August 20, 2018

The Future of Monetization | 2018 HGTV

The rapid growth of online sources of television has not only led to dramatic shifts in in how TV content is delivered to consumers; it’s also created new options for how content producers and distributors monetize their offerings.

Of course, as with everything else in the new TV landscape, there’s clearly no “one-size-fits-all” approach to TV content and service monetization. The rules that apply on one platform (e.g., how ads are served up on linear TV) might not apply on other platforms (e.g., how ads are delivered on VOD or OTT).  Subscription pricing approaches that offer adequate returns, after license fees, on one service might be inadequate on other platforms (e.g., VMVPDs).

With content producers and distributors wrestling with the decision on what monetization approaches make the most sense for their bottom line, the “Future of Monetization” will explore the issue from the consumer perspective:

  • What pay models they prefer
  • What pay models they accept even if it’s not their preference
  • What they expect from certain models (e.g., ads or no ads with a subscription service, ad skipping available or not available)
  • What specifics of each model are optimal (optimal ad loads, subscription fees, EST price points)
  • What content extras or features they’re willing to pay for
  • What impact price increases have on service adoption and loyalty

Online survey with 1,612 U.S. consumers age 16-74 who have broadband access at home and watch a minimum of 1 hour of TV per week.