MTV To Split Ad Revs With Facebook, Twitter: Future Implications
MTV has decided to split revenues with facebook and twitter for its new show “What You’re Watching”.
This action is taken in the wake of slump in viewership rating and declining ad revenues at MTV.
According to AdAge:
MTV described the show as a “joint venture” with Facebook and Twitter, with ad sales deals in the works that will result in revenue sharing with the social networks.
This event could have serious impact on marketers and monetisation strategies adopted by SNS as it echoes the importance of social media even for broadcasting networks, another part of media.
Although MTV has not made public the profit sharing ratio,this action is going to put serious pressure on other marketers as its not a simple one time payment but a profit sharing deal,which could soon become the de-facto standard.
As of now twitter and facebook has helped many high profile users and companies to attract the crowd without giving any monetary benefits to SNS.In the wake of serious funding requirements SNS may think again from dolling out “free” social media utility (for content providers).
The profile of young audience as users will be enough for SNS sites to bargain for more monetary compensation and in turn could also help marketers by officially associating with today’s rave services.
For e.g High profile users like Barack obama, CNN and many others have used twitter to create a commercial presence without even giving out anything in return to SNS.
If this deal with MTV proves fruitful for the show then expect other similar arrangements in the coming months.This might just open a door of monetisation opportunities for SNS.
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This will certainly reshape the landscape of social web sites. This is the first time a social networking site will share ad revenues generated from the broadcast of the show with a major content provider instead of just receiving exposure for the site. This venture will certainly lead to other social web sites to demand the same content sharing deal from large corporations looking to take advantage of the new up and coming social networking sites. Left out of this equation is Myspace. It will be interesting to see how NewsCorps Rupert Murdoch markets the second largest social web site with its 130 million members worldwide.