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advertiser sponsored, advertising, Facebook, gossip girl, hulu, Internet TV, kmart, netflix, sears, TV, Youtube
For the first time, rather than just streaming context, Netflix is creating content for its own show, First Day, which will be produced like a television series but be viewable online and through Facebook. The move reflects a modern shift as consumers watch more content on iPads, iPhones, Facebook, and YouTube, rather than just through network or cable channels.
The idea seems appealing enough that Netflix already has lined up sponsors. Created by an executive producer of Gossip Girl, First Day centers on a young girl determined to go to the prom with her crush. All the actors will be outfitted in Kmart clothing, with each of the four main characters dressed in one of Kmart’s clothing brands. For example, the protagonist will wear Dream Out Loud by Selena Gomez. Because the production represents an extension of Kmart’s brand image, First Day will not allow any bad language or sexual innuendo.
Similar agreements were at work in the early days of television, when companies sponsored the broadcast content. As television became more popular, national networks realized that airtime was a scarce resource that they could sell to advertisers to earn massive profits. The new Internet video channel appears to be following the same evolutionary cycle.
If Netflix can make this experiment work, more companies are likely to follow. If the advertiser takes complete control of the content, it attains the ultimate kind of product placement. General Motors, Sony, and Intel are already spending more than $3 billion annually on web video ads and sponsored programming—a 43 percent increase from last year. What’s to keep them from moving into new channels as well?
Discussion Questions:
1. What do you think of brand-sponsored video content?
Sam Schechner and Lauren A.E. Schuker, “Lights, Camera, Advertisments,” The Wall Street Journal, September 14, 2011.
Grewal Levy Marketing News 
Good article. Its realy nice. Many information help me.
With growing transition towards advertiser sponsored web videos, there will soon be an overflow of ads through these new social media venues. I see the great opportunity of product placement in realistic characters that, in real life, would be seen using these products. However, I watch cable network channels to see my tv shows, sporting events, and movies, and the advertising seen there and in commercials is no way dead. Maybe with the younger generations integrating themselves with technology more and more they are good target market to capture. But I believe traditional tv and internet advertising is not dead, and creating little “peep” shows will become annoying because of budget actors and cheesy, obvious product placements. Why should I care about any of these web video characters?
I really enjoyed reading this article. I had never heard about brand-sponsored video.
I think that it is a great idea: not only does it allow brands to do a very strong advertising campaign that will be of great value (dollars / effect on target market), but it also allows for movie / tv show makers to have access to a very large amount of capital (firms’ advertising budgets).
I think brand sponsored content is a risky business. In the Sopranos, Movado sponsored nonchalantly Tony Soprano’s watch, and also he used a motorola razor. But never did the show explicity revolve around the products or advertising, the merchadise was simply an add on that was non detracting.
I think netflix may falter the same way Sex in the City did with Absolut Vodka. In one episode, the entrie show centered around an Absolout Vodka named Absolut Hunk.
The constant and obvious branding in the show served only to aleinate customers into feeling as though Absolout Vodka has invaded their own personal time, and that the TV show had betrayed them.
Netflix will have to be delicate about its television program. As after all K-Mart is a value store, and people consuming media don’ want to hear about stores they already shop in, they want exposure to the unobtainable to feel as though they live in the lap of unobtainable luxury.
This is a very innovative way for brands to advertise. Since many people tune out or ignore commercials during television shows, advertising during the actual show seems more effective. I think this is a great way for Netflix to respond to the growing trend of people watching TV online, and I’m curious to see if the show will be successful.
This is a really interesting idea. Rather than placing brand recognition into the show, the show is based around a brand and its image. I think that this could work, as long as the quality of the show is not compromised. Also, the advertisement for the show has to be done right. If Kmart makes it known that First Day is a show featured around the Kmart brand, the show loses appeal. However, making this known for a more ‘hip’ brand like Apple could increase viewings.
This is an interesting idea for Netflix although I think it might change their brand slightly. When I think of Netflix I do not think of content the company has created on its own. I think of a platform where I am able to view other company’s content (movies and TV shows) in an easy way that is suited and personalized for me – at least with instant streaming. Opening up this new channel might take away from their old brand equity, especially if they start pushing for their own shows on their site (over other tv shows which might be available with online instant streaming). If their original series can be kept completely separate from their existing Netflix platform, I think this could be a good way for the company to make revenue. However, I do worry that the brand could end up altering its brand with the introduction of original series.