THE INDIAN INSTITUTE OF PLANNING AND

MANAGEMENT

‘BROADCAST AND EFFECTIVE ONLINE MEDIA’

STUDENT NAME: VIKAS YADAV

SUBJECT: ADVERTISING

BATCH: PGP FW 2008-2010

SECTION: F-10

Ph.: +91-9910009175

EMAIL: vikas_3959@yahoo.com

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 CONTENTS

ABSTRACT 2

INTRODUCTION 3

THEORETICAL PERSPECTIVE 5

REVIEW AND RESEARCH 24

CONCLUSION 34

BIBLIOGRAPHY 36

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 ABSTRACT

Due to the popularity of the internet, all sorts of activities like shopping, banking and
social networking can be done through the internet. So, what is great about watching
through the internet compared to watching using the normal television set? Well, the
satellite transmissions might be limited due to regulatory and other requirements.

Therefore, you would have access certain channels according to the ownership rights of
the TV company. Such is not the case with online TV. You have a wonderful opportunity
to watch live TV broadcast, covering items such as sports, news and movies. Supposing
that you want to live football match or sports activities you may not get the chance
through your local TV satellite transmissions.

The internet TV broadcast gives a good chance to do so. Even your children might learn
something about other countries, cultures and ethnic races. Therefore, it could be an
educational experience for you and your family. Before you can watch online TV, you
need to install the relevant software from the internet.

Some companies offer free software for a limited time. Others could offer together with
online TV packages. Carry out some research before downloading software or even
purchasing any TV packages. Find out about the comments of others who have purchased
or tried them, details of the package or software and other pertinent things. Just make that
you are not cheated or fall prey to frauds. There are some companies who offer free TV
broadcast through the internet. If you feel that they seem valid, then, maybe you can try
them out during the initial stages. You may have to pay later or the package might be
really limited.

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 INTRODUCTION

It is more about quality of the audience, rather than its size and involves using a range of

tools, from banner ads to interstitial, to draw the traffic from other web sites to one’s

own. Through creativity and entertainment, advertisements online should entice a surfer

to a particular website. For providing the right message at the right time to generate

action was the crux of marketing on the Net, she said.

A five-pronged approach to building brands was being chalked out. It involves generating

reach, creating intrigue, leading to initiation, bringing about conversion and finally

maximising the consumer’s experience.

For most of the twentieth century, the only ways to watch television were through over-

the-air broadcasts and cable signals. With broadcast TV, an antenna picks up radio waves

to transmit pictures and sound to your television set. With cable TV, wires connect to a

set-top box or to your TV itself. These wires run from your house to the nearest cable TV

station, which acts as one big antenna. Aside from a few options like satellite TV,

broadcast and cable were -- and still are -- the main ways to watch television.

New technology can change the way we receive news and entertainment, though. Radio

challenged newspapers in the early 1900s, and television challenged radio. Now, it looks

as though traditional television has its own competitor, but it's not one that's easily

separated from television. It even has television in its name -- it's what we're now calling

Internet TV.

Internet TV, in simple terms, is video and audio delivered over an Internet connection.

It's also known as Internet protocol television, or IPTV. You can watch Internet TV on

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a computer screen, a television screen (through a set-top box) or a mobile device like a

cell phone or an iPod.

It's almost the same as getting television through an antenna or a series of cable wires --

the difference is that information is sent over the Internet as data. At the same time, you

can find even more variety on Internet TV than cable TV. Along with many of the same

shows you find on the big networks, many Web sites offer independently produced

programs targeted toward people with specific interests. If you wanted to watch a show

on vegetarian cooking, for example, you could probably find it more easily over the

Internet than on regular TV.

Because many sites offer on-demand services, you don't have to keep track of

scheduling. For sites using webcasting or real-time streaming video, though, live

broadcasting is still an option.

Internet TV is relatively new -- there are lots of different ways to get it, and quality,

content and costs can vary greatly. Shows can be high-quality, professionally produced

material, while others might remind you of Wayne and Garth broadcasting "Wayne's

World" from their basement. Traditional TV networks are also easing into the technology

and experimenting with different formats.

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 THEORETICAL PERSPECTIVE

BROADCASTING

Broadcasting is the distribution of audio and/or video signals which transmit programs

to an audience. The audience may be the general public or a relatively large sub-

audience, such as children or young adults.

Broadcasting antenna in Stuttgart

The original term "broadcast" referred to the literal 'sowing of seeds' on farms, by

scattering them over a wide field. It was first adopted by early radio engineers from the

Midwestern United States to refer to the analogous dissemination of radio signals.

Broadcasting forms a very large segment of the mass media. Broadcasting to a very

narrow range of audience is called narrowcasting.

Social impact

The sequencing of cootent in a broadcast is called`a schedule. As with all technological

ende`voubs, a number of technical terms and slang have developed. A list of these terms

can be found at List of broadcasting terms. Television and radio programs are distributed

through radio broadcasting oz!cible, often botè simultaneously, By coding signals an`

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having decoding equipment in homes, the latter also enables subscription-based channels

and pay-per-view services.

