Networks set for $120m from web ads

NETWORKS SET FOR $120M FROM WEB ADS
[SOURCE: Financial Times, AUTHOR: Matthew Garrahan]
The four US television networks in a pay dispute with Hollywood television writers over online video advertising are in line to generate $120m of revenues in 2007 from free web streaming of their content, according to a leading media buyer. The networks have been reluctant to acknowledge the size of their streaming businesses, partly because online video advertising has become a sticking point in pay negotiations with the writers, who have been on strike for almost a month. However, advertisers are flocking to web streaming. “Based on what we’re paying for spots across the four networks, we estimate this market to be worth more than $120m,” said Tracey Scheppach, senior vice-president and video innovation director for Starcom, a leading media buying agency. Media buyers expect streaming revenues to increase because online video commercials have better recall rates than traditional TV advertising.
http://www.ft.com/cms/s/49e3d7a8-9e1c-11dc-9f68-0000779fd2ac.html
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