The Simpsons Worth More Per Viewer On Hulu Than On Fox
N!NJA writes with this excerpt from PCWorld:
"A tectonic shift has taken place for the digital age: ad rates for popular shows like The Simpsons and CSI are higher online than they are on prime-time TV. If a company wants to run ads alongside an episode of The Simpsons on Hulu or TV.com, it will cost the advertiser about $60 per thousand viewers, according to Bloomberg. On prime-time TV that same ad will cost somewhere between $20 and $40 per thousand viewers. Online viewers have to actively seek out the program they want to watch, so advertisers end up with a guaranteed audience for their commercial every time someone clicks play on Hulu or TV.com. Online programs also have an average of 37 seconds of commercials during an episode, while prime-time TV averages nine minutes of ads."
I don't use Hulu but I'm guessing it's because you can pick which episode you want on Hulu but not TV. I would watch the PTA is disbanding episode 50 times if I wans't soooo wasted to ytpe rightnow .
My work here is dung.
If the online rate is higher than the actual TV rate, it stands to reason we'll see more and more online...
of course, business sense and cable television have VERY little to do with one another.
Apparently the advertisers haven't heard about window managers and multitasking operating systems... especially since Hulu goes so far as to tell the viewer how long the commercial will be.
Then again, since Hulu commercial breaks are so short compared to those on television, there is far less of an incentive to do something else.
Note that it sounds like it's worth more per viewer to the advertiser, but not to the TV network. The advertiser will pay more for the Hulu version, but since there's only one of them it brings less income to the studio.
So I don't think you can use this story to go "look, the studios should embrace online distribution" on its own.
Not to question the vast wisdom of Slashdot.org, but the news that's been posted is getting closer and closer to what I'd find on Digg or Fark. I'm not saying I don't enjoy Digg or Fark, but I visit slashdot so that I don't have to see the same thing on every website I go to.
It also guarantees that the users seeing the ads are foolish types and likely to spend money. If they had any clue they'd be watching it ad-free through The Pirate Bay.
I honestly can't wait until I don't mind watching adverts. That is, they're MORE FUCKING RELEVENT TO ME. I would ENJOY giving any company my personal data if it meant all the adverts I viewed were very relevent to my needs.
Its not a good idea to compare watching commercials on TV vs. Hulu. One major difference that should be taken into consideration is the fact that there is only one commercial between segments of shows on Hulu; while on TV there are multiple. Its easier to "remember" the commercials after only seeing one rather than multiple but at the same time the overall revenue that the episode gets per viewer would probably be much less.
You also need to consider that you have to buy last years viewers this year when figuring out your $$$ per 1000 rate on television. Hulu should be like google and you can buy 10,000 views of your ad instead of being forced to buy the entire market.
Anyone know the numbers of how many viewers the average new episode of The Simpsons gets on both mediums? While it is interesting that the cost per viewer is significantly more online, I doubt the number of viewers on Hulu is within the same order of magnitude compared to how many people view a new episode on standard television. Also I still find it crazy that they're actively fighting Boxee when that only adds more viewers. It would be one thing if Boxee blocked the ads, but it's definitely not the case.
Sadly, PS/2 was yet another victim of USB, which doesn't care what you plug into it, the electrical slut.
My daughter, aged five, watches youtube, managing to plug in and switch on the PC, login to her mum's account, start Firefox, type "you" and then somehow (this part I've not yet figured out) bootstrap herself into cartoons, music videos, and other random nonsense. She clicks on similar videos and can watch TV like this for several hours. My son, two, is almost there too. I guess, thank god youtube removes adult content.
First, they ignore the real old cable television, it's utterly uninteresting for them. Secondly, they watch each youtube clip from start to end, and treat advertising, if any, as part of the content.
How can this //not// be more profitable than legacy TV?
Fuck. No one can do Math anymore. An episode of The Simpsons absolutely isn't worth more by the numbers in the summary. In fact, it's worth about 1/15th as much. Doh!
Maybe the article is worth something, but the summary is so bad I can't bring myself to click.
-Peter
And TV Execs wonder why their ad revenue is going down...
Only 37seconds per show? yes please...
