Join Date: Sep 2006
Location: Toronto/Etobicoke - Bloor/Royal York/Queensway/Islington
One of the things I find fascinating is that for years conventional broadcasters complained about the dilution of viewers due to all these new cable channels.
When I was a kid, we had 11 channels on cable so CBC was 9.1% of my choices, CTV was 9.1% etc.
On cable today, that number is way lower - may 3% each on most analog cable packages, probably close to 1% of digital cable packages.
Meanwhile on OTA, CBC and CTV represents about 4% of my choices. By adding a subchannel like Newsworld or Newsnet, it would be about 8%, almost fully back to the 1970s landscape.
They'd have a much larger piece of the OTA pie which should translate to higher ad revenues. Of course they'd still need to (a) grow the pie - promote OTA where it exists and (b) provide content that people will actually watch to realize their slice of the OTA pie.
Now the mathematical model... Lets assume 90% cable/satellite, 10% OTA, broadcaster captures 2% of cable/satellite viewers at any given time, broadcaster captures 4% of OTA viewers at any given time
If a million people are watching tv right now, that would give this broadcaster 22,000 viewers.
Now if OTA grew by 5%, and a subchannel added so the broadcaster captures another 4% of OTA viewers, that would yield 29,000 viewers, which is a huge percentage increase (approx. 30%).
Use any numbers you want, the same conclusion will be reached.
A-D DB4e & CS5, CM 4221 & 7778, TiVo Premiere & Roamio