The Revolution Is Being Downloaded

For proof that the we, the viewers, want to be in charge, look no further than the Summer Olympics. Not only did the opening ceremony in Beijing have a gigantic DVR audience of 3.25 million viewers, but NBC said 40% of its online viewers used the Web to view events they had first seen on TV.

In today’s media environment, consumers have come to expect getting online content whenever they want, from TVs and personal computers to iPods and mobile devices. We, as brand and content owners have two options for packaging and delivering online content for viewer consumption:

1. LIVE STREAMING

Streaming fits well with our PC-centric viewing habits. Streaming is ideal for watching instant clips and user-generated content, like YouTube videos, on a computer. With a broadband connection, streaming is capable of delivering smooth playback, giving us that immediate, “I can get it now” effect.

While watching Michael Phelps repeat his gold medal wins from the comfort of a living room has inherent value for both consumers and advertisers, the real explosion in online media will take place when content becomes available anytime, anywhere. This is the “always on” future, and the enormous popularity of the iPhone is a huge step forward in making it a reality. However, today’s infrastructure cannot handle the streaming demands - at least not for portable content. A recent report by Canaccord Adams concluded that AT&T’s network is reaching capacity due to heavy data traffic usage from the iPhone; in some urban areas, subscribers are having problems making a simple phone call. So, until infrastructure improves, publishers need to provide alternatives to satisfy consumers’ demand for portable content.

This brings us to the second option, downloadable media, which picks up where streaming doesn’t deliver. While not as immediate as streaming, downloadable media gives consumers the flexibility and control they’ve come to expect.

2. DOWNLOADABLE MEDIA

From the DVR to the iPod, viewers prefer downloading their content because it’s more convenient. Downloading gives you the ability to time-shift and place-shift your programs — not just short clips — and watch them on your device of choice, when you want and with no Internet connection required.

This is why downloadable media offers the greatest potential for content owners. The question, as always, is finding a viable business model to support it.

As a publisher, you might assume that downloading is akin to giving away the farm. It looks like untethered media — free from the restraints of distribution channels, time and space — is (maybe) paid for once. A consumer who uses iTunes or LimeWire to download your content disappears into the content jungle, never to be seen again. No tracking opportunities, no way to garner additional revenue.

However, revenue possibilities are actually far richer with downloadable media. Just look at podcasting. Podcasting may not get the attention it used to, but that’s only because it’s become an everyday activity. eMarketer estimates that 65 million Americans will be using it as a distribution channel by 2012. Video and audio podcasts are simply RSS-enabled downloads that afford two big advantages:

A) For viewers, it’s an easy way to get fresh content automatically.

B) For publishers, it offers a built-in syndication platform that reaches audiences across the increasingly fragmented Web and device landscape.

New technology is also making it possible to extend our revenue stream by inserting ads into, say, our podcast programming. Aside from gaining an additional revenue stream, we can receive comprehensive metrics to track results and price future ads more appropriately.

With downloading, barriers to participation are low — even with embedded ads. Consumers have signaled they are agreeable to short ads in return for free premium content, like an MSNBC program.

Podcasting is just the beginning. Once we can track and measure direct, untethered downloads, the media industry may finally be able to unlock all of that great content on the Internet and everywhere else.