[opendtv] Re: As C3 Ratings Continue Drop, Cable Adds Spots | Broadcasting & Cable

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 30 Apr 2015 00:47:22 +0000

Craig Birkmaier wrote:

Being able to watch entertainment programming without ad interruptions
is a major factor in the success of the SVOD services.

I think it's a combination of linear viewing and of the longer and longer ad
breaks, which cause viewership to drop. The article mentions the latter:

---------------------------------------
http://www.broadcastingcable.com/news/upfront-central/c3-ratings-continue-drop-cable-adds-spots/140315
...
"Conventional ad-supported TV audiences continue to get worse, and the ratings
'losers' continue to stuff more advertising into programming - which produces
more near-term ad revenue but risks further pushing away viewers and reducing
advertiser ROI," Juenger said in his report.
...
---------------------------------------

Not too different from the phenomenon where MVPD nets keep increasing their
monthly subscription fees, and surprise surprise, people get fed up and drop
out of cut back. Both are manifestations of the "Laffer curve" applied to TV
advertising. Just like government taxation, you go up beyond a certain point,
and the revenues start to decline instead of increasing, as you increase
taxation (or ad loads).

The TV networks are still miraculously introducing shorter ad breaks online,
than they do OTA. Makes a huge difference. An ad break that lasts, say, 120
seconds, is way more tolerable than some of those endless breaks OTA. That
should be obvious. Somehow, the message doesn't seem to be getting to the
advertizers. They should be mandating shorter ad breaks, and perhaps paying a
little more per unit time, to increase the effectiveness of their ads.

Bert



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