MSLO To Test Paid Video Downloads; Strategy Focusing On Archived Material
This story was written by David Kaplan.
Martha Stewart Living Omnimedia (NYSE: MSO) plans to start charging for online video downloads of the domestic diva's archived TV show episodes and segments. Stewart, appearing at an industry conference this morning, touched on the plan during a Q&A with NYT media columnist David Carr. An MSLO rep described the paid video downloads as an addition to its revenue stream and that the company is committed to its free, ad-supported model for its content, video and otherwise, in general.
The company is planning to test the service with iAmplify, a New York-based audio and video content distribution firm, starting next month. "I can't say what kind of prices we'll be charging," as those decisions are yet to be determined, Stewart told me after her appearance. To be sure, the company is not abandoning its ad-supported online model. Rather, this is meant to get a sense of what its consumer's appetite is for pay-to-download video. The video content will come from the archives "Classic Martha" that is not already online. The pay-to-download video initiative is being managed by Liz Aiello, SVP of broadcasting and content strategy, Stewart told me. More after the jump
As ad spending on the web has slowed for online publishers in general, Stewart stressed the need for content sites to start charging their users, suggesting that she thought $20 a year would be a fair price to use a site like Facebook or Twitter. And even though online video is one of the few areas of robust growth in terms of ad spending, Stewart feels it's still a mistake to rely so much on one revenue stream: "I think media sites should be explore [paywalls]. It's right to charge for content."
This initiative comes just a few weeks after Wenda Harris Millard stepped down from her post as president of Media and Co-CEO to become president of video-centric multimedia strategy firm Media Link. I asked Stewart how MSLO's own media strategy would be affected by Millard's absence. "The media strategy had been pretty much established before Wenda became co-CEO. We are proceeding on our same Omnimedia platform and strategy."
By David Kaplan