S&P: Linear TV Decline 'Irreversible,' but the Medium Will Last Years
Linear TV's decline in the U.S. "is irreversible," but it won't disappear all at once, S&P wrote investors Wednesday. Instead, watch for a steady, yearslong process, with the pace of pay TV cord-cutting abating over the next two years due…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
to Charter Communications' video and bundling strategy, S&P said. It said pay TV likely saw a 6.7% subscriber decline in 2024, but 2026 should bring it closer to 5.8%. It predicted that advertising would shrink more quickly than affiliate fees as audience ratings are dropping faster than cord-cutting. It said general entertainment networks are on pace for double-digit audience losses and single-digit price cuts for ad inventory, while sports-focused networks' revenues should fare better -- though they will still slow. Programmers will likely focus on managing their operating costs to keep pace with the shrinking revenues, it said. S&P also identified trends that will likely increase, such as eliminating original content on smaller networks, consolidating operating teams and focusing more on cheaper, unscripted reality shows.