In his essay, John Durham Peters wrote that communication is a tool used for

dissemination. Durham stated, “Dissemination is a lens- sometimes a usefully distorting

one- that helps us tackle basic issues such as interaction, presence, and space and time…

on the agenda of any future communication theory in general”. Dissemination focuses on

the message being relayed from one main source to one large audience without the

exchange of dialogue in between. There’s chance for the message to be tweaked or

corrupted once the main source releases it. There is really no way to predetermine how

the larger population or audience will absorb the message. They can choose to listen,

analyze, or simply ignore it. Dissemination in communication is widely used in the world

of broadcasting.

Broadcasting focuses on getting one message out and it is up to the general public to do

what they wish with it. Durham also states that broadcasting is used to address an open

ended destination. There are many forms of broadcast, but they all aim to distribute a

signal that will reach the target audience. Broadcasting can arrange audiences into entire

assemblies.

In terms of media broadcasting, a radio show can gather a large number of followers who

tune in every day to specifically listen to that specific disc jockey. The disc jockey

follows the script for his or her radio show and just talks into the microphone. He or she

does not expect immediate feedback from any listeners. The message is broadcasted

across airwaves throughout the community, but there the listeners cannot always respond

immediately, especially since many radio shows are recorded prior to the actual air time.

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Many businesses take advantage of communication dissemination by advertising over

broadcasts. The options are close to limitless with advancing technology. The main goal

is simply get the message across and it is up to the consumer popqlation and audience to

do what they wish with it.

Forms of electronic broadcaqting

Histmrically, there have been several different types of elecdronic broadcasting mediums:

• Telephone broadcasting (1881–1932): t(e earliest form of electronic broadcasti.g

(nop countIng data services offered by stock telegraph companies fpom 1867, if

ticker-tqpes are eXcluded from the definition). Telephole broadcasting began with

the advent of ThÉâtrophone ("Theaure Phone") systems, which were telephone-

based distribution systems allowing subscribers to listen to live opera and theatre

performances over telephone lines, created by French inventor Clément Ader in

1881. Telephone broadcasting also grew to include telephone newspaper services

for news and entertainment programming which were introduced in the 1890s,

primarily located in large European cities. These telephone-based subscription

services were the first examples of electrical/electronic broadcasting and offered a

wide variety of programming .

• Radio broadcasting (experimentally from 1906, commercially from 1920): radio

broadcasting is an audio (sound) broadcasting service, broadcast through the air as

radio waves from a transmitter to an antenna and, thus, to a receiving device.

Stations can be linked in radio networks to broadcast common programming,

either in syndication or simulcast or both.

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 • Television broadcasting (experimentally from 1925, commercially from the

1930s): this video-programming medium was long-awaited by the general public

and rapidly rose to compete with its older radio-broadcasting sibling.

• Cable radio (also called "cable FM", from 1928) and cable television (from 1932):

both via comxial cable, sesving qrincipclly as transmission mediu}s for

programmIng produceD at either radio or television stations, with |

imited`produc4ion of cable-dedicated proframmi.g.

• S`tellite televisiof 8drom circa 1974) and setellite radio (from circa 1990): meaft

for direct-to-home broadcast programming (as oppo3ed po 3tudio networK

up,inks and downlinks), provides(a0méx of traditional radio anf/gr television

bòoadcast programíéng with satelnite-dedicatmd0programming.

• Webcasting of video/television (fsoí circa 1993) and aedio/radio (from circa

1994) 3treams: mffers a mix oe tzatytional radio and"television stction broadcast

programming with internet-dedicated webcast programming.

Economic models

Economically there are a few ways in which stations are able to broadcast continually.

Each differs in the method by which stations are funded:

• in-kind donations of time and skills by volunteers (common with community

broadcasters)

• direct government payments or operation of public broadcasters

• indirect government payments, such as radio and television licenses

• grants from foundations or business entities

• selling advertising or sponsorships

• public subscription or membership

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Broadcasters may rely on a combination of these business models. For example, National

Public Radio, a non-commercial network within the U.S., receives grants from the

Corporation for Public Broadcasting (which, in turn, receives funding from the U.S.

government), by public membership and by selling "extended credits" to corporations.

Recorded broadcasts and live broadcasts

The first regular television broadcasts began in 1937. Broadcasts can be classified as

"recorded" or "live". The former allows correcting errors, and removing superfluous or

undesired material, rearranging it, applying slow-motion and repetitions, and other

techniques to enhance the program. However, some live events like sports telecasts can

include some of the aspects including slow-motion clips of important goals/hits, etc., in

between the live telecast.

American radio-network broadcasters habitually forbade prerecorded broadcasts in the

1930s and 1940s requiring radio programs played for the Eastern and Central time zones

to be repeated three hours later for the Pacific time zone. This restriction was dropped for

special occasions, as in the case of the German dirigible airship Hindenburg disaster at

Lakehurst, New Jersey, in 1937. During World War II, prerecorded broadcasts from war

correspondents were allowed on U.S. radio. In addition, American radio programs were

recorded for playback by Armed Forces Radio stations around the world.

A disadvantage of recording first is that the public may know the outcome of an event

from another source, which may be a "spoiler". In addition, prerecording prevents live

announcers from deviating from an officially approved script, as occurred with

propaganda broadcasts from Germany in the 1940s and with Radio Moscow in the 1980s.

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Many events are advertised as being live, although they are often "recorded live"

(sometimes called "live-to-tape"). This is particularly true of performances of musical

artists on radio when they visit for an in-studio concert performance. Similar situations

have occurred in television ("The Cosby Show is recorded in front of a live studio

audience") and news broadcasting.

