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Further, here is a comparison of CPM rates and revenue for a typical TV episode.

Network TV: $20-40cpm per ad - 15-19 ads shown in 30 minutes

Cable: $1-15 cpm per ad - 10-22 ads shown (plus subscription revenue)

iTunes: $0.80 per viewer, so CPM of $80 total (est network share)

Hulu / Online: CPM $10-40. 1-4 ads per show.

If you do the math, its obvious that network broadcasts really rake it in. A 30 second spot on a prime time network show sells for anywhere from $400,000 to $800,000 per spot (for 15-30M viewers).

If everyone started watching Hulu instead, they would lose 80-90% of revenue. If everybody downloaded on iTunes (assuming 3 viewers per download, or more is likely) they would still lose out but not as much.

The problem is if the networks start offering a la carte shows for $2 a pop, they lose the bundling revenue (ie. channels you receive in a bundle but would never pay for on their own).

First, thank you for providing actual numbers.... but...

Supply and demand. If everyone started watching on Hulu they would be able to charge more per advertisement. These are rates given the current situation, not the future. Why do I say this? I watch Hulu. I do not watch TV otherwise. If the advertisers (and networks) want my eyeballs they need to provide content via Hulu.

Those numbers or per thousand so it doesn't really matter I would think. Personally I would think that the Hulu ads are more valuable than the TV ones because it is 1 advertiser per show and there is less signal to noise for the viewer. When I watch football on Sunday it is sponsored by Ford, Toyota, Miller, Budweiser, Verizon, and 10 other companies I will never remember or care about. When I watch the Daily Show on Hulu it is 1 company a few times and actually leaves an impression.

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