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	<title>HipMojo.com</title>
	<link>http://watchmojo.com/web/blog</link>
	<description>Covering Online Video, Web, Search, Investing, Technology, Strategy, Investing, M&#038;A, Financing, VCs</description>
	<pubDate>Sat, 21 Nov 2009 21:40:57 +0000</pubDate>
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		<title>Viacom Latest to Catch the Ad Network Bug</title>
		<link>http://watchmojo.com/web/blog/index.php/2008/02/18/viacom-latest-to-catch-the-ad-network-bug/</link>
		<comments>http://watchmojo.com/web/blog/index.php/2008/02/18/viacom-latest-to-catch-the-ad-network-bug/#comments</comments>
		<pubDate>Mon, 18 Feb 2008 16:55:43 +0000</pubDate>
		<dc:creator>Ashkan Karbasfrooshan</dc:creator>
		
		<category><![CDATA[Internet &#038; Web]]></category>

		<category><![CDATA[Management]]></category>

		<category><![CDATA[TV Networks]]></category>

		<category><![CDATA[Viacom]]></category>

		<category><![CDATA[Online Advertising]]></category>
<category>Internet &amp;#038; Web</category><category>Management</category><category>Online Advertising</category><category>TV Networks</category><category>Viacom</category>
		<guid isPermaLink="false">http://watchmojo.com/web/blog/index.php/2008/02/18/viacom-latest-to-catch-the-ad-network-bug/</guid>
		<description><![CDATA[MTV Networks is about to launch a patents-centric ad network.  That&#8217;s not a bad idea at all.  In fact, MTV can leverage its relationship with advertisers and target sites outside of MTV Networks&#8217; portfolio to generate a lot of value.
That&#8217;s the theory.  In practice, ask yourself if a competing media company like [...]]]></description>
			<content:encoded><![CDATA[<p>MTV Networks is about to <a href="http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=1003711792" target="_blank">launch</a> a patents-centric ad network.  That&#8217;s not a bad idea at all.  In fact, MTV can leverage its relationship with advertisers and target sites outside of MTV Networks&#8217; portfolio to generate a lot of value.</p>
<p>That&#8217;s the theory.  In practice, ask yourself if a competing media company like NBC Universal, CBS, News Corp. or Walt Disney would really welcome MTV owning the relationship with advertisers and users on its sites.</p>
<p>Al Qaeda has a higher likelihood of celebrating American Presidents Day than that scenario people.  Let me say one thing: media companies probably hate Google and YouTube et al., but they also hate one another.  They won&#8217;t say that, so I will say it for them.  The &#8220;bad blood&#8221; between GooTube and Old Media is, what, 5 years old?</p>
<p>- John Malone and Barry Diller have hated one another for years.<br />
- John Malone and Rupert Murdoch?  Ditto.<br />
- Rupert Murdoch and Sumner Redstone?  Ditto.</p>
<p>The point is, on the personal front, there are a lot of obstacles for these &#8220;networks&#8221; to succeed, but the biggest one is business:</p>
<p>Ad networks succeeded because they were independent upstarts that posed no threat.  Last year that all changed when Right Media sold for $750M, Blue Lithium for $300M and so on.</p>
<p>Since those deals, every one is getting into the ad network business:</p>
<p>- Last week Comcast and a consortium of 3 newspapers got in on the fun.<br />
- Last year, News Corp. said that they would too.</p>
<p>I know what you are thinking: Ash, these media-company-driven-ad-networks don&#8217;t really expect to get any real estate on other media companies&#8217; websites, they are going after the long tail.</p>
<p>Bullshit.  The long tail won&#8217;t make any impact on the finances.  Companies like SpecificMedia, for example, blew up exponentially because they managed to get real estate on sites like ESPN, not HangoutForLocalSportsFans.com.</p>
<p>I suspect this is the latest strategy du jour infesting media companies, a month or two ago, they were launching their own UGC sites (how did Spike and iFilm fare?); in a month or two, this too shall pass.</p>
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