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Television Media The Almighty Buck The Internet

The Simpsons Worth More Per Viewer On Hulu Than On Fox 191

N!NJA writes with this excerpt from PCWorld: "A tectonic shift has taken place for the digital age: ad rates for popular shows like The Simpsons and CSI are higher online than they are on prime-time TV. If a company wants to run ads alongside an episode of The Simpsons on Hulu or TV.com, it will cost the advertiser about $60 per thousand viewers, according to Bloomberg. On prime-time TV that same ad will cost somewhere between $20 and $40 per thousand viewers. Online viewers have to actively seek out the program they want to watch, so advertisers end up with a guaranteed audience for their commercial every time someone clicks play on Hulu or TV.com. Online programs also have an average of 37 seconds of commercials during an episode, while prime-time TV averages nine minutes of ads."
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The Simpsons Worth More Per Viewer On Hulu Than On Fox

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  • Guaranteed? (Score:5, Insightful)

    by William Ager ( 1157031 ) on Friday June 26, 2009 @06:27PM (#28489681)

    Apparently the advertisers haven't heard about window managers and multitasking operating systems... especially since Hulu goes so far as to tell the viewer how long the commercial will be.

    Then again, since Hulu commercial breaks are so short compared to those on television, there is far less of an incentive to do something else.

    • Re:Guaranteed? (Score:5, Interesting)

      by L3370 ( 1421413 ) on Friday June 26, 2009 @06:41PM (#28489815)
      I've actually caught myself watching these commercials when viewing tv shows online. Knowing the commercial lasts only 20-30 seconds, it felt like I wasn't wasting my time...and would have rather waited anyway just to make sure the video would load without error.
      • give it time. once they kill broadcast TV, you'll gag on the commercials on net TV. TV sucks, try some "actual reality" for a change..
        • Re: (Score:3, Funny)

          by mrmeval ( 662166 )

          Not only that but they'll pull the same crap they do on TV. Half page banners that scroll up from the bottom during the best part of a show. Fuck'em I'll either buy it when they dump it to DVD or download a unshitsmeared version.

      • ZOMG! This article is revolutionary! You mean targeted advertising costs more than shotgun advertising? Whoda thunk it?

        Why is it that every time the Slashdot crowd learns something that the rest of the world has known for decades it somehow warrants a breathless headline?

        "But... but... it's on the interweb. It's 'new media' or something. It must be important."

        Puhleeze.

        Next thing you know, advertising in a specialty publication targeting a particular group of people like engineers will cost
    • Re: (Score:3, Funny)

      by sexconker ( 1179573 )

      I like to open up multiple tabs of the same video, and preemptively skip to each commercial (just click the dots).

      Let each commercial play, then pause the video in each tab.

      Open video, as commercial plays, open same video in new tab, skip to second commercial, open video in new tab, skip to third, etc. for all commercials.

      Go to first tab and pause, second tab pause, etc.
      Go to first tab, play.

      Can do all that in the time it takes for the first commercial (before the video starts) to finish.

      • Re:Guaranteed? (Score:4, Insightful)

        by Sir_Lewk ( 967686 ) <sirlewk AT gmail DOT com> on Friday June 26, 2009 @07:25PM (#28490089)

        That might less time to do, but it sure sounds like it requires far more effort.

        • Re: (Score:3, Informative)

          by hedwards ( 940851 )
          That's part of the point, with ads as short as they are on Hulu there's really very little point to trying to skip them. It usually takes me more than 30 seconds to skip the commercials on my DVR. Even when using the increment forward button.

          Additionally since Hulu gives you some say in what the adverts are for, there's an increased possibility that the product will actually be useful to the viewer. It's not really in anybody's best interest to show men adverts for vagisil.
      • Holy shit. And I thought I had a tendency to over-complicate things.
    • by RyoShin ( 610051 )

      Because no one changes the channels during a TV commercial or gets up to take a leak? People ignoring commercials is nothing new; however, you are spot on when you say that since the commercial breaks are short, it's not worth it to switch over to something else or get up and leave for a minute. That's probably one of the reason that the prices are so high, because not only are they guaranteed eyeballs, but they are guaranteed un-divided eyeballs.

      I know that I'm more likely to watch a commercial on Hulu t

  • by EvanED ( 569694 ) <evaned@g[ ]l.com ['mai' in gap]> on Friday June 26, 2009 @06:27PM (#28489693)

    Note that it sounds like it's worth more per viewer to the advertiser, but not to the TV network. The advertiser will pay more for the Hulu version, but since there's only one of them it brings less income to the studio.

