It often seems that major content companies and platform firms walk in lockstep when it comes to digital distribution, but two articles published today reveal significant philosophical differences.
Here’s an excerpt from a Bloomberg story on Viacom’s uneasy relationship with online viewing:
Viacom has to ensure that placing television shows and films online adds to its profit, through sources such as advertising sales, subscription fees and revenue from enabling users to buy content by downloading it, [Philippe] Dauman said. The viability of such a model relies on strong intellectual property safeguards, he said. [Link added.]
And here’s a passage from an AP story looking at a similar online offering from Comcast:
Comcast executives said the company plans to generate revenue by adding more and different types of ads on the sites. But the company’s goal is not necessarily to profit from it but to keep subscribers happy enough so they don’t cut the cord or defect to a competitor. [Emphasis added.]
The content creator is worried about direct revenue from the content, while the platform provider is more concerned about keeping its subscribers happy. It’ll be interesting to monitor Comcast’s mindset if/when that NBC deal goes through.