VIA Interaction

Monday, April 17, 2006

TV networks and iTunes

When I heard that iTunes was selling TV shows for $1.99 a pop, it made me wonder whether that was a better deal for them than selling advertising.

Let's assume they charge Steve Jobs half his retail price and net $1 per show.

Ad Age reports today that the American Idol finale will charge $1.3 million for a 30-second spot. The show draws 29.4 million viewers.

That means advertisers are paying about 4.4 cents per viewer. And if Fox is getting the rate card price for each spot, that means Fox is getting about 80 cents per viewer for the show.

Advertising Age: Cost of 'American Idol' Finale Spot Hits $1.3 Million

posted by Tim Beidel at 4/17/2006 02:32:00 PM

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