Digital Gabe
Cutting Edge Commentary On All Things Media

TV’s “Malachi Crunch” Moment

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Traditional TV is under assault.  As more content moves to OTT (“Over The Top”, aka streamed video), traditional TV viewership and ad revenue is starting to slip.  This is creating a Malachi Crunch effect, with trouble coming from both sides.

TV’s first issue is the rise of OTT-only households, which have tripled since 2013 to 14.1M homes in the US.  Right now that’s still only 11% of the TV households, but it’s still a huge number of people with no cable cords coming into their homes.  That’s bad news for Network and Cable TV now, and it’ll only get worse over the next few years.

Then comes the really bad news from the other side.  As TV eyeballs migrate to OTT so does ad revenue.  eMarketer is predicting overall US TV spending will continue to decline for the foreseeable future.  Excluding the biannual Political spikes and the Great Recession dip of 2008-2009, total TV rev has been on a non-stop growth trajectory since the 1950s.  So nobody’s ever actually seen a long term downward trend for King Television.

I guess if video killed the radio star than its TV’s turn to get whacked by digital.

 

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