Online Video Revenue Per Minute more than TV Advertising

Britain’s top free-to-air commercial broadcaster is claiming to makes more money per viewer streaming talent show ‘The X-Factor’ to computers than broadcasting it into homes.

“We are hugely pleased with the numbers for ITV.com on revenue,” ITV’s director of online content Ben McOwen Wilson said at the Edinburgh Television Festival. “We get 8 pence per hour on TV. Online, we are getting more than that.”

An interesting metric for doubters that you cannot fund online broadcasting. Through into the mix this is the beginning of the curve, with the obvious environemental conditions improving from bandwidth to advertiser acceptance, online video / TV on demand is the place to be for media, advertisers (brands) and consumers alike.

Add to the mix the micropayments scenario, surely TV’s ITunes moment, then clearly business models are going to adapt rapid;y to support the terrific levels of targeting and engagement that the online video medium can offer.

From our perspective, this is the interesting piece. We are in for an explosion of online content worldwide, with the amazing targeting and creative options for advertisers. We are already testing top quality TV online brands off-shore using IP targeting New Zealand for medium sized businesses and getting results. Very exciting.  More on that soon.

Read more informed TV online opinion from reuters.