MTV Networks Sets Deal With MySpace
By Jacqueline Renfrow ( jrenfrow@questex.com)
SAN FRANCISCO — MTV Networks,
owned by parent company Viacom Inc.,
plans to pair advertising with clips from
television shows uploaded onto the social community MySpace, reported the
Los Angeles Times.
Led by a consumer desire for digital
video, MTV and MySpace are partnering with Silicon Valley-based Auditude,
a company providing the advertising
technology. The idea is similar to that of
You Tube, which late last year launched
a system that identifies video clips and
then offers copyright holders a choice
between removing the video or letting
You Tube place ads on it in exchange for
revenue.
“This is a sign that we are finally
ready to do this,” says James McQuivey,
a Forrester Research analyst. “Two years
ago, the solution was ‘Let’s sue You Tube
and block this.’ It really hasn’t worked.
Now the solution is ‘Let’s create a system where content can derive some
benefit.’”
For this endeavor, MySpace will not
control copyright but instead it will split
the advertising revenue and MTV will
be able to target ads to fans of its shows
and direct them to its shows and mer-
chandise.
Auditude’s technology is able to
identify virtually any professional video
uploaded across the Internet and then
its content owners can be asked if they
want to run ads with the content. Auditude is one of several companies looking
to monetize television content on the
Web. “We are looking for consumer-friendly, copyright-friendly solutions
that fit everyone’s needs,” says Mika
Salmi, MTV Networks’ president of global digital media.
The move was announced at the
same time that Viacom reported slow
third-quarter earnings of $401 million, a
37-percent drop from one year ago. Softness in the ad market caused a 2-percent
decrease in worldwide ad revenue for
Viacom, particularly at cable networks,
such as MTV, VH1 and BET. All of
these networks posted rating declines in
the third quarter, and operating income
declined by 4 percent because of ad softness and higher production costs.
FOR THE RECORD
A chart in the October 2008 edition of Response was incorrect. On page 23 of that issue, in
the story titled “Long-Form Media Billings Rise 3. 3 Percent in 2Q 2008,” the results in the
chart labeled “Fig. 3 — Second-Quarter 2008 Long-Form Categorical Distribution” were
incorrect. The correct chart can be found below, as well as online at responsemagazine.com.
The editorial staff of Response regrets the error.
— Ed.
> > Fig. 3
Second-Quarter 2008 Long-Form Categorical Distribution
Automotive: $1,331,600
Cosmetics, hair and personal care: $81,974,000
Crafts, collectibles and hobbies: $9,735,600
Diet, weight loss, nutrition and food: $16,322,700
Electronics: $2,736,600
Entertainment, travel and psychic services: $2,386,000
Financial and business opportunities: $32,007,100
Fundraising: $115,000
Health and fitness: $68,755,500
Home and garden: $34,617,000
Housewares and appliances: $37,572,200
Music and video: $8,154,400
Personal development, self-help and education: $6,707,900
Sports and outdoor activities: $5,761,800
Source: Other: $1,881,200
Response
Magazine Total: $310,058,600
0
$20 million
$40 million
$60 million
$80 million
