[opendtv] Re: News: News Corp. Loses $3.4 Billion in 2009
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 6 Aug 2009 16:24:43 -0400
Craig Birkmaier wrote:
> Once again a major TV network is writing off a huge chunk of "book
> value" in the broadcast business. Looks like advertisers have had
> their fill of paying premium CPMs for the rapidly shrinking broadcast
> (shotgun advertising) TV audience...
I have a different take on this. To me, this is advertizer hysteria,
comparable to the global warming/CO2 emissions hysteria.
I thought the CPMs for Internet ads were higher than those for broadcast
TV. If so, it won't take too long for advertizers to see whether those
higher CPMs for Internet ads are actually worth it. At the same time,
the TV networks have to work to reduce production costs, sort of like
the health industry has to do.
There's nothing to suggest that people aren't watching TV anymore.
That's why all of this sounds like hysterics to me. It's all about
advertizer over-reactions and (probably, I bet) putting more emphasis in
what they feel is "trendy" than is warranted.
Bert
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