What’s a channel? The question probably makes you think of some well-known networks: ESPN, MTV, Fox News, and the like.

How does a channel reach consumers? While linear web-channels have begun popping up, in the traditional sense, it’s otherwise a costly affair. Programming a 24/7 linear channel is a huge undertaking, and securing cable carriage, or even a broadcast tower, is very expensive. Prohibitively expensive for all but the large media companies.

That’s been the perception at least. And it’s one that’s due to be shattered as web-based delivery becomes more viable. And with more consumers turning to the web to receive even traditional cable and broadcast channels, the time has never been better.

Humble Origins

With its $200 million acquisition by Altice USA (formerly Cablevision), Cheddar has cemented its place in the world of business news, now able to be mentioned in the same breath as CNBC, Bloomberg, and Fox Business.

But the millennial-focused finance channel has a vastly different origin from its rivals, brought to us by massive media titans.

Cheddar is a web-native channel, describing itself as a “post-cable” network. It’s first broadcasts took place on Facebook, and at the time, striking a deal with a cable or satellite provider to carry the channel probably would have been impossible.

But by relying on affordable distribution options and finding new ways to monetize itself, Cheddar quickly grew.

A Cheddar broadcast from the floor of the New York Stock Exchange.

They moved to a subscription model, secured venture capital, partnered with well-known brands and media outlets, distributed their channel via streaming platforms, but perhaps most importantly, they created high quality content that was in-demand.

Following the opposite path of most channels, Cheddar first proved itself as a lucrative business, and carriage deals followed.

Blazing a Trail

Television itself is becoming a web-first affair, and we’re heading towards a “post-cable” world. The terrestrial infrastructure and big media gatekeepers that were once critical to success are now losing relevance, as consumers abandon the perennially unpopular MSOs and transact directly with content providers.

Today Cheddar stands out as a success story, but it’s sure to be the first of many, as other web-based channels become as easy for consumers to access, thanks to the proliferation of web-enabled TV sets and hardware, as well as the consumers simply watching more on mobile devices.

Cheddar’s acquisition marks an important shift. Prior, launching a new channel could easily entail a 9-figure sunk cost. Today, launching a channel can produce a 9-figure windfall.

Cheddar CEO Jon Steinberg with Altice USA CEO Dexter Goei

Other companies and content creators can utilize the same tools and strategies that Cheddar has: low-cost distribution via the web, new monetization strategies, and brand partnerships. And because it’s now been done before, that roadmap is even easier to follow for future companies.

Web TV Gold Rush

The opportunities to take advantage of web-based TV distribution extend wide. You don’t have to set out to create the world’s next great financial news channel as a unitary initiative. Small and mid-sized content creators can work with relevant brands and businesses to create and distribute content that generate revenue or drives business.

Targeted channels, even with much smaller audiences than national networks, can prove highly valuable to advertisers or sponsors who know they’re reaching viewers likely to be interested in their products.

FreeCast is working to make that process even easier, following a recent announcement at the NAB Show that it can “Channelize and Monetize” content.

The FreeCast platform can bring all of the elements together, with the latest in monetization technology, including both linear and on-demand formats, the option to setup a subscription paywall, dynamic ad-insertion, and distribution on a number of popular web platforms.

FreeCast’s “Channelize and Monetize” Program, Discussed at NAB 2019.

Even short of a $200 million payday, with low setup costs, microchannels of this type can both produce revenue themselves, and drive engagement with a brand or product.

For a company like Pillsbury, it makes much more sense to advertise on a dedicated baking channel, where every eyeball is a potential customer, versus playing the numbers game with a national network. Pillsbury could even sponsor the channel.

As the line between web content and traditional TV continues to blur, Cheddar-style microchannels are an opportunity for growth. And as consumers move away from cable TV for a patchwork of sites and streaming services, it’s becoming more challenging and more important for advertisers to reach relevant audiences. Microchannels make financial sense all around.