Fox Seeing Big Gains in Non-Linear Advertising Sales

Streaming offers 'fundamentally better' ad platform, exec chair Lachlan Murdoch says
Publish date:

While traditional ratings are declining, 21st Century Fox said it is seeing big gains in non-linear and advanced advertising revenue.

Executives added that they think the pay TV bundle remains the best value for consumers, but that the company is looking at new ways to package programming, including direct-to-consumer products.

Speaking on the company’s earnings call with analysts Wednesday (Aug. 9), CEO James Murdoch noted that less than 50% of the viewing of the company’s entertainment programming is live. The percentage watched on DVRs is also shrinking.

Related: 21st Century Fox Reports Lower Q4 Earnings

With more streaming and on-demand viewing going on, “we’ve achieved a lot of success in terms of streaming advertising and non-linear advertising," Murdoch said.

Non-linear advertising was up 30% in 2017, he said. Within that, revenue from advanced advertising products is up 40%.

Related: National TV Advertising Falls 1% During Second Quarter

“As streaming consumption becomes the primary way that people consume content, which we think will happen over time, it is a fundamentally better ad product, and a fundamentally better platform for us to monetize these brands and these investments that we’re making, either by pricing them innovatively to customers or by creating new ad products that are priced at a premium with respect to targeting capabilities,” added executive chairman Lachlan Murdoch.

He added that the streaming environment allows the company to create a better ad experience for customers with fewer interruptions, shorter formats and other types of ad products.