A possibility is that McDonalds will subsidize the access to Netflix on days that your favorite show airs. The downside is that this would only be available to the major companies with huge marketing budgets and it will close the gates for smaller companies. A possible solution to this that smaller companies will unite and start an collective investment fund in order to but airtime on Netflix to have their product marketed. At first, sponsored internet access may sound as an interesting new possibility to advertisers but it will swallow up a lot of their marketing budget compared to the investments made today on online advertising. Another effect that should be kept in mind is that people are going to hate ad-supported online shows in which they already pay for an subscription what used to be ad-free. And since the costs only will rise for content providers, such as Netflix, they will pass the bill to advertisers and subscribers.
But it is not only video streaming website who will suffer a massive blow, also other segments such as online retailers will have to reconstruct their business model. eMarketer.com shows that the US retail market is expected to spend over 9.42 billion USD in digital advertising and rise to 13.50 billion USD in 2017. That is an astonishing 4 billion USD increase over just 4 years, how is that possible? Well, the costs per click are rising every year. Google shows in their annual reports that they had a paid click increase of 42% from 2012 to 2013 and it is still increasing. Online retailing is still a very cost effective business compared to physical retail stores. The products online are based on relatively low advertising costs today but you can imagine what happens if the costs on advertising starts to increase even through the help of the new rules in net neutrality. It will have an immediate effect on the product prices offered online, the online retail store now also have to pay the ISP a sufficient higher amount of money to be able to make use of that premium highway because it depends on that fast connection that the consumer needs to rapidly scan through the products.
MODERN TELEVISION
Another prediction is that the internet goes towards modern Television, in which you have the opportunity to buy an extra subscription for a themed bundle, such as a five dollar per month subscription for a marketplace package which offers you sites such as amazon, eBay or PayPal in change for direct access through a high speed connection. You can imagine the impact it will have on the people’s behavior when they do not have the same quality of internet anymore, they will shift towards other sources in order to satisfy their needs like reading articles in printed media. Mass communication in the form of printed media has been with us since 15th century but it hasn’t been since 2011 that one of the fastest-growing areas of advertising , digital advertising, has surpassed newspaper advertising in revenue for the first time in history, totaling over 90 billion dollars globally.
FUTURE INTERNET PACKAGES?
MADISON AVENUE: HOME OF THE ADVERTISING INDUSTRY
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