VOD Closer to Reality

July 31, 2009

One more news for Microsoft this week. The launch of their VOD platform in the UK. Their PR department seems to be running their business these days, with one objective in mind: be in the news! (If nothing else, they would show up on top in Google search results!!).

Jokes aside, this is a significant move in the world of VOD. They have toyed with supporting other platforms through XBox consoles, but venturing into a platform of their own is a first.  They also have the scale to take this beyond the Computer screen into living rooms via XBox, and into portable of course. They also seem to have cracked one of the most important elements of this type of venture- a collaboration with GroupM. I am not going to comment on that deal, but having the backing of a major commercial player behind your platform is a critical factor.

The only other critical factor would be their ability to get content. iPlayer, C4OD, and iTV interactive might look at this as competition in short term, but truly they all know their content would be better off on a cross channel platform rather than being on properietary service. But it is going to take some time. Given that Kangaroo is almost dead, and Hulu might come in to the UK in October, they need to hurry up to pile up inventory of programming- both from the UK and perhaps source some from the US (which would be a tough battle given Hulu’s access to programmers at the moment).

One challenge that they world face is: How do they crack and standardise advertising effectiveness measurement on VOD? Good luck with that boys. It is a complicated area. Do not add yet another layer to it I would say trying to invent something of your own. Tap into an existing matrix.

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One Response to “VOD Closer to Reality”

  1. Humbert Echo Says:

    Those are all valid points. In reality, the measurments and standardization is something that effects the all industry, everywhere in the world. The biggest challenge is that the information realted to video consumption is fragmented into a lot of different peices cause everybody is trying to record something different, based on what is more convinient/puts them in the best light with advertisers. But that is a key barrier to transition to a new model and for the video guys to ‘sit at the grown up tables’. The good news is that MSFT is in a position to influence heavily this process. They are not in the game just to survive or to grab a tiny piece of the pie. they are motivated by other goals…..did i mentioned GOOG yet?


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