This does not need to be made public. I love only having to sit through 25-30 seconds of commercials verses 2-3 minutes for each break. This is what drove me to Hulu in the first place, but I can't fault them for wanting to make more money. I just knew it was too good to be true for as long as it has been--soon it will be just like watching regular TV, and then I'll be back to torrenting the shows I like _sans_ commercials. Meh! Remember these halcyon days. I know I will.
There is simply too much glass..
I just started watching Hulu last week. It's a great service! There is only one short commercial per break, and I'm willing to tolerate that. The only thing that would make it better is if they put banner ads around the window and took the commercials out completely.
But that's not what'll happen. The company serves its bottom line. I give it less than six months before they start stuffing commercials into the show, equivalent to broadcast television. There's already at least one advertisment that cranks the volume up to 11 -- some jamacian shit I'm sure you've probably seen by now. It instantly pisses me off when the commercial comes up. It's a great reminder about why broadcast television is shit.
As many have already pointed out (and many more will), it might be tricky to compare the numbers between TV and online broadcast, *but* I personally don't care. What I hope is that the media companies buy into the numbers and let me (outside US) watch my favorite programs online! :-D
Why does it cost more for adverts per person during the Simpsons? It could be the case that Hulu is charging more per viewer because those who watch the Simpsons are more receptive to advertisements, but I doubt that. I think that Hulu just uses a poor pricing model for advertisers.
2 to 5 minute ad breaks = I walk to the kitchen to make a snack, or record and watch later to fast forward through junk. 30 second ad breaks = Not a big deal. I chill out and take in the advertisements. Same thing with internet banner ads. I didn't look for an ad blocker until people got greedy and littered their sites with junk.
Saying it's worth more per viewer is like saying hard liquor is "worth more" when you buy it at a bar. You're selling to two different audiences, and a much smaller amount. The Simpsons on hulu might get tens or hundreds of thousands of viewers; whereas the Simpsons on Fox will get millions. Comparing the price for advertising on the two is telling about 1/3rd of the story.
It costs $60/1000 viewers on hulu because they have exclusive advertising. Sure they make less per advertiser on TV but they are showing ads from 4 or 5 diferent people every commercial break. So it's more like $30*5=$150/1000viewers on TV.
A Magic the Gathering Article and Forum Aggregator
Wait, people still watch new Simpsons episodes?
So if Hulu actually profits by number of viewers, what's the point of blocking non-US users?
Sure, I can always get the episodes from torrents almost right after regular broadcasting, but that way there's no profit in it for the makers of show. And unless someone offers it online "in my country" (I rather despise the concept of country borders on the Internet), that it's being broadcast at some point in time way later, at a time of day I probably won't be able to watch it, and certainly on a channel not available to me, there isn't a good reason to make the episodes already online from a US service, unavailable to me.
We are all God's parents.
The real tectonic shift comes when the online episode make more money overall than the prime time TV showing.
Comment removed based on user account deletion
> Online viewers have to actively seek out the
> program they want to watch, so advertisers end up > with a guaranteed audience for their commercial
This is a pretty flaky argument if you ask me.
People have to actively seek out a program to watch on TV as well. On TV, this is known as applying rule of the "least horsehit" while channel surfing.
But unlike TV, where an advertisement in a lame program usually drives me away to a different channel, never to return, on the web, I just launch another browser, kill the sound, and skip the commercials (mentally if not actually). People who have a computer and know how to use it well enough to find hulu are not dumb enough to watch some crazy commercial.
If anything, the channel surfers do not stumble upon HULU content, like they might while avoiding commercials on the TV.
Its a good price to ding the advertisers if you can get it, but it has to translate into sales or it is a waste.
On line ads used to be sold on a cost per impression basis. Advertisers woke up to that scam, and the current scam is cost per click.
(Advertisers are waking up to that scam too.)
I seriously doubt you will long be able to demand enhanced revenue based on cost per impression.
Sig Battery depleted. Reverting to safe mode.
Have they never heard of AdBlock plus, and his fiends?
Yes, they filter TV stream too! (His friends are better at this than he is though. ;)
Any sufficiently advanced intelligence is indistinguishable from stupidity.
A tectonic shift is a slow drift over time that has a sudden, jarring result one day. The metaphor seems apt.
Describing an increase in a discrete variable as a "quantum leap" is also accurate.
