Tagged 'fox'

Fox Knows The Score

Posted by Matt Rosenberg on April 3rd, 2011 at 6:54 pm

Fox is a very self-aware company about the trouble the network TV business is in. First, the network reacted to Cablevision taking them off the air in a carriage fee dispute by blocking Cablevision ISP subscribers from Hulu, showing that they understand that the network is unnecessary if you want to watch Glee. Now Jim Gianopulos, the chairman of the 20th Century Fox movie studio is scolding cinemas for annoying customers by cluttering the pre-show screen with ads when the audience is used to being able to skip ads with their DVR.
The irony is that theater owners are doing the thing that TV networks used to be able to do quite well: monetize a captive audience. Mr. Gianopulos told the truth -- people don't like having their attention hijacked. Just because they are captive doesn't mean they will accept being hawked at.
The NY Times article that reported this implies that Mr. Gianopulos issued this statement as a partial explanation for the 20% Q1 decline in theatrical revenue. If people are so upset about ads screaming at them that they will avoid seeing a first run movie in its exclusive theatrical run, what does that say... Read more

The War We Started Is Heating Up

Posted by Matt Rosenberg on October 19th, 2010 at 11:22 am

This weekend, Fox stations began to disappear from the NY-based Cablevision system, which provides service to about 3 million homes. The rhetoric is about News Corp’s greed or about Cablevision’s unwillingness to fairly compensate News Corp for the value of their programming. That’s the battle, but not the war.
We are seeing more and more disputes between cable operators and networks over carriage fees. The reason for this is that ad-supported networks are preparing for the day when they can’t support the cost of programming through ad revenue. In fact, they already rely on carriage fees. But as more and more viewers look at cable only as a pipe filled with shows and live viewing dwindles, the audience is skipping the ads. As advertisers realize that so many of the impressions they are buying are being delivered but not seen, the advertising income line on a network’s balance sheet will soften. That loss will need to be made up somewhere else, and the most obvious else is carriage fees.
We have been studying the audience that is removing itself from interruptive advertising’s reach and it is a very large audience. They aren’t... Read more