A broadcast may be distributed through several physical means. If coming directly from

the studio at a single radio or television station, it is simply sent through the air chain to

the transmitter and thence from the antenna on the tower out to the world. Programming

may also come through a communications satellite, played either live or recorded for later

transmission. Networks of stations may simulcast the same programming at the same

time, originally via microwave link, now usually by satellite.

Distribution to stations or networks may also be through physical media, such as analog

or digital videotape, compact disc, DVD, and sometimes other formats. Usually these are

included in another broadcast, such as when electronic news gathering returns a story to

the station for inclusion on a news programme.

The final leg of broadcast distribution is how the signal gets to the listener or viewer. It

may come over the air as with a radio station or television station to an antenna and

receiver, or may come through cable television or cable radio (or "wireless cable") via the

station or directly from a network. The Internet may also bring either radio or television

to the recipient, especially with multicasting allowing the signal and bandwidth to be

shared.

The term "broadcast network" is often used to distinguish networks that broadcast an

over-the-air television signal that can be received using a television antenna from so-

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called networks that are broadcast only via cable or satellite television. The term

"broadcast television" can refer to the programming of such networks.

ONLINE TELEVISION BROADCASTING

Internet television (otherwise known as Internet TV, iTV or Online TV) is television

service distributed via the Internet. It has become very popular during the 21st century

with services such as the Hulu in the United States and BBC iPlayer in the United

Kingdom.

Concept

Internet television allows its users to choose the program or the TV show they want to

watch from an archive of programs or from a channel directory. The two forms of

viewing Internet television are streaming the content directly to a media player or simply

downloading the program to the user's computer. With the "TV on Demand" market

growing, these on demand websites or applications are a must have for major television

broadcasters. For example the BBC's iPlayer brings in users which stream more than one

million videos per week, with one of the BBC's headline shows "The Apprentice" taking

over 3 - 5% of the UK's internet traffic due to people watching the first episode on

iPlayer.

Every night the use of On Demand TV peaks at around 10 pm, Most providers of the

service provide several different formats and quality controls so that the service can be

viewed on many different devices. Some services now offer a HD service along side their

SD, streaming is the same but offers the quality of HD to the device being used, as long

as it is using a HD screen. During Peak times the BBC's iPlayer transmits 12 GB

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(gigabytes) of information per second. Over the course of a month the iPlayer sends 7 PB

(petabytes) of information.

Before 2006, most Catch-up services used peer-to-peer (P2P) networking, in which users

downloaded an application and data would be shared between the users rather than the

service provider giving the now more commonly used streaming method. Now most

service providers have moved away from the P2P systems and are now using the

streaming media. This is good for the service provider as in the old P2P system the

distribution costs were high and the servers normally couldn't handle the large amount of

downloading and data transfer.

MARKET COMPETITORS

Many providers of internet television services exist including conventional television

stations that have taken advantage of the internet as way to continue showing

programmes after they have been broadcast often advertised as "On Demand" and "Catch

Up" services. Examples include the BBC, which introduced the BBC iPlayer on 25 June

2008 as an extension to its "RadioPlayer" and already existing streamed video clip

content, and Channel 4 that launched 4oD ("4 on Demand") in November 2006 allowing

users to watch recently shown content. Most internet television services allow users to

view content free of charge however some content is charged for, Channel 4's internet

television service employs a pay per-download system for some of its content. Other

internet television providers include ITV player, Demand Five, Eurosport player and Sky

Player.

Access/usability

Accessing internet television is a relatively simple process. Using an Internet Service

Provider, something which is common in many homes in the developed world, the user

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simply enters their chosen website address. For example, bbc.com/iplayer or

http://video.pbs.org . If the user has no select preference of streaming service, the name

of a chosen television programme can be inputted into a search engine followed by a

phrase such as “online streaming” or “watch on the net”. Accessing television on the

internet has never been so simple, due to this usability of streaming services has had to be

improved to maintain the simplicity of the process. Upon selection of a programme and

website, the user may have to wait a few seconds or minutes to allow their desired

programme to stream. A process called buffering allows the programme to run in one

smooth showing as opposed to stopping and starting to allow the programme to stream.

Control

Controlling content on the Internet presents a challenge for most providers; to try to

ensure that a user is allowed to view content such as programmes with age certificates,

providers use methods such as parental controls that allows restrictions to be placed upon

the use and access of certificated material. The BBC iPlayer makes use of a parental

control system giving parents the option to "lock" content, meaning that a password

would have to be used to access it. Flagging systems can be used to warn a user that

content may be certified or that it may be post watershed for a programme. Honor

systems are also used where users are asked for their dates of birth or age to verify if they

are able to view certain content.

Archives

An archive is a collection of information and media much like a library or interactive

storage facility. It is a necessity for an on demand media service to maintain archives so

that users can watch programmes that have already been aired on standard broadcast

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television. However, these archives can vary from a few weeks to months to years,

depending on the curator and what programme it is.

For example, BBC iPlayer offers most of its programmes for 30 days after their original

air date on the BBC. However, some special programmes such as Panorama are available

for an extended period because it is a factual programme and is highly watched and so is

worth the extra money needed to host it for longer.

