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Re: Network end users to pull down 2 gigabytes a day, continuously?
On Jan 12, 2007, at 11:27 PM, Mikael Abrahamsson wrote:
Generally, in the US, the content is sent to the cable company with Ads already inserted, although they might get their own Ad slots. You would need to talk to the source, i.e., the network. Since you would be threatening the business model of their major customers, you would need patience and a lot of financial backing.
For the US, an analysis by Kenneth Wilbur
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=885465 , table 1, from this recent meeting in DC
shows that the cost per thousand per ad (the CPM) averaged over 5 networks and all nights of the week, was $ 24 +- 9; these
are 1/2 minute ads. The mean ad level per half-hour is 5.15 minutes, so that's 10.3 x $ 24 or $ 247 / hour / 1000. This is for the evening; rates and audiences at other times or less. So, for a 1/2 hour evening show, on average the VOD would need to cost at least $ 0.12 US to re-coup the ad revenues. Popular shows get a higher CPM, so they would cost more. The Wilbur paper and some of the other papers at this conference present a lot of breakdown of these sorts of statistics, if you are interested.