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AVOID THAT DOG ON THE SKATEBOARD
The analysts over at Tech Ticker have posted a short video conversation about the current state and future direction of internet video and the ad market. The discussion is kicked off by a mention of Disney’s recent earnings statement and the profitability of its fairly conservative and unsexy online video division. The Tech Ticker guys go on to talking about Hulu and YouTube, particularly how the latter is struggling for the moment to sell advertising against user-generated video. The analysts say that, with the exception of entertainment companies, which will advertise on user-generated spots, most mainstream advertisers don’t want to be associated with “that dog on the skateboard.” They also say that while Hulu’s numbers are so far small, the site has demonstrated to the industry that there is demand by tv audiences to see their favorite shows whenever they want. The problem for the networks is that far fewer ads can be placed on a show that’s streamed online before viewers revolt. And, so far, while “overlay” ads are gaining in popularity, there’s not really a solution to his disparity in ad revenue possibilities.