In contrast 4OD channel 4's on demand service offers many of its much older

programmes as well that were originally aired years ago. An example of this is the

comedy "The IT Crowd" where users can view the full series on the internet player. The

same is true for other hit channel 4 comedies such as "The Inbetweeners" and "Black

Books".

Having an extensive archive however can bring problems along with benefits. Large

archives are expensive to maintain, server farms and mass storage is needed along with

ample bandwidth to transmit it all. Vast archives can be hard to catalogue and sort so that

it is accessible to users.

The benefits in most cases outweigh these problems. This is because large archives bring

in far more users who in turn watch more media, leading to a wider audience base and

more advertising revenue. Large archives will also mean the user will spend more time

on that website rather than a competitors, leading to starvation of demand for the

competitors.

BROADCASTING RIGHTS

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Broadcasting rights change from country to country and even within provinces of

countries. These rights govern the distribution of copyrighted content and media and

allow the sole distribution of that content at any one time.

An example of programmes only being aired in certain countries is BBC iPlayer. Users

can only stream content from iPlayer from Britain because the BBC only allows free use

of their product for users within Britain because those users pay a TV license to fund part

of the BBC.

Broadcasting rights can also be restricted to allowing a broadcaster rights to distribute

that content for a limited time. Channel 4’s online service 4OD can only stream shows

created in the US by companies such as “HBO” for 30 days after they are aired on one of

the Channel 4 group channels. This is to boost DVD sales for the companies who produce

that media.

Some companies pay very large amounts for broadcasting rights with sports and US

sitcoms usually fetching the highest price from UK based broadcasters.

Profits and costs

With the exception of Internet connectivity costs many online television channels or sites

are free. These sites maintain this free TV policy through the use of advertising, short

commercials and banner adverts may show up before a video is played. An example of

this is on the abc.com catch up website; in place of the advert breaks on normal television

a short 30 second advert is played. This short advertising time means that the user does

not get fed up and money can be made off of advertising, to allow web designers to offer

quality content which would otherwise cost. This is how online TV makes a profit.

Technologies used for Internet television

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The Hybrid Broadcast Broadband TV (HbbTV) consortium of industry companies (such

as SES Astra, Humax, Philips, and ANT Software)is currently promoting and

establishing an open European standard (called HbbTV) for hybrid set-top boxes for the

reception of broadcast and broadband digital TV and multimedia applications with a

single user interface.

Current providers of internet television use various technologies to provide a service such

as peer-to-peer (P2P) technologies, VoD systems, and live streaming. BBC iPlayer makes

use of Adobe Flash Player to provide streaming video clips and other software provided

by Adobe for its download service. CNBC, Bloomberg Television, and Showtime use

live streaming services from BitGravity to stream live television to paid subscribers using

a standard http protocol. DRM (digital rights management) software is also incorporated

into many internet television services Sky Player has software that is provided by

Microsoft to prevent content being copied. Internet television is also cross platform, the

Sky Player service has been expanded to the Xbox 360 on October 27 and to Windows

Media Center and then to Windows 7 PC's on November 19. BBC iPlayer is also

available through Virgin Media's on demand service and other platforms such as

FetchTV and games consoles including the Xbox 360, Wii and the PlayStation 3. Other

platforms that internet television is available on include mobile platforms such as the

iPhone and iPod Touch, Nokia N96, Sony Ericsson C905 and many other mobile devices.

Website vs applications

The main problem with on demand video services that are applications on desktop

computers is getting users to download them and register. It is far easier for a user to

simply log onto a webpage without registering than to have to spend time registering and

downloading often large programs.

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However applications are more powerful in that they can manage the downloading of

content far better and these programs can usually be watched offline for 30 days after

downloading.

Stream quality

Stream quality refers to the quality of the image and audio transferred from the servers of

the distributor to the home screen on a user.

Higher quality video such as video in high definition (720p+) requires higher bandwidth

and faster connection speeds. The general accepted kbps download rate needed to stream

high definition video that has been encoded with H.264 is 3500, where as standard

definition TV can range from 500 to 1500 kbps depending on the resolution on screen.

In the UK BBC iPlayer deals with the largest amount of traffic yet it offers HD content

along with SD content. As more people get internet connections which can deal with

streaming HD video over the internet iPlayer has tried to keep up with demand and pace.

However, as streaming HD video takes around 1.5gb of data per hour of video it took a

lot of investment by the BBC to implement this on such a large scale.

For users which do not have the bandwidth to stream HD video or even high SD video

which requires 1500kbps iPlayer offers lower bitrate streams which in turn leads to lower

video quality. This makes use of an adaptive bitrate stream so that if the users bandwidth

suddenly drops, iPlayer will lower it's streaming rate to compensate for this.

This diagnostic tool offered on the BBC iPlayer site measures a users streaming

capabilities and bandwidth for free.

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Although competitors in the UK such as 4OD have not yet offered HD streaming the

technology to support it is fairly new and widespread HD streaming is not an

impossibility.

Internet radio

Internet radio (also known as web radio, net radio, streaming radio and e-radio) is an

audio service transmitted via the Internet. Music streaming on the Internet is usually

referred to as webcasting since it is not transmitted broadly through wireless means.

