Satellite and cable providers have been offering great packages, which includes exceptional and most popular channels at an affordable rate to their subscribers. However, we have witnessed a steady decrease in the number of TV subscribers over the last few months.
Analysts have expressed their concern on the troubling or declining television ratings. In a TDG blog post, analyst Joel Espelien stated that, “By any measure you choose the US TV viewing audience is flat or declining.” On the other hand, FierceOnlineVideo stated that the television ratings for NBC were way down during the Olympic Games and there was no improvement in the ratings throughout the tournament.
NBC had expected higher television ratings during the Olympic Games. However, reports indicate that the total audience delivery for Rio Olympics 2016 was just 27.5 million, whereas an approximate 30.3 million total audience delivery was reported during the 2012 Olympic Games. Analysts claim that the decline in television ratings is because many viewers used live streaming apps to watch the Olympic Games.
Interestingly, NBC Network has supported this claim by stating that over 50 million viewers used their streaming apps to watch Rio 2016. NBC also added that over half of the live streamers were below the age of 35. Espellen stated that he is sensing a deeper trend as we approach the fall season.
“Adult viewers watch 35-40 hours of video per week (including both legacy and broadband video sources). A big chunk of this is already spoken for by news, sports, and returning shows that people already know and enjoy. This leaves 7-8 hours a week available for new shows.” Espellen said. “For most people, digesting 7-8 new shows a week is still way too much cognitive load – their attention span for embracing truly new shows is more like 2-3. And this is among people who like TV.”
This is a great concern for fall television season, as approximately 123 new TV shows are debuting across cable and satellite networks. Furthermore, this might also cause problems for SVOD providers such as Hulu, Amazon, and Netflix because they offer popular TV shows that are not available on traditional TV.
Espelien concluded by stating that, “We too often forget, however, that the TV audience is a limited resource that can only absorb so much content. Supply, with respect to new shows, is running way ahead of demand.”