    So I don't think you can use this story to go "look, the studios should embrace online distribution" on its own.

    • by Jurily ( 900488 )

      The advertiser will pay more for the Hulu version, but since there's only one of them it brings less income to the studio.

      Except Hulu has unlimited screen time. On Fox, every episode is competing with every other show the station has.

      If the advertisers are paying per view, this could be a serious advantage.

      • by Hadlock ( 143607 )

        Yeah but there's (fairly) concrete statistics on how many people are ACTUALLY watching hulu. Chances are, unless you muted your speakers(so you might forget you have a video running), if you clicked on the link to watch the video, MORE THAN LIKELY you will see their ad. Vs Nielson TV ratings, which are based on something like 10,000 people (I don't know exactly, but it's a very small fraction of the population) across the country. They then divide (current population)/(number of nielson viewers)*(percentage

    • Re: (Score:3, Insightful)

      by swell ( 195815 )

      Mod parent up please

      The headline is just plain wrong- Fox gets more than Hulu.

      The math is pretty simple:
      Hulu: 1 ad X $60 = $60/thousand
      Fox: 9+ ads X ~$30 = minimum $270/thousand

      Furthermore, I'll wager that more thousands are watching Fox.

      This story seems to be an attempt to make geeks feel good about themselves vs the 'establishment'. Is that really necessary on /.?

  • Stupid (Score:4, Interesting)

    by Anonymous Coward on Friday June 26, 2009 @06:31PM (#28489729)
    I honestly can't wait until I don't mind watching adverts. That is, they're MORE FUCKING RELEVENT TO ME. I would ENJOY giving any company my personal data if it meant all the adverts I viewed were very relevent to my needs.
  • Apples to Oranges (Score:2, Interesting)

    by TejWC ( 758299 )

    Its not a good idea to compare watching commercials on TV vs. Hulu. One major difference that should be taken into consideration is the fact that there is only one commercial between segments of shows on Hulu; while on TV there are multiple. Its easier to "remember" the commercials after only seeing one rather than multiple but at the same time the overall revenue that the episode gets per viewer would probably be much less.

    • by geekoid ( 135745 )

      Well, TV gets a large set o viewers once, hulu gets a small set all the time. I don't even know if a 'perepisode' way of looking at Hulu Is the correct way to measure some of these numbers.

    • by geekoid ( 135745 )

      And since it's a short spo, I end up sitting there because it's not long enough to get up and do anything else. So if I get to go to the bathroom, I wait until the 30-90 seconds is up, stop and then go take a leak.

    • by jedidiah ( 1196 )

      Something else Hulu has going for it is the lack of a set schedule.

      Older prime time shows get MUTILATED in syndication. This was moderately
      bad in the 80's but it has gotten even worse as TV has become less well
      regulated. Now some older shows are unrecognizable.

      Sci-Fi Channel did one or two runs of StarTrek "uncut" before they went
      back to the usual "syndication edit". With Hulu, you can see any show
      you want intact (assuming the studio cooperates).

      The only other way to get that is to buy the DVDs.

      • ...Or you can go to TPB and download that show, free of charge uncut. On the downside you don't get streaming like on Hulu.
    • Also making the Hulu ad more popular is that it's much easier to target demographic characteristics... instead of buying every viewer in the Boston DMA by getting on WFXT, you can target only viewers in the zip codes in which you have stores and then pay for only the viewers you care about. More bang for the ad buck, so of course Hulu wants its share in that so they charge more in cost-per-1000 viewers.

  • by SlashdotOgre ( 739181 ) on Friday June 26, 2009 @06:34PM (#28489753) Journal

    Anyone know the numbers of how many viewers the average new episode of The Simpsons gets on both mediums? While it is interesting that the cost per viewer is significantly more online, I doubt the number of viewers on Hulu is within the same order of magnitude compared to how many people view a new episode on standard television. Also I still find it crazy that they're actively fighting Boxee when that only adds more viewers. It would be one thing if Boxee blocked the ads, but it's definitely not the case.

    • Re: (Score:3, Insightful)

      by nine-times ( 778537 )

      Yeah, it seems to me that it might be that ads cost more to the advertisers, but there are fewer ads and fewer viewers, meaning overall it's less profitable for the show. It seems to me that profit per episode for the content owners is a much more important number than cost to advertisers per viewer. After all, if you're trying to figure out whether something like Hulu can replace TV networks, the question is whether there's enough profit per show to fund the production of new shows.

