News Corp. CEO says online exceeding goals

Cory Bergman January 10th, 2007

Peter Chernin said he expects to exceed News Corp’s $500 million goal for digital revenues for the current fiscal year. Online video advertising has the potential to be “the single best (business) story” for media companies in 2007, he said. Chernin says ad rates for video are pushing into $25-30 CPM range, but he warned against overestimated the value of user generated video. There is very little opportunity to monetize” user-generated videos because advertisers are not always comfortable with their content, and “there is no scarcity value,” Chernin argued. He said Fox TV shows have been downloaded 4 million times to date, via Fox O&O sites and MySpace.