📺 Shifting Screens
Television has long been the go-to example for the bundling-unbundling cycle. With the rise of short form and streaming, we’re nearing peak unbundling in this current phase. Throw in inflation and a quasi-recession-thing and linear TV is feeling the heat.
S&P Global is predicting an 8.2% drop in TV advertising this year, with local taking the biggest hit. Why?
S&P says: “Recession increases vulnerability of linear TV with higher cord cutting, declining audience ratings, and weakened advertising.”
But Netflix's ad tier is doing just fine, thank you very much (at least that's what it says). CPMs might be coming down though, which means it could become another ad channel option for more advertisers (and the splintering continues). The format options could become more robust as well, as it "aims to do a bit more than just running typical ads, including things like dynamic insertion of ads near moments that are relevant to marketers, single-show sponsorships, and more. It will also later allow marketers to target ads by age and gender."
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Back to the S&P predictions, what is this chart trying to communicate?
