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The Internet as an Entertainment Medium, or

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Title: PowerPoint Presentation Author: WB Last modified by: WB Created Date: 12/11/2000 6:41:59 PM Document presentation format: On-screen Show Company – PowerPoint PPT presentation

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Title: The Internet as an Entertainment Medium, or


1
The Internet as an Entertainment Medium,or If
Spielberg Cant Figure it Out, Can Anyone?
MIT Media Lab15 December 2000
2
The personalization of mediaand the resulting
fragmentation of audiencemakes the business of
online entertainment a challenge.
DEN RIP 5/2000
iCAST RIP 11/2000
POP RIP 9/2000(pre-natal)
Pseudo RIP 9/2000
3
Challenge 1 Eyeballs Fund Programming It takes
a mass audience to generate the revenue which
funds programming. But, given the vastness of
the Internet, how do you aggregate a mass
audience online? (Hint it takes more than
marketing)
4
TV has already shown how an increase in
programming options can reduce market share
Total Network Affiliate Share (Primetime,
ABC/CBS/NBC/FOX)
67Share
62Share
52Share
33Channels
41Channels
62Channels
Avg. Channels Receivable
Source Nielsen
5
As a result, even TVs 1 show is now less of a
shared experience
1 Primetime Series(HH Rating)
All in the Family
60Min.
Dynasty
Rose-anne
Sein-feld
WhoMillion-airre
Source Nielsen NTI
6
Compared to broadcasting, Web entertainment is
splinter-casting
Web programs typically reach a smaller audience
than the lowest-rated show on the lowest-rated
station in Boston.
7
Challenge 2 Needle in a Haystack Even faced
with 60 channels, TV viewers can easily sample
programming.(How else do you explain the
successof BattleBots!?) But, as Focus Groups
have told us, the Web creates hurdles to
discovering programming
8
Consumers expect a TV-like ease of use from
entertainment at home
  • Simple technology that never makes them feel
    stupid
  • Comfortable viewing experience
  • Easy to locate contenttheres always something
    on
  • Grazing without advance commitment

They dont want to struggle to get their
entertainment online
9
but current Web entertainment fails these tests
  • Often require downloads, plug-ins, or high PC
    power/bandwidth
  • Not comfortable sitting at a PC for long-form
    entertainment (more than a couple minutes)
  • Users have no easy way to locate entertainment
    content
  • Downloads and stream buffering demand
    commitment before sampling

10
Challenge 3 Broadband May Not Be the Holy
Grail Even with Broadband delivery, the quality
of transmission pales in comparison to TV. Can
the infrastructure even support mass video
streaming?
11
Dial-up will remain dominant across the next 5
years
(in millions)
28.8m
1.4m
23.8m
1.8m
18.5m
11.8m
Households
13.3m
8.6m
13.8m
4.8m
1.8m
Source Jupiter
12
Broadband doesnt guarantee a TV-like experience
Bandwidth requirements (Kbps)
10
100
10,000
100,000
1,000
  • Voice telephony
  • Text retrieval/ browsing
  • Consumers will demand TV-like quality from
    TV-like programming
  • Surfing

Narrow band
  • Internet telephony
  • Audio
  • Voice annotation to text
  • Image/photo transfer

Broadband(XDSL, cable)
  • Video conf.
  • CD quality sound
  • Full motion video

Very Broadband(next generationHFC, FTTC, FTTH)
  • High resolution imaging
  • Virtual reality

13
Challenge 4 A Scratch Without an Itch Are we
trying to deliver content that few people are
interested in seeing?
Are people already finding the Web entertaining
with surfing, connecting, and game playing?
Is the Web not a programming environment?
14
For most users, entertainment content is
information
Content used onentertainment sites
Source CyberDialogue
15
The online medium is developing its own version
of entertainment
File-swapping
Viral content
Napster
Dancing Baby
Single-purpose fun sites
AmIHotOrNot.com
Multi-player gaming
Everquest
16
Research Areas Business Models Both
subscription and advertising-based models have
failed. Is there another option? Technology
Is there a browser-free application that can act
as a TV-tuner? Other Platforms Possible to
avoid the Web via Internet-enabled TV, CD-ROM,
wireless, or handheld devices?
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