The CW is now mining the opportunity of streaming its shows online.
According to the Wall Street Journal:
The U.S. network, a joint venture of CBS Corp. and Time Warner Inc., plans next TV season to double the commercials in Web versions of its shows, including “Gossip Girl.” That’s a steep increase from the one or two ads per online commercial break that have become more standard as media companies jockey to keep Web video from undermining the traditional TV business.
Ad revenue online is, in WSJ terms, paltry. No one has quite figured out how to monetise streaming shows in a way that’s meaningful to the bottom line of networks. But giving viewers access to shows online seems like a no-brainer for a network like The CW, which caters to a young audience.
WSJ: “We see that more of our viewers are going online,” said Dawn Ostroff, CW’s president of entertainment. “Ultimately, I think it’s going to continue to spread.”
That’s quite a reversal from Ostroff who famously decried the transition to online television just two years ago. The network pulled streaming episodes of Gossip Girl in 2008 in an experiment to try to grow broadcast ratings (despite cultural appeal, the show has never pulled in a massive number of viewers).
The network still delays the availability of its shows by three days to “protect traditional ratings.”
The new push would double the time of commercials during online streams from about five minutes to 10. According to SNL Kagan estimates, the network will lose $54 million this year.
Read more details at WSJ >
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