TV networks shed ad time as consumers skip commercials [Los Angeles Times (CA)]
Netflix, Inc. (NFLX)
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Source: Los Angeles Times
TV networks shed ad time as consumers skip commercials The emergence of Netflix and other streaming services that offer subscribers a commercial-free TV viewing experience means a generation could grow up without ever knowing the meaning of the phrase: "We'll be right back after a word from our sponsor." The broadcast and cable networks that took in $19.7 billion in revenue for advanced sales of commercial time last year don't want to see that happen. That's why Fox and NBC plan to reduce the amount of commercial time in their shows starting next fall. Both are looking to offer advertisers the chance to run commercials in shorter breaks where they will hopefully find a more attentive audience. Other media companies have launched similar initiatives to slash the number of commercials on their cable channels. But doing so comes with a risk. Airing fewer commercials could mean less revenue for the networks — unless they can convince advertisers that it's worth it to pay more to have thei
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