The UK online video market has just received a boost - though from a surprising source. Microsoft. The service offers UK viewers a way to stream online video after the "7 day window" that UK broadcasters make their content available online via their on demand sites (the 7 day window is a length of time that was determined by consultation with the broadcasting regulators for UK public service broadcasters)
The surprise here is that this comes from a new aggregator - Microsoft - the service is MSN Video. Though industry watchers may have a sense of deja-vu - the value proposition from Microsoft is identical to that of "Project Kangaroo" a JV between the leading broadcasters to create an online, video streaming service for the UK. This isn't that big a surprise as the ex-CEO of Project Kangaroo (before the JV's opportunity was torpedoed by the competition commission) is Ashley Highfield - the ex-BBC Future Media & Technology director, and now the MD at MSN UK, responsible for... MSN Video.
The biggest surprise here is that the branded TV companies have not chosen to offer these services directly, but preferred to partner with a branded aggregator who will drive traffic.
Building an online video portal today is not that hard - the challenge of video streaming online is reasonably understood, and there are technology packages from Adobe (Flash Media Server) and Microsoft (Silverlight + WMV) that solve many of the tough problems.
So why have the branded broadcasters decided to allow their audiences to experience their content under the banner of a different brand?
This depends on your perspective on the value in new media - does the value lie in the content, or in the audience?
"Old media" traditionally focussed on the content as being where the value lies - create great content and there is opportunity to monetize it in multiple ways - syndicating the content, selling the back catalogue, and selling the format to new countries. This is the model that invests in journalists, production companies, and produces great, quality content.
"New media" focusses on the audience as being where the the value lies - the ultimate expression of this is Google - who's content is as simple as possible (text links) and comes from any source (Google don't commission web pages from anyone) but by providing a service that the audience (web surfers) value are able to monetize the content.
In the video market "old media" is still the strongest player - and consumers still place much value in the aggregator and commissioner of that content - under the old "channel" umbrella that is a legacy of the broadcast distribution of video.
As video explores new distribution mechanisms (iTunes, MSN Video, "On demand" catch up TV services) the value will shift from being associated with the content to being associated with the audience. Enabling consumers to consume video where and when they want will lead to growth, but also highlights an opportunity for the traditional broadcast market - a focus on monetizing your audience in new ways can generate new revenues - learn from the web and new media companies, and apply those techniques to the traditional TV market.
(Disclosure: my company Live Talkback is working on providing broadcasters with solutions to engage and monetize TV audiences using web technologies - if you are a UK TV producer or broadcaster get in touch with me)
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