Distribution of TV-content: traditions and innovations

The main value of any media - their content.

John Vyubben "Content is the currency"

The main value of any media - their content. The well-known phrase of John Vyubben "Content is the currency" becomes clear features in the minds of TV-users, Internet-users and media-businesses. The last one intend to invest in startups, not only because of unique of this idea, business model and technological parameters, but also if they ready to provide exclusive and interesting content. Sadly, as we know and must note the fact that the highest quality and popular content, especially video, is produced mainly by Western studios/. The only way to get it – is buy a license.

This is the main problem for content distributors in Ukraine and Russia, especially for the Internet cinemas. You should just imagine how much investment is required to support this online cinema. These are a technology platform for the delivery and storage of content, traffic, and the constant need for licensing content from rights holders and marketing costs. In addition, you should add the huge time and human resources to the creation and support the entire infrastructure. Then we won`t get the business, but continuous headache. Fixed costs with no income lead to a huge loss making, involving more and more non-core investors into the game.

Business model, building on the resale content rights holders to the TV-channels with the quantity and quality costs, doesn`t bring happiness nor by the rightholder or media-businesses or users. The first count on the promised amounts that do not fulfill the second. The second try to get out of that hole, which they with the first buried. The third - the users - nothing to do but, not finding anything interesting, go to social networks and torrents and without any compunction to consume something that gives them freedom of “pirate`s” religion.

Curiously, but unlock this vicious circle of "non-business», put the V-commerce (video commerce) in Ukraine and Russia, redo it quickly, and correctly can holders. The secret lies in the fact that they should reconsider their views on the distribution of content on the TV and write a new “bible” of content distribution and consumption.

However, large holdings, usually afraid to take risks and continue to purchase content on the old model, "newcomers" don`t have enough funds continue to spread pirated content, rightholders continue to be disappointed in the draft of first and try to knock to the second. Advertisers also continue to allocate budgets among millions viewer where three-five-ten million illegal walk around illegal web sites, although could increase advertising budgets, poured into the TV and Internet.

Therefore, there are few rules for distribution of TV-content.

You should not protect the content against the spread, but monitor and control its spread.

Do not walk away from negotiations with the pirates, but cooperate with their already established distribution networks and benefit from cooperation the profit.

Do not fall behind technologically, and develop own solutions for the management and distribution of content.

By the way, don`t think that the network is a second screen, but it will be the first tomorrow.