Pravda on Media, Technology and Rebel Filmmaking : Could Operators Change Digital Cents to Dollars?
Last week, the online video world rejoiced. For the first time, Hulu, the online premium video provider, had more viewers than Comcast subscribers. Pro online video folks all around gathered to support the revolution as it unfolds. The only thing missing is, well, like in most cases, money. Hulu is making small time money compared to Comcast. The paradigm of digital cents is very simple – services are much cheaper on the internet, and the value of goods is diminished when they are distributed or sold digitally. The full phrase states that the media industry is facing a challenge – as it transforms from analog dollars to digital cents. This issue is affecting advertisers who are asking agencies to shift dollars from expensive TV spots to cheaper online advertising, which in return hurts the media business. Hulu, though delivering the same shows as TV channels, is not making as much money as the traditional providers. This is a eye challenge to the whole media industry. But they are not
