A report issued by Credit Suisse warns that TV networks risk losing ad revenue by distributing content on Hulu, YouTube, and other Internet video sites.
“Ultimately online viewing generates less revenue for TV networks than linear TV viewing. This is potentially dangerous as they move online,” Credit Suisse analyst Spencer Wang commented.
While Wang says the natural response for TV networks would be to increase the amount of ads they place in online programmes, that move could reduce viewership. Increasing online ad loads will also put pressure on the CPMs [cost per thousand impressions] that networks receive for ads placed in TV shows that run online.
“Our view for the TV networks is it is potentially risky to move [content] online, and fairly uncertain,” Wang said. Networks should hope that online viewing is incremental to the audiences they generate on TV, he added