Free content to anyone, anytime – a new channel of distribution is challenging the traditional ways we consume media.

Following the huge success of the BBC’s iPlayer, the web is slowly filling up with on-demand services. Microsoft is the latest company to join the game with its MSN Video Player launched last week.

BBC’s iPlayer has been dominating the field with its reported 40 million programme requests a month. To compete with the iPlayer, Microsoft is offering viewers a full series of popular shows as opposed to iPlayer’s ‘catch up’ nature where content is only available for a few days after it is aired.

The recently launched SeeSaw is another on-demand newcomer. Launched in February, the service is said to offer “the most comprehensive selection of UK broadcaster content on a single website.”

The service is free to use with no login details required. The content is supported with pre and mid-roll advertising that has been creating a buzz of interest among clients – the company has already sold out all its planned advertising up until May.

“Great response from advertisers”

During the launch period, SeeSaw is to monitor advertising efforts carefully. Following this, a report will be produced offering advertisers information about viewers’ usage habits and profile information – an advantage the web has over TV.

According to a Marketing Week article, SeeSaw is looking to develop their advertising to be more targeted and genre-specific in the future.

Matt Rennie, SeeSaw’s commercial director, said that the company has created a strong relationship between viewers, content providers and advertisers, and is confident that in future this will be strengthened even further.

He said: “The response from the advertising community to SeeSaw’s proposition has been nothing short of phenomenal. We’re delighted with how Video Initiatives have launched the service.

“We set out with the aim of working with all major media agency groups and they’ve delivered, bringing on some of the biggest mainstream UK TV advertisers.”

Music industry setting the example

Video on-demand services only have to look to the music industry if in doubt about their financial sustainability. The Telegraph reported earlier this year that Swedish music on-demand service Spotify now offers the music industry with a sustainable revenue model.

Rob Wells, senior vice-president of Digital for Universal Music Group International, said: “In all its territories bar two, Spotify pays the labels from a mixture of the money it generates from advertising revenues and subscriptions. That to me equates to a sustainable business model”

Spotify currently operates in the UK, Spain, France, Norway and Finland and has a reported 7 million users. Daniel Ek, the founder of Spotify, made an important point about on-demand services helping the industry to tackle piracy in an interview by the Telegraph.

He said: “For every play, are they getting as much as if someone paid to download? No, but on the other hand there are many more transactions happening on Spotify [than in paid-to-download services].”

As the content providers are getting help in tackling illegal piracy, advertisers are provided with an attractive new channel to reach the online audience.

Alan Greaney, chief executive of Media Initiatives group said at Marketingmagazine.co.uk: “The online video market offers an exciting new opportunity for brands to reach TV audiences online, and the sell-out proves the appeal of SeeSaw to advertisers.”

Case study:

Swedes lead the way for free films online

Referred to as ‘the Spotify for movies’, on-demand video service, Voddler, is being pioneered in Scandinavia. Read more…