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Cable Networks and Investors Target Online Video

The Web isn’t just for news anymore. Not that you thought it was.

Cable television is eager to capture their share of the Internet with a more targeted attempt to create original programming rather than just borrow from what was broadcast on television.

The Independent Film Channel (IFC) is leading the charge with its daily noon-time Web show called the LunchBox, which features independent-culture news and entertainment. They have new web programming in production as well and hope to continue its growing success of attracting viewers—and advertisers.

In fact, the topic of original content for the Web was very popular at the recent National Cable Television Association (NCTA) convention in New Orleans. Partnerships abounded, with Viacom and Comcast working together to offer its Fancast Website with new episodes of its popular shows, and CBS, Bebo and Last.fm coming together to offer episodes from classic television series like The Love Boat and Twin Peaks.

So why the sudden interest in creating viable online content?

It could be because venture capitalists are “pouring money into content, betting that the Web video economy” is likely to bridge the gap between Hollywood and venture capitalists.

The belief is that the Internet video revolution has altered the fundamentals of investing in content. Because the advertising potential for Internet video is well documented, targeted content on the Web can yield high ad prices.

With a willingness to explore new technologies, venture capitalists and their followers are changing the way the revenue is earned. “You follow the consumer and then you follow the money,” Jonathan Miller, partner with Velocity Interactive Group and the former AOL CEO said. “You have advertisers who have moved online and are moving online, and the infrastructure to deliver video and rich media and advertising is in place now.”

The Web is mirroring the early success of cable television, with niche channels garnering the interest of a targeted audience. And with the analytic tools available, one can monitor the Web more effectively than television allowed.

So here’s to television. On the Web.