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Sony Entertainment will be the first company to use Foxtel’s On Demand program to launch its new Play station 3 consoles.
This will be a first for advertising as it is the only channel with one advertiser and one product. However this will not be the last as Foxtel is already in negotiations with other companies to advertise in this unique way.
Foxtel’s CEO Anthony Fitzgerald believes that this type of advertising will become more popular over time as foxtel market shares increase over free to air TV, therefore capturing more of TV’s $3.5b advertising revenue.
Fitzgerald says that pay TV has 21% of combined all people audience and households with pay TV there is a 59% audience (statistics from first 10 weeks of the year) .
However according to Media analyst Steve Allen, pay TV only has total audience of 16% for the year, regardless what which angle Mr Fitzgerald looks at the stats. Whilst according to Mediaedge:cia GM Adrian Smith pay TV advertising has lag behind free to air for the last 10 years.
From Fitzgerald view pay TV revenue has increase over the year by 32% and although this year has been lower at only 6%. Fitzgerald is still optimistic with the launch of MCN’s red button campaign in conjunction with on demand they will win more of the advertising revenue pool, a view that Allen’s does not share.
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