The problem is that some people misuse them to mean titanic shift/leap. That is incorrect. But in this case, as well as many others, the phrases can be used correctly.
In the 70's(?) everything was "hifi" and in the 90's everything was "laser". Sometimes though (stereos and pointers as easy examples) the terms were correctly applied.
Your ad here. Ask me how!
It also costs more because there's no such thing as a HuluVo [or MythHulu] to let you jump over ads.
Not to mention that Hulu can tell an advertiser exactly how many people are watching the show--and where they are. Over cable TV, they have to rely on Neilsen.
I hope that TV execs learn the lesson that they've got too many commercials in their shows. I remember when commercial breaks on my shows (as a kid) were 2 minutes or 4 X 30 second spots). Now, I'm actually deterred from watching TV. I'm a huge football fan and I'd watch every possible game I could (in the pre-Tivo days). Now, I only follow my favorite team as the annoyance of commercials overcomes my casual interest in other teams. Monday Night Football IMO died because they inserted so many commercial breaks that, beyond their normal annoyance, they started to interrupt the continuity of games and even omit game coverage like kick-offs.
I swear to God...I swear to God! That is NOT how you treat your human!
I love Hulu - in fact, Hulu is the only place I watch "television." House, 24, Bones, Heroes, Family Guy, Simpsons, The Daily Show, The Colbert Report... sure, some shows like House aren't available until 8 days after they air but what do I really miss out on.. a couple days of water cooler chat? Seriously, I can wait for my fix. Not to mention the fact that they just posted Season 4 of Stargate SG1 - now Seasons 1-4 are all available whenever I want them. Hulu is the best thing to happen to television since color.
Down with the career politician! SUPPORT TERM LIMITS
thank god youtube removes adult content.
It doesn't filter out dirty words looped for a minute. Heaven help your five- and two-year-olds once they discover YTP.
This is a great example of picking numbers to tell your story. In this case, its "per thousand viewers." Isn't it the total income that really really matters? 1000 people viewed it, woop woop. TV viewers are in the millions, and Ads run for, what, 9 minutes? Compare that to the 30 some seconds of Ads and n-thousands of viewers, your online TV ad revenue isn't going to save any networks anytime soon.
The exact opposite story could be written if the writer picked different parameters. In the end it just depends who gets paid more to say what. Reality is always an after thought in modern journalism.
btw Tivo might kill TV ads, but ALT+TAB works fine for me, although I'm usually listening more rather than watching. I also wonder if Hulu tells their paying advertisers how the buffer doesn't work as good with ads... The ads stutter pretty often.
Where else can you just walk away from someone, and tell him that he is the biggest asshole, even when it's the biggest bully and criminal organization on the planet?
Three words: False OCILLA takedown. A bully can file an OCILLA takedown request against a video that you uploaded. Because OCILLA's safe harbor applies only to providers with a policy against repeat infringers, this puts a strike on your account that you can only remove by filing a counter-notification and waiting a month. This counter-notification includes your name and home address, ostensibly so that the complainant can seek a court order against your alleged infringement, but the information can be dangerous in the hands of a bully.
Point of jurisdiction: OCILLA is only in the United States, but so is Hulu. Besides, YouTube's "international complaints" follow pretty much the same procedure as OCILLA complaints.
I'm a huge football fan [...] Monday Night Football IMO died because
Monday Night Football died because the football format played in the United States encourages commercials in the first place. If it were 45 minutes per half, no TV time-outs, no padding, and no grabbing the ball, then there wouldn't be as much of a chance for advertisers to interrupt flow. Case in point: the FIFA World Cup gets more viewers (1100 million) than the four Super Bowls held during the same period combined (400 million).
Soon, all /. summaries will be capped at 140 characters.
If Slashdot is going to embrace Twitter, will it also use those characters to rag on "M$ Windoze" through over a dozen sockpuppets?
SageTV + Comskip + record everything = zero commercials and 1 button skip. Can't beat it.
Think of it this way also. . .
People who are watching adverts on the internet are more likely to buy the products you tell them to buy because they're not smart or willful enough to sculpt their own environment and thus are more easily duped into believing. . .
A) That it is their moral obligation to allow advertisers access to their brains.
B) That it's too much effort to figure out how to avoid seeing adverts on the web.
