TV viewership has been on stalling towards the latter half of the 2000’s and declined drastically in the past few years. In fact, the viewership for almost all age group declined in the 20%+ range in the past five years per the Nielsen data. Only 65+ age group showed a slight 5% increase in viewership. TV industry, like almost all industry, shows that if you can gather enough customer base, you can leverage this to lower the cost of media buy exponentially. Big players in the industry, with the likes Fox, Time Warner and Viacom, captures at least 85% of the total annual industry revenue leave the rest of the small captures to fight for the rest of the cake. However, whether it is due to customer viewership preference change or how people decide to consume content, the TV industry has lost a decent amount of viewership to Netflix and other video distribution social networks.
Dominant social networks who nailed video will benefit from the decline of old TV media. Their data allows them to target videos more precisely; so, despite larger quantities of social video in the world, the odds of a specific consumer engaging with a given video are (in theory) much higher. If properly executed, they could expand the $70B+ TV advertising market today by transforming it from an audience- to a performance-based medium. “Netflix’s outsized growth is evidence that consumers prefer a consolidated channel for streaming content.”
Intersection notepad 