      I would imagine that

  • by Anonymous Coward on Friday June 26, 2009 @06:36PM (#28489761)

    My daughter, aged five, watches youtube, managing to plug in and switch on the PC, login to her mum's account, start Firefox, type "you" and then somehow (this part I've not yet figured out) bootstrap herself into cartoons, music videos, and other random nonsense. She clicks on similar videos and can watch TV like this for several hours. My son, two, is almost there too. I guess, thank god youtube removes adult content.

    First, they ignore the real old cable television, it's utterly uninteresting for them. Secondly, they watch each youtube clip from start to end, and treat advertising, if any, as part of the content.

    How can this //not// be more profitable than legacy TV?

    • Re: (Score:3, Interesting)

      by dsanfte ( 443781 )

      Five-year olds would generally find adult content yucky and boring. Or else hilarious. They wouldn't be 'harmed' by it.

      • by vux984 ( 928602 )

        Five-year olds would generally find adult content yucky and boring. Or else hilarious. They wouldn't be 'harmed' by it.

        Depends on the 'adult content' and what the child takes away from it. Some full frontal nudity -- sure 'boring' or 'funny', but 'hardcore porn'...

        "Daddy, why are those 2 men hurting that woman?"

        That could make a long lasting impression a five year old. And not the 'good kind' of impression.

      • Re: (Score:3, Interesting)

        You don't know how that sense of hilarity will affect the child! In her first sexual experience, she might end up utterly crushing the ego of an emotionally fragile, spotty teenage boy!

        No, but seriously, the issue is more complicated than that. The extent that viewing sex will affect the child is dependent on the reaction of the parents. If they're more conservative on such issues, and react negatively, then it will affect them negatively.

        Some would blame the parents for this, but I don't see how this is di

    • Re: (Score:3, Insightful)

      by roc97007 ( 608802 )

      Yes, exactly. My daughter does something similar. It's not necessarily the ads -- If she can't choose the content and control it like a video, she's not interested. This makes the cable TV uninteresting by definition.

      I can't make myself just plop down and watch whatever is on. There are too many other things to do. My TV viewing is either movies, or older series that I can watch in sequence (Netflix is great). I am of the "TV viewing" generation, (color became common when I was in grade school) so

      • Re: (Score:2, Insightful)

        by Jedi Alec ( 258881 )

        Sorry, but I'm in your generation, and the tv is sitting downstairs gathering dust ;-) I just don't feel plopping down and watching whatever happens to catch my interest is a worthy use of what little time there's left after work and running a household. I'll watch the Daily Show online in the morning before work, maybe some other shows on the web that I've heard or read about it, and that's pretty much it. If it weren't for the occasional guests or maybe a console in the living room for the nieces and neph

        • Re: (Score:3, Informative)

          by tomhudson ( 43916 )

          It's interesting you say that, because you're not the only one, by far. I have friends who intentionally disconnected their TV from any external inputs (no antenna, no cable), so it's DVDs and games only. One of my daughters bought a 60" Sony a few years ago ... she has cable, and yet she now also no longer watches TV, and is thinking of getting rid of it. I haven't turned my dish on in over half a year ... and this isn't the first time that's happened.

          Interactivity and real control changes the equatio

      • The change is far bigger that you think. It's a shift from passivity, to an active citizenship. People don't just get controlled that easily anymore. Now for the first time in history, we have a powerful weapon against those who control us. One that is nearly indestructible, and that is intuitive to us.
        It teaches us, that we are in control of our live.

        We just yet have to accustom to it, and find out what we actually want, and forgot in all that long time.

        Where else can you just walk away from someone, and t

        • Where else can you just walk away from someone, and tell him that he is the biggest asshole, even when it's the biggest bully and criminal organization on the planet?

          Three words: False OCILLA takedown. A bully can file an OCILLA takedown request [wikipedia.org] against a video that you uploaded. Because OCILLA's safe harbor applies only to providers with a policy against repeat infringers, this puts a strike on your account that you can only remove by filing a counter-notification and waiting a month. This counter-notification includes your name and home address, ostensibly so that the complainant can seek a court order against your alleged infringement, but the information can be dan

    • I don't get it. What part of "adult content" exactly does "harm" kids, and how?

      And how is this not just a giant "monkey see, monkey do" contest without any thought involved?

      Don't think they can't see this stuff, if they *want*. They point is that they don't. It's their Goatse. You like to know what it is, but you don't want to see it.

      I think this fear of nudity that comes with it, has hurted children more that it protected them.

