Best Article We’ve Seen Yet About Why the Networks Are Reluctant To Deal With Google TV

Dec 16, 2010  •  Post A Comment

Bloomberg has a lengthy piece by Sarah Rabil and Ian King about why the TV broadcast networks are reluctant to deal with Google TV.

According to the article, "One sticking point is ads, which accounted for 63 percent of the $13 billion in revenue last year at New York-based CBS.Prime-time shows seen over the Internet have about four minutes of ads per hour, compared with 16 minutes on broadcast. That suggests networks lose about 75 percent of sales per viewer when programs are seen on the Web instead of TV, said Laura Martin, a Los Angeles-based analyst for Needham & Co."

The article adds, "The networks say Google hasn’t presented a plan to close the ad-sales gap or fully explained its business. They are mindful of losses the music and newspaper industries sustained online. They can avoid that fate if they refuse to give products away or sell them too cheaply, according to analyst Martin.’We need to understand better what they’re going to do,’ Carey, chief operating officer at New York-based News Corp., said in an interview."


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