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Mike Berkley  //  Product Strategy @ Comcast's Social Technology Group. Formerly CEO of SplashCast Media. This is my personal blog. My writing and opinions do not necessarily reflect those of Comcast.

 
Oct 16 / 3:55pm

The Simpsons earns 3x more ad revenue per view from broadcast TV than from Hulu.com.

Interesting Simpsons case study: broadcast advertising revenues generate an estimated 54 cents per viewer per episode, while ad revenues generated on Hulu.com are an estimated 18 cents per viewer per episode. Further, TV networks do not receive any carrier fees (from cable co's) on Hulu.com. This is why the promise of advertising + carrier fee revenue via TV Everywhere model is appealing to the content programmers. It is also why NBC and FOX will probably push Hulu into a subscription model or force it to implement some form of TV Everywhere integration. Above data from:

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=115617


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6 comments

Oct 16, 2009
AdamEdgerton said...
The question this brings up in my mind is whether the proven return on broadcast vs Hulu for advertisers is greater, or whether the greater advertising revenue for broadcast is as a result of marketers sticking to what they know and are comfortable with.
Oct 16, 2009
Tony Zito said...
It all depends how you slice the numbers, really. The network ad load on an average 30 minute program is 6 minutes, or 12 30-second spots. The ad load for the same program on Hulu is 3 30-second spots. So 1/3 the revenue for 1/4 the spots = a 33% greater CPM for Hulu over broadcast, as was the headline back in May:

http://www.pcworld.com/article/167344/the_simpsons_worth_more_on_hulu_than_fox.html

It's all about how you spin it.

Oct 16, 2009
Mike Berkley said...
Hulu does generate higher CPM's than broadcast TV, but it can't sell as much and it gets no carrier revenue.
Oct 16, 2009
Tony Zito said...
(Truly sorry to always be so debate-y, it's just a fascinating topic to me!)
Oct 16, 2009
Mike Berkley said...
No appologies! I also love this discussion (obviously).
Mar 14, 2010
Krz said...
Thank you for the data, i was searching for revenue per viewer for few days.

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