Boston, MA 06/04/2014 (wallstreetpr) – In an attempt to beat the set trend of C3 model, where advertisers have been paying for viewership of 3 days, which is into practice since several years, CBS Corporation (NYSE:CBS) has entered into a unique deal with one of the major Media Companies GroupM. This new system is called as C7 under which payments will be done after 7 days of viewership of Prime Time Shows. So, the company will be paid even if the commercial is aired a week ago. This new system can bring a shift of approximately $70 billion of market share in the broadcasting industry by boosting the TRP Ratings and revenues. It is believed that GroupM illustrates 25% of US, as per the data from research firm RECMA. Other major competitors like NBC, ABC and Fox, may also follow the same path.
Reason for Changed Model
It was observed that people have been watching Prime Shows and famous Television Programs on the internet, Pvt Videos or video on demand for several days after its being aired. As per the data from Tivo, one of the most popular shows by CBS Corporation (NYSE:CBS) “The Big Bang Theory” gets an increased rating of 8.1% after accounting 7 days of delayed viewing. With the freedom of choice to watch a favorite show on one’s own convenience will increase the viewers and the whole business module will change.
The Future Game Plan Of Advertising Market
For other smaller players, shift from C3 to C7 seems to be unlikely as they are satisfied with the current setup and transition may lead them to cut price and pay more with little revenue while other players who run time specific advertisements like New Movie Releases and holiday events are not interested in going for C7 model.
CBS Corporation (NYSE:CBS) is one of the biggest media companies which deal in Advertising; Television shows production and broadcasting, etc. It operates in the United States.