Networks pulling ad inventory from Hulu NBC among those looking to assert more control over assets
By Mike Shields, Mediaweek TheHollywoodReporter.com Sept 27, 2010, 07:08 PM ET http://www.hollywoodreporter.com/hr/content_display/television/news/e3iafd7f303bda986c22f534d5e0f942f53 Advertisers are drawn to Hulu in part because the site is a popular place for fans to stream shows like NBC's "30 Rock" and "The Office." The trouble is, Hulu doesn't actually sell any inventory in those shows. In fact, according to sources, Hulu isn't able to sell much inventory from NBC's primetime shows these days. That's because -- like a child grabbing for his favorite toy and shouting "Mine!" -- NBC has begun pulling back the maximum allowable amount of ad inventory within its shows on Hulu, as is such sister cable networks as USA and Bravo. Hulu's other broadcast partners, ABC and Fox, are following suit, according to buyers familiar with Hulu's operations, though NBC has been the most aggressive as it looks to capitalize on heavy demand for video and assert more control over its assets. Hulu is a joint venture among NBC Universal, News Corp. and Disney. The specifics of just how much inventory Hulu's network partners can retain is unclear. According to sources, networks can pull back 100% of ad inventory on two or three specified shows, which is what NBC does with "30 Rock" and "The Office." For other shows, the number is close to 85%. According to a Hulu statement, "Hulu works with media partners to maximize sellout across Hulu. Hulu sells the majority of the inventory ... we are proud to say we have inventory to support both our business and the business of our content partners." NBC Uni executives declined to comment; Fox and ABC execs were not available for comment at press time. Having the broadcast nets pull back ad inventory is unlikely to put a major dent in Hulu's inventory volume. The site reached 27.1 million unique users who streamed nearly 1.4 billion videos in August, according to comScore. However, Hulu's brand has been built as the place to go for current hit TV shows. The site regularly commands CPMs in the range of the broadcast networks' Web video plays -- sometimes between $40 and $50. If Hulu becomes a place where buyers can only access older shows and movies, its stature could change. "Hulu has professional content, just not necessarily the marquee shows," said Andrea Kerr Redniss, a vp at Moxie Interactive. For example, an advertiser purchasing the comedy genre might be more likely to have its ads run in old episodes of "Arrested Development" than "Modern Family." Theoretically, that shouldn't be an issue since Hulu is not permitted to sell specific series. Yet irked buyers say they still catch Hulu sales execs listing specific shows in their pitches, including shows like "30 Rock" that are managed completely by the networks. "We constantly have to explain this to our clients," one buyer said. Many also complain that Hulu still has serious inventory management issues; sales execs will claim that a particular quarter is sold out, only to come back later in the quarter with more avails. -- ======================================== George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 Mail: antunes at uh dot edu _______________________________________________ Medianews mailing list [email protected] http://lists.etskywarn.net/mailman/listinfo/medianews
