I pay about $15/month for my legitimate newsgroups access and search engine. I think that's more than we pay for Netflix and Hulu, combined.
But my cable/Hulu/Netflix streaming bill isn't where Fox's revenue comes from - it comes from their advertisers. If they sell me their shows in a convenient .avi format, they're gaining me at $10/month, but they're losing every single company that pays for me to watch their commercials.
This means each user is worth $0.01 per minute of commercials. The average American watches ~4 hours per day, 25% of which is commercial advertising, which comes out to 30 hours per month of commercials. That's 1800 minutes of commercials.
I am in this business. The CPM (cost per thousand impressions) actually varies quite a bit by daypart (time of day) and channel (broadcast, syndicated or cable). Primetime CPM is around $20-30. For daytime or cable TV it can be less than $10.
And then CPM for online video like Hulu is totally different as well - due to a number of factors, such as the smaller number of spots, the difference in attention paid, the quirks of Nielsen ratings on the web, and the clickthru opportunity.
There was some hubbub a while back about how CPMs for a 30s spot in the Simpsons on Hulu was actually going for more than a new episode of the Simpsons on Fox (something like $60 vs $30).
Most of the TV you watch on Hulu is prime content and even though it is online, you can expect a CPM of $25-50.
Very interesting. If I were to want to read up on this type of info (advertising, new media versus old, etc.) with actual dollar examples, are there any sites in particular you'd recommend?
I understand, but I was curious if there was any leading site for such news? Not necessarily like HN or reddit, but, an industry blog that does a good job of keeping people informed.
But aren't there special events for which the broadcasters can extract a higher per viewer fee, the Superbowl comes to mind, also any 'final' of a sports or other competition. I wonder how much they make on those events compared to normal 'prime time' broadcasting.
But my cable/Hulu/Netflix streaming bill isn't where Fox's revenue comes from - it comes from their advertisers. If they sell me their shows in a convenient .avi format, they're gaining me at $10/month, but they're losing every single company that pays for me to watch their commercials.