There’s another huge happening in the Pay Per View world: Simon Cowell is planning to broadcast a pay-per-view, Internet-only show — from Las Vegas. What does this mean? It means that PayPerView on the web is here to stay, and it’s only going to become more and more widespread.

Pay Per View’s “X Factor”

Whether or not Cowell deserves his reportedly multi-million dollar salary for American Idol is debatable. But there is no doubt that the snide Brit knows how to make money. And it’s a good bet that if he’s putting his muscle behind this revolutionary new Pay Per View concept, it’s going to be very, very lucrative. Best Pay Per View Hosting Service

What gave him the idea? Rumor has it that it was the Cinderella contestant, Susan Boyle, on Cowell’s very own show: Britain’s Got Talent. There’s hardly a web surfer around who hasn’t heard of the matronly, small-town Englishwoman whose audition tape received in excess of 30 million views on YouTube.

For this project, Simon joined forces with noted British billionaire Phillip Green. The two are said to be shopping for a major casino-hotel venue in Las Vegas which will host the new show. Based on the British hit show, “X Factor,” the Internet-only pay-per-view version will exploit the kind of content that Cowell has perfected via Britain’s Got Talent and American Idol for the last few years. (American Idol is generally touted as one of the most — if not the most — watched show on television.)

The Expectations are High

How successful will the venture be? No one can say. It’s still a very new area. While the British partners’ stated claims are probably unrealistically high (they have been quoted as saying they expect tens of millions of viewers to “tune in” twice a week), they are venturing into uncharted territory.

Still, whether or not the show reaches anywhere near their projected audience numbers, it is sure to serve as a vanguard in what is becoming one of the growth industries of the decade. One thing is certain: the Pay Per View model of media distribution is poised for exponential growth over the coming years.

Simon, Pay Per View, and You

Even if Cowell’s new program never reaches any where near the numbers he’d like, it still serves an important purpose for smaller pay-per-view ventures. Namely, that it familiarizes more people than ever with the concept of paying for content online. And this is important.

For many years, broadcasters and other [especially video] content providers have wondered how to monetize their intellectual property. With the advent of streaming video on the Web, the distribution channel was there, but the market wasn’t necessarily ready. That is changing — rapidly.

As more and more players enter the world of Pay Per View — Google, Rupert Murdoch’s News Corp, and now American Idol maven Simon Cowell — the web viewing public becomes comfortable with the idea of paying for content online. And for those trying to generate revenue from their content, that’s a good thing.

Google recently announced that they are in talks with executives at TV networks to “re-broadcast” certain programs soon after they are shown on the standard TV stations. For those interested in getting into the Pay Per View industry this is good news! No, really . . .

Acceptance of a New Idea

Want to follow the evolution of the Internet? Just follow the porn industry. Yes, you read it right: the porn industry. For reasons known only to geneticists and social scientists, the pornography business has led every trend in the advent of media technology every since the ’70s.

Just examine the facts.

In the late ’70s, Sony introduced the “Beta” video tape technology. Most people agreed this was a great idea, but no one could figure out exactly how to make money with it. Until, that is, adult entertainment production houses showed them: by filling a demand for video entertainment in the home. Once they saw how successful it was, other media companies — TV networks, film studios, et al — followed their model, and a new industry was created.

Sometime in the ’80s, “on demand” was the hottest technology. (”On Demand” is basically a synonym for “Pay Per View,” so you can see where this is going.) Again, many people in the industry scratched their heads, and said “huh?” Once again, the erotic video houses set up the model, and other companies soon followed. First as after-hours entertainment in hotels, and later through cable networks.

New Pay Per View Accessibility

Fast forward to the mid ’90s, and the popularization of the Internet. Once again, companies with content (newspapers, magazines, film producers, TV studios) new people wanted it, but didn’t know how to monetize their property. Not so with the porn websites, which started with photos, then quickly moved into video. (In the process, they took the concept of affiliate marketing to new heights, and revolutionized that technique as well.)

