Trend: Ads on iTunes

iTunes is starting to allow advertising on its music store – if only in the lower-left corner. Other portals already provide free, ad-supported podcasts.

Trend Description:
So far users are willing to pay for the download of video and audio clips. This might change if the ads on iTunes become a success. Some broadcasting stations plan to offer free content if placed on an ad-driven iTunes site. So far TV networks charge about $1,99 per episode. But Apple also tries to be considerate to consumers who might not be willing to accept ad-supported podcasts and allows the ads only in the lower-left corner.

Cases:

ESPN Radio
ESPN Radio already supplies some of iTunes ad-supported sports podcasts, but so far hasn’t gotten good feedback. Micro Persuasion writes on January 29th 2006: “It’s only been a day since ESPN started selling their cute “This is Sports Center” Ads on iTunes, but already they are getting a big thumbs down from consumers. So far 23 reviewers have weighed in and the collection has amassed a piddly one-star rating out of a possible five.”

ABC
ABC plans to offer free, but ad-supported, versions of several shows it already sells on iTunes on its own site. The ads can’t be skipped, but will be interactive and still allow viewers to pause and go back and forth between chapters. The ad-supported downloads are supposed to launch in May or June. Shows that can be downloaded for free in this 2-month long trial-period are Lost, Desperate Housewives, Alias and Commander in Chief. Downloads will be available the day after show broadcasted.

AOL In2TV
With In2TV, AOL recently started offering free A&E Network programming on ad-supported sites. There are six genre channels and some feature and game pages. Shows can be streamed, not downloaded.

NBC
NBC will launch free original Webisodes this summer.

Trend Impact:
Whether the concept of ad-supported podcasts will work or not depends mainly on users. Will they prefer free content or will they be willing to pay for ad-free podcasts? The test project of ABC may possibly tell. Will people watch the free ABC content on its own add-supported website, or still go to iTunes to download the latest episodes of their favorite shows? Apple itself has to expect tough criticism. People already suspect that the introduction of ads to iTunes could be followed by ads in other content areas or even on iPods – and don’t seem to agree with that concept, especially because Apple sold itself so far as the big alternative to digital commercialism. Apple CEO Steve Jobs, on the other hand, is supportive of the idea of ad-supported podcasts.

iTunes

AOL In2TV

ABC Go

ESPN Radio

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