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drag2share: REPORT: Apple Has A Plan To Let Viewers Skip Ads Altogether And Pay Media Companies For The Lost Views (AAPL)

source: http://feedproxy.google.com/~r/businessinsider/~3/McPys-RY-oc/apple-has-a-plan-to-let-views-skip-ads-altogether-and-pay-media-companies-for-the-lost-views-2013-7

Apple TV

Apple is pitching media companies on a plan to allow viewers to skip advertisements while watching TV as part of its plan for an Apple TV, Jessica Lessin reports.

The ad-skipping technology from Apple would be part of a premium package for users.

To offset the lost viewership, Apple would compensate media companies for the skipped ads, says Lessin, a former Wall Street Journal reporter who is starting her own tech news site.

This seems like an audacious idea from Apple. eMarketer projects U.S. TV ad spending will be $66.35 billion this year. If Apple were to compensate for lost ad revenue, it could get pretty expensive pretty quickly.

Apple has been exploring the TV market for years now. It has reportedly been developing a full-blown television set, but nothing has happened yet. Lessin suggests Apple is more focused on making something happen in the TV market.


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Monday, July 15th, 2013 news No Comments

Advertisers Will Spend Nearly $10 Billion This Week On A Broken TV Model

Source: http://www.businessinsider.com/the-2013-tv-upfronts-2013-5

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This week, advertisers will sit down with the broadcast TV networks and hash out their “upfront” ad buying deals for the year.

The talks are one of advertising’s huge, dramatic set-pieces. As Ad Age describes it, “possibly as few as 40 people from the networks, agencies and brands will go into backrooms and decide how $9 billion of the $62 billion U.S. TV ad market will be spent next year.”

Networks are expecting, again, to see TV ad spending rise. CBS chief Les Moonves is bullish, and analysts expect the network may get 7-9% price increases. Some believe more than $10 billion will get spent.

Oddly, the networks want those increases even as the viewing audience itself dwindles. Goldman Sachs estimates that 17% of the 18-to-49-year-old demographic simply stopped watching broadcast TV in winter 2012-2013, the New York Times notes.

On its face, this doesn’t make sense: Why would advertisers pay more to get less?

The usual explanation is to do with supply and demand. Although TV’s numbers may be dwindling, it still has a massive audience. And with the fragmentation of the audience across thousands of different online and digital venues, there remain very few vehicles who can reliably deliver eyeballs in the millions, night after night. The supply of big audi! ences is getting smaller, in other words, and thus prices increase.

But there are signs that this won’t last, and that broadcast TV may be facing a crisis. The Times said:

“The networks are getting picked at from every direction,” said Jessica Reif Cohen, the senior media analysts at Bank of America Merrill Lynch. “This year was the tipping point,” she said, “when the television ratings really fell apart.”

Put that together with competition from Aereo, which reroutes free, over-the-air broadcast signals onto computers and iPads where people can watch TV without paying for cable. News Corp. has already said it will stop broadcasting Fox TV, and go cable-only, if it cannot extract transmission fees from Aereo. (Most people watch “broadcast” TV on cable or satellite, where stations get fees from subscribers.)

It’s not just Aereo of course. It’s Hulu and YouTube and Netflix and a hundred other alternatives to watching TV.

Think about that: The model is so broken that a major broadcaster has threatened to stop broadcasting in order to save itself.

It begs the question: With declining audiences, and dozens of new ways to watch shows without paying for cable, how long with these $10 billion meetings last?

 

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Monday, May 13th, 2013 news No Comments

1 Million Fewer American Households Watched TV Last Year

Source: http://www.businessinsider.com/1-million-fewer-american-households-watched-tv-last-year-2013-2

Nielsen last week took a symbolic step toward helping the biz monetize TV viewing done via the Internet. But reaction to the ratings service’s decision to add Internet-connected TV sets to its formal definition of a “TV household” was muted among execs because it addresses only part of the vexing measurement challenges facing traditional TV nets.

Nielsen had been grappling with adjusting the definition in order to count homes that only receive programming via broadband connections as part of the universe of TV homes. The decision unveiled to TV and advertising execs on Thursday had been expected (Daily Variety, Jan. 10).

New definition doesn’t encompass homes where viewers only receive TV via tablets and smartphones.

Underscoring the shift in behavior, Nielsen’s estimate of the number of U.S. TV households has dropped in recent years, sliding from 115.9 million in 2011 to 114.6 million in 2012.

And some can be attributed to cord-cutting and “cord nevers,” or the rise in the number of younger viewers who rely on Internet-delivered sources and have never subscribed to cable, satellite or telco service.

