To me, this is a bigger concern than cord cutting. It feeds a non-virtuous
cycle.
Regards
Craig
http://www.broadcastingcable.com/news/currency/cable-networks-stuffing-more-ads-programs/143026
Cable Networks Stuffing More Ads Into Programs
With ratings mostly lower, media companies are stuffing more commercials into
their cable networks in order to keep ad revenues from falling further.
AMC Networks increased its load of ad time by 10% in the second quarter
compared to a year ago, according to a new report by Todd Juenger of Sanford C.
Bernstein. Also posting big increases were Viacom, up 7% and A+E Networks, up
5%.
Juenger notes that Viacom and A+E have been ratcheting up their ad loads
because they also registered among the biggest commercial ratings declines. AMC
gained share of viewing, but Juenger says its original programming
underperformed, possibly missing audience guarantees, leading the company to
put more ads in its movie lineup.
C3 ratings among adults 18-49 in primetime dropped about 9%, he says.
“The continued ad stuffing is an obvious and unsustainable (some would say
'desperate') action by the networks to prop up ad revenue in the face of
declining audiences,” Juenger said in his report, issued Monday. “Not only can
this not be sustained going forward, it further contributes to the audience
declines, making SVOD that much more preferable for viewers made numb by the
absurd amount of ads (as well as decreasing the efficacy of the advertising
that is still seen)."
Juenger noted that all of the kids TV programmers put more ads in their
programming.
Nickelodeon was only up 6%, but the analyst says there seems to be little room
for more ads on the network. Meanwhile its Viacom siblings, TeenNick and
Nicktoons, were both up by double digits.
Cartoon Network, which gained share of views, raised its commercial and promo
time by 4% according to Juenger.