While everyone is predicting the demise of print publications due to the Internet (and there may be some truth to some of it) it's not such a sure thing when it comes to TV.
Convergence Consulting released a report yesterday showing that online viewership is not as great as people think. According to the Wall Street Journal:
Broadcasters that put their TV shows online have seen about 5% of their TV base watching the online streams; cable networks such as MTV see about 15% of their audiences watching shows online. Given the audience size, there is no assurance of similar advertising returns from online video.
According to the report:
The average household spends approximately $.20/hour to watch TV. Broadcasters would have to charge much more for a paid download to equal what they receive in advertising revenue for an average TV show episode. If Broadcasters charge less and also rely on Internet advertising, they face lower CPM rates than TV.
Wednesday, March 28, 2007
Don't kill TV just yet
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