      After all, this whole concept stems from the religious badmouthing of sex, to ma

    • thank god youtube removes adult content.

      It doesn't filter out dirty words looped for a minute [youtube.com]. Heaven help your five- and two-year-olds once they discover YTP [tvtropes.org].

  • Math (Score:4, Insightful)

    by pete-classic ( 75983 ) <hutnick@gmail.com> on Friday June 26, 2009 @06:38PM (#28489789) Homepage Journal

    Fuck. No one can do Math anymore. An episode of The Simpsons absolutely isn't worth more by the numbers in the summary. In fact, it's worth about 1/15th as much. Doh!

    Maybe the article is worth something, but the summary is so bad I can't bring myself to click.

    -Peter

    • Re: (Score:3, Informative)

      The article doesn't mention this either.

      In order for an episode of The Simpsons to be worth more in advertising per viewer on Hulu than on regular television, prices for the same spot would need to be between $300 to $600.

  • This does not need to be made public. I love only having to sit through 25-30 seconds of commercials verses 2-3 minutes for each break. This is what drove me to Hulu in the first place, but I can't fault them for wanting to make more money. I just knew it was too good to be true for as long as it has been--soon it will be just like watching regular TV, and then I'll be back to torrenting the shows I like _sans_ commercials. Meh! Remember these halcyon days. I know I will.
  • by scribblej ( 195445 ) on Friday June 26, 2009 @06:45PM (#28489843)

    I just started watching Hulu last week. It's a great service! There is only one short commercial per break, and I'm willing to tolerate that. The only thing that would make it better is if they put banner ads around the window and took the commercials out completely.

    But that's not what'll happen. The company serves its bottom line. I give it less than six months before they start stuffing commercials into the show, equivalent to broadcast television. There's already at least one advertisment that cranks the volume up to 11 -- some jamacian shit I'm sure you've probably seen by now. It instantly pisses me off when the commercial comes up. It's a great reminder about why broadcast television is shit.

    • by c41rn ( 880778 )

      While an ad is playing on Hulu, there are two buttons to the left of the video: "Like ad" and "Dislike ad". These are only visible in the windowed video though, not full screen. I make a point of clicking on the "Dislike ad" button any time a commercial is too loud and/or obnoxious like the [rum company] ad you are referring to. I don't know if Hulu tracks these clicks on a per user basis, but after clicking on the "dislike ad" button a few times, I don't see that ad any more. Even if it doesn't track it on

  • As many have already pointed out (and many more will), it might be tricky to compare the numbers between TV and online broadcast, *but* I personally don't care. What I hope is that the media companies buy into the numbers and let me (outside US) watch my favorite programs online! :-D

    • You already can watch anime outside the US. But North American (I say this because many series are made in Canada) series online are pretty much US only.
  • Why does it cost more for adverts per person during the Simpsons? It could be the case that Hulu is charging more per viewer because those who watch the Simpsons are more receptive to advertisements, but I doubt that. I think that Hulu just uses a poor pricing model for advertisers.
  • Rahter misleading. (Score:4, Insightful)

    by thePowerOfGrayskull ( 905905 ) <marc,paradise&gmail,com> on Friday June 26, 2009 @07:01PM (#28489957) Homepage Journal
    In other news, different markets net different prices for services.

    Saying it's worth more per viewer is like saying hard liquor is "worth more" when you buy it at a bar. You're selling to two different audiences, and a much smaller amount. The Simpsons on hulu might get tens or hundreds of thousands of viewers; whereas the Simpsons on Fox will get millions. Comparing the price for advertising on the two is telling about 1/3rd of the story.

  • It costs $60/1000 viewers on hulu because they have exclusive advertising. Sure they make less per advertiser on TV but they are showing ads from 4 or 5 diferent people every commercial break. So it's more like $30*5=$150/1000viewers on TV.
  • Comment removed based on user account deletion
    • A tectonic shift is a slow drift over time that has a sudden, jarring result one day. The metaphor seems apt.

      Describing an increase in a discrete variable as a "quantum leap" is also accurate.

      The problem is that some people misuse them to mean titanic shift/leap. That is incorrect. But in this case, as well as many others, the phrases can be used correctly.

      In the 70's(?) everything was "hifi" and in the 90's everything was "laser". Sometimes though (stereos and pointers as easy examples) the terms were

  • > Online viewers have to actively seek out the
    > program they want to watch, so advertisers end up > with a guaranteed audience for their commercial

    This is a pretty flaky argument if you ask me.

