Starcom: Network Online Ad Revenue $120m In 2007

Each week Hollywood’s writers stay out on strike their case for digital residuals gets better, and the network’s poverty story gets worse. Now the FT is reporting that the Big Four broadcast networks–ABC, NBC, CBS and Fox–are on pace to hit $120 million in streaming ad revenue in 2007, according to media buyer Starcom. That’s just the ads within streaming video, not banners, subscriptions, sponsorships and a host of other digital revenue streams the writers would like a piece of.

That’s on par with a previous estimate we used to conclude that the studios and the writers were $7.2 million apart in their talks on digital residuals. Our estimate, based on Forrester data, put total Hollywood-related streaming revenue at $240 in 2007 (that would include broadcast, cable, film, and studio-produced web-only content. The broadcast net’s share of that should be about half, since total network and cable audiences are about even, and most streaming video ads appear within TV, not film.

Since Starcom is actually buying the spots, they’re a credible source. And this latest data comes after ABC and NBC told TV Week that due to the popularity of streamed shows, they had exceeded the guarantees made in the Upfronts, and would begin selling additional online ad inventory.

Prediction: 40% of Video Online By 2012
Writer’s Strike Solved! Our Proposal

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