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REVENUES AND RELATIONSHIPS
HOW BROADCASTERS CAN REAP BENEFITS FROM THE WEB
The introduction of premium rate phone numbers, iTV and mobile SMS have given television viewers a greater choice in the way that they pay for interaction with their favourite TV shows. But perhaps more importantly, they have provided production companies with the opportunity to harness new revenue streams.
The limitation, however, of such services is that once the call has been made or the text sent, the connection with the viewer is terminated and an opportunity to build on the relationship is lost. The challenge then for production companies is to not only find ways to generate revenues from their audiences but to also build long lasting relationships with them, that continue after the programme has aired.
Enter the Internet. Unlike more established methods of viewer interaction such as the telephone, SMS or the 'red button', production execs are finding that the web is creating opportunities for a far deeper and more profitable interaction with the viewer, particularly where there is content to deliver outside the broadcast of the show itself. The advantage of the web lies with its provision of customised content, creating an experience that the user has the freedom to choose when, and to what extent, they wish to interact with it.
While online revenues remain small compared to other interactive routes, this will change as broadband penetration increases. Those TV programmes that have invested in valuable web content such as competitions, voting and fact sheets are finding that they are not only building stronger relationships with their viewers, but are also able to recoup this interactive investment and enjoy sustainable revenue from them.
GMTV is one such example - maximising the potential of its online channel and reaping the rewards. Today 47% of web traffic (www.gm.tv) is driven by competitions from the morning's show and provides a consistent daily revenue stream.
In addition to its competitions, GMTV is achieving increasing revenues from the range of interactive services that are promoted on its site. Content downloads and applications to participate in the show are all starting to drive profits.
A surprisingly valuable by-product of online interactivity is data collection. Capturing information as the user purchases provides a unique opportunity to elicit profiles, including purchasing habits, which can then be used to enhance the advertising portfolio. This makes it a perfect medium for contestant entry - where this was done almost exclusively by post, viewers wishing to participate in a show will pay to submit their details online. Data is captured electronically saving the cost of processing physical submissions.
The positive experiences of programmes such as GMTV are starting to create a bigger interest in the opportunities online payments present. At the same time, other programmes are gaining a better understanding of the alternative revenue opportunities that the Internet can offer, particularly from the online communities created around these shows.
Companion websites for TV shows are critical if production companies want to build ongoing revenues that reach beyond advertising. Increased viewer demand for interaction is stimulating greater reach and revenues for industry pioneers such as GMTV.
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