Time Warner Cable Testing HBO “Entourage” Online

According to Brad Stone and Brian Stelter of the New York Times, Time Warner Cable is in beta with an online subscription model using HBO content.  Among the concerns is cannibalization which is the first of many objections to moving everything online.  As we have seen with other content online it actually increases interaction with the brand.   The other major roadblock is the concern that an ad model might not be sufficient.   As these TV moguls learn more they will realize that the interactive advertising can be as effective as the programming.   Also, for many products you can track the impression, click, cart, check-out, revenue, and customer satisfaction.   This type of transparency will allow advertising to be used very effectively and create premium advertising rates and also allow the market on a “per action” basis to sustain the content and continue to provide acceptable margins.  We  all win!