YouTube’s Money-Making Plans, TAG’s VOD Gaming
June 27, 2008 11:10 AM
YouTube founder Chad Hurley said the company will make money through display ads and affiliate revenue deals, such as links to iTunes and Amazon for DVDs, CDs and digital downloads. Check out this NewTeeVee story on the topic:
And here’s an interesting tidbit for you. I don’t report on non-Web video stuff that often, but I came across an interesting stat related to games on video-on-demand. (You know, that’s the service you get from the cable operator when you have digital cable.)
TAG Networks delivers casual games — think chess, checkers, word games — via a VOD stream to cable homes. In a trial with a Time Warner Cable system in Alabama, the operator found that in the first four months about 40% of digital homes had tried the games. That’s not too shabby. Time Warner even ran some promos for the service where it had extra inventory.
“If you put a compelling games experience on TV, consumers will watch,” said Sangita Verma, CEO of TAG Networks. “There is no loading time. It starts automatically.”
The games are free and ad-supported. Look for TAG to deploy to about seven markets in Texas by next month.
Other data from the trial:
— The average playing time across all digital households increased to one hour and 17 minutes in March compared with 34 minutes when the trial started in December.
— Monthly average playing time among TAG households increased to eight hours and 10 minutes in March from four hours and 46 minutes in December.