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By Matt Hines  |  Posted 2005-10-15 Print this article Print

To MTVs Lehman, the challenge wont be so much persuading marketers to spend dollars on emerging advertising platforms, but more about figuring out ways to direct those ads at just the right users.

"The demand for marketing wont go away just because people consume things in different ways," he said. "We, as an industry, need to find ways to help marketers do what they want, and reach even more targeted audiences than they have in the past."

The experts agreed that another sizable detail yet to be ironed out around new content delivery services is making the hardware needed to view emerging services as affordable as possible. For instance, even though Microsoft is readying its new Xbox 360 video game consoles for sale at $299, the company will offset that cost by bundling free access to its Xbox Live service, through which consumers can download many different types of media and interact with other people online. Access to Live currently requires a $49.99 annual subscription.

Consumers are impressed by the expanded multimedia features of Microsofts upcoming Xbox 360. Click here to read more. TiVos Klugman said his company is looking at ways to make its own hardware less expensive to spur more widespread adoption of the devices. A base TiVo DVR retails for roughly $50, while pricier models go for as much as $200. By comparison, TiVos monthly service, which allows users to record and replay TV broadcasts and download other content, is available for only $12.95 per month.

"Were working hard to eliminate the box cost because we know that we need to move in that direction to grow the services business," Klugman said. "Its all about what the consumer is willing to pay to get the multimedia services; we know that this is the most important issue we face."

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