Can Turner continue reducing ad loads and still make money?

By Jim O'Neill on Aug 01 2016 at 1:00 PM
Can Turner continue reducing ad loads and still make money?

Turner Networks has been experimenting with ad loads on both its liner and online video products for a couple of years, increasing the number of ads on its online video products and, more recently, reducing its ad loads on linear programming.

The results on the linear side have been strong, – increasing both ratings and actual commercial consumption – said Turner Networks entertainment President Kevin Reilly.

Reilly, speaking at the Television Critics Association (TCA) summer press tour in Los Angeles, said Animal Kingdom, the first show to run fewer commercials, rolled out this summer and has seen “very, very good results.”

The show has posted improved ratings virtually every week and has been renewed for a second season.

The ad load, he said, “is part of the reason for the week-to week-growth.”

Advertisers have to pay a premium for the opportunity to have more focused exposure, Reilly said, something they so far have been eager to do.

TNT is so far the only Turner network offering reduced ad loads, although TruTV will do so in the fall for its original programming.

And, he said, Turner can’t go it alone.

"It's being emulated by some other competitors on a one-off basis," Reilly said. "If we get the results that we're beginning to see, we'll look at doing it on TBS. (But) if we're the only two networks doing it, it's not going to change the industry and we'll have to go back, but the data points in the right direction."

Viewers have flocked to online video because, among other things, content on SVOD services generally is free of advertising. On AVOD sites, meanwhile, programmatic advertising often has meant delivering more relevant ads to consumers, which also allows for lighter ad loads because of increased CPMs.

Stay tuned.

Check out this article in Variety.

Follow me on Twitter @JimONeillMedia and on LinkedIn


CBS: Growing audience by delivering online, ‘the way viewers want it’
SVOD, OTT, Broadcaster
CBS: Growing audience by delivering online, ‘the way viewers want it’
Nov 11 2016 8:30 AM

CBS now has live streams of affiliate content available is nearly all markets nationwide on its CBS All Access streaming platform, but it’s the VOD content that has been more critical to the service’s use and growth.

Ooyala News, Broadcaster, Live Streaming
Go live longer... or be dead
Nov 01 2016 10:30 AM

In the battle of survival of online video, it is well known that live linear TV is a core differentiator. But how do you “go live” longer? How do you make sure you are not beaten to death by competition and are walking around like a zombie with not enough “live” content?

The answer is in re-using VOD content for live streaming.

Ooyala News, Content, Broadcaster
The world of content is moving beyond media asset management
Nov 01 2016 7:15 AM

Ooyala’s new white paper, A World Beyond MAM: What Broadcasters Need to Know About Media Logistics, discusses the demands that broadcasters now face in two distinct areas: content creation and delivery across linear and OTT platforms.

Report: Content best positioned to profit from OTT disruption
OTT, Content, Broadcaster
Report: Content best positioned to profit from OTT disruption
Oct 17 2016 7:45 AM

OTT has become the fastest-growing method of video content consumption, and that growth is putting content owners in the best position to capitalize on the increasing audience fragmentation being caused by the rise of on-demand services, according to a new study that posits the demand for high quality content will remain strong across the board.