Let The Monetization Begin!
Microsoft plan to add 15-30 second adverts into both free and Gold-membership exclusive Xbox Live entertainment video apps, which ties in nicely with a leaked memo suggesting that Microsoft plan to "further monetize" Xbox Live subscribers.
Xbox Live entertainment apps have recently overtaken multiplayer gaming in terms of time investment, and Microsoft are poised to capitalise on this unexpected new audience. Media partners will be able to buy 15-30 seconds advertising space within previously advert-free video apps, thus targeting us "highly engaged consumers."
"With the growth of Xbox Live, advertisers no longer have to choose between digital and TV advertising - we're offering the impact of TV and the interactivity and addressability of digital in one platform," said Microsoft's Ross Honey, general manager of Xbox Live Entertainment and Advertising.
"As more and more industry leaders like ESPN work with us to help monetize their content on Xbox Live, TV media buyers win with the ability to extend their standard TV spots to this highly engaged consumer audience."
Yes, because that's what Xbox Live needs. Even more adverts... in content that's already paid for via subscriptions. However, since Xbox Live advertising revenue has increased by 120% since 2010, I fear that this could well be the tip of a time-wasting iceberg.