The stories draw viewers,
the bards make a pittance

As Hollywood writers strike over payment for online distribution, a new report details just how much money TV networks have made selling online video ads, reports The Financial Times.

According to media buying firm Starcom, the four major US networks stand to rake in $120 million in revenue selling ads in streaming video this year.

The agency report says advertisers are attracted to the increasing audience for hit shows online. The web also allows them to better target their ads; research shows higher ad recall among viewers when compared to traditional TV.

Studios have been reluctant to share how much they're bringing in from streaming video advertising because of contract negotiations between themselves and the writers, which currently receive no compensation from having their work re-purposed for online, mobile or any other new distribution platform.

Starcom estimates the overall video ad market will reach $1.3 billion this year, more than double what it was in '06. Networks, with their recognizable brands and "safe" content, are positioned to receive the lion's share of that spending.