Are consumers done with packaged video content?

As online media content, whether it be music, gaming or video, is becoming more mainstream, it does lead to question if it will overtake traditional packaged media. According to the consulting firm Strategy Analytics, there will be quite some time before that happens.

MediaPost reports that purchased online videos are currently about one-tenth of the sales compared to traditional video like Blu-Ray and DVDs. In fact, digital was estimated to bring in $3.5 billion by the end of 2011. Experts theorize that consumers find value in digital purchases; however, they put greater value on packaged media.

Packaged media brought in globally about $42 billion in 2010; however, it is projected to decline over the years. The research company Futuresource estimates that by 2014, the revenues will fall to $33 billion. Even at that point, digital sales are not expected to overpass it.

How is this applicable to advertisers? In a sense, it shows that traditional media is not dead. Consumers are making room for digital but still value traditional. Keeping tabs on how people consume media can help determine the most effective media mix possible for a campaign.



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Movies on Cable - A Good Fit

When considering cable as a possible medium for your campaign, think about your audience and what is being watched. Be aware of what films have generated big box office success and what following they generate; it may be a helpful tool in navigating which cable networks to pursue.

Cable networks are already in bidding wars to solidify the rights to 2009 summer’s biggest movie blockbusters. The three major cable movie buyers are considered to be Turner, USA, and FX. It was confirmed Monday that FX has received a standard four-year movie license for “Star Trek,” which means that FX could pay Paramount about $24 million for the deal. “Star Trek” is slated to appear on FX in time for the 2011 holiday season.

FX has acquired other blockbusters from this season to appear on the network. Some include “Monsters vs. Aliens” and “Wolverine.” The network also has the rights to “Transformers: Revenge of the Fallen” which has been speculated to be a blockbuster.

Earlier this year, FX secured the rights to “The Curious Case of Benjamin Button,” “Cloverfield” and “Tropic Thunder.”