How much of Kimmel's Web presence helps his show, and how much takes it away?

There's an attached graphic showing how the late night crowd is doing
year-over-year. Only Kimmel is up.

Leno: 3.7 -4.2%
Letterman: 3.2 -9.0%
Kimmel: 1.8 +2.8%
Fallon: 1.7 -0.3%
Stewart: 1.5 -1.6%
Ferguson: 1.5 -14.0%
Colbert: 1.1 -1.1%
O'Brien: 0.8 -42.3%
Handler: 0.7 -18.2%

Posted below to free it from the pay wall.

http://online.wsj.com/article/SB10001424052970203315804577209342302440810.html

MEDIA & MARKETING | FEBRUARY 13, 2012
Jimmy Kimmel Walks Web Tightrope
Comedian Finds Younger Viewers via YouTube, Helping His TV Show—So Far

By CHRISTOPHER S. STEWART

Before celebrities agree to go on "Jimmy Kimmel Live!" one question
regularly pops up—can the ABC late-night host please include them in a
viral Web video?

"I get sort of annoyed," Mr. Kimmel said with a laugh. Yet the
frequent requests are a testament to what may be a new trick in
television today. By cultivating a popular presence on YouTube, Mr.
Kimmel has managed to assemble an audience online while at the same
time increasing his viewership on traditional TV, when most other
late-night hosts are losing viewers.

The comic may be an ideal candidate for straddling the worlds of
online video and traditional TV. With a raucous mix of goofiness and
frat-boy pranks, Mr. Kimmel's ABC show, which is filmed in Los
Angeles, fits the fleeting attention of the pop-culture consumed Web.
His clips on YouTube include skits with racy titles and premises,
playing up a quirky cast of characters and fake feuds with celebrities
like Matt Damon and Ben Affleck.

Even so, his success raises a question that resonates across the TV
world: Can success on the Web bite back? It is a delicate balance for
TV executives, as they gingerly put content online while worrying
about the tipping point where viewers can cut their cable cords and
rely on the Web for their video consumption. While Mr. Kimmel is
proving there is an audience for his programming online, it isn't
clear yet there is a business model.

"Online video as TV has arrived," said Brian Hughes, senior vice
president of audience analysis at Magnaglobal, part of Interpublic
Group of Cos. "The way now is figuring out how to bundle digital into
your offerings and make some money off it."

So far, Mr. Kimmel's YouTube channel, which includes clips from the
broadcast and some material from the cutting-room floor, has produced
annual revenue between $1 million and $2 million, said a person close
to the show. According to ad-tracking firm Kantar Media, advertisers
spent some $72 million on ads for the broadcast in the first nine
months of 2011, up 14% from a year earlier.

His TV audience from the start of the season on Sept. 19 through Feb.
5 was nearly 1.8 million, up 2.8% from the same period a year earlier,
Nielsen estimates. During this same period, other late-night hosts
including NBC's Jay Leno, CBS's David Letterman and Comedy Central's
Jon Stewart saw their average viewerships decline.

"If you are reaching people [online] who don't watch the show, then
you're actually monetizing people who don't watch the show," said
Jackie Kulesza, investment director of Starcom USA, Publicis Groupe
SA. "On top of that you have the added value of getting people
interested."

Still, as Jon Swallen, senior vice president of research for Kantar
Media notes, "the key financial question is whether online access
cannibalizes the TV viewing audience."

About this, Mr. Kimmel said, jokingly, "What would be ideal is if we
could take the Internet away from people."

A peripatetic radio-show host from Brooklyn, the 44-year-old Mr.
Kimmel made his name on Comedy Central's "The Man Show," with acts
like "Juggy Dance Squad," featuring buxom women, and a skit involving
a little boy selling beer at a lemonade stand. He took the ABC spot
following long-running news show "Nightline" in 2003, edging out Jon
Stewart.

The YouTube notion came in 2008, as Mr. Kimmel noticed that posted
clips from his made-up battle with Matt Damon were getting millions of
views across the Web. As the core age of late-night TV hovered in the
50s, Mr. Kimmel saw an opportunity to grab a younger audience. "We saw
people putting it up [online] and thought, 'We should do this
ourselves,'" he said.

At the time, networks were grappling with how much material to put
online and where to house it—a tense discussion that persists today.
About the talks with ABC about posting TV content Mr. Kimmel said, "It
took a while."

The Kimmel show uploads to YouTube between eight and 12 new clips of
varying length a day, including skits with Guillermo Rodriguez, a
former parking lot security guard who now acts as the show's celebrity
correspondent. Among the big hits so far are "Handsome Men's Club" and
"Jimmy Surprises Bieber Fan," which earned an excess of 40 million
views.

The YouTube channel now has 314,840 subscribers. The 173 videos Mr.
Kimmel posted in November have since drawn 40 million views, according
to the show.

While that sort of audience falls well short of YouTube stars like the
comedian Ray William Johnson, it is much better than other late night
TV hosts. Late shows at CBS and NBC are less YouTube-focused, with
many of their videos appearing on network sites, branded social media
feeds like Facebook, and or Hulu, owned by Walt Disney Co.,
NBCUniversal, and News Corp. (which owns The Wall Street Journal).
NBC's "Late Night with Jimmy Fallon," for instance, was watched by 2.3
million online viewers across NBCU websites in November, according to
Nielsen, which doesn't include YouTube.

The momentum online has prompted Mr. Kimmel to develop a new act
building off the YouTube audience—"Jimmy's YouTube Challenge." In one
segment, Mr. Kimmel asked viewers to unplug the TV at a crucial moment
during the Super Bowl and see how friends and family reacted. The
resulting 3:50 minute compilation, punctuated by plenty of screams and
bleep outs, received more than two million views.

Mr. Kimmel said he is considering a Web series but would also love to
one day have his own website. "As long as people are watching," he
said, "I don't care where they watch us."

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