It is difficult to summarise the existing market, as the cross-section for the products and services commercialised by iTV is significant.
The key sectors include broadcast, telecommunications, media, media production and advertising. Secondary markets are predominately the small to medium enterprise which, as a market, provide both the funds to support distribution and the funds to support advertorial uptake.
- Telecommunications companies are commercialising content assets in a variety of formats.
- Broadcasters are developing internet strategies, differentiating internet from their broadcast markets, and delivering a disparate and disconnected approach to the sale of content assets, over “multiple” networks.
- Free to air broadcasters (both radio and television) are losing “eyeballs” to a range of factors, including pay TV networks, and broadband internet users who are increasingly able to download new-release programming from international sources.
The SME market is being affected through their ability to advertise their goods and services, to their local markets as internet marketing continues to elude them, and broadcasting becomes less effective. Print based, mail-drop campaigns continue to work, but do not offer similar proportional effectiveness that video advertising offers.
Furthermore, through the invention and effective commercialisation of the products and services described in this business plan, existing business is offered a new format of advertising never before made available, within the commercial pricing framework, offered by The iTV Company.
Industry Groups
Industry groups who support the commercialisation of Interactive TV include:
- Media Companies
- Advertising producers and buyers
- Publishers
- Content owners, aggregators and producers
- Broadcasters
- Technology and Communications Infrastructure Companies
- Telecommunication and internet service providers
- Consumer electronics manufacturers
- Software vendors and internet portal businesses
- Governments
The most influential group is the advertising sector, backed by the government departments responsible for small to medium business growth and prosperity. With advertising dollars, content can be distributed free of end-user charges. With IPTV, small advertising budgets can provide interactive advertisements and sales support interfaces (such as leads generation and enquiry systems) to local and niche markets.
- Media companies generally require advertising dollars at some stage along the supply-distribution chain, in order to obtain a profit from the sale of their products and services.
- Technology companies require content, to distribute and enhance distribution
- Government ensures the parties play “fairly” and in the interests of the larger population.
The iTV Company tried to combines these industry groups, by working to provide a standard platform, for (local) advertising-sponsored content to be distributed, in a framework that adheres to and is administered by a governance framework, in part implemented by the government.
The iTV Company does not have a core business interest in competing on a content brand level, by rather a methodology for content supply to end-users and the framework that enables such business systems in an economical and socially sustainable basis.
Market Size
The free to air broadcasting market in Australia operates in excess of 1 billion turnover per annum.
The internet advertising bureau in an article published on the 4th of October, states that during the first six months of 2007, internet advertising revenues (US) were nearly 10 billion dollars (USD) representing nearly a 27% increase over the first half of 2006. (Source: http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/5230 )
The potential market size of digital interactive video advertising is massive.
The financial assumptions provided in association to this business plan, are aimed at acquiring a very small percentage of the total transaction value for each content delivery, then backed by a very small percentage of the potential market for interactive television and the platforms that make the market.
The iTV Company’s technologies enable it to operate with a relatively small industrial footprint in the global market. As the technology platforms evolve, the supply and services systems can be exported, with relatively little local management infrastructure, in each commercial market.
Target Market/s
The business will focus on small to medium businesses for the production of advertising. This advertising will be used to sponsor content, which will be distributed over The Company’s technology platform.
As The Company evolves, it will sell channels to companies who seek to produce and manage interactive TV channels, using the companies technologies platforms, as well as production solutions to enable businesses to contribute to the channels, operated by The Company, and its’ customers.
The technology capabilities provide a cost effective platform for video media distribution. Whether it is a channel provider who wants to use the “tools” to do it themselves, without worrying about the technology or a local community organisation who would like to broadcast their annual fund raising event to give it more opportunity to raise funds for their endeavour.
The technology platform is designed to facilitate the needs of current and potential content developers.