[opendtv] Re: NBC Universal Wraps $6 Billion Upfront | Special Report: TV Upfront - Advertising Age
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Sun, 26 Jul 2015 11:07:06 -0400
On Jul 25, 2015, at 7:52 PM, Albert Manfredi <albert.e.manfredi@xxxxxxxxxx>
wrote:
Craig wrote:
The fact that in these first 3 days, ads cost the same amount as in the
original linear stream, disproves your initial comment.
Where did you come up with that factoid?
This is what you wrote, Craig:
Typically the ads that run on the linear channel
remain through the C3 window. Nielsen attempts to measure the DVR audience
to
the extent possible for same day and C3. I don't know why you waste time on
these obvious points. The networks now understand the importance of
accumulating an audience from both the live linear stream and various on
demand
techniques.
That is your interpretation of what I wrote. Much of the measured C3 audience
is by DVR, thus they are looking (or skipping) the sands that aired with the
linear feed. And advertisers pay for the total of live and C3. That being said,
much time shifted viewing is now in the C7 window, and the networks are looking
at how they charge for this additional audience.
http://www.mediapost.com/publications/article/187080/why-tv-networks-want-to-move-from-c3-to-c7-ratings.html
The catch-up sites do not run the same ads as those that ran in the linear
feed, but do account for a portion of the C3 and C7 ratings. These.pads are
sold separately, often in bundles that cover both live and catch-up.
Seems obvious to me that linear streams were a technical mandate for many
years. No other way to provide this high bandwidth content to the masses.
Like I said before, when technology makes more convenient options available,
people take notice and adopt the new options.
And once again, I would point out that this started with the VCR. This is just
another step in the evolution of how we consume entertainment. But the most
important change is that people are paying for ad free SVOD services, which
renders any discussion about ad sales meaningless.
People's behavior follows the technology. Craig, you seem to feel the need to
wish linear streams into perpetuity, much as you seem obliged to wish
walled-in MVPD nets into perpetuity?
Not wishing Bert. Just acknowledging that the technology change you think will
kill those business models is actually allowing them to migrate to the Internet
as well.
There are good reasons pay for their entertainment, and the Internet is only
going to increase consumer options and choice. There are good business reasons
for linear streams, which are migrating to the Internet. And there are good
business reasons for bundles that include multiple linear channels and now VOD
access. Rating shares may change, but nothing going on here suggests that any
of these business models will disappear.
Regards
Craig
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