Tag Archives: BlipTV

Web Series Vs Ad Blocker

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As regular readers know, I am a fan of web series as a format. The medium presents a huge potential of creativity and it is changing how we interact with media.  One of the major factors fueling the web series’ advancement is its ability to monetize. This area is also where web series are feeling the most pain.  Being able to make a profit on the content is vital if it is to continue to grow.

Put bluntly, the most efficient method of monetizing any online media content is advertising. Now I know that there are going to be people that say that paid subscriptions or buying clips is more profitable. This may be true in some circumstances, but these options also limit a series to only the people who have the income to pay. On the other hand, advertising costs the consumer nothing but time.  But a lot of people out there find that even too high a price to pay.

Before we get into that, let’s go over some details. For a web series, advertising money usually comes in the form of a profit-sharing agreement with the video hosting site, although not every video host does this. For example, Youtube does have ad revenue sharing, but only with select partners; most people do not get this. On the other hand, Blip has ad revenue sharing with all their content creators. In an ad sharing deal, the norm is a 50/50 split of the profits, calculated on what is known as a CPM or Clicks per Mille formula, where mille equals 1000. A rate is set for every thousand views of an ad. If the CPM for an ad is $5.00, if you get 5,000 views, you make $25.00. Ad rates are not consistent, so profits can fluctuate even if views don’t. In this model, it is possible to be profitable and even make enough to make a living at it, but you need to have a high viewer rate. You also have to get your ads seen. The CPM is calculated on ad views, not video views. If the ad does not play, it is not added to the CPM calculation.

This is where programs like Ad Blocker enter the equation. There are a lot of reasons people will block ads. There could be an issue where certain types of ads cause the viewer’s system to crash. Some people claim they have gotten malware from ads. But most of the time, the reason people block ads is that they find them annoying.

Here is where we get into the thick of it. As the series producers only get paid for ads shown, when viewers use Ad Blocker, it cuts into the web series’ ability to produce a profit. This is a fact that has been debated back and forth, for as long as there have been web series and both sides have become pretty entrenched. Sites have tried to find ways to deal with this and recently, Blip launched a new salvo that has brought the issue forward again.  Blip recently made a change to their site so that when they detect an ad blocker is being used this image comes up.

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As stated, it makes the viewer wait 90 seconds for the video to start playing. This is hardly a new nor is it the most extreme tactic; other sites blocks that completely bar access to anyone who is using ad blocking software. Of course this raises hackles – several people equate it to bullying – and that community is already working on workarounds.  But more importantly, this has brought to the fore the fact that Ad Blocker cuts into the producers profit. Many viewers in forums have stated that they were not aware of this fact.

Lewis Lovhaug (aka Linkara) produces the comic book review show Atop the Fourth Wall as part of the online review and comedy site That Guy with the Glasses. Linkara is one of the rare producers who is able to make a living by making a web series due to his large viewer base.  He recently added to the advertising debate with a video wherein he explains how ad profits work and why Ad Blocker is a problem for producers like himself.  He states that he does understand if people need to use Ad Blocker for legitimate technical reasons, but otherwise, if they don’t, to consider not using the software for his show, as it is how he makes his living.

This video set off a debate on the TGWTG forums. Several viewers were unaware of the impact Ad Blocker has on the producers and have set their Ad Blockers to allow advertising from Blip (a process called whitelisting.) Others took offense at the video, saying that they don’t owe Linkara anything, that it’s their right to use Ad Blocker and that it’s his tough luck.

So where does that leave us?

For me, it is a question of what we want to see happen. Web series have an amazing potential, especially as film-making and distributing technology improve and become more available to consumers. This could have a huge impact as people can make creative programing that no one in Hollywood would ever green-light. However, in order for that to happen, it has to be profitable. Otherwise, no one is going to be able to make it in any sustainable fashion, much less grow the medium.

I have read a lot of people saying that the current ad structure is not sustainable. I’m not sure I agree with that. I think that as long as there are ways around ads, big advertisers are going to be nervous about taking the plunge.

I have also read people telling Linkara and other producers to go and find sponsors to put in their videos directly. That idea looks good on paper but has several flaws. It would take time away from video production to find and negotiate with a sponsor. Furthermore, most deals stipulate the producer would only get paid during the life of a campaign.  This means that if someone went into the series’ archive and watched an old video after the campaign ended, the sponsor of that episode would not be obligated to pay him again. With the current CPM ad structure, both new and old episodes have ads generating profit.

In the end, the question is: Do you want to see web series as a medium thrive or not? If the answer is yes, then I believe ads are the price we are going to have to pay. For myself, I find ads are a small price to pay for entertainment from a web series. If an ad comes on I don’t like, I just mute the computer. That way, I don’t have to hear it and the producer still makes money, allowing them to keep making more of what I like.