Internet radio involves streaming media presenting listeners with a continuous stream of

audio that cannot be paused or replayed, much like traditional broadcast media; in this

respect, it is distinct from on-demand file serving. Internet radio is also distinct from

podcasting, which involves downloading rather than streaming. Many Internet radio

services are associated with a corresponding traditional (terrestrial) radio station or radio

network. Internet-only radio stations are independent of such associations.

Internet radio services are usually accessible from anywhere in the world—for example,

one could listen to an Australian station from Europe or America. Some major networks

like Clear Channel in the US and Chrysalis in the UK restrict listening to in country

because of music licensing and advertising concerns. Internet radio remains popular

among expatriates and listeners with interests that are often not adequately served by

local radio stations (such as eurodance, progressive rock, ambient music, folk music,

classical music, and stand-up comedy). Internet radio services offer news, sports, talk,

and various genres of music—every format that is available on traditional radio stations.

Internet radio technology

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Streaming

The most common way to distribute Internet radio is via streaming technology using a

lossy audio codec. Popular streaming audio formats include MP3, Ogg Vorbis, Windows

Media Audio, RealAudio and HE-AAC (sometimes called aacPlus). The bits are

"streamed" (transported) over the network in TCP or UDP packets, then reassembled and

played within seconds. (The delay is referred to as lag time.)

History

Early history

In 1993, Carl Malamud launched Internet Talk Radio which was the "first computer-radio

talk show, each week interviewing a computer expert." This was Internet radio only

insofar as it was conceptually a radio show on the Internet. As late as 1995, Internet Talk

Radio was not available via multicast streaming; it was distributed "as audio files that

computer users fetch one by one." However Malamud was among the foremost

proponents of multicasting technology. In late 1994, his Internet Multicasting Service

was set to launch RTFM, a multicast Internet radio news station. In January 1995,

RTFM's news programming was expanded to include "live audio feeds from the House

and Senate floors."

A November 1994 Rolling Stones concert was the "first major cyberspace multicast

concert." Mick Jagger opened the concert by saying, "I wanna say a special welcome to

everyone that's, uh, climbed into the Internet tonight and, uh, has got into the M-bone.

And I hope it doesn't all collapse."

On November 7, 1994, WXYC (89.3 FM Chapel Hill, NC USA) became the first

traditional radio station to announce broadcasting on the Internet. WXYC used an FM

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radio connected to a system at SunSite, later known as Ibiblio, running Cornell's CU-

SeeMe software. WXYC had begun test broadcasts and bandwidth testing as early as

August, 1994. WREK started streaming on the same day using their own custom software

called CyberRadio. However, unlike WXYC, this was WREK's beta launch and the

stream was not advertised until a later date.

In 1995, Progressive Networks released RealAudio as a free download. Time magazine

said that RealAudio took "advantage of the latest advances in digital compression" and

delivered "AM radio-quality sound in so-called real time." Eventually, "companies such

as Nullsoft...and Microsoft" released streaming audio players "as free downloads". As the

software audio players became available, "many Web-based radio stations began

springing up."

In March 1996, Virgin Radio - London, became the first European radio station to

broadcast its full program live on the internet. It broadcast its FM signal, live from the

source, simultaneously on the internet 24 hours a day.

Internet radio attracted significant media and investor attention in the late 1990s. In 1998,

the initial public stock offering for Broadcast.com set a record at the time for the largest

jump in price in stock offerings in the United States. The offering price was US$18 and

the company's shares opened at US$68 on the first day of trading. The company was

losing money at the time and indicated in a prospectus filed with the Securities Exchange

Commission that they expected the losses to continue indefinitely. Yahoo! purchased

Broadcast.com on July 20, 1999 for US$5.7 billion.

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US royalty controversy

In October 1998, the US Congress passed the Digital Millennium Copyright Act

(DMCA). One result of the DMCA is that performance royalties are to be paid for

satellite radio and Internet radio broadcasts in addition to publishing royalties. In contrast,

traditional radio broadcasters pay only publishing royalties and no performance royalties.

A rancorous dispute ensued over how performance royalties should be assessed for

Internet broadcasters. Some observers said that royalty rates that were being proposed

were overly burdensome and intended to disadvantage independent Internet-only stations

—that "while Internet giants like AOL may be able to afford the new rates, many smaller

Internet radio stations will have to shut down." The Digital Media Association (DiMA)

said that even large companies, like Yahoo! Music, might fail due to the proposed rates.

Some observers said that some U.S.-based Internet broadcasts might be moved to foreign

jurisdictions where US royalties do not apply.

Many of these critics organized SaveNetRadio.org, "a coalition of listeners, artists, labels

and webcasters" that opposed the proposed royalty rates. To focus attention on the

consequences of the impending rate hike, many US Internet broadcasters participated in a

"Day of Silence" on June 26, 2007. On that day, they shut off their audio streams or

streamed ambient sound, sometimes interspersed with brief public service

announcements. Notable participants included Rhapsody, Live365, MTV, Pandora, and

SHOUTcast. Some others that did not participate, like Last.fm, stated that they did not

want to punish their listeners.

Sound Exchange, representing supporters of the increase in royalty rates, pointed out the

fact that the rates were flat from 1998 through 2005, without even being increased to

reflect cost-of-living increases. They also point to the fact that CBS recently purchased

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Last.FM for 280 million dollars, and if internet radio is to build businesses from the

product of recordings, the performers and owners of those recordings should receive fair

compensation. Opponents argued that the purchase price paid for Last.FM reflected that it

was primarily a social network service that included a radio service.