But the Internet has created a level of availability in terms of distribution that makes it fundamentally different from the hard media (videotapes, DVDs, CDs, etc.) and the previous on-demand technology. Now, you don’t need millions of dollars and the task of building a new infrastructure. Pay Per View events can be launched for just a few dollars, and are instantly accessible anywhere that has an Internet connection. One of the best Pay Per View Services on the Internet for high quality yet very inexpensive is AudioVideoweb.com

Why Google’s PPV Entry is Important

Which brings us back to the original point: Google’s plan to launch pay-per-view service is good for those of you who want to run your own service. The technology is in place, the cost is reasonable. With a top level company like Google offering it, users everywhere will become more and more used to the idea that it makes sense to pay for valuable video and audio content online.

Ready to start your own Pay Per View program? Be sure to read: Pay Per View “How To,” a guide to everything you’ll need in order to plan, deliver, and profit from your own Pay Per View event.

Sometimes the pace of technology goes so fast, that even though we know that something is available, we haven’t processed how it could help us. Something that’s getting a lot of attention now, is the concept of Pay-Per-View. First of all, it’s good to understand the concept.

What is Pay Per View?

As the name suggests, Pay Per View is a system whereby users pay for the experience of watching video clip. It could be a full-length movie or a 3-minute clip, but the important thing is that it has value to an audience. Several important points must be understood:

1) It can be Audio, Video, or Both
Although the term “pay per view” was coined because of large companies selling movies and shows over cable networks, it can apply to audio as well. Thus, it might more accurately be called “pay per media exposure,” but that doesn’t have much of a ring to it, does it?

2) It Can Include Live or “Archived” Files
Really, pay-per-view covers two categories. The delivery of existing audio or video content, and the “broadcasting” of live events. Both can have a different kind of value to end users, and both can generate revenue for the producers of that content.

How Can It Make Me Money?

There are really to areas in which that question must be answered. The first involves finding a match between content and audience. What kind of content and what type of audience? There are many answers, but here are some suggestions.

Sporting Events

Sure, you can turn on the TV and catch baseball and basketball games, track meets or soccer matches — as long as they are major teams. But how many people have moved away from their home town, yet would still like to see the games? (Especially when they have friends or relatives playing.)

Church Services
There are many reasons why people may not be able to attend their regular services — travelling, health problems, scheduling conflicts, etc. Many of them would love the opportunity to “tune in” whenever, or from wherever, they liked.

Training Videos
Picture this: you’ve just purchased a new home entertainment center, and are having problems putting it together. After all, those things can be complicated! Would you be willing to pay a few dollars to have an expert demonstrate (complete with close-ups of the components involved) exactly how to do it?

These are just a few examples, but they should give you the idea about where to start. Whether you have existing content that you think people would value, or whether you are involved with an event that people would love to experience, you may be in a position to benefit from payperview technology. Which brings up the other point:

What Do I Need to Do Pay Per View?

Let’s face it, even for the very technically inclined, this is not a do-it-yourself job. Find a company that not only can handle any size or type of file or event you can think of, but that also has a system in place to handle the financial transaction. While many organizations will handle one or the other of those two aspects, a few leaders in the field will do everything. If you can find an all-in-one service, grab it. You’ll be glad you did!

The concept of pay-per-view, or paying a fee to watch or obtain specific content, became popular through cable television during the 1990s. By 2000, the pay-per-view cable and satellite industry was securing $1.5 billion per year by charging customers to view certain movies and special events. Believing the Internet would prove a lucrative sales channel for pay-per-view events and content, many firms began utilizing the World Wide Web to broadcast movies and television shows, as well as content, on a pay-per-view basis.

The development of streaming media in the late 1990s allowed radio, television, and movies to be heard and viewed on the Internet. This technology, coupled with faster Internet connections including digital subscriber lines and cable modems, allowed Web surfers to use personal computers to view what had traditionally been available only through regular and cable television. Cable station Showtime Networks launched its foray into pay-per-view on the Internet in 1999. That year it launched its first event online—a boxing match between Mike Tyson and Orlin Norris. In July of 2001, television network CBS teamed up with RealNetworks Inc., a leading Internet media delivery firm, to offer reality television show Big Brother 2 on a pay-per-view basis. Online viewers had different payment options including a $9.95 per month option that included RealNetwork’s Gold-Pass service. This service allowed the viewer access to the show, along with broadcasts of sporting events including professional basketball and baseball games.

Other examples of entertainment companies utilizing pay-per-view include Hollywood.com and CinemaNow. The duo launched a movie site in June 2001 which streamed independent films and allowed Web surfers who paid $2.99 to have access to a movie for 48 hours. At roughly the same time, Intertainer.com began offering older television shows such as the Beverly Hillbillies on a pay-per-view basis.