    People have to actively seek out a program to watch on TV as well. On TV, this is known as applying rule of the "least horsehit" while channel surfing.

    But unlike TV, where an advertisement in a lame program usually drives me away to a different channel, never to return, on the web, I just launch another brow

    • "On TV, this is known as applying rule of the "least horsehit" while channel surfing."

      There's a channel with the least horseshit? Quick - someone tell my brother-in-law - he just spends his evenings repeatedly looping through all the channels.

      When his dish went down (snowstorm and ice buildup temporarily knocked it out) he spent over two hours just sitting there looking at the on-screen menu (I kid you not) before giving up and going to bed.

      BTW - most advertisers still haven't got a clue about the sc

  • Have they never heard of AdBlock plus, and his fiends?

    Yes, they filter TV stream too! (His friends are better at this than he is though. ;)

  • I hope that TV execs learn the lesson that they've got too many commercials in their shows. I remember when commercial breaks on my shows (as a kid) were 2 minutes or 4 X 30 second spots). Now, I'm actually deterred from watching TV. I'm a huge football fan and I'd watch every possible game I could (in the pre-Tivo days). Now, I only follow my favorite team as the annoyance of commercials overcomes my casual interest in other teams. Monday Night Football IMO died because they inserted so many commercia
    • I'm a huge football fan [...] Monday Night Football IMO died because

      Monday Night Football died because the football format played in the United States encourages commercials in the first place. If it were 45 minutes per half, no TV time-outs, no padding, and no grabbing the ball, then there wouldn't be as much of a chance for advertisers to interrupt flow. Case in point: the FIFA World Cup gets more viewers (1100 million) than the four Super Bowls held during the same period combined (400 million).

  • This is a great example of picking numbers to tell your story. In this case, its "per thousand viewers." Isn't it the total income that really really matters? 1000 people viewed it, woop woop. TV viewers are in the millions, and Ads run for, what, 9 minutes? Compare that to the 30 some seconds of Ads and n-thousands of viewers, your online TV ad revenue isn't going to save any networks anytime soon.

    The exact opposite story could be written if the writer picked different parameters. In the end it just depen

  • Think of it this way also. . .

    People who are watching adverts on the internet are more likely to buy the products you tell them to buy because they're not smart or willful enough to sculpt their own environment and thus are more easily duped into believing. . .

    A) That it is their moral obligation to allow advertisers access to their brains.
    B) That it's too much effort to figure out how to avoid seeing adverts on the web.

    A rube in hand is worth a dozen smart and willful guys in the bush.

    Hallelujah.

    -FL

  • Can someone please add an "American flag" icon to this and all discussions about Hulu?

    The rest of the world is blocked from watching stuff there--even Dr. Horrible is no longer available outside the US on it. (even though it was on release.)

  • Now I feel like a Luddite.

  • by TiberSeptm ( 889423 ) on Saturday June 27, 2009 @07:46AM (#28493975)
    Had explained to me that this expectation - that Hulu advertisements would eventually prove to be more valuable than on-air advertising - was how the company planned on becoming profitable. The justifications he gave were-
    • 1) Hulu ads are not skippable so the fear that a percentage of viewers will skip them as they do on DVRs is not there so much.
    • 2)Their ads can be somewhat interactive; you can click through directly to the advertiser's site.
    • 3) Hulu commercial breaks are not long enough for the viewer to treat them as some sort of actual break in which to check their email, go to the bathroom, or grab a bite to eat. While users can simply do these things and then rewind, Hulu's own experience has found that most don't.
    • 4)As an explanation of #3 - they can gather general statistics on user behavior with respects to their videos and ads. They know that the vast majority of users do not get up during commercials, come back after them, and rewind because they can see that few people are rewinding after commercial breaks.
    • 5)While they do not sell personal information, they do gather broad statistics on viewers in general as well as some specifics about registers users. This allows advertisers to gauge how many people within specific demographics not only will see their ad, but how many actually responded to it. this lets advertisers gauge rather quickly how accurate any targetting was. They also get feedback from users giving thumbs up or thumbs down to certain ads. This allows advertisers to see fairly quickly if they accidently created an ad that inspires hate rather than shopping.

    Anyways, these are the reasons he and one of the executives had given for why they expected to eventually be able to charge a good deal more for 30 seconds of Hulu advertisement than one would normally charge for the same time*viewers over the air. It came up when we were complaining about the studios' decisions to delay some shows by up to 8 days compared to the actual air date. While it was clear this was to prevent an uprising from the affiliates, we still grumbled a bit about it.

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