On May 1, 2007, SoundExchange came to an agreement with certain large webcasters

regarding the minimum fees that were modified by the determination of the Copyright

Royalty Board. While the CRB decision imposed a $500 per station or channel minimum

fee for all webcasters, certain webcasters represented through DiMA negotiated a

$50,000 "cap" on those fees with SoundExchange. However, DiMA and SoundExchange

continue to negotiate over the per song, per listener fees.

SoundExchange has also offered alternative rates and terms to certain eligible small

webcasters, that allows them to calculate their royalties as a percentage of their revenue

or expenses, instead of at a per performance rate. To be eligible, a webcaster had to have

revenues of less than $1.25 million dollars a year and stream less than 5 million "listener

hours" a month (or an average of 6830 concurrent listeners). These restrictions would

disqualify independent webcasters like AccuRadio, DI.FM, Club977 and others from

participating in the offer, and therefore many small commercial webcasters continue to

negotiate a settlement with SoundExchange.

An August 16, 2008 Washington Post article reported that although Pandora was "one of

the nation's most popular Web radio services, with about 1 million listeners daily...the

burgeoning company may be on the verge of collapse" due to the structuring of

performance royalty payment for webcasters. "Traditional radio, by contrast, pays no

such fee. Satellite radio pays a fee but at a less onerous rate, at least by some measures."

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The article indicated that "other Web radio outfits" may be "doomed” for the same

reasons.

On September 30, 2008, the United States Congress passed "a bill that would put into

effect any changes to the royalty rate to which [record labels and web casters] agree

while lawmakers are out of session." Although royalty rates are expected to decrease,

many webcasters nevertheless predict difficulties generating sufficient revenue to cover

their royalty payments.

In January 2009, the US Copyright Royalty Board announced that "it will apply royalties

to streaming net services based on revenue."

Popularity

In 200#, rgvenue fro- online streaming music radio vas US$49 million. By 2006, that

figure rose to US¤500 million.

A February 21( 2007 survey of(3<000 Ameòicans`rm|eased by consultancy BRidge

Ratings &"Research" found that "áS musx as 19% of W.S. consumers 12 and olDer listen

to Web-based ra`io stations." In other wsäs, there were "some057 millioN weekly

listmners od Internet radio ðrograms. More penplf!listån to online Radio than to satellitå

radio, high-definitionric radio, podcasts, or cell-phïne-based radio combined."

An April 2008 susvey 3howed that, in the$US,0more than one én seven persons egef 25–

54 y%ars old Listen to online radio eaãh week.(In 2008, 13 percent of the Aoerican

population listeled to the r!dio online, kompared ith 11 percent in 2007.

Internet0radio"f5nctio~ality is also built into many dedicated Internet radio devices,

which ghve af FM lika receiver user gxperience.

24
 REVIEW AND RESEARCH

Fact: Television Audiences are Migrating to the Net

The erosion of the network television audience during the 1980s and 1990s changed

media plans forever. In the early '80s, television was simple to plan and buy with just

three networks to consider. Then came cable, then a fourth network called FOX, followed

by a dizzying array of syndicated offerings and yet more new network entries: Paramount

and the WB. New choices continued to fragment traditional television viewing and

advertising budgets soon followed this trend

Television's recent history has demonstrated that media budgets ultimately are pragmatic.

As audiences migrate, media plans follow, acknowledging that the ultimate goal of any

brand is to reach its target audience effectively and efficiently. The exploding media

landscape of the 90s-driven by increased TV audience fragmentation and the Web's

popularity-have put this process into overdrive. Like the 80s and early 90s, media

25
planners are, again, adapting their plans to account for the ever-growing numbers of

people spending increasing amounts of time online at the expense of other media.

The first evidence of this audience migration appeared last summer in a Forrester

Research report. The researchers asked PC users which activities they were giving up to

spend more time on their computers. And, while 24% did admit giving up eating or

sleeping to pound away on the PC, the activity sacrificed by over three-quarters of the

respondents was television. Shortly after the Forrester findings were published, a study

from The Georgia Institute of Technology's Graphic, Visualization and Usability Center

(GVU) was released. This study, conducted on the Internet, asked users about their

television viewing habits and what impact the Net might have on them. Their findings

indicated a distinct shift in media habits with almost 37% of respondents claiming that

they "use the Web instead of watching TV on a daily basis." Earlier this year, MSNBC

noted the fact that Nielsen's February ratings sweeps found one million fewer U.S.

households watching prime time television versus the same period last year.

Simultaneously, Nielsen and Commerce-Net released their Internet study, reporting that

the North American online audience had doubled in the past 18 months. Clearly the

conclusions of these two studies are far from coincidence. Taken alone, this migration of

the television viewing audience to the Internet is particularly striking. This data is made

even more impressive by the fact that Internet users are remarkably upscale. So, not only

are we witnessing a fundamental shift in media habits, the Internet audience represents

that hard-to-reach, well-educated, high-income population most coveted by marketers

Fact: The Net is the Fastest Growing Medium in History

Internet advertising began in 1994, when the first banner ads were sold and the first

commercially available Web browser, Netscape Navigator 1.0, was released. In a recent

26
study, Mary Meeker, Managing Director, Morgan Stanley, and her team of researchers

closely examined the adoption rate of the Internet, contrasted to the three other major

"new media" invented this century: radio, network television and cable TV. As a common

metric, they examined the number of years it took or will take for each media to reach 50

million U.S. users. With television, cable and radio included for historical context, the

growth of the Net is nothing short of remarkable. Meeker estimates the Internet will

capture 50 million users in just five years. It took TV 13 years and radio 38 years to reach

this milestone.

