Serious buzz about multichannel video advertising

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In the Zone: recent articles and analysis

News from around the web about cable and multichannel video advertising

Verizon faces media storm from targeted advertising patent (Fierce Cable, Dec. 7)

(Zenith Optimedia, Dec. 3)

(Broadcasting & Cable, Dec. 2)

(Digital TV Europe, Nov. 29)

Advertisers need to move to push content to 2nd screens (Digital TV Europe, Nov. 28)

Ensequence platform to power ads on Sony smart TVs

DEC. 4: Clickable banners, landing pages and other forms of advertising that will appear on Sony's Internet-connected TV sets will get there with the help of interactive TV software provider Ensequence. A multi-year deal announced today will result in Ensequence's software being embedded on all Sony Connected TV sets, marking a big win for the advanced TV platform provider. The bull case for connected TVs is that they present a new conduit for advertising that potentially can reach a significant base of owners. The challenges including convincing advertisers of the value of a new type of on-screen real estate that's independent of traditional commercial breaks in mainstream television content.

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Thursday, December, 6 2012

With retrans fees rising, does a new ad model lurk?

By: Stewart Schley Thursday, December, 6 2012

Comments attributed this morning to CBS Corp. boss Les Moonves underscore a conundrum of retransmission consent, the legal framework for channel-carriage deals between broadcasters and multichannel video distributors.

Retrans, if you hadn’t noticed, is big business. cable/telco/satellite providers will pay $5.5 billion by 2017 for the rights to retransmit TV station signals to pay-TV subscribers. Speaking today at an industry conference, Moonves said CBS expects to collect more than $1 billion from retransmission payments and reverse compensation fees (money paid to CBS by its broadcast affiliates) by 2017. Moonves, President and CEO of CBS, appeared today in NYC at the On Screen Media Summit presented by Broadcasting & Cable and Multichannel News.

According to Tweets this morning from Multichannel News writer Todd Spangler, Moonves said the hefty rights fees may actually represent a bargain to pay-TV providers, because CBS draws more viewers than even cable’s most expensive network, ESPN. By Moonves’ logic, on a pure ratings basis, CBS is among the most valuable channels a video provider can offer. If ESPN gets $5 per month/per subscriber from pay-TV companies, Moonves was quoted as saying, “shouldn’t we be getting $7 or $8 a sub?”

But ratings are only one part of the equation, and Moonves’ analysis ignores a fundamental difference between cable networks and broadcast station groups when it comes to licensing payments. That difference has to do with advertising.

ESPN, USA Network, Discovery, HGTV and hundreds of other cable networks give back 2-3 minutes per hour of time in which affiliates can sell local – or in the case of DirecTV and Dish Network – national/regional advertising messages. For the cable industry, ad inventory doled out by networks results in an annual revenue stream that approaches $5 billion. (Not…

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