If another model does come about that works better I’m sure it will be adopted.  Until then, we all have a choice to make.

An overview of Web Series

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Are web series the way of the future? For most of you I’m sure your answer is, “what the hell are you talking about”?

Since about 2006 I have been fascinated by the how media and the way we consume it is evolving. That was the year I really got into podcasts. One of the early ones I found was Adam Curry’s Daily Source Code. During those early days one of Adam’s assertions was that in five years 50% of the media we consume would be produced by what were previously consumers.

It’s six years later and while we are not at the 50% mark we are further along than we were. And I think there are three factors at play here.

The first is how we want to consume media. I for one do not watch anything on TV during the time it is actually broadcast.  Between my work schedule and other activities I just don’t have the time. If I am interested in something I either watch it on demand, or online. When I reviewed American Horror Story, I did not watch a single episode during broadcast; I went out to FX’s website and watched. If I am not watching a show through On-demand, I am either watching it on Hulu, Netflix, or in rare cases Itunes.

And this is a growing trend. We have the technology to watch what we want, when we want, and where we want. The big media companies are catching on slowly. I am convinced that there will come a day when watching on demand is the norm and that shows will not be scheduled around a timeslot at all.

And this brings us to the other factor at play, the technology. Back in the eighties I was part of an amateur film making group. We made Star Trek, Doctor Who, and Mystery Science Theater 3000 fan films. Back then our distribution network was basically word of mouth at conventions and tape distribution. Also we had to rent time with editing equipment. Now you can get editing software for reasonable rates and when you are done you upload the video on-line.

So the barrier of getting your material out is gone. Instead the effort is to get people’s attention with so much competition.

So back to my original statement, why are web series the way of the future.

First I want to point out that there are basically three different types of web series.

The first is the professional series, produced by a big studio or network. These are either online side series to bigger shows, or original products that are not big enough to put on a network. Examples would be online extensions to the shows Heroes and Battlestar Galactica, or original content like the Booth at the End and The Legion of Extraordinary Dancers (LXD). The extension series can add detail to the main show, but they are general made so that they are not required viewing. A show like Booth at the End is a smaller budget scenario but can give actors who rarely get a chance at starring roles the opportunity to show their chops. LXD, which I previously reviewed, is an example of a show that would just not fly on regular TV, but given a chance online, is able to find an audience. The non-extension examples can often blurs the line with the next type

The second type of web series is the independently professional produced series. Shows like Doctor Horrible’s Sing-along Blog, The Guild, or Leap Year, which again have recognizable actors and even creators, but are made outside of the normal studio system. These can be passion projects for a creator that they cannot get backed, or an attempt for an up and comer to show they have the skills to work in the industry.

The previous two types of web series are ones that while smaller than normal TV shows can still get enough press to be successful. The third type is also the one that most fits Adam Curry’s prediction. These are independently produced shows that feature an amateur cast. The budgets are often small, so for a show to succeed there are to be something going for it like good writing and solid concepts.  A great example is a show I previously reviewed called Ninja: The Mission Force. The production company, Dark Maze Studios, specializes in what it calls micro budget productions. Other great examples are Standard Action, Transylvania Television, lonelygirl15 and JourneyQuest.

A subset of type three is the internet reviewer. I’ve mentioned some of these before. The best examples can be found at That Guy with the Glasses. Some of the reviewers are also film makers so it all comes down to people looking for a way to be creative.

Of course some people do it because they want to be famous, but honestly that’s not the worst motivation. But unless they have talent to go along with ego they aren’t going to do so well.

It’s the independent amateurs that I feel personally drawn to. These are the people that in the pre-internet days no one would have ever heard of. Now they have a means to get their work to an audience and make a name for themselves.

And actually make money at it.

That is the third factor at play. People have finally figured out how to monetize web series. It can take a few forms.

The most common is ad revenue, just like regular TV. In the case of online video it is usually by going through a service, like Blip TV, that hosts the video and stiches ads in them. The service will then split the ad revenue 50/50 with the video producer. The revenue is based directly on how many views a video gets so the more popular producers can make a full time job of it.

For the professionally produced web series they will either be on a studio site, or on a site like Hulu.

A variation of the above is when a site picks up a video producer, like IGN or the Escapist. They take care of the ads and pay the producer.

Another way is crowd sourcing, where the producer gets donations from fans to produce the show. This is how the first season of the Guild was paid for. The advent of Kickstarter has been a great boon to the web series, as it has for many artistic endeavors.

Since there is money to be made people will go out and make web series. This is what will make sure that there will be more and more content. So I say give it another five years and Curry’s prediction will come true.

I could go on about individual shows, and I certainly will in future articles. In fact in a couple of weeks I will be reviewing Booth at the End.

Who knows, if the stars are right maybe one day I might finally get around to creating a web series of my own. It could happen.