“Apple’s latest iPod, a video-enabled music player that serves up some of America’s hottest television shows without commercials, will probably prod advertisers into getting serious about finding a foothold in portable media players, media buyers have said,” Reuters reports. “The announcement sent a new chill through an advertising industry struggling to reach consumers amid an explosion of media outlets. ABC and rivals like Viacom’s CBS are seeking new ways to deliver entertainment out of the television box, whether on the Internet or with new devices.”
Reuters reports, “With television audiences slipping, marketers question why they should pay top dollar for commercials on programmes that can be watched ad-free a day later. ‘It’s a great concern to advertisers,’ said Jason Maltby, co-president of national broadcast for media buyer Mindshare, part of WPP. ‘Why spend a couple of hundred thousand dollars for an ad unit on Desperate Housewives? The value keeps eroding.'”
“Other experts argue that ABC will pick up new viewers for its shows on the video iPod rather than harm existing ratings. Such technology-forward users have already tuned out the normal prime-time television schedule, they say. Apple has said it won’t allow advertising on its iPod platform, but some experts wonder how long it would hold off on a lucrative new revenue stream. A company representative was not immediately available,” Reuters reports.
Full article here.
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