Revenue models

How can Internet TV be financed while keeping the service as cheap as possible - bearing in mind that consumers would prefer to pay nothing for pure Internet TV (except for package offerings)? This mind set, also known as the "for free culture", means that programs will need to be financed through advertising. This is very popular with consumers (Figure 26). On the other hand, advertising-free program packages can also be envisaged, in which content is paid for. Consumer willingness to pay for this is already considerably high.

Figure 26:		Statements on how to finance Internet TV (consumers)

Consumer concurrence with statements on financing Internet TV shows that it is quite possible to combine a number of different financing models. Broadband experts agree on this, at least with respect to combined financing models.

In this context they regard a combination of paid content and financing through advertising as particularly suitable (Figure 27). The broadband experts also believe that pure use-dependent payment or pure financing through advertising can also be successful

Figure 27:		Suitability of revenue models for Internet TV (Broadband experts)

Internet TV offers people a huge program and product diversity and the option of taking an active role in shaping the programs being offered. This participatory mentality on the part of consumers is currently being mirrored in a hitherto unique manner in the phenomenon called the Social Web. This issue will be subject to closer scrutiny in the next chapter.