Schizophrenia: Programmers Bracing for Ad Model Challenge

Some of the top minds in media are concerned about disruptions to the revenue TV receives from advertising in light of devices that block ads. They’re also aware that the ubiquity of content could be a double-edged sword, particularly if consumers are able to bypass ads. TiVo users currently don’t skip many ads, "they’re true TV viewers," NBC Uni boss Bob Wright said at National’s closing session Tues, but the day could come. While advertising is the largest single source of revenue for TV, the model is "not in imminent danger," Disney’s Bob Iger said. Yet Iger wondered aloud about a TV version of his favorite software: the pop-up blocker (for online ads). Time Warner’s Jeff Bewkes argued that the TiVo question is "overblown," as high-quality programs "will always be monetizable" in some form. Fox’s Peter Chernin urged programmers to counteract ad skipping with more live programming, finding ways to get consumers to pay directly for shows (i.e., VOD) and working closely with ad partners to formulate more creative ad approaches (Fox premiered "24" without commercial interruption, but with the sponsorship of Ford, he said). "We’d better be very responsive" to this situation anad fast, he said, "because by definition there will be disruptions" to the traditional ad model. End Notes: "Cable has a unique opportunity to manage all services in the home," such as handhelds, PCs, TVs, telephones, etc, Bewkes said. "It’s cable’s to win," but it’s not the best tech, but superior execution that will be victorious, he said. — Was it all Comcast people in the audience? VOD got the largest vote (43%) on the question: "Which platform will be most important to media companies during the next year or so?" The entire panel said it would be DVDs, which received a paltry 4% of the audience vote. — The panel agreed that a digital transition in ’06 would be a disaster; "it’ll be chaos," Iger said. — Wright is very concerned about the indecency issue and believes FCC chmn Kevin Martin’s "practical style and political savvy" could be a good mediator for those who want "Congress to replace parents."