TV Is Dying, Broadband Declining
The pay-TV industry has reported its worst 12-month stretch ever. Ratings for both cable and the broadcast networks are down. There has been negative ratings growth on broadcast and cable TV since September 2011. The number of U.S. households is still growing, but fewer households have TV because they are watching video on mobile devices instead. The amount of video viewed on mobile devices is going through the roof. About 40% of all YouTube traffic comes from mobile.
Broadband internet was supposed to benefit from the end of cable TV, but it hasn't; people are also unplugging from broadband internet service. Most are likely utilizing free wifi hotspots provided by businesses, campuses and some cities. Fifty-seven cities in the U.S., including Los Angeles, offer free wifi; anyone within range of a hotspot can avoid the monthly fees.
Cable TV ratings are in an historic slump, but revenues are still rising because companies are charging the dwindling number of customers more in subscription fees. Those higher prices are "part of the problem" that pushes out poor subscribers — losing the TV business even more eyeballs. This is having a counter-intuitive effect on TV ad sales: prices are going up. It's still really difficult to gather a large, mass audience in any kind of media. That scarcity makes TV's dwindling-but-still-big audience increasingly valuable... for now. Ad dollars are likely to follow that shift in the long run.
Broadband internet was supposed to benefit from the end of cable TV, but it hasn't; people are also unplugging from broadband internet service. Most are likely utilizing free wifi hotspots provided by businesses, campuses and some cities. Fifty-seven cities in the U.S., including Los Angeles, offer free wifi; anyone within range of a hotspot can avoid the monthly fees.
Cable TV ratings are in an historic slump, but revenues are still rising because companies are charging the dwindling number of customers more in subscription fees. Those higher prices are "part of the problem" that pushes out poor subscribers — losing the TV business even more eyeballs. This is having a counter-intuitive effect on TV ad sales: prices are going up. It's still really difficult to gather a large, mass audience in any kind of media. That scarcity makes TV's dwindling-but-still-big audience increasingly valuable... for now. Ad dollars are likely to follow that shift in the long run.