According to the article, the big four networks, ABC, NBC, CBS and Fox are in line to earn $120 million in ad revenue this year from online advertising. And the growth continues to skyrocket. What is not mentioned is whether the same networks are seeing a decline in ad revenue from their video product. And while ad dollars have moved from broadcast to cable, each of these networks own multiple channels in each space as well as building or acquiring web space. So it is likely that this $120 M in online revenue is incremental growth and not cannibalization from other products. "The total online video advertising market will be worth close to $1.3bn this year after doubling in size in 2006, according to Accustream, the digital media research company."
And with content needed to fill all of these buckets, it is clear that it cannot be done without strong compelling content. I hope that the news blackout on the current negotiations between writers and producers is indicative of a real attempt to find a solution.
And with stories like these, the writers' point is clear; there is revenue being produced from this hard work.