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Tuesday, February 26th, 2013 news No Comments

1 Million Fewer American Households Watched TV Last Year

Source: http://www.businessinsider.com/1-million-fewer-american-households-watched-tv-last-year-2013-2

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Nielsen last week took a symbolic step toward helping the biz monetize TV viewing done via the Internet. But reaction to the ratings service’s decision to add Internet-connected TV sets to its formal definition of a “TV household” was muted among execs because it addresses only part of the vexing measurement challenges facing traditional TV nets.

Nielsen had been grappling with adjusting the definition in order to count homes that only receive programming via broadband connections as part of the universe of TV homes. The decision unveiled to TV and advertising execs on Thursday had been expected (Daily Variety, Jan. 10).

New definition doesn’t encompass homes where viewers only receive TV via tablets and smartphones. The growth of viewing on tablets is seen as a big driver of second-screen multi-tasking activities surrounding TV shows, particularly among younger viewers. Not being able to capture the viewing among auds who are highly engaged with programming is frustrating to bizzers.

There’s also the issue of how to count viewing done via VOD and Web streaming platforms where the program’s commercial load does not match up with the spots aired during the linear telecast. As such, the industry’s goal of achieving an omnibus number that captures how many people watch a particular program over a given time frame (and there’s even a healthy debate about the best time parameters) remains far out of reach, for now.

Underscoring the shift in behavior, Nielsen’s estimate of the number of U.S. TV households has dropped in recent years, sliding from 115.9 million in 2011 to 114.6 million in 2012. Some of the drop can be attributed to the disruption of the broadcast biz’s transition to all-digital signals in 2009, which left behind a small percentage o! f Americ ans with older TV sets.

And some can be attributed to cord-cutting and “cord nevers,” or the rise in the number of younger viewers who rely on Internet-delivered sources and have never subscribed to cable, satellite or telco service.

Regardless of the reason, the decline in the TV household universe estimate is alarming for industryites, especially amid other reports that many Americans are watching more TV than ever before precisely because there are so many options for viewing.

The number of homes that will be added to the total TV universe under the new definition, to take effect in the 2013-14 season, is less than 1%. In discussions with network execs and Madison Avenue, Nielsen characterized the definition shift for fall 2013 as a first step. The company that provides the ratings that are the currency of ad-supported TV is clearly continuing to feel the pressure to crack the multiplatform-measurement conundrum.

“On the path to capturing all viewing in all homes, this foundational change addresses the lion’s share of viewing, in effect including any home with a TV that can receive video via an external source,” said Pat McDonough, Nielsen’s senior veep of insights and analysis.

(Andrew Wallenstein contributed to this report.)

Click here for more television news on Variety.com.

Please follow Advertising on Twitter and Facebook.

Join the conversation about this story

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Tuesday, February 26th, 2013 news No Comments

Keeping the ‘app’ out of Apple’s TV

Source: http://www.engadget.com/2011/12/04/switched-on-keeping-the-app-out-of-apples-tv/

Each week Ross Rubin contributes Switched On, a column about consumer technology.

Rumors continue to heat up that Apple will enter the television market next year, stepping up its Apple TV “hobby” into a greater revenue-generating vocation. The company would clearly like to repeat the kind of rousing success it has seen in smartphones. There, it entered a market at least as crowded and competitive as that for televisions whereas most of its Windows rivals have barely been able to eke out a few models with nominal share.

Indeed, the challenge is not as much about competition as commoditization. At first glance, this would be a curious time for Apple to enter the TV space. The HD and flat-panel transitions on which premium manufacturer brands and retailers once feasted has long passed. “Flat-panel TV” and “HDTV” are now just “TV.” And prices for smaller sets are settling into a range familiar to those who remember what they cost back in the heyday of CRTs.

What’s different, though, is that the state of the smart TV market looks strikingly like the smartphone market did before Apple’s entrance. The market essentially has “feature TVs” that present a few popular canned services (YouTube, Netflix, Hulu, Pandora, etc.) and “smart TVs” that are a fractured mixture of homegrown offerings (from companies such as Panasonic, Samsung, LG and Toshiba) and an experience-challenged licensed OS (Android from Sony and Vizio).

The company has clung to the idea of TV as a passive experience.

Continue reading Switched On: Keeping the ‘app’ out of Apple’s TV

Switched On: Keeping the ‘app’ out of Apple’s TV originally appeared on Engadget on Sun, 04 Dec 2011 20:24:00 EDT. Please see our terms for use of feeds.

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Sunday, December 4th, 2011 news No Comments

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