| No, Im not advocating in-your-face advertising. What I am saying is that if
you dont allow a brand to have a no-competitors tie-in (which doesnt imply
that the advertising will be in-your-face) then it is unlikely that you will
be able to charge any advertiser a significant fee. |
| I refer to your recent inquiry regarding advertising on FOXTEL. I would like
to take this opportunity to explain FOXTELs position in this regard. All
Pay-Tv networks require dual revenue streams to support the cost of
programming. Our decision to use advertising is in line with Standard World
Practice. The legislation that allows subscription television operators to
carry advertising is contained in the 1992 Broadcasting Services Act. This
legislation enables FOXTEL to carry advertising on its broadcast channels
from 1 July 1997 and is overseen by the Australian Broadcasting Authority
(ABA). |
| I agree that it tends to have this effect on me, but statistically that is
not the effect that it has on the consumer. The average consumer is not as
discerning as you give them credit for, they are far more sheep-like. Im
afraid that you cant compare banner advertising because you have got the
reasons all wrong as to why that doesnt work. |
| Each of the FOXTEL channels treat advertising slightly differently. Most
importantly, the majority of the movie channels do not break into features
for advertising at all. Showtime and Encore do not show any advertising.
fXM, Hallmark and World Movies may carry some sponsorship and advertising -
always between movies not within movies. Arena may also carry advertising
before and after its cinematic features, and retains occasional breaks
within telemovies, which are filmed with a dramatic break structure in the
plot anyhow. |
| If you force an advertiser tom compete with *any* brand, including fictional
ones then you devalue the advertising space and so reduce any money you can
expect to make from the deal. Games normally have relatively large budgets
comaperd to what an advertiser is likely to contribute. To have any
signiifcant part of the games budget to come from advertising you are not
going to be able to pick and choose so much. Some brands might even reject
the idea of sharing advertising space with any same-industry competitors,
even if the brands are fictional. |
