[opendtv] Re: TV Ad Spending Drops in October | Broadcasting & Cable
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Mon, 8 Dec 2014 07:57:52 -0500
On Dec 7, 2014, at 8:58 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:
>
> Craig Birkmaier wrote:
>
>>> People who cut or shave the cord are no longer viewing those live
>>> streams.
>>
>> You cannot support that conclusion. Many cord cutters are using an
>> antenna to watch the broadcast networks.
>
> So, you can watch The Walking Dead with an antenna? Interesting.
Obviously they cannot watch content that requires a subscription or pay per
view. Stop playing these semantic games.
>
>> If a cord cutter watches the same ads you do now, there is no
>> difference, and no lost revenue.
>
> Preposterous, right? Even for OTA shows, if you're watching that CBS show as
> a faithful loyal MVPD customer, you are paying a subscription fee (retrans
> consent) every month. If you cut the cord, you do not pay that subscription
> fee. Does it not seem logical that someone is losing some revenue?
Yes. But we were talking about ad revenue, which is driven by the live and 3
day/7day delayed audience.
> And never mind cable-only shows, which would lose all their ad and
> subscription fee revenue, if you cut or shave the cord.
Be consistent Bert. You went to great lengths to tell us about all the ways a
cord cutter can access The Walking Dead. Losing revenues from one method of
distribution does not mean that there are not opportunities to gain revenues
from another.
> 3. Consequently, content owners who may have lost you as potential customer,
> after you cut the cord, are now providing their content using media other
> than the walled garden monopolistic, broadcast pipe.
Exactly. Typically for a price that is related to the age of the content.
Eventually all of this stuff moves to "free" ad supported distribution.
>
>> Advertisers still value the live audiences.
>
> Make a logical argument for why live ads would be valued any more than
> embedded, on demand ads. And "just because I said so" doesn't count.
Because you made an appointment to watch it live. The advertisers now consider
the 3 and 7 day delayed window as part of the audience for commercials that run
in live programs. But cost per thousand viewers is no longer increasing as it
did in the past. Many advertisers are abandoning the up front market and buying
in the scatter market where there are significant discounts.
Regards
Craig
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