Why do TV networks give away their content online?

[jrice]

So I was watching R.E.M. on Austin City Limits and a couple of times this banner popped up suggesting I should go to the PBS web site for a band interview. There are other shows that say if I miss an episode I can go their site and view complete episodes.

I've never bothered with this but I'm assuming it is a free service? If so, why on earth would they do it? Surely the station that airs ACL as well as the PBS network wants me watching the PBS channel - not watching free content on the web site. I can kind of understand them putting up an interview to whet my appetite and make me want to watch ACL, but why would ABC put up complete episodes of Lost (just for example)? Are there commercials when you watch these online shows?

The idea of watching TV on my computer doesn't appeal to me but I'm sure lots of people love the idea. Still, why give away your product? What is the motivation?

[johmbolaya]

The idea is that if someone likes what's on that page they go to, they can explore the website and perhaps make a purchase or two. One can say "it's all about the web hits", but it's also about branding. If you are a website that does any kind of commerce, you have to have something that will keep them coming. Even if 1 percent of the total audience clicks a banner ad or buys a DVD box set or makes a PBS donation, it's generally considered effective.

When you are an information-based website and/or forum, then you either face the risk of having ads in the future, or make a donation to the website. Because as I finish this post, if I were to say the words "dog food", as soon as I pressed "Post Quick Reply", you would see a section of Google links and three links dedicated to dog food, dogs, or food. Do you come to SH.tv for dog food or for decent music discussion?

Same with any other site.

PLUS... websites can now test market content to see what gets more views. If a series of videos has more plays than others, they can consider releasing a DVD box set if one doesn't already exist. If people want something of quality, they'll buy it. That may change as internet speeds get faster and awareness of "sufficient"-quality files (such as DiVx encoded stuff) becomes more known. That's why this scares the music industry, because some websites want to make music available for free just so people can click a banner ad. Then what?

[rburly]

The idea is that if someone likes what's on that page they go to, they can explore the website and perhaps make a purchase or two. One can say "it's all about the web hits", but it's also about branding. If you are a website that does any kind of commerce, you have to have something that will keep them coming. Even if 1 percent of the total audience clicks a banner ad or buys a DVD box set or makes a PBS donation, it's generally considered effective.

When you are an information-based website and/or forum, then you either face the risk of having ads in the future, or make a donation to the website. Because as I finish this post, if I were to say the words "dog food", as soon as I pressed "Post Quick Reply", you would see a section of Google links and three links dedicated to dog food, dogs, or food. Do you come to SH.tv for dog food or for decent music discussion?

Same with any other site.

PLUS... websites can now test market content to see what gets more views. If a series of videos has more plays than others, they can consider releasing a DVD box set if one doesn't already exist. If people want something of quality, they'll buy it. That may change as internet speeds get faster and awareness of "sufficient"-quality files (such as DiVx encoded stuff) becomes more known. That's why this scares the music industry, because some websites want to make music available for free just so people can click a banner ad. Then what?

+1

[jrice]

So ABC (again just for example) will post complete episodes of Lost just in the hopes that a small percentage of people will click on an advertising link at some point and thereby drops a few coins in the coffers? I suppose it's no different than having the rest of us record the show and FF through the ads.

Wow, it's getting tough to make a living in the arts isn't it?

[rauer]

How does Skype pay for developing their software and for the bandwidth their servers use?

How did Google get money for maintaining free enormous search databases?

The businesses don't seem to always expect to be paid right here, right now. The big wins may come much later or indirectly.

I'd be actually interested in hearing what the resident MBAs or economists have to say about this.

[RBtl]

So ABC (again just for example) will post complete episodes of Lost just in the hopes that a small percentage of people will click on an advertising link at some point and thereby drops a few coins in the coffers? I suppose it's no different than having the rest of us record the show and FF through the ads.

Wow, it's getting tough to make a living in the arts isn't it?

Shows like Lost have another incentive - posting old episodes allows people who didn't get into the series on the ground floor to get caught up. You're much more likely to get hooked if you understand the plotline than if you jump in at season 12, episode 7.