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July 1, 2009 | Uncategorized

Online TV Sites Charging Premium for Ads

With websites like Hulu taking off, old school TV companies have frequently complained that they don’t make as much money online as they do on standard TV. Apparently, though, this is changing.

Hulu and NBC.com are reportedly both charging a significantly higher CPM (cost per 1,000 views of an ad) than network TV, at least on some shows. It is important to note that this does not mean that TV makes for money online, since the bandwidth and infrastructure costs are not factored into this, however it indicates that making money with sites like Hulu should be possible in the near future, if it isn’t now.

The advantages of online TV distribution will not stay the same, though. I suspect, for exmaple, that someone will make a DVR for Hulu, making it easier to skip ads. At the same time, though, other advantages can be quickly added, since the web is a highly flexible medium.

This is definelty good news for everyone, since it means that we are more likely to see more content in more places.

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