GreenGrass to Help Broadcasters, Content Owners Reach Internet Audiences
A service billed as the world’s first pre-pay broadcast network launched Wed. The Internet holds huge potential for broadcasters but no one has figured how to make money at it, said Alex Taylor, CEO of U.K.-based GreenGrass, which began Beta testing its website -- www.greengrass.tv -- Sept. 21. The service combines a pre-pay system that lets consumers buy credits for viewing streamed or on-demand programs, a program guide and an affiliate marketing system enabling other websites to link to GreenGrass.
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It doesn’t cost much to put broadcast signals online, but for each viewer there’s an associated cost per minute for shifting data packets, Taylor said in an interview. The higher quality the webcaster, the more it costs to deliver. So far, Internet broadcasters have tried to offset those costs by charging subscriptions, but consumers interested in watching a range of programming are loath to buy multiple subscriptions. GreenGrass, which will focus on news and sports, will let consumers watch whatever’s on offer, as long as they want, by paying into a single account.
The pre-pay system resembles that for mobile phones, Taylor said. Viewers buy credit vouchers in $10, $20 and $30 increments. They surf the GreenGrass site to see what recorded or live shows are available and click the links for their choices; their credit accounts are debited whatever the broadcaster charges. GreenGrass will take a “small percentage” of what a broadcaster earns when it draws down a consumer’s credits.
All content available via GreenGrass will be secured. Many programs are sold territory by territory, so GreenGrass will have a “territorial customization system” letting broadcasters restrict and price material by country, Taylor said. For instance, a sports event for which a broadcaster holds rights everywhere in Europe but the U.K. will be blocked there, he said.
An important element of GreenGrass’s system is its marketing scheme, Taylor said. Because of the difficulties of selling content globally, GreenGrass devised an Amazon-like affiliate system in which content owners can link from GreenGrass’s site to their programming.
Taylor was asked if GreenGrass will link to adult content. The service rolling out now won’t, he said, since it’s strictly limited to mainstream broadcasting. Any adult content added in the future will have a different portal.
Major U.K.-based news organization ITN is participating in the beta trial, and Taylor said he’s starting to talk with other news and sports broadcasters about the service. As to whether he expects any opposition from broadcasters, Taylor said “we'll cross that bridge when we come to it.” The company will self- regulate to some extent to ensure it’s protecting IP rights and policing adult content. There’s no law in this space, Taylor said, but if GreenGrass becomes a roaring success, “noises may start to come from there.”
The service will be offered to the general public “sooner rather than later” next year, Taylor said.