NBCOlympics.com, just $5.75 mil in video-ad revenue
By: jmm1112 in WAVX | Recommend this post (0)
Tue, 26 Aug 08 3:20 PM
due to "...a measure of exclusivity for its (i.e., NBCs) TV advertisers" in contrast to CBS Sports, NCAA's March Madness made $23 mil in ad revenue.
no wonder the tvtonic appeared to be a flop in the video/ad/revenue game. that said, i hope the nbc/msft players recognize tvtonic's revenue potential in scenarios w/no contervailing agendas.
NBC Didn't Cash In on Olympics Video
By EMILY STEEL
August 23, 2008; Page B5
online.wsj.com
NBC's decision to limit the amount of Olympics footage on its Web site has ticked off sports fans. But that decision could also dog the network in another way: NBCOlympics.com will generate just $5.75 million in video-ad revenue from the Games, according to estimates from research firm eMarketer Inc.
At a time when video ads are starting to catch on, analysts say NBC had an opportunity to make a lot more money had it offered more online content during the Games. CBS Sports, by contrast, streamed all of the NCAA's March Madness basketball-tournament games live earlier this year and made $23 million in ad revenue, the CBS Corp. network says. (The basketball tournament lasted three weeks, while the Olympics runs over two weeks.)
NBC limited its potential for ad revenue in a number of ways, industry analysts say. To provide a measure of exclusivity for its TV advertisers, it chose not to make available live video for some of the Games' highest-profile events. The network failed to distribute its videos widely on other sites, which would have boosted its audience.
General Electric Co.'s NBC wouldn't comment on the eMarketer ad-revenue estimates.
For the NCAA tournament, CBS dropped registration requirements and distributed its videos across a broad network of sites, including YouTube, Facebook, ESPN.com and Yahoo Sports. CBS kept all of the ad revenue tied to the videos, regardless of where they appeared. The videos registered 4.8 million total unique visitors, who watched more than five million hours.
EMarketer calculated its ad-revenue estimates based on the number of video streams that NBC said it generated during the first seven days of the Games. EMarketer estimated that NBC charged on average $50 per thousand ad impressions.
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