Interactive TV Poised to Churn Out $4 Billion in Five Years
October 14, 2009
TV will have a new source of revenues in 2010 that could reach $130 million by
the year’s end if the stars align. Revenues from advanced TV advertising will
take off in the middle of next year, research firm Park Associates says. The
category will grow on the strength of addressable advertising within video-on-demand
and time-shifted viewing.
The addressable component is a function of Canoe Ventures, a joint project of
Comcast, Cablevision, Time Warner Cable, Cox, Charter and Bright House
Networks. Canoe reportedly abandoned a plan this summer to deliver addressable
advertising within existing cable ad zones. The group is now planning to launch
a request-for-information service sometime during this quarter, Multichannel News reports.
Heather Way of Park Associates said pay TV providers are zeroing in on
interactive advertising “as a preemptive move to sustain ad revenues.” Park
projects that by 2014, U.S. addressable, interactive TV advertising revenue
will exceed $4 billion, accounting for nearly 12 percent of total cable, DBS,
and telcoTV ad revenue.
The early implication for broadcasters depends on demand for their content via
on-demand platforms. Other analysts see on-demand Internet delivery of TV
content supplanting likewise delivery on traditional pay platforms, as
evidenced by the growing popularity of Hulu.com.
ABC, NBC, Fox, PBS and other TV networks offer TV shows on Hulu.com, which was the fourth most-visited site for video in
August, according to ComScore.
-- Deborah D. McAdams
More on money:
October 6, 2009: “MediaVest
Moves Millions from Broadcast to Hulu.com”
MediaVest said this week it cut its first large-scale, upfront deal based
on targeted demographic mixes, moving “millions of broadcast dollars into the
June 29, 2009: “Broadcasters Generate
Half of Ad-Supported Online Video Revenues”
NBC, ABC, Fox and CBS, along with Hulu.com--co-owned by the first
three, churned out 53 percent of the $448 million ad-supported online video
market for 2008. The remaining revenues were generated by major sports leagues,
traditional online portals, and direct services from other major channel groups
and content owners.
May 28, 2009: “Video: Someone’s Got to
“In five years old guys like me will still call it ‘television,’ but it
will come from anywhere, in many formats, via many distribution channels.
Anything anywhere in increasing quality and quantity and decreasing costs.
That’s the trend,” said Liberty Media Chairman John Malone.
April 14, 2009: “Broadcast TV Versus
Online video tracker OVGuide.com compared what people watch on
broadcast TV versus network fare viewed on the Web. The overall result was
logical--the so-called “reality” genre did better on TV, while scripted fare
was preferred online. The gist is that reality loses its bite once the outcome