Consumers who are trying to save money on their cable bills are increasingly moving to “skinny bundles” that have fewer channels. As consumers go on a cable bill diet, they are effectively dropping channels. But while skinny bundles are cheaper for consumers, they will be the death of some cable channels.
The goal of advertisers is simple: to reach consumers. So as consumers shift from reading traditional periodicals to Internet content, advertisers generally follow. If ad dollars follow time share, we could see a 25% to 50% drop in broadcast TV ad revenues. But for now, advertisers are sticking with broadcast TV. As hot as digital advertising seems to be these days, many advertisers find that it doesn’t provide the same reach and return on investment that broadcast TV does.