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Profits Streaming Away From TV


Networks are loath to admit how much TV is being watched via computer, writes Brian Stelter.

THE "stupid computer" is a repeated target of the dimwitted office manager Michael Scott on the US version of The Office. Yet the show itself may be motivating viewers to put down their remote controls and pick up their laptops.

When the fourth season of The Office, an NBC comedy, had its premiere in the US in September, one viewing in five was on a computer screen instead of a television.

The episode attracted a broadcast audience of 9.7 million people, according to Nielsen Media Research. It was also streamed from the web 2.7 million times in one week, the executive producer, Greg Daniels, says.

The Office is on the leading edge of a sharp shift in entertainment viewing that was thought to be years away: watching television episodes on a computer screen is now a common activity for millions of consumers.

A study in October by Nielsen Media Research found that one in four internet users had streamed full-length television episodes online in the previous three months, including 39 per cent of people aged 18 to 34 and, more surprisingly, 23 per cent of those 35 to 54.

People are watching their shows but the networks are loath to release data about how many people are watching TV shows online and how often. The reason? Possibly because internet viewers are worth only a fraction of the advertising dollars of television viewers.

The most popular television shows tend to be the most-viewed online as well.

While the doctors and nurses of the hit ABC drama Greys Anatomy (Ellen Pompeo, who plays Meredith Grey, pictured) look a little pixelated on a computer monitor, episodes of the show have been streamed more than 26 million times on ABC.com in the past six months, adding the equivalent of two full ratings points to each telecast.

The shift is forcing the networks to rethink the long-held axioms of network schedulers and advertisers. In an address in January to television executives in Las Vegas, Jeff Zucker, the chief executive of NBC Universal, noted that NBC.com had measured more than half a billion video streams in just over a year.

"Our challenge with all these ventures is to effectively monetise them so that we do not end up trading analog dollars for digital pennies," he said.

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