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Yonatan Sela 27 Aug 08
Internet Service Providers (ISPs) used to merely offer their clients access to the internet, but for a while now ISPs offer much more than that. As broadband connection prices constantly decrease, ISPs must find new, additional revenue sources in order to stay profitable in the long run. Engaging in the Internet TV market is a great opportunity for ISPs to leverage their existing infrastructure and at the same time strengthen their brand presence. These Internet access providers can profit from their advantages, and generate revenues from VOD websites using two alternative methods: either by renting out their own video content online or by incorporating video advertising and sponsorship.   In the first revenue generation method – renting out premium video content -  ISPs can use their existing data base of user-accounts and leverage existing billing systems in order to avoid the need to ask users for credit card numbers and other details. Users’ Monthly bill can include their video usage on-site, and make the rent or purchase process intuitive and efficient while minimizing operational costs. In addition, an ISP can take advantage of its human resources on the web by utilizing trained personnel, experienced both in technical support and in sales of the company’s other internet services in order to sell monthly subscriptions and other packages to video viewers. Most internet companies do not have this already-existing advantage of direct, personal contact with existing customers via telephone (and at times even in person). Tvinci’s TV Portal is a great platform for content owning ISPs to realize these potential advantages in an engaging, user-friendly VOD environment offering easy discovery of “top-shelf” premium content, designed to efficiently integrate with existing billing systems among its various features.  Alternatively, ISPs can use Internet TV to strengthen their brand presence and encourage new subscribers through video advertising and sponsorships, even without actually owning content. An example of an innovative utilization of video online by an ISP is seen in a sponsorship agreement a leading Eastern European ISP has signed with one of Tvinci’s major clients. Our client’s major video site, scheduled to launch in October, offers premium video content and magazine content including exclusive interviews. Some of the new videos and most interesting interviews will be initially available only for VIP users. In addition to various tools for brand recognition throughout the site, the sponsoring ISP’s subscribers are the only ones able to view the VIP video content, as only IP’s of the particular Internet Service Provider are granted access to view it. This is a great example of how ISPs can take advantage of their existing infrastructure in order to build their brand with new audiences and encourage new subscribers. The website’s content editors enjoy complete control of video content on site using Tvinci’s Media Management platform (TVM), including flexible and automatic availability rules for effortless management of the VIP videos.Â
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