Clark<\/a> says. \u201cAnd if you want to build a campaign across those pools, you\u2019ve got to contact each one of them and negotiate a deal and then cobble it together.\u201d<\/p>\nGiven the \u201csupply constrained world\u201d that has long characterized network TV, with direct sales teams best positioned to negotiate deals, \u201cthey\u2019ve kind of represented the networks in a way that got the best price for that inventory, historically.\u201d<\/p>\n
According to Clark, looking at the TV market as a whole shows the average CPM on a household basis to be a \u201cvery low\u201d $2 to $3. \u201cWe think there\u2019s a lot of value to be unlocked there,\u201d says, adding that he doesn\u2019t believe all sales teams will disappear. \u201cAll companies will make their own decisions based on their market positions.\u201d<\/p>\n
Among the biggest players, he thinks NBCUniversal under the leadership of Linda Yaccarino has exhibited \u201ca lot of innovation there and the rest of the industry might be able to benefit from that going forward.\u201d<\/p>\n
And while business models and value will change, the alternative \u201cis the industry really getting commoditized and the value getting sucked out of the ecosystem,\u201d says Clark.<\/p>\n
In his view, the TV bundle delivers lots of value for consumers, but those will change as well going forward.<\/p>\n
\u201cI also think that the cable plant is a really efficient way to distribute mass content, as is broadcast obviously. What people don\u2019t always understand is that when I serve content across cable whether one person is watching it or fifty million people are watching it, the price is the same. It\u2019s fixed. \u201cThat means it\u2019s better business and more can go into the production of content.”<\/p>\n
The same can\u2019t be said for platforms dependent on IP delivery. \u201cNot only do your costs go up the more customers you acquire but the cost per customer goes up as they consume more content,\u201d Clark says. \u201cSo your costs move up with your revenue. That\u2019s some of the challenges of the SVOD model that we\u2019re seeing out there.\u201d<\/p>\n
While he\u2019s mostly optimistic amid all the change, what does worry Clark is that some TV industry players, like some media platforms that have failed, will make decisions without fully understanding \u201cthe opportunity that we have or like the underlying economics that we really should sort of understand in making these decisions.\u201d<\/p>\n
So far, the industry has kindled a spirit of \u201cyes we all should come together and work as a platform, as long as it\u2019s my stuff. And I\u2019m hoping the next stage is let\u2019s get together and figure out who\u2019s best in class at different things and really truly work together and understand where the threat really is. And what could throw that upside down is short-term thinking.\u201d<\/p>\n
This video was produced in San Juan, Puerto Rico at the Beet.TV executive retreat. Please find more videos from the series on this page<\/a>. The Beet Retreat was presented by NCC along with Amobee, Dish Media, Oath and Google.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"SAN JUAN, Puerto Rico\u2014Why can\u2019t TV behave more like the platforms do? That is the question buyers have, and that\u2019s where technology can help by relieving some of the unwanted friction that now exists in the world of cross-platform video advertising, says David Clark. In this interview at Beet Retreat 2018, the EVP of Advanced […]<\/p>\n","protected":false},"author":17,"featured_media":57559,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"mc4wp_mailchimp_campaign":[]},"categories":[7653],"tags":[5296,5267,3803,5517,6637,7448,7692,7693],"_links":{"self":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts\/57557"}],"collection":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/comments?post=57557"}],"version-history":[{"count":0,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts\/57557\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/media\/57559"}],"wp:attachment":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/media?parent=57557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/categories?post=57557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/tags?post=57557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}