Bud.TV: Logging Troubles
	
 
		
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Case Details:
  
Case Code : MKTG170 
Case Length : 16 Pages 
Period : 2005-07 
Pub Date : 2007 
Teaching Note :Not Available Organization : Anheuser-Busch Companies Inc., Bud.TV 
Industry : Dotcom, Internet Portal 
Countries : US 
 
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"The reason that YouTube and MySpace work is that they 
have an open environment where you can share, That's what draws masses of 
eyeballs. The Bud.TV content may be fantastic, but if they can't attract 
audience it doesn't do much for them."1 
- Michael Hayes, Senior VP-Managing Director at Initiative 
Interactive, in 2007. 
"Bud.TV is ambitious in its effort to create a whole mini 
cable network online because that requires a more significant commitment to 
content production and relationships like the deal with Sony to stream 
Afterworld. That means more overhead has to be assigned, which means more costs 
to recuperate. With that high risk, one wonders if it wouldn't be just as 
valuable to have put the resources into producing or sponsoring clips intended 
for distribution primarily on other video sites that already have an audience."2 
- James McQuivey, Analyst, Forrester Research3, 
in 2007. 
Introduction
	
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In the first week of March 2007, comScore Media Metrix4 
announced that Bud.TV, the digital entertainment network launched by 
Anheuser-Busch Companies Inc.5 
(Anheuser-Busch), had averaged 253,000 unique visitors in February 2007, its 
first month online. Bud.TV was launched after an advertising campaign during 
Super Bowl XLI6. According to 
Anheuser-Busch's projections, Bud.TV would attract about 3 million unique 
visitors per month by the end of 2007. 
 
Launched on February 04, 2007, Bud.TV featured seven channels offering a wide 
range of programs. The launch was supported by both electronic billboards that 
were displayed during the Super Bowl, and advertisements on major websites.  
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 The US$ 30 million initiative was said to pioneer the direct-to-consumer 
	approach to advertising by bringing promotional content directly to the 
	targeted consumers.   
	
	
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		 Through direct-to-consumer initiatives, marketers 
		would have more control over the message they were delivering to their 
		consumers, as compared to relying on traditional TV. Bud.TV was closely 
		watched to determine if major television marketers like Anheuser-Busch, 
		who spent millions of dollars every year on advertising, would shift a 
		part of their marketing budgets to the Internet, to reach the target 
		audience more effectively. According to Hilmi Ozguc, CEO of Maven 
		Networks7, "This changes the whole 
		concept of broadcasting out to consumers. Typically, media companies 
		have done that. With the Internet, we blow out that old model and enable 
		advertisers to reach consumers directly without having the media 
		companies sell the ad space."8  | 		
	 
 
			
Bud.TV: Logging Troubles
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