North American Network Operators Group
Date Prev | Date Next |
Date Index |
Thread Index |
Author Index |
Historical
Re: Network end users to pull down 2 gigabytes a day, continuously?
- From: Marshall Eubanks
- Date: Sat Jan 13 07:06:16 2007
On Jan 13, 2007, at 6:12 AM, Marshall Eubanks wrote:
On Jan 12, 2007, at 11:27 PM, Mikael Abrahamsson wrote:
On Fri, 12 Jan 2007, Gian Constantine wrote:
I am pretty sure we are not becoming a VoD world. Linear
programming is much better for advertisers. I do not think
content providers, nor consumers, would prefer a VoD only
service. A handful of consumers would love it, but many would not.
My experience is that when you show people VoD, they like it. A
lot of people won't abandon linear programming because it's easy
to just watch whatever is "on", but if you give them the
possibility of watching VoD (DVD sales of TV series for instance)
some will definately start doing both. Same thing with HDTV, until
you show it to people they couldn't care less, but when you've
shown them they do start to get interested.
I have been trying to find out the advertising ARPU for the cable
companies for a prime time TV show in the US, ie how much would I
need to pay them to get the same content but without the
advertising, and then add the cost of VoD delivery. This is purely
theoretical, but it would give a rough indication on what a VoD
distribution model might cost the end user if we were to add that
distribution channel. Does anyone know any rough figures for
advertising ARPU per hour on
primetime? I'd love to hear it.
Generally, in the US, the content is sent to the cable company with
Ads already inserted, although they might get their own Ad slots.
You would need to talk to the source, i.e., the network. Since you
would be threatening the business model of their major customers,
you would need patience and a lot of financial backing.
For the US, an analysis by Kenneth Wilbur
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=885465 , table
1, from this recent meeting in DC
http://www.web.virginia.edu/media/agenda.html
shows that the cost per thousand per ad (the CPM) averaged over 5
networks and all nights of the week, was $ 24 +- 9; these
are 1/2 minute ads. The mean ad level per half-hour is 5.15
minutes, so that's 10.3 x $ 24 or $ 247 / hour / 1000. This
Sorry, that should be
per half-hour
(i.e., there are 10.3 half-minute ads per half-hour on average.)
is for the evening; rates and audiences at other times or less. So,
for a 1/2 hour evening show, on average the VOD would need to cost
at least $ 0.12 US to re-coup the ad revenues. Popular shows get a
higher CPM, so they would cost
So that should be $ 0.25 per half hour per person.
I think that the advertising world needs a more "metric" system of
measuring things and that I need some coffee.
more. The Wilbur paper and some of the other papers at this
conference present a lot of breakdown of these sorts of statistics,
if you are interested.
Regards
Marshall
Regards
--
Mikael Abrahamsson email: [email protected]
|