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What are the biggest factors impacting broadcast and cable network online advertising revenues?

April 26, 2017Advertising biggest broadcast cable factors impacting Network online revenues

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What are the biggest factors impacting broadcast and cable network online advertising revenues?

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If eyeballs are cynical regarding traditional TV advertising, they are even more cynical online. Online TV advertising will see strong revenue growth, but the lack of minutes–online TV from the broadcasters and cable networks on average sees no more than four minutes an hour–and less eyeballs than TV will limit how big it can become. At the current run rate, by year-end 2010, 48 percent of U.S. TV subscribers will have a DVR, up from 25 percent at year-end 2007. Given the option of watching TV and skipping ads, and watching online video with ads, we believe the majority of consumers will choose TV and the DVR. Bottom line, the DVR will limit full-episode online viewing. How will the market for online TV change over the next four years? We estimate national broadcaster/local station and cable network (led by Disney/ABC, CBS/Viacom, NBC Universal, News Corp., Time Warner/AOL) U.S. online TV advertising (we have not included non-TV related) revenues represented 2 percent ($1.4 billion)