Internet Television Comes of Age

AOL's announcement of In2TV signals the mainstream emergence and growth potential of Internet Television. Excerpts from AOL's press release:

This first-of-its-kind interactive video experience demonstrates the impact of broadband-now in 53% of U.S. households--on the television industry, as broadband provides a new platform for television assets on the Internet.

"This service will bring an unprecedented collection of popular TV series to a totally new platform, revolutionizing the distribution of television programming. It will enable users the opportunity to be entertained and to interact with the programming that has groundbreaking interactive features," said Eric Frankel, President, Warner Bros. Domestic Cable Distribution. "Visitors will be able to program their own personal network, making it a TV lover's dream come true."

These series will be offered in a new DVD quality video format called "AOL Hi-Q." This new technology, which builds upon AOL's industry-leading online video experience, enables high resolution, full-screen viewing. It will be made available free to any broadband user (along with standard-quality streaming).

In2TV will provide AOL's advertisers with compelling video inventory for instream broadband advertising as well as opportunities for sponsorships and accompanying banner ads. Video ads, 15-second and 30-second spots, will be limited to a total of 1-2 minutes within each 30-minute episode as compared to 8 minutes of advertising on broadcast television.

The explosive growth of household broadband access and convergent devices provides the foundation for a consumer experience (and advertising model) more closely aligned with the fragmented, on-demand media environment.

Om Malik sums up the business rationale nicely:

The ad-supported service is the first proof that some in the mainstream media are finally getting what I call the archive principle. Let me explain! If like me you are one of those caffeine addicts who gladly hands over a substantial portion of their hard earned dollars to Starbucks, then you are also a likely buyer of James Brown’s greatest hits or some new compilation of “old music” that pops up in cafes. Sitting in the studio, those tracks simply gather dust. At $15 a CD, they are making huge honking profits for the record companies. Music archives that are making a lot of money!

A sampling of other reactions to the news:

AOL Offers Classic TV On Demand, AdJab
TV Unleashed, BrandNoise
Warner Brother and AOL Team Up on Old TV, Business 2.0 Blog
WB and AOL Drag "Chico and the Man" onto the Web, Defamer
Back to the Future: Old TV Shows Go Online at AOL, Marketing Vox
WB Welcomes Back 'Kotter,' Other Shows Online AOL Gets In2TV, MediaPost
Internet Service to Put Classic TV on Home Computer, New York Times
The Archive Monetization Principal, Om Malik's Blog
AOL to Launch In2TV in Association with WB, PaidContent.org

Tags: in2tv aol