Hulu.com or NBC? Streaming Video versus Traditional TV: A Study of an Industry in Its Infancy

Kelty Logan

University of Colorado-Boulder

INTRODUCTION AND REVIEW

Thirty years ago, television was the medium that drove the creation of advertising. In 2011, advertisers aggressively are seeking alternatives to television advertising in the wake of escalating costs and decelerating reach. Audience erosion has been attributed to the proliferation of television channels and the increasing popularity of media alternatives such as video rentals, video games, and Internet use. Although the new media options often provide advertisers with the ability to micro-target an advertising message, television remains a reliable—if expensive—medium for achieving broad reach. This article investigates the relatively new phenomenon of online access to television programming in the belief that advertisers can use online streaming television to increase the efficiency of television advertising.