Consumers have a number of video streaming options that involve little or no business interruption, and that’s bad news for the industry. The lack of ads and contracts associated with streaming services have made them a popular alternative to cable and satellite. As a result, NBCUniversal will take drastic measures to make its own networks more attractive: there will be fewer prime time ads from the end of the year.
Some streaming services, such as Netflix, don’t have ads. Others, like Hulu, have ads with the option to pay more to get rid of them altogether. Cable and satellite, however, can only offer things like time-shifting controls for fast-forwarding commercials. That’s not enough for many viewers who prefer to watch their content the day after it airs – with little or no ads – via a streaming platform.
To address this issue, NBCUniversal will reduce the number of ads served by 20% in the fourth quarter of this year. The change will apply to its own original primetime shows. Additionally, NBCU plans to reduce the length of ads that run during these times by 10%. This will impact viewers of approximately 50 primetime TV shows starting later in 2018.
Speaking about the plans, NBCUniversal’s president of advertising and customer partnerships, Linda Yaccarino, said in an interview with Variety“TV stations would be mad to believe that anything other than a commercial overhaul was anything but inevitable.”
The issue of television commercials will only grow as today’s youngest generation reaches adulthood, having in some cases never experienced the mass commercials experienced by earlier television-watching generations. Even among services that have ads, like Hulu, the number shown during shows is considerably lower than the amount shown on traditional television.
THE SOURCE: Variety