Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at firstname.lastname@example.org or at 703-505-3064.
Click TVPredictions.com to read more news and features on TV technology.
Maybe Charlie Ergen Knows Something About Ads
(July 3, 2012)
-- Dish Chairman Charlie Ergen was mocked last week for saying
that his company's new ad-zapping Auto Hop was launched
partially to prevent kids from seeing commercials for junk food
and alcohol. Cynics accused Ergen of trying to disguise the real
reason for Auto Hop: to eliminate all
network commercials to put pressure on the networks
to lessen their demands for more money to carry their channels.
But a Wall Street analyst yesterday issued a report that would seem to support Ergen's contention that there's a market for parents who want their kids to watch shows without seeing the commercials.
Fortune Magazine reports that Sanford C. Bernstein analyst Todd Juenger says many parents are subscribing to Netflix so their children can watch programming ad-free. The analyst conducted a focus group of 16 mothers and found that "content control, commercial avoidance and time management" were the top factors for choosing shows for their kids.
Unlike popular children's networks, such as Nickelodeon and Disney, Netflix's shows on streaming and disc do not include commercials.
The mothers also said they originally subscribed to Netflix for themselves, but now mostly use the service for their kids because of a "dwindling supply" of shows available for adults. (Netflix has been criticized for offering fewer new-run movies in recent months.)
Because of his findings, Juenger says Disney and Viacom, the owner of Nickelodeon, should demand more money from Netflix to carry its shows. He says commercials on their channels are becoming less valuable because more parents are choosing to avoid them by watching the shows on Netflix.
Comment on this story below.
What do you think? Offer your comments below!