Commentary

Real Media Riffs - Monday, Aug 26, 2002

Do You BeLiVo: You should. TiVo is taking shape as a company and that company is revenue smart and advertising positive. You see, TiVo has figured out this year that selling set-top boxes that can record programming an zap commercials isn't going to set the world on fire. It now looks like a company that will base its business model on licensing, subscriptions and other fees. Those fees, like the one Sony is paying to use TiVO technology in its consumer electronics products, come with very little overhead attached. Building and distributing hardware comes with a ton of strings attached. TiVo would be very smart to continue down this road, and it should also continue developing ad programs like the one it created for Best Buy. If you missed it, Best Buy ads appear with a special interactive tag for TiVo subscribers. Click on the ad for Sheryl Crow's new record, and the subscriber can access bonus video and exclusive interviews. It works for the consumer because it gives access to more info. Works for the client because it's unique and provides a more immersive experience. Works for TiVo because it makes some of that low overhead money.

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When The President Has A Headache, Wolf.....Is this what it will come to? Will Ari Fleisher start to sell Motrin? Celebrities surreptitiously hawking pharmaceutical products on TV is a risky trick. Now CNN now says it will identify celebrities who appear on its programming as a paid spokesperson. If I was running CNN I'd require companies to pay me a special commercial fee if I was booking their spokespeople. Because this is, after all, advertising.

Picked Off: Lost in all the baseball strike talk is the betrayal of MLB's sponsors. Example: MasterCard built an entire season long effort around MLB games and events this year. Even the threat, which seems to be constant, of an interrupted season makes it harder in the future for baseball to attract these kind of commitments.

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