Comments on: YouTube the Craig’s List of Local Television? http://www.outsidethebeltway.com/archives/youtube_the_craigs_list_of_local_television/ Online Journal of Politics and Foreign Affairs Thu, 26 Nov 2009 20:04:43 -0600 http://wordpress.org/?v=2.8.5 hourly 1 By: yetanotherjohn http://www.outsidethebeltway.com/archives/youtube_the_craigs_list_of_local_television/comment-page-1/#comment-118352 yetanotherjohn Fri, 30 Mar 2007 16:15:18 +0000 http://www.outsidethebeltway.com/archives/2007/03/youtube_the_craigs_list_of_local_television/#comment-118352 One big difference is the direct substitution effect. Local newspapers derived considerable revenue from their classifieds. Those pages were likely the highest marginal profit pages. Relatively low cost to produce and chock full of tiny ads paid for by people. Craig's list let people put those ads up for less money. So the people with the money (the advertisers in the classifieds) got their needs met another way and started taking their money with them. Youtube threatens local television's eyeball time, but that only indirectly threatens local televisions advertisement time. When youtube starts making you watch a 30 second commercial for every 5 minutes of video (or whatever ratio makes sense), then it will really be a threat. Because then the advertisers can get their needs met by working with youtube and then the local stations will start to hurt. One big difference is the direct substitution effect. Local newspapers derived considerable revenue from their classifieds. Those pages were likely the highest marginal profit pages. Relatively low cost to produce and chock full of tiny ads paid for by people. Craig's list let people put those ads up for less money. So the people with the money (the advertisers in the classifieds) got their needs met another way and started taking their money with them.

Youtube threatens local television's eyeball time, but that only indirectly threatens local televisions advertisement time. When youtube starts making you watch a 30 second commercial for every 5 minutes of video (or whatever ratio makes sense), then it will really be a threat. Because then the advertisers can get their needs met by working with youtube and then the local stations will start to hurt.

]]> By: » OTB News http://www.outsidethebeltway.com/archives/youtube_the_craigs_list_of_local_television/comment-page-1/#comment-124833 » OTB News Wed, 31 Dec 1969 18:00:00 +0000 http://www.outsidethebeltway.com/archives/2007/03/youtube_the_craigs_list_of_local_television/#comment-124833 <!--%kramer-pre%--> Archives December 2006 August 2006 June 2006 May 2006 April 2006 March 2006 February 2006 [IMG Outside The Beltway | OTB] Gallup Goes Inside the Numbers Blogs Save the World YouTube the Craig’s List of Local Television? Kevin Bacon and Friends Caption Contest Winners Beltway Traffic Jam Majority Oppose Supplemental Spending Shenanigans Is Freakonomics Ruining Economics? Military Field Rations Around the World Iran’<!--%kramer-post%--> Archives December 2006 August 2006 June 2006 May 2006 April 2006 March 2006 February 2006 [IMG Outside The Beltway | OTB] Gallup Goes Inside the Numbers Blogs Save the World YouTube the Craig’s List of Local Television? Kevin Bacon and Friends Caption Contest Winners Beltway Traffic Jam Majority Oppose Supplemental Spending Shenanigans Is Freakonomics Ruining Economics? Military Field Rations Around the World Iran’

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