When futurists were mapping out how the Internet would change everything, they assumed that tools like instant messaging would wipe out traditional media like newspapers, radio and television.
So far, they were wrong about television.
As a matter of fact, it looks like television is on the verge of subsuming instant messaging -- or, at the very least, extending its grip on the public via instant messaging and SMS.
Van Dusseldorp & Partners, a European research firm, has documented how instant messaging via SMS is now being used by major television networks in Europe to extend the popularity of television shows -- and at the same time generate surprising revenues. For instance, a 30-second crossword quiz from CCRTV Interactiva in Spain generated 6,000 SMS answers per day, with a peak of 43,000 on a special anniversary edition -- and SMS revenues ended up covering the entire cost of the television station. Similarly, a German television show, "Jede Sekunde Zdhlt" (Every Second Counts), generated 1.2 million SMS within half an hour.
This may end up being only a regional phenomena, as phone regulations in the United States tend to limit the amount of money you can raise from telephone revenues (the recent "American Idol" television show used toll-free numbers and not revenue-producing 976 telephone numbers), but the potential for serious revenues via SMS is vast.
As SMS revenue models current exist, mobile operators usually take up to 50 percent of the proceeds of SMS transmissions after taxes. In Europe, according to Van Dusseldorp & Partners, the split for a Premium Rate SMS Message of 1 euro gives the mobile operator .40 euros, the broadcaster/production company .25 euros and the solutions provider .15 euros. The remaining .20 euros covers taxes. For the mobile operator, SMS revenues ensure that a network is used to capacity; for broadcasters, the SMS model draws revenue while not needing to add any additional costs, as mobile operators handle the billing.
Will this model extend across the globe? That remains to be seen. But as 3G networks become available in North America and SMS messaging becomes a more plentiful option for cell-phone users, don't be surprised if your favorite shows that already include some level of interactivity -- like "Big Brother" and "American Idol" -- don't seek to increase their revenues and improve their popularity with SMS interactivity.
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