Tuesday, March 07, 2006

Why Showtime will fail with Digibox

The new Digibox (DVR) introduced by Showtime is not exactly revolutionary, but it certainly is for the Middle East region. The problem, as always, is advertisers cringing at the very idea of audiences fast-forwarding through their boring ads. Showtime says it's not a problem.

Well, it is. It's a big problem. But, every problem has a solution. This one has a very simple one that is surprisingly not discussed or mentioned anywhere.

Showtime needs to allow its technology to force full-play of commercials during playbacks, with certain parameters to apply (length of playback, etc.). Perhaps it should not allow forwarding through commercials (again, based on time, etc.)

This not only solves the problem of advertisers, but keeps the subscription costs of Showtime to a minimum. Perhaps Showtime can charge the customers based on the customer's ability to forward through ads or not.. or how many to forward through. At the end of the day, I doubt that Showtime's 400,000 subscribers foot the bill without advertisers.

Showtime, before introducing new technologies, think. Perhaps you should also have hired a consultant who understands your business requirements in addition to the technological possibilities.

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