Network Television and Digital Media Ashley Borlik

"In a typical week, how many hours do you spend doing each of the following?" Data Sources: Forrester Research, Inc. ©2006; Forrester’s NACTAS 2006 Benchmark Survey Web use surpasses traditional TV usage by Gen Y in Gen Yers’ Net use increased from 9.4 hrs/wk to 12.2 from Seniors’ time online also increased from 2.9 to 3.8 hrs/wk.

Digital Media  Can help develop an audience base for a struggling show.  “Hit shows work on every platform, but some shows have a demographic appeal that works better than others online," says Jeff Gaspin, president of cable entertainment, digital content and cross-network strategy at NBC Universal.  Mindshare's online research found that one-third of kids between the ages of view TV broadcasts on the Internet.  Ipsos Insight found that Americans ages were twice as likely to download TV shows on the Internet than the rest of the population.  Hilmi Ozguc, founder and CEO of Maven Networks, "The traditional media companies see the Internet as a way to extend the TV experience. It's another window they can capitalize on with known franchises”

 Major deal with iTunes in December 2005 with 11 shows  Reported $12 million in revenue from iTunes sales from Dec 05 – June 06  Projects that interactive advertising and digital content will make up 5% (85 million) of revenue base (17 billion annually) by 2008  Offers streaming video on their site, NBC Rewind, including full episodes of select series and 2 minute recaps of others

NBC  Made a deal with YouTube to have an NBC page with content that promotes NBC shows.  Part of the deal includes NBC being able to “police” YouTube and take down copyrighted material.  John Miller - "We want to fully embrace the viral activity that YouTube embraces."  New president and CEO, Jeff Zucker, is committed to furthering NBC 2.0.

The Office  One of the first 11 NBC shows to go to iTunes  The most popular NBC show on iTunes  Delivered highest ratings following its introduction to iTunes  Ben Silverman, Executive Producer, says of iTunes- “That confluence brought us a sampling of a new audience, which also is not an audience that watches TV by sitting down at the time the broadcaster wants to show it"

The Office  NBC offers exclusive content on The Office website, including deleted scenes, extended cuts of select episodes, games, and blogs from characters.  Streaming content includes ads, and all pages have banner ads.  NBC hosted YouTube promo contest, challenging people to make an original promo for the show to be aired

 First to go to iTunes with 5 shows in October 2005  Offers streaming video of episodes the following day on their website  Deal with Yahoo to provide news video to Yahoo's video service  Albert Cheng, Executive VP for Digital Media, says, “Overall, we've seen our ratings increase for the shows we have on iTunes, and it continues to pick up momentum.”

LOST  Introduced to iTunes in October 2005  Total audience rise of 14% in 4 months since iTunes.  Adults also up 28 percent.

CBS  Shows went to iTunes in June 2006  Oct 06 - Deal with YouTube for CBS to provide clips of CBS programs  iTunes revenues reported as less than $10 million in 2006  Expects online ad revenue to double over the next year

 Deal with iTunes in May 2006, debuting with 16 shows, largest debut to date  FOX On Demand offers streaming entertainment on local affiliate websites as well as MySpace, which is owned by News Corp.

The Future?  Video streaming to phones.  Original scripted content available exclusively online.  User-generated content.  Increased interactivity through television sets.

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