Tuesday, October 19, 2021

BROADCAST NETWORKS MAY LOSE REVENUE TO CABLE

November 12, 2012 by · Leave a Comment 

With ratings for all the broadcast networks down 9 percent (and 10 percent among the key 18-49 age group), the networks will be required to provide advertisers with free ads to make up for the ratings shortfall, so-called make-goods. But, according to Advertising Age, doing so will leave the networks with fewer ads to sell, forcing ad buyers to turn to cable TV. The magazine quoted several cable network executives as saying that they are seeing an increase in sales. The trend could also pose a significant concern for broadcasters if their ratings drop to the level of cable networks, particularly among the 18-49 demo, analysts observed. One of them, Cowen Group analyst Doug Creutz, told AdAge: “While we do not believe this is likely to be a major issue in the near-term, it could cause problems two to three years out if double-digit ratings declines continue past this season.”