Skip to main content

IPTV Advertising Models Need Imagination

As deployments of Telco pay-TV services accelerate around the globe, new questions are being raised about applying the legacy metric of merely measuring viewer and service subscriber counts to determine appropriate advertising fees.

According to a Bloomberg News report, Verizon Communications Inc., the second-largest U.S. phone company, has been accused in a lawsuit of setting inflated prices for advertising -- by exaggerating the number of subscribers to its FiOS pay-TV service.

Verizon overstates subscribers by including prospective customers, not just actual ones, advertiser Digital Art Services Inc. said in a complaint to the U.S. District Court in Manhattan.

"Verizon's internal documents show, and Verizon has now admitted, that Verizon has a policy of inflating the number of its reported FiOS subscribers," Digital Art Services said in the complaint.

Apparently, Verizon and other defendants in the case told Digital Art Services executives that pending customers are included in public subscriber reports, and that it was a reasonable practice because pending customers become active customers within two weeks, according to the complaint.

"Verizon's documents flatly contradict that assertion," Digital Art contends in the complaint. "The number of pending subscribers in a given month is far greater than the number of customers added in the following month."

Verizon is essentially spending $22.9 billion to build its FiOS network, so that it can offer a pay-TV service.

I believe that Verizon, and other broadband service providers (BSPs) that are deploying IPTV services, should have evolved their service delivery platform requirements to more accurately measure advertising effectiveness -- utilizing the inherent advantages of their totally new digital media delivery infrastructure.

Instead of creating an advertising business model that is targeted, relevant, engaging (i.e. more like the online model) and delivers objective results, most BSPs have launched a platform that incorporates all of the known weaknesses of the legacy broadcast radio and television practices that produce highly subjective results.

Again, given the size of the investment in IPTV deployments, it's imperative that service providers apply creativity to not only significantly enhance the consumer experience, but also use innovations to add-value to their advertiser-supported services.

The upside opportunity will be huge -- for those BSPs who dare to apply some imagination to their service design process.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

AI Software Market will Reach $251 Billion

The growth in Artificial Intelligence (AI) software could lead to many benefits. As more organizations adopt AI, they may become more efficient, productive, and able to offer improved products and services. The global job market could also expand, with demand growing for roles like AI engineers and technicians. Plus, AI apps could enable breakthroughs in fields like healthcare, transportation, and energy. The worldwide AI software market will grow from $64 billion in 2022 to nearly $251 billion in 2027 at a compound annual growth rate (CAGR) of 31.4 percent, according to the latest market study by International Data Corporation (IDC). AI Software Market Development The forecast for AI-centric software includes Artificial Intelligence Platforms, AI Applications, AI System Infrastructure Software (SIS), and AI Application Development and Deployment (AD&D) software (excluding AI platforms). However, it does not include Generative AI (GenAI) platforms and applications, which IDC recent