Streaming Video More Lucrative Than TV

/ Jul 7, 2014

Crowd005

By Lauren Arevalo-Downes

At the 2014 Media & Entertainment Industry Forum in New York, CBS’s chief research officer David F. Poltrack revealed something that seemed to counter conventional logic: “We actually make more money per viewer streaming than we do on television.”

Poltrack further explained that CBS is making between 10 and 20 percent more ad revenue per viewer online than regular TV and anticipates that number going up, saying that “Demand for our online video is through the roof.”

In studies that were funded by CBS, it was found that viewers are watching more “television” than they used to, but that more and more of the programming is being watching online rather than traditional TV. In fact, 28 percent of respondants to the study said their television watching habits had actually increased.

This is the first year digital ad revenue has passed broadcast TV and the funds continue to grow. Traditional TV ad spending is still expected to grow more this year, but it is apparent that it will be much smaller than digital video ad spending.

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This article was originally published on alistdaily.com, the insiders’ source for editorial focused on entertainment marketing news and content partner with VideoInk. Follow us on Twitter @alistdaily or subscribe for the latest news, data and more in your inbox.

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