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Old 19-02-2019, 18:54   #205
OLD BOY
Rise above the players
 
Join Date: Mar 2008
Location: Wokingham
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Re: Funding of the BBC

Quote:
Originally Posted by Hugh View Post

https://www.theguardian.com/business...tv-advertising

Quote:

ITV’s profits fell sharply last year as the Broadchurch to Love Island broadcaster reported the steepest fall in TV advertising in almost a decade.

ITV’s pretax profits fell more than 10% to £500m last year as TV advertising revenue, which accounts for about half of its revenues, fell 5% to £1.6bn. In 2009, ITV’s TV ad revenues fell 9.4% amid the advertising recession.

http://www.morningstar.co.uk/uk/news...ne-months.aspx

Quote:

LONDON (Alliance News) - ITV PLC on Wednesday said its revenue grew in the first nine months of 2018, though it expects revenue from advertising to fall in the final quarter due to an uncertain economic environment.

https://www.hl.co.uk/shares/shares-s...10p/share-news

Quote:

(Sharecast News) - A further study has warned that the decline of traditional TV viewing could accelerate to the point where UK broadcasters lose most of their advertising revenues.


According to a new study from Ebiquity, the viewing trend away from traditional TV towards online platforms such as Netflix and Amazon Prime that has already seen by the 16 to 34 age group, will spread out to other demographics.

This could result in advertisers choosing not to spend their money on TV campaigns as they will no longer be as cost-effective. Broadcasters, such as ITV and Channel 4, need the campaigns to stay afloat and the study revealed that they face a "tipping point" in the next five years.

By 2022, Ebiquity foresaw a worst-case scenario where there will be 45% fewer ads viewed by 16-34 year-olds, a 30% fall among the 'housewives and kids' demographic group and a 15% decline among adults in the prime ABC1 demographic.

This tipping point could be avoided, the report said, as broadcasters could still evolve with the new trends and create counter-strategies.
Well, I agree with most of that. But there is no shortage of advertisers. The issue really is the reduction of audience share of our conventional channels as OTT viewing takes over, which is what I've been saying all along. When the level is reached that channels cannot make sufficient income out of them, the linear channels will collapse in favour of VOD alternatives. Many of those will probably have subscription free (or reduced) advertisement-ridden alternatives. That's where the advertisers' money will be channelled and it will be better spent there.

As for whether the conventional channels will come up with new strategies to stay alive, personally I doubt that.
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