Cable king Comcast has figured out a way to wring more ad dollars from our addiction to TV binge viewing.
Comcast, the nation’s biggest cable provider, wants to count viewers who devour multiple episodes of shows, while giving the most current episode a ratings lift.
The Philadelphia-based company is working with Nielsen to roll out on-demand commercial ratings, or C3, for participating networks.
Millions of Americans have taken to consuming marathon sessions of dramas and comedies, thanks to video-on-demand offerings from cable operators, as well as streaming services such as Netflix and Hulu.
This is both good and bad for cable providers and programmers — good because more viewers are spending their entire evening catching up on back episodes, but bad because advertisers aren’t paying for all those viewers that come along later.
Research firm SNL Kagan pegs the ad market for video-on-demand at a measly $388 million, compared to the total $65 billion television ad universe.
As part Comcast’s ongoing trial with Nielsen, older episodes of primetime shows will carry the same commercial load as the most recent episode.
USA Network, which is participating in the trial, will get a boost in commercial ratings for this week’s airing of, say, “Psych,” if the ads that run in older episodes — as long as they are viewed within three days — are exactly the same. (Comcast’s NBCUniversal unit owns USA Network.)
Comcast’s idea essentially reverses the current system.
Right now, Nielsen gives ratings credit only if the commercial ad load remains identical to the original episode. That’s a problem for retailers, car makers and other advertisers making time-sensitive pitches.
Typically, cable operators have tried to sell marketers ads in older episodes, gaining a few extra ad bucks, but haven’t been able to get ratings credit. As binge viewing has grown, however, it’s become more important to claim the additional ratings points.
Comcast is talking to major broadcast networks including ABC and CBS about coming on board, according to Matt Strauss, senior vice president of video services.
“Programmers can make more money via on demand and they can increase C3 [commercial] viewing,” Strauss told The Post.
Ratings in Comcast households jumped 20 percent over the course of a few episodes during the trial, he added.
Programmers and local cable operators share in the VOD pie and are growing the number of shows available.
Strauss points out that networks such as Fox are promoting on-demand viewing at the end of their original broadcast on TV.
While digital video recorders and services such as Dish’s AutoHopper infuriate programmers because they allow for fast forwarding of ads, Comcast’s video on-demand services disable fast forwarding.
“The money being lost by people fast-forwarding commercials is in the billions,” said Strauss.