Ladies and gentlemen, gather ’round as I unravel the tangled mess that is the programmatic ecosystem for ad-funded streaming television. Picture this: a gentleman’s club, where the old guard of programmatic roles—SSPs, ad exchanges, and FAST channels—hobnob with DSPs, all while content owners and broadcasters are left out in the cold, their pockets emptier than a politician’s promise.
The idea was simple: make the service efficient by merging these roles. But in reality, it’s like trying to herd cats. The fragmentation is so severe that content owners, the real risk-takers and financiers, are diluted to the point of earning less than 10% of gross revenues. Meanwhile, the programmatic stakeholders, with their shiny automatic ad tech and minimal staff, are raking in double that. It’s a scandal, I tell you!
Now, let’s talk about the commissions. Oh, the commissions! Each link in the chain takes its cut, leaving the content owners with crumbs. It’s like a never-ending buffet where the chefs get to eat first, and the diners are left with the scraps. And the programmatic stakeholders? They’re not backing down. They want their pound of flesh, and they’re not afraid to take it.
So, what’s the solution? A walled garden approach, of course. Just look at YouTube. They’ve created a private ad-funded ecosystem that works. And now, View TV has followed suit with Kapang, paying more than six times the revenue of FAST for the same audiences. By filling 100% of the ad spots and putting content owners one hop away from major DSPs, they’ve created an efficient ecosystem that actually works.
This new model is a game-changer. It allows direct-to-streaming content creation, just like YouTubers are used to, providing multiple business models to content studios and broadcasters across the globe. Sure, it might make ad tech a commodity, but who cares? Audiences demand great services, and studios demand a sustainable business model.
In conclusion, the current programmatic ecosystem for ad-funded streaming TV is untenable. It’s a gentleman’s club that benefits the few at the expense of the many. But with a walled garden approach, we can create a fairer, more efficient system that benefits everyone. And that, my friends, is something worth fighting for.
Don Cardone – View TV – Don@viewtvx.com
Check out https://viewtvx.com
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