Cable Networks Must Step Back From Interactive Video and Address On-Demand Programming
Yankee Group today announced that there is a significant shift taking place in the advertising industry—cable and IPTV operators will lose out to internet video platforms in the competition for the incremental ad revenue that supports investments in interactive television. By the time cable and IPTV operators will be able to deliver interactivity to a large number of households, content owners and advertisers will have already made long-term interactive platform investments online.
According to the recently published Yankee Group Report, The High-Water Mark for Interactive Cable, digital and interactive advertising is the cornerstone for the infrastructure investments necessary to support interactive programming. Cable networks will continue to command large linear audiences and above-the-line advertising revenue, but cable operators will be limited in their ability to deliver interactive experiences that can compete with internet video.
“Ubiquitous broadband connectivity is driving a new media mix for time-shifting and ad-skipping audiences,” said Daniel Taylor, senior analyst, Yankee Group Consumer Research group. “Advertisers see interactive television as a way to reach viewers in this increasingly saturated media environment. But in light of recent internet video developments, it's time for cable operators to face facts about their abilities to deliver interactive experiences.”
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