New Nielsen TV Data May Not Boost Revs, VOD Could

The new data that Nielsen will generate by classifying homes with Internet-connected TVs as TV homes won’t influence the C3 ratings that bring the national TV currency, Nielsen SVP Brian Fuhrer told MediaPost. So it won’t produce much in the way of boosting network revenues.
In light of the announcement, a Wall Street analyst believes video on demand offers networks a far better opportunity. But Bernstein’s Todd Juenger said in a report Friday there are multiple steps to be taken. He said VOD feeds need to offer advertising “uniformly,” and the industry must determine how to count views taking place outside a three-day window after linear broadcast. (He believes these account for the “majority” of VOD consumption.)

Juenger suggested there is a need to emphasize dynamic ad insertion.
He said a notable chunk of viewing captured under the Nielsen addition will be from SVOD providers such as Netflix and Amazon. Juenger notes that a good deal could also come from YouTube and AOL.
The new system could actually benefit those sites, Hulu and others because if advertisers view their consumption side by side with traditional TV, strong traffic may encourage them to shift dollars.

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