Facebook  Twitter  LinkedIn  

Visit min's sister site:



BREAKING NEWS & VIEWS

Online Video: TV Is Your Main Rival
Tuesday, June 30, 2009

The major TV networks have been pouring their primetime wares online only for a year or so, but they already account for 53% of ad-supported TV online. According to Screen Digest, providers like the year-old Hulu, CBS Audience Network, ABC Full Episode Player, NBC.com and Fox.com are the majority beneficiaries of Americans’ new taste for professionally produced online video. The rest of the pie is divided among sports league broadcasters online, online portals and other channel groups. The online TV market is still quite small, representing only $448 million in revenue, but Screen Digest contends it will mushroom to $1.45 billion in 2013.



For third parties like Joost, YouTube and others without direct alignment with an on-air TV brand, it will be a struggle to aggregate enough TV and film content to compete effectively with the sales juggernauts TV properties may become. YouTube, Break.com, DailyMotion and other video portals have launched film and music channels designed to accomodate assets from TV, music and movie companies. But major rights holders will restrict the deals they cut with third parties and instead develop their own portals like Sony’s Crackle, CBS’s Audience Network, or News Corp./NBC’s Hulu.

For magazine publishers who have been developing their own video properties, Screen Digest’s findings underscore a core challenge to the digital video market. Users may be frequenting a wide variety of video sites and consuming ever more streaming media on a range of sites. But advertisers continue to focus their dollars on the tried and true, reliable properties and environments that the TV networks represent. Magazine brands must go head-to-head for video ad dollars against a very different platform that brings to the table massive media assets and sales leverage.

Of course, the news for TV isn’t altogether rosy either. Screen Digest predicts that online TV by network providers could generate as much revenue per viewer as on-air TV in just a few years. The problem is that Web TV still will represent such a small share of overall TV advertising that the networks will not be able to retrieve the $2 billion in ad revenue they are expected to lose from TV spending by then. Even mighty TV is not immune to the basic, cheaper economics of digital.

If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com

COMMENTS
Search Jobs
Media Jobs

App Central

min's App Central (for min subscribers only): Stay on top of mobile app developments with exclusive app reviews, analysis and data.

Please enter the following information to have a link to The Skinny emailed to your iPhone:

White Papers
Get even smarter -- download a white paper today. 


... view Whitepapers
min Contests

min contests
Want to sponsor a min contest?


  Events

      Best of the Web, April 3, 2012

min's Sales Executive of the Year Awards
Call for Entries


min Press

min's Mobile App Report

 View Details
                           

min Presents: The Most Intriguing & Top-Selling Magazine Covers 2007-2010Intriguing & Top-Selling Magazine Covers

 View Details
                           

State of Digital MediaThe State of Digital Media

 View Details
                                                      

                                    Internet Sales            Guidebook

 View Details

All min Press

Inside min This Week
Events Calendar

min's Best of the Web Awards
Event April 3, 2012 at the Grand Hyatt, NYC
Register Today!


min Webinar:

Tablets 2.0: Generating a Revenue Plan for the Tablets Platform
December 8, 2011 1:30-3:00 p.m.
Available on Demand


All Events




min
Free Eletters — Sign up Now