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NBC is banking on a free streaming service to counter-balance Netflix, Disney and Amazon
Michael Beach
January 24, 2019
New streaming wars entrant #1: NBCUniversal is launching an ad-supported (kind of) streaming service in early 2020 potentially around the 2020 Olympics in Tokyo.
What it will cost depends on your pay-TV status:
1) With pay-TV — Free w/ ads
2) Without pay-TV — $12/month w/ ads
Why this matters: NBCUniversal is not ready to abandon the pay-TV model just yet and this looks like an improvement on the TV anywhere model that some analysts such as Alan Wolk have been recommending for years.
The service will pull content from NBCUniversal (NBC TV, USA, Syfy, Bravo, etc.), Dreamworks and Universal Studios.
Quick math on the advertising:
1) Ad minutes/hour — 3–5
2) 30s spots/hour — 6–10
3) Ad revenue/user/month — $5
4) CPM $ — ≈$30
5) $/spot — $0.03
6) Spots/month — 167
7) The service needs 17–28 hours/viewer/month to hit the revenue target from advertising
Cross Screen: The ads for this service will be sold/delivered alongside linear and on-demand.
Quote from Steve Burke — CEO @ NBCUniversal:“Advertising continues to be a major part of the entertainment ecosystem and we believe that a streaming service, with limited and personalized ads, will provide a great consumer experience,”
More #2: TV Authentication Push Is Official
The post NBC is banking on a free streaming service to counter-balance Netflix, Disney and Amazon appeared first on Cross Screen Media.
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