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Article 49 of 97
Internet
Providers of Web content finding value in NATPE
LAURIE FREEMAN, Special to Electronic Media
01/08/2001
Electronic Media
Page 24
Copyright (C) 2001 Crain Communications, Inc. All rights reserved.
It's not just television syndicators who are hawking their programs at the National Association of Television Program Executives convention this year. Web sites and companies that specialize in Web content syndication are coming to NATPE and positioning themselves as an increasingly important part of the television branding experience.
"NATPE gives us a wonderful opportunity to showcase our properties to offline partners and advertisers," said Robin Harper, senior vice president of marketing for Mondo Media, a San Francisco-based digital entertainment distribution company. "And both offline partners-television programmers and advertisers-are tremendously important markets for us. Many of our key customers attend NATPE, including Lycos, NBCi and Excite[@Home], so our plan is to reach out to our current online partners and forge ties to new partners as well."
Web syndication, in which a Web site syndicates or licenses its content to other sites or offline partners, is viewed by Internet industry analysts as having a bright future. Research firm Jupiter Communications estimates that $250 million was spent to license online content in 2000, and the number will grow to $1.5 billion by the year 2004.
There is a huge demand for content syndication, said Robert Hertzberg, a Jupiter analyst. The Internet acts as a proving ground and a promotional vehicle for new programming, which can then be sold to others.
"There are a lot of companies that have content to syndicate out and others that use syndicated material," said Mr. Hertzberg. "This has not been a large market to date, but it's destined to become one as more people switch to Internet broadband services."
In 2000, Jupiter estimates there were 5 million U.S. households connected to a broadband provider. By 2005, Jupiter predicts 29 million households-about 38 percent of the U.S. population-will be surfing the Internet from home via a fast connection. "Broadband content becomes much more valuable as high-speed connections start to proliferate," Mr. Hertzberg said. "There will certainly be a market for syndicated content, and it will be a profitable business. But the market is really small right now, so it's hard to see the promise that it holds."
"Everyone has come to understand that building a brand, building a site and building traffic all are very expensive experiences," said Ray Marione, vice president of brand strategy for iNEXTV , New York, which specializes in syndicating digital video to its network of portals and Web destinations. The company works with branded content providers, such as Billboard and The Hollywood Reporter, to transform print content into digital entertainment. "There are economies inherent in syndication that make it an obvious choice."
One of the Web companies that hopes to be successful in the syndication market is AtomFilms, recently acquired by Macromedia's Shockwave.com unit, which is heading to NATPE in hopes to make deals for its Web content.
"Since AtomFilms was founded almost three years ago, the company has recognized the value of content syndication to cable television partners, and that's why we are involved with NATPE," said John Marcom, AtomFilms senior vice president for worldwide revenue. "NATPE allows us to showcase new Atom short films and animations efficiently to top-tier potential and existing broadcast partners, increasing brand recognition of AtomFilms as a global content syndication source."
Under the acquisition deal, Macromedia gains AtomFilms' library of digital films as well as its offline distribution channels and bricks-and-mortar customers. AtomFilms has syndication deals with HBO, Continental Airlines, Volkswagen, Blockbuster and the Sundance Channel.
"TV is seen as the Holy Grail by many entertainment Web sites for a number of different reasons, but primarily because that is the medium that has the most number of channels, the most number of viewers and the most number of advertisers," said AtomFilms' Mr. Marcom.
AtomFilms also has a first-look licensing agreement with the Sci-Fi Channel and its weekly short film series, "Exposure," under which AtomFilms gives the channel the first look at all sci-fi-related films in AtomFilms' existing library. In return, AtomFilms' participating filmmakers get a chance at national TV exposure. Each selected film is highlighted on the Sci-Fi Channel's Web site,
Exposure.scifi.com.
Screaming Media, which describes itself as a distributor and integrator of digital content, pulls its syndicated content from more than 600 sources and distributes it to some 1,200 corporations for use in their Web operations.
"We help clients like ABCNews expand their digital distribution-that is, take their content and syndicate it across our network," said Kevin Clark, CEO of Screaming Media, New York. "This does a couple of things: It generates additional revenue for a content provider, because they get about 30 percent of what we charge customers, and we extend their branding, bringing ABC News to more new eyeballs that they weren't reaching before."
"Content is the DNA of the Internet," Mr. Clark said. "Every company in the world needs a Web site, and content-fresh, relevant content-is the No. 1 reason why people come back to a site. If you want to keep customers on your site longer ... do more business with them, you've got to create the best possible sticky experience."
Mondo Media's Mr. Harper believes there's a lot of crossover potential between the Internet and television, and "We're just beginning to see it," he said. Mondo Media's animated Web series, "Thugs on Film" (featuring two English hooligans talking about the latest films) was picked up last summer by cable's BBC America. The series also is featured on the British channel's Web site, BBCamerica.com, and the company syndicates content that it creates and that it acquires from third parties.
"There's potential for Web syndication to be a substantial and profitable market," said Mr. Harper. "It's just a question of when." |
