The production companies behind some of the most successful reality TV franchises are preparing a big push into online video next year, according to a report in Advertising Age.
"Big Brother" producer Endemol and "American Idol" producer FremantleMedia are both preparing new digital series for early 2014 and are burnishing their online media credentials. They're drawn to the sector by the medium's lower costs and younger viewers, the report said.
Part of the hope is that advertisers will be more comfortable associating their brands with the new online shows these companies will produce. If successful, such efforts could translate into huge increases in the amount of money spent on online video advertising.
A report in July from analysts at the bank Needham & Co. said that advertisers spend about $77 billion a year on TV ads but spent just $4 billion on online video ads in 2012. "If money follows time, then as consumers shift their viewing to mobile devices, both smartphones and tablets, this suggests advertising share shifts away from TV and toward the new premium-video online ecosystem," they wrote at the time.
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