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November 14, 2005
Connecting Dots
I was reading in AdAge about how ABC dropped 15% in weekly ratings after it began airing repeats of Desperate Housewives and Lost. This immediately reminded me of the recent Apple iPod announcement whereby viewers can pay $1.99 to download and view those same programs.
So, let's think about this. When consumers can watch reruns of those programs for free with convenience on their HDTV's, they stop watching in rather large numbers. But Steven Jobs is hoping that they will pay real money with some inconvenience to watch it on a small screen? I don't think so.
For anyone interested in why advertising is the mother's milk of the television business: the average cost of a 30-second spot in “Desperate Housewives” is $439,499, while the same ad in “Lost” costs buyers $333,166, according to Advertising Age’s fall pricing chart.
That's a lot of downloads.
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