[opendtv] Re: Forbes: TV Broadcasters Will One Day Be Kicked Off The Airwaves
- From: Craig Birkmaier <brewmastercraig@xxxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Tue, 20 Oct 2015 08:00:30 -0400
On Oct 19, 2015, at 9:07 PM, Manfredi, Albert E
<albert.e.manfredi@xxxxxxxxxx> wrote:
This very recent Forbes article focuses more on the situation in the UK, but
most of it translates to the US well enough.
It says here that online ad cpm rates are lower than those of broadcast TV.
If it's true that ads inserted in full length TV episodes are retained at a
much higher rate than those of traditional broadcasts, then it seems to me
that cpm rates for online ads can be pushed up. Or alternatively, that the
old fashioned way will be forced down.
Retention is expected to be better for an ad that is the interrupting something
you are interested in, versus one you don't want that either pops up or is off
to the side. You don't want either, but we have been train to live with TV
ads...
And to go to the bathroom.
There is ample evidence that TV advertising will continue to work, even as we
shift to Internet delivery. In fact it may get better, or at least more
targeted and less frequent. But we may also see a shift to more ad free
services like Netflix.
The article puts more emphasis on the impact to OTA TV than probably applies
in the US, where MVPDs long ago reduced the broadcasters' (and conglom)
reliance on the OTA infrastructure.
Still, the title does seem custom-made for this FCC auction coming up.
There was one paragraph that caught my attention.
In 2015, the UK media regulator, Ofcom, announced a drop in the number of
TV-owning households. Separately, the UK's television viewing auditing body,
BARB, has also published data showing that all of the major TV networks are
experiencing declining viewing hours on their legacy broadcast platforms.
Looks like the U.K. And the BBC need to look for a new revenue base. Apparently
PCs and mobile screens do not pay the annual TV license fee. Like our PBS,
however, the BBC can likely make it on its own via program and character
licensing deals. We've supported this industry with free spectrum for far too
long. Cutting the umbilical to government funding would be a good next step for
both nations.
And this paragraph was interesting.
Over the last five years the BBCs data shows a steady increase in total
viewing time, number of people viewing and number of programmes requested.
Interestingly, the BBC's data also shows a dramatic shift from PC-based
viewing to viewing using tablets and smartphones.
Bert thinks tablets are a shooting star toy. In reality they are content
consumption screens that will be with us for many decades to come.
Regards
Craig
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