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As more viewers abandon pay TV, networks have raised carriage fees to limit financial losses, which drives up cable bills. And that leads more people to cut the cord in a brutal cycle. Because obtaining rights for TV packages has become more expensive, traditional pay TV providers are pivoting their businesses away from TV and toward more profitable broadband services.

The NCTA states there鈥檚 no evidence of widespread deceptive practices in the broadband, cable, or voice industries to warrant regulation. The lawsuit also states that click to cancel will cost cable operators between $12 million and $25 million per company and that system rebuilds could take two to three years.

During the initial part of that phase, the number of cable TV channels increased. Then streaming services started producing their own programming. Then the number of streaming services commissioning original shows grew from Netflix and Hulu to include Apple TV+, Disney+, and even free services like The Roku Channel and Tubi. Now there aren鈥檛 any new major streaming services on the horizon.

One contributing factor may be the predominance of multigenerational households: A larger household means a greater demand for content variety, which streaming offers more readily and affordably than traditional or cable TV. Per the 2023 Census data, the average number of people per family household is highest among Hispanics compared with other racial and ethnic groups.

Many cord-cutters or cord-nevers turned to streaming to help counteract the high costs of cable subscriptions, only to find the ad-free prices quickly adding up. Now they have more price-efficient options, even on their favorite premium channels. One place this is evident is in the increasing popularity of FAST (free ad-supported streaming TV) channels.

Our take: Streaming services and cable networks are already dishing out billions annually for costly but lucrative NFL distribution rights. An international slate of games would create another package for them to fight over, creating new ad space and giving streamers an opportunity to expand into foreign markets with content they already have experience distributing.

CTV time鈥攚hich does not include traditional cable TV viewed via a CTV, but does include all forms of streaming OTT, virtual multichannel video programming distributors, apps, and audio accessed via a CTV鈥攈as risen rapidly in recent years. But it will still trail mobile device (phone and tablet) time spent by 1:43 per day in 2024.

For the first time, non-pay TV viewers (the sum of cord-cutters and cord-nevers) will surpass viewers of legacy pay TV services (cable, satellite, and telco). Time spent will follow suit, with CTV surpassing linear TV within a few years. And, in a longer time frame, we expect CTV ad spending to also leapfrog linear TV.

The cable bundle is dead. There鈥檚 no turning back the tide of cord cutting. The traditional cable, satellite, and telco pay TV bundle continues to lose ground to streamers, and the trend is irreversible. The resolution of the Disney-Spectrum dispute was only a temporary respite. The existential questions that the carriage scuffle brought up are still latent.

As cable providers like Cox and Xfinity embrace FAST, it is clear that ad-supported streaming content will play an integral role in entertainment, particularly as it merges with established linear TV offerings.

In 2024, subscription revenues will shrink by 4.1% for cable, 6.4% for telco, and 11.5% for satellite, per our estimates. The problems facing satellite TV were underscored when creditors accused provider Dish Network of illegal restructuring. Carriage disputes with network affiliates also prompted satellite service DirecTV to consider replacing local channels with national broadcast feeds.

Carriers can plan for emergencies by expanding redundant cable, wireless, and satellite-communication backup systems. They could also accelerate Federal Communications Commission (FCC)-mandated guidelines for 911 and emergency service upgrades.

I mean now I think we live in a world where Joe Rogan has more sway than any of the traditional cable or news networks. Marcus Johnson (08:35):. Yeah. [inaudible 00:08:35]. Paul Verner (08:35):. So it is a different climate, but that doesn't discount the possibility of an influx of time span or a growth in time span or a temporary spike, and potentially some outlets gaining subscribers.

Plus, a Roku survey from last year found that primary care doctors (a key audience for pharma advertisers) are increasingly cutting the cable cord in favor of streaming TV. 3. Search. Some 97% of marketers will either increase (51%) or keep (46%) their search ad spending.

I mean, I will say that there's some differences between your media consumption on cable TV versus where you interact from a social standpoint. People will be on multiple platforms, but they tend to over index a lot of their time on one particular platform or two that they make home. And there is a finite amount of time spent per day.

I was looking at our cable numbers. Ross was saying as cutting the cable continues to become a thing and accelerate in some instances is looking a lot bleaker for satellite. So cable, a lot of times people encompass everything within that in terms of pay TV. But when you break out pay TV into cable, satellite, telco, et cetera, satellite companies are having a much tougher go of it.

TV formats including national broadcast/cable, local broadcast/cable, and addressable were significantly lower in the pecking order. What should marketers take away from our TV and CTV ad spending forecasts? The golden age of TV is in its golden sunset. The days of an upward trend in US TV ad spending are behind us.