Execution
In order to create a successful business model the many different sources of revenue surrounding an iTV format must be selected appropriately, combined, moulded and contractually regulated. The most important sources of revenue are listed below.
Indirect revenue: Free iTV offerings can increase the attractiveness of a broadcaster or a network. The most important objectives are:
- Customer loyalty (with PayTV)
- New customer acquisition (with PayTV)
- Increasing (or at least maintaining) the quota
Sale of contents: The contents of an iTV offering, in particular videos and applications, can be billed for directly. The most important models are:
- PayPerView
- PayPerTime
- PayPerDownload
- Subscription
Sale of interactivity: Interactive campaigns such as participation in a competition, voting or uploads can be settled directly. Technologies include premium rate SMS, "staying on line" with calls incurring charges or technologies from the internet.
Sale of products: The iTV application can provide the optimum access point for selling programme-related products (e.g. merchandising or product placement). The timing and emotional proximity are unbeatable. The iTV application can offer e.g.:
- Advertising
- Customer registration
- "one-click-buy"
- e-shop
Profitable offers: Special applications can perform as independent business models. Examples are auctions, competitions and gambling applications.
New advertising formats: ITV applications allow numerous efficient advertising formats, e.g.:
- Addressed, personalised advertisements
- Adverts on demand
- Interactive ad transmission
- "sticking with TV adverts"
Harald Molina-Tillmann
Introduction to interactive television
1. Business models
1. Business models