<Not sure that TVW's model offers an easy way to generate huge traffic to a particular event. It's running a sponsored content aggregation business, not a movie theatre. Its mandate is to build slowly but progressively. Think the solution is to install links on important Web sites (just like the link on RNWK's new streaming media site), and establish strategic alliances with important third parties (everyone from AMZN to ZD in the Net space, plus the confederacy of each content area) who can throw off traffic. >
BAM, as usual, your comments are on the mark. Let me point out some other views, however:
1) The *nature* and *quality* of the eyeballs are as important as the number- witness the frantic search for the 24-35 demographic by the conventional TV organizations. One of the purported advantages of the business transactions over the net is the ability to "narrowcast" to your audience/customers (a la Amazon with its intensive customer database); TVontheWEB by its very nature will have killer narrowcast demographics- imagine the "gay channel" or the "LINUX channel", I could go on and on. In this scenario, even a 10-fold (or more) "amplification" is given to the number of eyeballs that are watching you, since YOU KNOW WHO IS WATCHING.... An advertiser's wet dream.
2) I hope TVontheWEB is not basing their decisions on what channels to generate on underwriting alone i.e. is channel profitable. At this point, burn the money- getting exposure and the beachhead are much more important. Imagine the exposure that would result if you created the "gay channel"- the press would be all over it, and when your IPO came out, the funds generated would more than cover the initial outlays.
3) I cannot agree with your statement that mandate is to "build slowly and progressively". I am sure that both AENTV and TVontheWEB are looking for ways to build rapidly and explosively. I hope their capital burn rate is astronomic- if it isn't, they are misplaying their hand.
4) For TVontheWEB, they should have a two-pronged strategy- business to business channels where underwriters are easy to find. The second arm should be consumer oriented, and to do this, they should pounce on a relationship with a major portal e.g Yahoo, Go network, AOL etc. as you suggest. Any such substantive relationship would put AXC/TVontheWEB on the radar screen, of course, and further contribute to successful IPO. What is in it for portal?- access to production facilities of TVontheWEB (a la Intervu), so they can narrowcast their *own* channel, and build a relationship with a player who is building an important business model.
All in all, obvious thoughts, but it does not hurt to state them. |