Fact: Internet Demographics are a Marketer's Dream

Every major research organization has studied the demographic composition of the
Internet. While methodologies and approaches vary, the findings are consistent: Net
users are young, well-educated and earn high incomes. And, increasingly, research
shows that both men and women are using the Internet.

GENDER The March 1997 Commerce-Net/Nielsen survey of Internet Demographics

found that women now represent over 42% of the online population. Source:

Nielsen/Commerce-Net

AGE The average age of Web users is 34.9 years old, according to the 6th GVU WWW

User Survey. This average age has been steadily increasing over the last several GVU

surveys.

INCOME A 1996 survey by the Media Futures Program of SRI Consulting revealed that

more than 65% of Internet users have household incomes of $50,000 or more, compared

with 35% of the U.S. population as a whole. According to the sixth GVU study, average

household income of Internet users is $60,800 (US). The distribution of income levels is

very similar to the Fifth GVU survey: Less than $29K: 18.8%, $30-50K: 23.0%, over

27
$50K: 41.1%. Sources: SRI International; GVU, 1997. EDUCATION According to the

same SRI study, more than 75% of Internet users have attended college, as opposed to

46% of the total U.S. population.

Fact: Web ad banners build brand awareness and may be better at generating

awareness than television or print advertising.

Since their first appearance on commercial Web pages, the value of banner ads has been

debated. Many felt they were physically too small to offer much branding and some

advertisers convinced themselves that click-through was the only metric by which to

measure ad effectiveness. They erroneously believed:

- despite the fact that no research existed to support their belief

- that without a click-through, no brand building would occur.

In fall 1996, Millward Brown International set out to test the impact of banners on brand

awareness, the first study of its kind. Millward Brown's objective was to measure the

impact of a single ad banner exposure on brand awareness. The three brands tested

included a men's apparel brand, a telecommunications brand and a technology company.

The findings were significant and conclusive for each brand. Awareness was significantly

greater among the banner-exposed (test) group than the non-exposed (control) group.

Specifically, exposure to the ad banners alone increased brand awareness from 12% to

200% in a banner-exposed gboup. The study also compaoad the on the bAnneb ads

in(this test to televicion an$ magazine norms!from priop Millward Rrown studies. The

bindings were remarkable: Sin'le exposure tg á28Wab bånneR generated creater

awareness than a single exposure to a televisign or priot ad. Millward Brosn used their

28
FORCE score ("First Oppostunity to See ReAcviOn Creaved!bù The Ehecution") as a

means of uva,uauing the impact of dhe `e banners relative tO ouhur media.

A FORCE score inDicates the efdects of tiMe, exporure weight, diminishing0returns and

base level. As such, FORCE scores can re dkrecply comp!red acro3s media types. As the

median$FORCE score for Television advertisements is 10,(the scores reported in the

chart below (with an averqge score of 20 for the WeB banners tested) suggest that Ueb

banners tested veri favorably to most TV ads, in terms of creating brand-linked

`wareness.

Now You Know the Facts

Every new medium had to prove its value to advertisers. Just 15 short years ago, cable

television fought to earn the respect of advertisers. Today it is a $6 billion industry.

Those of us in Internet Publishing realize the Internet is no exception. We accept the

challenge to prove the value of this medium and will build the case with facts-not hype-

for including the Internet on your media plans. All these facts in aggregate create an

undeniably compelling case for advertisers today to include the Internet in their media

plans. As Lynn Upshaw, author of Building Brand Identity, noted recently, "The World

Wide Web will be one of the strongest brand building tools available." Based on the facts

at hand, we couldn't agree more.

The Innovative Nature of the Project

The project applied the concept of integrated broadcasting. The idea behind this is that

TV viewers are drawn to the Web Site and the Web Site adds value to their viewing by

offering further knowledge and enabling discussion.

29
The opportunity arose for OUBS to create a series of magazine style television

programmes for network broadcast, linked to an advanced open-to-all Web Site. The

target audience was managers and small businesses as well as the large OUBS distant

community of Associate Lecturers, students, clients, partners and alumni.

The Business Café Television Programmes

The Business Café set was created high in Tower 42, with views over the City of London.

The programmes were broadcast from 21st February 1999 on a weekly basis, except for

Easter Sunday, with the last programme on 25th April 1999. They were on BBC2 from

7.45 am to 8.15 am.

Winifred Robinson presented the programmes. Participants in the Café discussions were

management academics, businesses professionals and commentators. Each of the 9

programmes included a main feature (based on OUBS research expertise) and a series of

regular weekly items. The feature was introduced through brief discussion in the Café

and explored through filmed “case study” style reports. Regular short items included a

“taxi ride" with a business figure in the news and an “office of my own”, giving a tour

and explanation of how organisations and individuals are using their office space. Each

programme discussed a business book and finished with a stock market commentary.

