Australian television executives have recently been talking about improving the viewing experience to compete with the big crowds being attracted to ad-free streaming services Netflix and Stan.
The Wall Street Journal has now reported Fox Networks US ad sales chief Joe Marchese has spoken about reducing TV ad time to just two minutes an hour by 2020, a move like that would seriously alter the TV broadcast model and push up the cost of the remaining air time.
Currently in the US, FTA viewers sit through an average of 13 minutes of ads an hour while cable TV viewers see 16 minutes per hour.
In Australia, the Commercial Television Industry Code of Practice, developed by the industry and registered by the ACMA, states that on a broadcaster’s primary channel, commercial television licensees may schedule an average of:
• 13 minutes per hour of non-program matter between 6pm and midnight and
• 15 minutes per hour on non-program matter at other times.
The maximum that can be scheduled in any given hour is:
• 15 minutes from 6pm to midnight – with no more than 14 minutes scheduled in any four of those hours, and 16 minutes at other times.
The limits for multichannels are similar:
• 15 minutes per hour between 6pm and midnight and 16 minutes per hour at other times.
The allowances are increased slightly during election campaigns to allow for election matter to be broadcast.