The ability to broadcast movies online on a pay-per-view basis sparked the advent of video on demand (VOD). While still in its infancy in 2001, VOD was expected to eventually replace traditional pay-per-view cable movies. VOD allows a viewer to rewind, fast-forward, pause, start, and stop a movie at will. A VOD movie begins at the time of payment, rather than at a scheduled time, and typically can be viewed for 24 hours on either a personal computer or through television. Companies including Sony Pictures Entertainment, Blockbuster Video, AOL Time Warner’s Road Runner cable service, and Intertainer invested in technology which would allow VOD to become available to Web surfers utilizing pay-per-view billing methods.

Content-based Web sites unrelated to the movie and television industries also use pay-per-view methods. News sites including the Wall Street Journal, for example, charge users to view portions of its online content. USA Today also charges its online readers to access its articles; a customer can view one article for $1.50, view up to ten articles a day for $4.95, or pay $14.95 per month to access up to 100 articles. Web portal Yahoo! offers buying guides and product ratings from Consumer Reports. The reports costs $2.95 each, and users can view them for 30 days. Similarly, California-based Ebrary offers books and journals on a pay-per-view basis, charging 15 to 25 cents per page.

Whether selling entertainment or information, many dot.com firms utilize a pay-per-view system. While some critics question the long-term viability of selling content via the Internet, an August 2001 EContent article claimed that “the Internet will be very much like cable TV. At first, many analysts said cable TV would never catch on, that people would never pay for content. The same will happen with the Internet, particularly as better content goes up for sale.”

FURTHER READING:

Graham, Jefferson. “Video on Demand Has Come into View.” USA Today, June 15, 2001. Available from www.usatoday.com.

Faith Based Streaming Solution – Content Purchase Revenues
http://www.audiovideoweb.com/faith-based-streaming.php

Hillebrand, Mary. “Showtime Brings Pay-Per-View Boxing Online.” E-Commerce Times, October 18, 1999. Available from www.ecommercetimes.com.

Macaluso, Nora. “Yahoo! to Offer Consumer Reports Content.” E-Commerce Times, June 4, 2001. Available from www.ecommercetimes.com.

Mahoney, Michael. “Internet Pay-Per-View Movie Site Unveiled—Does it Matter?” E-Commerce Times, June 1, 2001. Available from www.ecommercetimes.com.

McGarvey, Robert. “Pay-Per-View’s Payback: Cashing In on Content.” EContent, August 2001, 31.

Naraine, Ryan. “‘Big Brother 2′ Goes Pay-Per-View Online.” InternetNews, July 6, 2001. Available from www.internetnews.com.

Pay-Per-View

Want to increase your pay per view sales? Hire a host!

Sometimes it’s the simplest things that make the difference between failure and success. That was a lesson learned by vendor On Command Corp., the company that provides those pay-per-view movies that you can watch in hotel rooms around the world.

Not satisfied with their already substantial sales, some genius in the marketing department (okay, it may have been a group decision, but the “genius” thing is more dramatic!) came up with a plan: they would add an attractive “host” to appear when viewers clicked on the movie channel.

Inventing the Pay Per View Model

At the point that this momentous decision took place (sometime in 2002), VOD (Video On Demand, another term for Pay Per View) was a new channel for cable companies. They obviously grasped the potential, but had to solve various technical and marketing challenges before providing widespread availability for VOD.

On Command Corp., however, had been providing these programs for to hotels for nearly two decades. Of course, they had come up with a process for encouraging hotel guests to purchase movies, and it had been working pretty well. When a guest clicked on the “Movies” button on their remote, they were treated to a non-stop series of film previews.

Seems logical, right? And it did work — guests were purchasing movies. However, On Command Corp. (which is a division of Liberty Media Corp.), did some research that showed that many viewers were changing the channel as soon as they began watching the previews.

Enter the Host

That’s when On Command Corp. decided to make a major format change. They hired a pretty, personable host: blond-haired “personality” Tricia Singer. Singer pitches movies from “inside the studio,” or on the “red carpet.” Her delivery mimics the style of entertainment reporters from shows like Access Hollywood, Inside Edition, or Extra: an upbeat promotional patter that hawks movies.