The URL for the Web Site was regularly shown on screen, together with invitations from

the Presenter to log-on and take part. She also gave a brief report on camera about the

contributions to The Business Café online discussion forum during the previous week.

30
The main features were:

Week 1 - E-commerce

Week 2 - Intellectual Capital

• Week 3 - Social Entrepreneurship.

• Week 4 - Innovation.

• Week 5 - Knowledge Management.

• Week 6 - Family Values (in business)

• Week 7 - Regeneration.

• Week 8 - Risk.
st
• Week 9 - 21 Century Manager.

Television Viewers

31
Up to 8% of the total audiences (terrestrial, cable and satellite) was achieved at 8 am on

Sunday mornings (300,000 live viewers) for each of 9 weekly broadcasts. A further

audience occurred later as the programme was videorecorded (but no data available). The

audience was of the kind we had planned to attract- i.e. middle or senior managers or

small business owners. They represented almost every industrial sector and type of

managerial job and were typically 35- 54 years old. Around half were not aware that

OUBS offered management education and were interested in OUBS courses, which was a

satisfactory marketing outcome.

The Business Café Web Site

Throughout the television broadcasts, the Presenter referred to The Business Café Web

Site. We created a fresh new Site and discussions week on week for 9 consecutive

weeks. Each new Web Site focussed on the features in each TV programme.

The Business Café Web Site included:

• This week’s feature streamed onto the Site through video

• Video streaming of the book review shown on the programme that week

• Computer mediated discussion area (using open access Web version of

FirstClass)

• “Business briefing” -downloadable specially produced article for each feature

• Web links- special collections of relevant Web Sites to illustrate the main

feature of the programme

• Tell us about yourself – our opportunity to collect feedback on viewers and

visitors to the Site.

• Previous week’s series/sites

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 • Credits

• Links to the main OU and OUBS Sites

• Link to OUBS brochure request

• Link to main BBC Site

• Link to Amazon for book ordering

• Link to the Microsoft MediaPlayer Site for video player download

• Copyright statement

Web Site Visitors

Following the first week's TV programme, there were 4,000 visitors to The Business Café

Web Site. This rose to just around 6,000 per week throughout the 9 weeks, except for

weeks 7 to 8 when it reached 8,000 per week. Around 42% of the visitors to the Web Site

logged on during the day of the TV broadcast in the morning (i.e. Sundays), with the

remainder during the following week. Around two thirds of the Web visitors were

prompted by the TV programmes and the rest found The Business Café Site through other

sites on the Web or by recommendation. Visitors logged in from all over the world

(outside the TV range), watched the video clips and contributed to the online discussion.

Evaluation by Stakeholders

Evaluation of the TV programmes reported success for the filmed case studies, the

imaginative filming, the lively, interesting format, the presenter, the topical issues and the

weekly "market" commentary. Less well received were the scheduling slot (Sunday

mornings), some of the book reviews, office of my own and taxi rides (it was demanding

to provide 9 very high quality and consistent topics of each kind). The main

33
improvements needed were far greater "depth" of treatment of some issues, and more

consistent and effective enticement to visit The Business Café Web Site.

On the Web site, successful aspects were the Business Briefing (downloadable specially

written papers), the technical provision of the discussion forum, the skill of the

moderating team, the online questionnaires and the specially presented "Web links".

Improvements suggested were to simplifying the look, feel and navigation and shorten

the video clip download time.

34
 CONCLUSION

An online and integrated community did not build from the Project as we had hoped. It

was difficult to ensure a focussed message about the benefits of the Web site through the

TV programmes. Each week's online discussion forum attracted a new cohort of

participants, usually those who were interested in that week's feature. The best interest,

quantity and depth of discussion occurred where an issue was controversial and

especially where Web visitors disagreed with a view in the TV programme. To create a

community, it is likely that the TV series would need to build up more directly from

week to week, more like a serial than a series, and the Web activities would need to be

more purposeful and valuable to a cohort of participants.

The BBC production team's schedules were professional, creative but extremely

pressurised. The OUBS The Business Café project team was experienced and well set up

technically to produce the Web Site. In practice each team focussed on its own

specialism. This resulted in satisfactory quality but rather less integration between the

two media than we desired.

Reflections on The Business Café Experience

Technological convergence of broadcasting and telecommunications has been happening

for some time now. Using broadcasting in parallel with the Web surely makes sense,

particularly for education. My experience in this project makes me believe it is

worthwhile, but not easy.

35
Television shows are made to be visual, dynamic and stimulating. For educational

purposes add to this, a proliferation of academics, each expert in their own field and used

to producing distance learning materials, typically in print. Then add the quite different

behaviours and need of Web users compared to TV viewers and the technical demands of

producing easy to use and navigate Web pages! You can start to see the challenge

36
 BIBLIOGRAPHY

Awad E.M. (2006), Electronic Commerce-from Vision to fulfillment”, third edition,

Prentice Hall, Eastern Economy edition.

Chaffey D. (2007), E-Business and E-commerce Management, Third Edition, Prentice

Hall, London.

http://www.acm.org

http://www.articlesbase.com/cable-and-satellite-tv-articles/how-to-watch-tv-internet-

broadcast-live-watching-television-on-the-computer-1949031.html

http://electronics.howstuffworks.com/internet-tv.htm

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