Hulu, the most impressive up the video websites, claims to charge advertisers somewhat more to reach a viewer than they would pay on a broadcast network during prime time. But Hulu runs just two minutes' worth of advertising in a 22-minute program, about one-quarter of the load that TV viewers are expected to tolerate. For broadcasters, which derive nearly all their revenues from advertising.deciding to put new programs on sites like Hulu involves a leap of faith.
Mr. Bewkes points to another problem. Several cable channels, including CNN, Time Wamer's news outfit, have painstakingly built brands that enable them to sell advertising at higher rates than they otherwise would. CNN also benefits by selling advertising across its TV channels and its popular website. Video-streaming websites are no respecters of brand. Hulu does not sell advertising on specific shows on networks; rather, it targets demographic groups. Lumping CNN's program in with all other news on the video-streaming website may well devalue them.
For these reasons cable's early forays into the Internet are likely to be messy. Content providers and cable operators may try to steer viewers to their own websites, like hucksters in a bazaar.This is unsatisfactory for customers, most of whom would probably prefer not to think too hard about
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