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How and when traditional TV advertising value collapses – The Year of TV living Dangerously

Rethink Technology Research has modelled the likely effect of SVoD and original content emergence on pay TV subscriptions, and on ratings which essentially drive broadcast advertising revenues. US broadcasters have been making their advertising more and more expensive to satisfy their shareholders, and indulging in aggressive original content plays to strengthen their offerings and make the ratings battle “the other guy’s problem.” This will come home to roost in a collapse in advertising value late in 2019 and early in 2020. At the same time, more US homes will cut the cord, resulting in fewer pay TV homes, and more and more advertising opportunities with long form digital Virtual MVPDs and others. Fewer viewings, watching less often leads to a…

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