iTunes Music Store Driving Ratings Up

Last Thursday, NBC's "The Office" reached its highest ratings ever, a whooping 5.1 among adults 18 to 49. This increase, the network believes, is due largely to the show's popularity as a download on the iTunes Music Store.

Ever since NBC struck a deal with Apple in early December, to offer 12 NBC Universal shows, "The Office" has accounted for one third of all NBCU downloads from the iTunes Music Store. This connection is extremely significant because ever since ABC made the first move and offered episodes of "Lost" and "Desperate Housewives" for download on the iTunes Music Store, the one question on everyone's mind has been: "Will this cannibalize the ratings or will it prove to be additive because it provided more entry points into a show for consumers?"

Well, the answer to that question has come at last, and much like NBC's "The Office", the ABC shows have also been enjoying increased ratings.

"Lost", which is the most downloaded ABC show, has seen total audience increase by 14 percent, and the ratings for adults 18 to 49 are up 28 percent. Things also look good for "Desperate Housewives", whose total audience is up 7 percent, with 18 to 49 ratings up 3 percent. The numbers clearly indicate that since they became available for download, ratings for both shows are up versus the same period last year.

"Consumers have choices, and we are not reaching all consumers with one technology," said Frederick Huntsberry, president of NBCU Television Distribution. "We are offering content and reaching viewers for the first time. These are audiences using iTunes to manage their music. Now being able to download TV shows is a new technology they are playing with."

And indeed, the younger audience has always been tougher to reach with traditional media. "They are either out on the town with friends or in the office working late, versus at home glued to the TV set," said Kaan Yigit, an analyst with Solutions Research Group in Toronto. "The power of the on-demand new media platforms to be additive is more potent among members of the younger demographics."