On Sat, 13 Jan 2007, Marshall Eubanks wrote:
For the US, an analysis by Kenneth Wilbur
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=885465 , table 1, from
this recent meeting in DC
http://www.web.virginia.edu/media/agenda.html
Couldn't read the PDFs so I'll just go from your below figures:
shows that the cost per thousand per ad (the CPM) averaged over 5 networks
and all nights of the week, was $ 24 +- 9; these
are 1/2 minute ads. The mean ad level per half-hour is 5.15 minutes, so
that's 10.3 x $ 24 or $ 247 / hour / 1000. This is for the evening; rates and
audiences at other times or less. So, for a 1/2 hour evening show, on average
the VOD would need to cost at least $ 0.12 US to re-coup the ad revenues.
Popular shows get a higher CPM, so they would cost more. The Wilbur paper and
some of the other papers at this conference present a lot of breakdown of
these sorts of statistics, if you are interested.
Thanks for the figures. So basically if we can encode a 23 minute show (30
minutes minus ads) into a gig of traffic the network (precomputed HD 1080i
with high VBR) cost would be around $0.2 (figure from my previous email,
on margin) and pay $0.2 to the content owner, they would make the same
amount of money as they do now? So basically the marginal cost of this
service would be around $0.4-0.5 per show, and double that for a 45 minute
episode (current 1 hour show format)?
So question becomes whether people might be inclined to pay $1 to watch an
adfree TV show? If they're paying $1.99 to iTunes for the actual download
right now, they might be willing to pay $0.99 to watch it over VoD?
As you said, of course this would take enormous amount of time and effort
to convince the content owners of this model. Wonder if ISPs would be
interested at these levels, that's also a good question.
--
Mikael Abrahamsson email: [EMAIL PROTECTED]