Media Bites-August 18 2010

Broadcast TV is not the playground for the young and hip anymore. According to a recent survey by Steve Sternberg for Baseline Inc, the average viewing age continues to grow. Starting with the Tiffany network (CBS) where the median viewer is now 55; ABC hovers at 51 and NBC is at 49.

Are there older viewers out there that spend money and respond to advertising messages-of course. In fact, the Census Bureau reports that the median age in the US is 38, up from 33 in 1990. However, who is more likely to purchase or adopt a new product-a 60yr old woman watching 'Dancing with The Stars' (BTW-that is the average age of that show) or a 26yr old guy watching '1000 Ways to Die'? I'm going to go with the 26yr old guy-unless I'm selling long term care insurance or an RV.

I guess this all might stem from some challenges I faced early on in my media career while working as an account executive at a rock radio station ( playlist included Alice in Chains, Soundgarden, Blind Mellon and Metallica) where the focus was 18-34 yr old males. I remember a fast food client that shall remain nameless could not see the value in using a station that had true fans and spoke directly to an audience that consumed their product on a regular basis.

If broadcast nets are going to survive in this competitive environment, then they should work on decreasing the average viewing age. As Sternberg points out: 'There's no law that says they can't get any younger.'

Media Bites July 15 2010

A recent ruling on TV decency occurred this week. The US appeals court has struck down an FCC policy that banned the broadcasting of profanity. A BBC news article goes on to say that the original ruling banning 'patently offensive' references to sex, sexual organs and excretion with no real definition of what is truly offensive generated far too much fear among American broadcasters. Now its OK to swear and use the actual words for sexual organs and bodily functions.

All of this is really the byproduct of the society we live in and the race for ratings and revenue. The more shocking or scary, the more viewers tune in; more viewers= higher ratings and in turn the chance to charge higher rates for ad placement. Don't get me wrong, its a business and business needs to make a profit-just not sure we need to sink quite this low to do it.

Here's something else to keep in mind: broadcast television is for entertainment and information and must be closely monitored at all times when you have kids ( I speak from experience). It is not the responsibility of the media properties to be educators and be held accountable for what is airing because there is not enough diligence in the household to prevent certain eyes and ears from absorbing questionable content. Should they do some self regulating? You bet-but they never will, so it is up to the individual or family to decide what is and is not appropriate. There is a great tool on the set-its called the power switch.

Media Bites-July 7 2010

If I believe everything I see and hear, then broadcast television continues to grow even in this competitive environment.

PricewaterhouseCoopers notes that ad spending on TV in the US will grow to $80.3 billion in 2014 from $62.1 billion in 2009 and a recent Magna Global research paper points out that TV's share of media dollars continues to expand to 36.8% in 2015. Emerging technologies will also have an impact on viewing as the introduction of HD sets that deliver better quality picture and sound actually encourage more consumers to watch more TV.

The problem is technology and choice. (1)Hulu recently launched HuluPlus for $9.99 month and will make programming available on the IPhone, IPad and soon enough on the Playstation3 and Xbox game consoles.

(2) Netflix just signed a deal with Relativity Media allowing them to stream up to 14 movies per year to their 13 million subscribers.

(3) Viewers skip ads through DVRs and other devices. In fact, Comcast just launched multi room DVR technology in select markets.

(4) Premium nets HBO, Showtime and Starz continue to develop original programming ( 'Spartacus', 'Tudor', 'True Blood' 'Hung' 'Pillars of the Earth')

Its still fragmented viewing and as yet no one has developed a technology that has one access point, one password, one bill so that I can choose when, where and how I watch TV.

Media Bites-November 23 2009

New TV business model causing conflict between broadcast and online platforms

Broadcast television continues to spend analyzing their current business model instead of determining ways to truly partner with online sites. One network exec has stated, " the spending on Hulu versus the network is still small. But the undercutting of broadcast CPM's is something we're all concerned about. It's been more pronounced during the past few months and it's something that Hulu has not addressed." A media buying source confirms their concerns, but goes on to say that, " Hulu doesn't really represent a threat to network TV, today. However, advertisers are considering online video as an alternative to broadcast.'

In my opinion, anything that allows me to consume media when, where and how I want it is a threat to the current broadcast model. Wouldn't it make much more sense to embrace change, develop technologies and produce programming that makes me want to spend time watching?

If Time Warner Cable can develop TV Everywhere beta that lets me watch premium pay per view content on my laptop and Comcast can launch a similar version, as well as a local sports VOD, why can't NBC, CBS, ABC, FOX and the CW do the same?