The result? Instead of changing the channel immediately, many hotel guests were now spending 5 to 6 minutes watching Singer. Ultimately, those same guests purchased more movies, which delivered a profit increase of 11%. Pretty substantial!

When you’re ready to sell your content contact a reputable hosting company for setting up your Pay Per View Solution.

Can It Work for Your Pay Per View Programs?

Not everyone has the resources to be able to hire and film such a high profile personality. However, several things can be learned from On Command’s success.

First, that you have to try new things when promoting your Pay Per View program. Hiring a host was the idea that worked for On Command, but there may be other things that will be effective for you.

Second, let your customers tell you what they want. Can you contact your customers (or potential customers) directly? Do an online survey? Send out an e-mail questionnaire? The better you understand what is important to them, the better you’ll be able to serve those needs, with the end result of greater sales for you.

Third, measure your results, both before and after you implement changes. That way you’ll not only know what works, but how well it worked. On Command improved their business model after 20 years, and the pay per view business online is just getting started. Be creative, and you could get in on the ground floor of this incredible growth industry!

Any band can webcast their live concert, and reach world-wide audiences.

It’s been said that many successful bands lose money on record sales, break even on tour ticket sales, and make all their money in merchandising. While this is a bit extreme, there’s a lot of truth to the concept.

Bands on a major (or good sized indie) label have to pay back large sums of money out of their record sales, so often it takes platinum status (1,000,000 sold) to see a profit. The substantial costs of touring can, in many cases, outweigh even healthy ticket sales. But the real benefit in touring comes from merchandising: the sales of T Shirts and other “auxiliary” products that have a high profit margin. It is when loyal audience members attend the shows of their favorite bands that they are in the right frame of mind to purchase such sundries.

So, how can a band or artist get some of the benefits of merchandise sales without the heavy cost of touring? (Not to mention the difficulty most bands have in filling the seats at their shows.) One good answer is: Pay Per View.

Pay Per View Capitalizes on Global Reach

While it’s true that the internet has opened up exciting new possibilities for local unsigned bands, it brings new challenges as well. Namely: when your fan base is thinly spread around the world, how do you connect with your audience in a cost-efficient manner?

Sure you can get a large number of fans globally, but how do you reach them with your live show? You can’t travel the planet playing for 5 to 10 people in each town. But you CAN broadcast a show that people will watch. AND you can charge them admission to that show. AND you can make it easy for them to purchase your auxiliary merchandise just when they are in the right frame of mind to do so!

How to Set Up Your Pay Per View Show

Don’t re-invent the wheel! Their are companies who make it their business to host your pay per view show. The cost is relatively small, and they’ll handle everything, letting you send a signal from your camera (or cameras) to their servers and out to your audience, to giving you a pre-packaged payment system so your audience and sign up for and purchase “tickets” to your show.

The good ones will even provide tools to help you reach your fans with information about the scheduling and other details. You can also insert advertising into your pay-per-view event, either before, during or after the show, or on the same page as a static graphic/link.

The result is that you’ll be able to connect with your fans in a “live show” format, and connect with them while their in the right frame of mind. Introduced years ago by cable networks, and used with phenomenal success by such industry stalwarts as the WWE, pay per view is now available to every band. It’s about time some of them took advantage of it!

That’s right: pay per view is going mainstream. Seriously mainstream.

Recently, News Corporation CEO Rupert Murdoch announced that viewers will soon have to pay to access News Corp material on the Web. In Murdoch’s words:

“Quality journalism is not cheap and an industry that gives away its content is simply cannibalizing its ability to produce good reporting.”

What this means is that one of the most prolific, successful entrepenuers in the last 50 years realizes that the time is ripe for people to begin paying for content on the Web. And, since a huge portion of the population prefers to get their news in a video format, the video pay per view market will be expanded.

Pay Per View Model Gaining Acceptance

To other companies launching pay per view products, the Murdoch announcement is good news. It highlights the growing acceptance of a model where consumers pay for video content online. And the trend is growing.

Besides “hard news,” Murdoch’s properties plan to capitalize on the lure of “celebrity” news, something that has its own draw. This in turn, will forge the way for other sites to exploit the celebrity culture to generate pay-per-view profits. But news and celebrities aren’t the only subjects what are expanding into this venue.

