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Old 10-29-2006, 02:08 AM   #3 (permalink)
Charlatan
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To me the interesting part of this is the ability to remove name brands from a previously aired program.

This represents a potential revenue stream in the post Tivo world.

For example, let's say it is 2004 and you are watching an episode of Friends and Ross is drinking a Coke. NBC Universal, the production company and broadcaster, can offer Coke that product placement for x amount of money (rather than just running an ad for Coke in the traditional sense).

Now it is 2006 and Friends is in syndication. NBC Universal approaches Coke and says, we would like you to pay once more for your product placement. Coke says no. NBC Universal then approaches Pepsi and makes the same offer. Pepsi says yes and with a little digital tomfoolery, removes the Coke can and replaces it with a Pepsi can.

Not only are they maximizing their product placement revenue in being able to offer the placement to more than one advertiser (this is a term called repurposing) they have also embedded the ad into the program. The feisty Tivo viewers who love to skip the ads, are now served up ads in the program itself.
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