Hasta La Creative!

It seems like only yesterday when Tivo first came on the market much to advertisers dismay. Marketers everywhere attacked the service, with the CEO of Turner going so far as to accuse commercial skippers of theft. A lot has changed since then. Advertisers have slowly come to terms with the fact that people will fast forward through ads and Tivo has introduced a new products in an attempt to appease these advertisers including pop-up banners and other more interactive units.

But even as this un-easy alliance has been forged, no one seems to be taking much notice of Apple TV. With the latest version now supporting not only a slew of popular tv shows but the ability to rent movies — and with both options being available in HD — I’m surprised we haven’t heard more screaming from marketers. Imagine if everyone started consuming all of their tv and movie entertainment in this a la carte style and the implications it would have not only for advertisers but cable providers as well. Let’s do the math. I’ll use my own television and movie consumption as an example. As someone employed in advertising I figure it’s my duty to watch tv, and I do enjoy a HD picture so I currently subscribe to DirecTV. My package includes some premium channels, the HD and the DVR options and currently runs me $101.97 a month. I also use Netflix which runs another $18.43. So a month of tv and movies costs me $120.40. The reality is I don’t watch that much tv and often don’t get through my 3 movies a month — who has that amount of time? Out of the zillions of channels I have I really only watch a handful of shows: 30 Rock, Lost, The Office, Project Runway, Top Chef and a few others that I’ll just refer to as guilty pleasures — so 7 shows in all a week or about 28 a month which is probably a little high since I never seem to catch them all. If I were to purchase those same programs through Apple TV I’m looking at $55.72. If I throw in 3 movies, which again is a little high, I’m looking at another $14.97 assuming I’m going with just new releases in HD. So for only $70.69 I can have access to all of the content I regularly watch (with much of it in higher quality HD) at a savings $49.31 a month and all without any advertising! Hmmmmm. Advertisers and cable providers need to prepare themselves as an increasing amount of different entertainment distribution models become available. TV spots, it’s been nice knowing you. Now back to your regularly scheduled program.

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