Currency

Media CEOs Sell C7 By The Seashore

11/08/2013 09:50:27 AM

Other media company CEOs aren’t as certain that C7 is coming as CBS’ Les Moonves.

During the company’s earnings call with analysts Nov. 6, Moonves said that CBS would be monetizing more of the eyeballs watching its programming because more types of viewing were being monetized and because the key currency for media buying would shift from C3, commercial ratings that count delayed viewing for three days, to C7, which includes four more days.

“We have already concluded deals with some significant clients for seven-day viewing. And we expect this to be the norm for next season,” said Moonves, who has stumped for C7 for several seasons. “There is clearly value in advertising that’s seen between days four and seven and beyond that as well. We intend to monetize that viewing going forward.”

Media buyers and clients have resisted adding more days of delayed viewing to their ad buys, but Moonves said “we already have some C7 deals out there. There are advertisers that realize that if you watch a show four days later, it’s okay. It’s the same value.

Some advertisers, such as movie studios, need ads to be seen on a timelier basis, he noted. “But we think more and more of these deals are going to come up that way [C7] and be done that way. And if a product needs some attention before that, the rates may change slightly or there’ll be a different form of advertising, but we think C7 is obvious. The numbers between C4 and C7 are pretty substantial, and they shouldn’t be left behind. And the good news is more and more advertisers are agreeing with us, and they are making deals accordingly.”

But asked about C7 during Disney’s earnings call, CEO Bob Iger noted that his big money maker, ESPN won’t get much of a lift from a shift to C7 because sports is mostly viewed live.

Disney’s ABC reportedly did some C7 deals last year. “There’s been a couple of deals done C7.  We’d certainly like to see more because of the significant consumption beyond C3. I’m not sure that’s going to happen very quickly,” Iger said. “You mentioned a year. That sounds aggressive to me. I don’t think the  advertising marketplace is going to move that fast.”

Scripps Networks Interactive CEO Ken Lowe during his company’s earnings call boasted about the high level of live viewing at his company’s networks, which makes them more attractive to advertisers. Asked whether C7 was coming, and whether it would help, he responded, “with that much viewing done live, C7 probably won’t give us as much lift as you’re seeing kind of across all networks. But I would say this, I think over the longer term there could be some possibilities.”

For example on Sunday nights, when many must-see shows air, “we’re seeing a heavy DVR usage. So I think it’s good for the industry, by the way, that we’re moving to C7 for sure. But short term, we don’t see a huge lift for us, to be honest with you.”

November