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Maybe Charlie Ergen Knows Something About Ads
By Swanni
Washington, D.C.
(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.
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