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Online TV episodes eating into rerun revenue

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ABC OnlineFewer viewers are tuning in to watch reruns of prime time shows, partly because of new technologies like personal video recorders and television networks placing full episodes online. A few years ago, a repeat broadcast of a prime time drama could draw about 80% of the audience as a new episode. Today, it brings in just about 60% of the audience.

Sure, the networks make some revenue off of programs they sell through services like iTunes or post on their own websites. And they may even be driving up audiences for their programs, boosting the number of eyeballs watching television, where the real money is.

But since it's easy for viewers to catch up on old episodes without waiting for reruns, the ratings for repeats are starting to tank, driving networks to spend more money on original content during the summer and other periods that have usually been dominated by repeats.

[via HDTiVo Blog]

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