Yahoo and Microsoft (Xbox) To Make TV Shows like House Of Cards of Netflix And Via Xbox Television Studio
It was bound to happen.
Making television shows, which came as a pleasant development to companies like Amazon and Netflix, obviously caught the attention of the big boys, like Yahoo and Microsoft.
Now, Yahoo and Microsoft are going to make their own television shows. Yahoo through ?viral net series? shows and Microsoft via their Xbox Television Studio.
Tech bloggers have noted that once again, Microsoft and Yahoo are the last ones to join the technological trends that are shaping the industry. However, they also note that a closer look at these two companies reveal that they do not have any other options but to participate in this ?TV Show? activity.
For Microsoft and Yahoo, creating their own shows is a logical solution to the struggling revenues brought in by on-line advertising. The rise of Google and Facebook in capturing most of the market share once dominated by Yahoo and Microsoft, pushes them into creating their own content to make up for the lost profits. This is especially critical for Yahoo as the once mighty online community does not have anything similar to the Microsoft software business to support its operations.
In the online digital ad business, Google is still the big winner with almost 40 % of the market, followed by Facebook with 7.7 %. Microsoft is in 3rd place with 6% and Yahoo is at 4th with 5.8%.
In an industry where more ad spending is increasingly being poured online, the decision for Yahoo and Microsoft to put up their own TV shows is a no brainer. Online ad spending reached US$ 4 Billion Dollars last 2013 according to eMarketer, and for this year, estimates say it will reach about US$ 6 Billion Dollars. That is a whopping increase of more than 40% in digital spending.
Although about 1/5 of the mentioned amount is currently being gobbled up by YouTube, the remaining piece of the pie is still a lot for the other players.
One interesting aspect of the business of digital video, is that it combines the allure of television (which is still the top medium for advertising) with the digital distribution model. Together, digital television shows make the perfect tool for the online advertiser.
In short, if we are to repeat, in this digital age, what was probably once said many years ago, ?TV is the future?.
What makes the job easier for companies like Yahoo and Microsoft, is the groundwork already made by Netflix. If Netflix, which successfully asked people to pay for a subscription to watch an original online TV show, wouldn’t it be easier to get viewers to watch it for free, even with the usual television ads.
For Microsoft, it is less of the potential ad revenue that is driving them to the TV show route, but, in selling more Xboxes that will serve as the console in which to consume their original programming. With the Xbox Television Studio, Bloomberg reports that Microsoft is coming up with 6 new shows starting June of this year. The shows will include a World Cup reality show, a science fiction thriller, and comedies featuring Seth Green and Sarah Silverman.
For Microsoft, it is hoping that its original shows will make the Xbox a worthy competitor to the ever increasing Multimedia devices (Net streaming to TV) that are entering the market.
Yahoo meanwhile is planning to hit a viral home-run with 4 web series where they hope to capture the same success that Netflix got with the ?House of Cards? TV show ( House of Cards is an American political drama television series, developed and produced by Beau Willimon. It is an adaptation of a previous BBC miniseries of the same name and is based on the novel by Michael Dobbs – Wikipedia).
What is significant to current developments, tech analysts say, is that since the barrier in distributing television shows have become very low, the focus has shifted to the quality of the show itself.
Netflix reportedly spent US$ 100 Million for ?House of Cards? and this production budget may be the price level for Yahoo and Microsoft, in coming up with hits of their own.
With more money being spent to come up with quality television shows, the TV viewer, like you and me, are, in the end, the obvious winners.
Photo source: https://www.facebook.com/HouseofCards