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…
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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.