SpectatorBytes

Much has been written about the Hulu experience. Since last year, I increasingly have found myself using my laptop on weekends to catch up on my favorite TV shows both on Hulu as well as on the network sites. The experience is particularly enjoyable on Saturday afternoons when College sports dominate TV programming.

So, obviously the on-demand capability which PCs offer makes them a compelling device. However, there was one more interesting aspect of my laptop experience that I noticed: I am ok with the ad spots shown (pre, mid and post roll format). The overall number is bearable. Four per show. They are somewhat targeted and in some cases they are entertaining.

This has led me to believe that many years from now the TV experience may ultimately end up emulating the laptop experience from an advertising perspective. TV networks will offer less spots at probably higher CPMs (given that reach will continue to be important). As is the case today, Hit shows will generate most of the value for the TV industry and non-hit shows will have to be both much more targeted and less expensive.

It will take several years before the industry adjusts to the potential economic implications of this shift. Nevertheless, this may help the TV industry more effectively address the DVR and Broadband challenges.

Note: As you may be, I am surprised that pre-rolls increasingly look like a format that is here to stay. I will discuss this on another post. In the meantime, emarketer has an interesting article on online video advertising (see here).