Varying theories about ad pricing and subscription models online content need to solidify if recent plans by "American Idol" producer Simon Fuller and actor/producer Ashton Kutcher are any indication.
Fuller and Kutcher have announced separate plans to produce shows - with the intention of distributing them on the internet. Fuller's project is a new reality show meant for the internet. Called "If I Can Dream," it is expected to start in February on Hulu and other websites, writes MediaBuyerPlanner.
The show will follow the lives of five aspiring actors and musicians who move to Hollywood in search of stardom. Marketing and advertising deals have been signed with MySpace, Clear Channel Radio, Pepsi and Ford Motor Co.
Real Time and Authentic
It is possible "If I Can Dream" will air on TV eventually - Fuller's main motive appears to be more focused on the real time and "authentic" interaction with the actors, whose daily activities will be shown live on the IfICanDream.com website and who will communicate with viewers via blog posts and social networks.
Kutcher is also turning to the internet to distribute content - but only after failing to gain an audience on television. His TV show, "The Beautiful Life", which only aired twice on the CW network because of poor ratings, will now be running on YouTube through a sponsorship with Hewlett-Packard. (via the Washington Post)
Emerging Models
Several shows have tried to debut on the internet, but with only limited success. However Fuller's initiative has been deemed likely to succeed - which places even more pressure on networks, publishers and producers to settle on ad and subscription policies for such sites as Hulu and websites that will eventually follow.
Even solid start ups like Comcast's Xfinity TV are still feeling their way: some networks in this TV Everywhere initiative are experimenting with abbreviated ad loads; others are testing a full ad load, similar to what is on television.
What metrics do exist are not promising, according to a conference held by Bernstein Research earlier this year.
At it, Credit Suisse's Spencer Wang noted that a broadcast show makes at least 64% less online than it does on TV and a cable show about 36% less. Running more ads is not a possibility as it would chase viewers away. (via Deadline Hollywood).
According to Bernstein's Michael Nathanson estimates, Fox generates just 18 cents in ad sales for each viewer who watches The Simpsons on Hulu vs. 54 cents for each person who watches it on the TV network.
The bottom line, he said: the networks will have no choice but to pack in more ads or charge a fee.
