Fox Network Sets A Goal Of 2 Minutes Of Ad Time Per Hour

Just a few days ago we found out that Cord Cutting Impacts Cable TV Subscription Losses and that Cord Cutting Influences NBCUniversal To Cut Ads By 10%. Now there is news from the The Wall Street Journal that the Fox Network sets a goal of 2 minutes of ad time per hour by the year 2020.

Impact of Streaming Subscriptions

Are Cord Cutters driving a change in the TV industry?

Traditional broadcast and cable TV is no longer the only option for watching TV. Streaming TV shows over the Internet to the home with a service like Netflix is now a real option for consumers.

Cord Cutters are shifting to streaming options for their TV entertainment. That means they are watching fewer hours of traditional broadcast and cable TV.

Here are the numbers that show streaming TV is booming:

• Netflix – 55 Million US subscribers and 118 Million subscribers globally
• Hulu – 17 Million subscribers
• Sling TV – 2.2 Million subscribers
• DIRECTV NOW – 1.2 Million subscribers
• Playstation Vue (PS Vue) – 450,000 to 670,000 subscribers
• Hulu Live TV – 450,000 subscribers
• YouTube TV – 300,000 subscribers
• fuboTV – 100,000 subscribers

Also, Amazon has Prime Video and over 100 Amazon Channels available as “A LA CARTE” subscriptions. Here is the Complete List of Amazon Channels.

Notes: All subscription numbers are either unofficial or estimated. Hulu Live TV and YouTube TV estimates are courtesy of CNBC. Playstation Vue estimate of 670,000 subscribers courtesy of Ben Bajarin. Netflix, DIRECTV NOW, Sling TV, Hulu, and fuboTV self-disclosed their subscriber estimates.

Fox Network Sets A Goal Of 2 Minutes Of Ad Time Per Hour

Does ONLY 2 minutes of commercials per hour sound CRAZY? Maybe not!

Netflix and Amazon Prime already have a “no ad” model with thousands of hours of programming.

Hulu already has a “Limited-Commercials” package.

According to the Wall Street Journal:

In 2017, the average amount of ad time an hour on broadcast was a little over 13 minutes, according to Nielsen. On cable it was 16 minutes.

The Fox Network is trying to compete with no-commercial streaming services with some creative thinking.

Cord Cutters Are Changing The Entertainment Industry

Cord Cutting is impacting the entertainment industry in ways no one ever imagined. But imagination is becoming reality for cable and satellite TV.

Cord Cutters are watching streaming TV. The entertainment industry is changing. And TV services will continue to shift as new choices are available for watching TV.

The reality is that Fox’s goal to change the commercial format and TV advertisement model is probably needed to stay competitive.

Information based on a story reported by The Wall Street Journal, Fox Wants to Reduce Ad Time to Two Minutes per Hour by 2020.