Other Genres: Sporting Events PPV

Multi-million viewer extravaganzas like boxing and WWE wrestling matches have long been profitable in the TV world, and more recently, they have carried that success onto the Internet. But that genre has broadened, even down to the local level.

High schools, intramural leagues, and other sporting organizations have began to broadcast their games on a pay per view basis, and are making it work. Baseball, football, hockey — even swim meets are taking advantage of this technology which benefits both the broadcaster and the viewer.

From the viewer’s side, they have the ability to keep up with their favorite teams — even when they aren’t able to attend the events in person. And from the team’s perspective, it’s a way to help finance the enormous investments that are often required to participate in non-professional sports.

Other Genres: Church Services

A number of religious organizations have also begun to broadcast their services online. For their parishes, this provides an invaluable service: continuing to benefit from their church’s effort, even when they are unable to go as often as they’d like.

Again, both sides benefit by this process, especially the church’s who view it as a boon to their constant efforts to raise the funds they need to operate.

The Advantage of Reach

In the cases of church services, sporting events, news, or other media categories, one of the biggest benefits of pay per view is “reach.” That is, events can broadcast locally, but viewed internationally. For example, the guy who moves across the country, but still wants to watch his hometown team’s games. Or the woman who travels for business, but still wants to catch her local pastor’s sermons.

While this trend has been building for a while in the smaller events, the entrance of a major player like News Corporation into the game will have positive effects on the industry in general, and bodes well for companies wanting to launch a pay per view program of their own.

Planning to host a pay per view single event or series? Here’s what you’ll need.

Given the growing popularity of video streaming services over the Web, as well as the growing possibilities of charging for video content (pay per view), it’s no surprise that more and more people and companies want to get involved. But it’s still a relatively new concept, and can be overwhelming. Following is a general outline of what you’ll need to think about in preparation for launching your own program.

DIY (Do It Yourself)?

Unless you are a technical wizard, have your own merchant account, and want to spend lots of time and money setting up your own PPV system, leave it to the professionals! You’ll be glad you did. But what exactly should you look for in a company to host your Pay-Per-View event or series?

PPV Checklist

- Reliability
People are paying for this service, so they’re going to expect it to work! Make sure that the company you work with has the experience and capabilities to handle any situation. Find out how long they’ve been in business, who their other customers are, etc.

- Bandwidth and Storage Space
Make sure that your Pay Per View hosting company has the capacity to handle anything that comes up. It may not seem important when you’re broadcasting a 5-minute video to 15 people. But what if your business grows, and you need to broadcast a 45-minute video to 1,500 people? You want the “scalability” to grow at your own pace, with no worries.

- Technical Support
This is critical! You need a company that will help you solve all your technical issues, and in a timely fashion. Response time, and the way you can communicate with them are both critical. Personally, I always look for a company that offers e-mail support and phone support. There’s nothing like picking up the phone and getting your problem solved now.

- Ease of Use
If you’re not going to do it on your own (DIY), why chose a company whose system is complicated and confusing? They should make it easy for you to operate, including setting up your events, uploading and streaming your videos, and signing up and charging your customers.

- One-Stop Shopping
In line with the last quality (Ease of Use), you’d be best to find a hosting company that handles everything. You’d be surprised how often you’ll run into companies that handle the streaming, but not the money. Or let you host the event, but not help you sign up and manage your customers.

- Additional Items
Above are the basic needs for your Pay Per View system, but there are some pretty nifty “extras” that could be good to have. Here is a list of additional features that you may want to investigate:

• Geo Targeting — Want to make your event available only in certain areas? It’s possible
• Live or Archived — Customers could watch the event live, or a “saved” version later on
• Pricing Control — Set your own pricing, as well as how the customer is charged (by the minute, by the download, as a subscription, etc. Even the ability to otherwise “free views” for certain clients.)
• Chat — Let people interact with you and each other during the broadcast
• Customization — Set up the Pay Per View system within your design, on your domain, etc. Basically, make the back-end “transparent” to your customers.

Final Notes

Pay Per View is an exciting new concept that is going to grow exponentially over the next few years. Generate the right content, and find the right company to help you deliver it, and you could be in on something that’s going to be big! Just do your homework, and make your Pay Per View host can handle your business at every level.