cable TV channel.  And even Web-only shows such as Undercover, are using big companies like Starbucks and Anheuser-Busch In Bev to sponsor their productions.  Elliott writes, “[t]he pairings of Web video and television reflect a school of thought that the old and new media can coexist and perhaps even benefit from each other.”

In addition, younger consumers currently comprise the largest audience for online TV shows. To improve the current business model, networks are making changes to attract marketers. For example, the CW network, runs many of its shows online with limited advertisements. The current plan calls for the company to  increase the number of commercials shown per online hour from 10 to 30.  As Rob Tuck, CW’s executive vice president of network sales, puts it, “the young adult consumer sees no  difference, whether it’s the TV screen or the computer screen.”

As consumers shift their attention between the many video screens they have at their disposal, marketers and media companies will develop more complex plans to get advertising messages in front of audiences. If the recent recession has taught us anything, it is that there’s no such thing as a free lunch.

[Sources: Elliott, Stuart. Old and New Media Coexisting Nicely, Thank You. New York Times. 18 Mar. 2010. Web. 29 Mar. 2010; Schechner, Sam. CW to Double Ads in Web Shows. Wall Street Journal. 26 Mar. 2010. Web 29 Mar. 2010]

Whether they are going to theaters, rental kiosks, or using downloads, consumers continue to show their desire for movie entertainment. A recent Market Force Information survey reveals that nearly 7 out of 10 consumers will see at least 1 in-theater movie in the first quarter of 2010.

The chief reasons consumers visit theaters are:

• Enjoy the large-screen experience 50%
• Don’t want to wait to see a specific movie 32%
• It’s a social event with friends 24%

Consumers also plan to increase their consumption of movies out of theaters. In 2010, the most likely channels for obtaining movies are :

• Cable TV 15%
• Kiosk rental 41%
• Rental store 26%
• Online rental 27%

Two of these channels will see significantly higher use rates this year: Kiosks (26%) and online rental (21%).

Regardless of where consumers watch movies, they say that advertising plays a key role in their decision about what to watch. The following information sources influence which movies people select:

• TV ads 72%
• Previews at theater 40%
• Talks with friends 37%
• Movie reviews 30%
• Internet searches 21%
• Newspaper/magazine ads 20%
• Lobby materials 9%
• Radio ads 9%
• Social media 6%
• Other 5%
• Preview magazine 3%
• Tweets from studios 1%

These survey findings indicate that both studios and movie theaters should be marketing more to attract consumers to new releases and to tempt them to enjoy theater amenities ranging from sound systems to comfortable seating.
[Source: Movie Consumption is on the Rise According to Market Force Consumer Survey. Market Force. 16 Mar. 2010. Web. 24 Mar. 2010]

The recorded music industry  is still searching for the right business model that will generate the kind of revenues and profits that musicians and production houses once enjoyed. eMarketer’s outlook through 2013 foresees steady declines in industry revenues.  Sales of physical music, which totaled $4.32 billion in 2009,  are seen dropping to $960 million by 2013.

Digital remains the growth sector for music sales and eMarketer analysts are looking for sales to grow from $3 billion in 2009 to $4.56 billion in 2013. At that point, digital sales will have surpassed the level of physical sales experienced in 2009. In addition, mobile will shrink from the current 25% of digital sales to 16% of digital sales in 2013.

Sales of digital music occurs in the following formats:

• Track downloads
• Full album downloads
• Music videos
• Digital kiosks
• Subscription services

While digital music sales are projected to increase, as eMarketer analysts indicate, consumers are nowhere close to spending the $14.6 billion that the industry achieved in 1999. And some of the business models that have been tried recently, such as ad-supported download sites and ring tones, have not generated tremendous interest or profits. For now, companies are deploying new ways to make downloading and storing music easier. New strategies include storing all music in the cloud and allowing consumers to access their paid content via any device they have at hand. This could include computers, phones and game consoles.

As more companies experiment with producing and delivering music, look for an increase in online marketing campaigns to support the effort.

[Source: February 2020: Paid Music Content. IAB. n.d. Web. 22 March 2010]