The MySpaceTV unit of News Corp. (NYSE:NWS-A) is drawing upon its network experience to produce shows that advertisers will feel comfortable placing their products beside.
It's something for online marketers who have the desire to build an online video business to keep in mind.
While there will always be the jackass stuff to appeal to an engaged, but limited audience, it's those who produce the type of entertainment advertisers feel comfortable with that will flourish on the Web.
In the case of MySpaceTV, their challenge is to keep their younger viewers coming to the site, yet at the same time develop content suitable for advertiser needs.
One of the things the unit is trying is product placement, which has been successful in News Corp.'s traditional TV settings.
What has to be done in the case of product placement is figuring a way to build it into the video content without turning off viewers, but at the same time giving advertisers what they want. It's a challenge on regular long-form TV, so is especially challenging for short-form Web video content.
Much of this is precipitated by the failure for News Corp. to reach its goal of $1 billion in revenue in the time frame they wanted.
The first project developed by and for MySpaceTV was Roommates, which was created in three-minute episodes, and is in its second season. So far there have been 12.7 million streams of the show. Not bad when a number of cable shows don't do that over the course of a season. News Corp. said it has been profitable as well. It was sponsored by Ford Motor (NYSE:F).
Success with web video online, specifically as it relates to entertainment, will include short-form video, and the proper balance between satisfying viewers and advertisers. So far that hasn't been figured out yet, but we're getting closer.
This doesn't mean long-form video won't be popular; Hulu and others have proven it's viable online. But video entertainment content made solely for the Web needs to include the above-mentioned elements.
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