A rube in hand is worth a dozen smart and willful guys in the bush.
Hallelujah.
-FL
WTF is wrong with you? If you like this guy so much, why not have sex with him?
Can someone please add an "American flag" icon to this and all discussions about Hulu?
The rest of the world is blocked from watching stuff there--even Dr. Horrible is no longer available outside the US on it. (even though it was on release.)
"People who do stupid things with hazardous materials often die." -- Jim Davidson on alt.folklore.urban
Now I feel like a Luddite.
But, I wanted socialized health insurance!
60*37 20*9*60
Primetime is still more valuable. Fewer commercials means more expensive commercials - that has been long established.
http://www.accountkiller.com/removal-requested
Online, If they sell 37 seconds of ads for $60 per thousand viewers, every viewer is worth $0.06. On TV, the may only get $20 per thousand viewers, but they can charge those $20 from way more people - they have 9 minutes to slot ads in, probably enough for 10 ads at least, so that's $200 per thousand viewers. Or $0.2 per viewer. Which is 3 times more.
The original post states 9 minutes of advertising per episode. I hope that they work talking about 30 minute shows. When I PVR CSI or other 1 hour shows, and then edit out the commercials, I'm left with 42 minutes of video. So, it is more like 18 minutes of advertising, which is a full THIRTY PERCENT. I was reading a while back about what, in the industry, they call "advertising load", used to be about 10-15%. Now it is THIRTY FREAKING PERCENT. No wonder viewership is down.
Just wait; when internet TV becomes the predominant way of viewing, there will be a lot more adds. At least with my PVR (EyeTV on my Mac MINI), I can skip the ads. With the flash-based online video views, you have to wait through the ads. This isn't bad with the 15-30 second ad spots, but it will get annoying when they become 3 minutes long.
One very annoying thing is that you see the same ad during every ad spot.
All that said, I do enjoy the convenience of using hulu, cbs.com, and abc.com to catch up on shows that I forgot to record, or missed for some reason.
Anyways, these are the reasons he and one of the executives had given for why they expected to eventually be able to charge a good deal more for 30 seconds of Hulu advertisement than one would normally charge for the same time*viewers over the air. It came up when we were complaining about the studios' decisions to delay some shows by up to 8 days compared to the actual air date. While it was clear this was to prevent an uprising from the affiliates, we still grumbled a bit about it.
At $60 vs $30 the studio breaks even.
The quote in the summery is wrong, i just checked: there are 3 commercials 15-30 seconds each. This comes out to between 45 seconds and 1:30 of advertising; there are 8:30 in commercials for the regular broadcast.
On a recent episode of the Simpsons local adds took up about five of the adds. This means that in order to break even, supposing the internet draws away customers on a one-for-two basis(more tv can be watched), the studio must charge two times as much.
When you are watching television, you end up watching whatever is on, which is not something that generally excites you, and then on top of that, you have the additional insult of having to spend 40% of your time watching ads.
So, in short, because the quality of the show is marginal, you put up with further marginalization in order to have it "pay" for the content provider.
But with Hulu, you watch what you want. When you want. You CLICKED on the show. It's something you DESIRE to watch, not something that's "on". So I don't end up watching golf on Saturday afternoon, I watch stuff I happen to like: Bones, House, Burn Notice. I just caught a new show ("The Philanthropist") so good that it actually made me tear up more than once. Against this backdrop, I'm more than happy to watch a SINGLE commercial 4x in a show, and I'm even OK with the fact that I can't skip the ads. I watch what I want, when I want to. For now, formula of "online TV" works so well for me that I will probably never again buy cable or satellite TV so long as online television remains at least as good as it is now.
Seriously, when you get used to watching what you want, when you want, without knowing in advance what you want, with the ability to "catch up" when you discover something new, "normal" cable just seems... stale. Why bother?
I don't have a DTV converter box, and I have no interest in one. My Mac Mini + big screen have done everything I care to have.
I have no problem with your religion until you decide it's reason to deprive others of the truth.
The only reason we have cable at all is because it is only $10 more per month to have cable WITH internet then without it.
I hardly ever watch TV. It's internet or netflix.
A work that expires before its copyright never enters the public domain and thus enjoys eternal copyright protection.