Traditional TV’s downturn
TV was always one of the most popular media activities in the United States. However, estimates suggest that the number of hours per day watching television will considerably decline and in 2023, adults will only spend two hours and 50 minutes in front of a TV. Younger people seem to spend significantly less time watching television than their older counterparts as alternative forms of entertainment have begun to greatly increase in popularity.Serious competition for traditional TV
These falling viewership numbers do not necessarily mean that people are watching less TV overall, just that they are beginning to turn away from traditional TV and move to on-emand services such as Netflix. Consumers in the U.S. have been particularly quick to adopt new viewing technologies, but nevertheless, the number of TV households in the United States has continually increased over the last years. Some of the most popular programs overall include Netflix originals like “Stranger Things”, alongside traditional cable TV programs such as “Spongebob Squarepants” and “Saturday Night Life”.Advertising – a TV revenue driver
One of the industry’s major sources of income is advertising, a revenue stream which used to hover around 70 billion U.S. dollars each year but is expected to fall in years to come. In contrast, connected TV advertising spending amounted to just six billion U.S. dollars in 2019, a figure which by 2022 had soared to over 21 billion. Companies like Procter & Gamble, AT&T, and Berkshire Hathaway spend hundreds of millions of dollars each year on cable TV advertisements, and the country’s most popular programs charge hundreds of thousands of dollars for each 30-second advertisement spot. Again, though, these figures used to be higher.Overall, the U.S. television market seems to have entered a time of transition rather than decline. Newer streaming platforms have made shows more accessible to many consumers, but networks that fail to adapt to these changes in consumer preferences are sure to lose their grip on the market.
