Advertisers: Don't Believe All the Hype About Connected TV
J Thoendell stashed this in Tech
When we first started Current TV, David Hill (then head of entertainment at DirecTV and one of Rupert Murdoch's right-hand guys who created Fox Sports) flew up to San Francisco with his key lieutenants to meet with us. At the tail end of our conversation, he said something that stuck in my mind: "When we had 100 cable channels, people watched 10; then we had 200 and people watched 11; then we grew to 300 and people went back to watching 10."
And that's the thing about connected TV. The curated options like Apple TV have around 50 apps, but more open platforms have hundreds or even thousands. Roku, for example, has over 1,800 channels. And whether it's out of 50 or 500, audiences still watch programs from the same handful of recognizable content creators and curators, namely Netflix, Hulu Plus, Showtime Plus, HBO Go, Amazon Instant Video, and maybe a sports site or two. These are generally subscription-based models that don't contain advertising.