Tom Molen’s Post

Profits Halved in Five Years Amid Streaming Struggles and Decline in TV and Movies - Major media companies' profitability halved in five years due to linear TV and movie declines. - EBITDA for six major media companies fell from $37.3B (2018) to $17.2B (2023). - Linear TV profits dropped from $32.6B (2018) to $22.9B (2023); studio profits from $4.4B to $2.5B. - Streaming losses reached $8.3B in 2023; some companies expect future profits. - U.S. box-office revenue down to $8.1B (2023) from $11.4B (2019). ✉️Sign up for the Marketecture Media newsletter: https://lnkd.in/gm85yuaf 📖 Article by MediaPost : https://lnkd.in/gZ2R22FX

As this year's annual upfront advertising negotiations begin, it's clear that the landscape is evolving. Traditional TV ad markets are recovering, while streaming ad markets continue to grow – but still have some catching up to do. The latest quarterly earnings reports from TV and streaming companies for early 2024 reflect these trends. It's an exciting time to see how these shifts will shape the future of advertising! #Advertising #Streaming #Media #Trends

A Tale of Two Upfronts.. Continued rising advertising business for streaming TV platforms helped legacy TV network-based media companies ink 8% more overall dollar volume in upfront TV advertising spending, to $29.5 billion for the 2024-25 TV season, according to estimates from Media Dynamics Inc. At the same time, linear TV deal-making -- still the largest share of overall upfront advertising volume -- fell 4% to $18.4 billion. Legacy broadcast and cable TV networks witnessed declines of 3.5% (to $9.34 billion) and 4.8% ($9.07 billion), respectively. In better news for legacy TV-media companies, streaming advertising upfront revenue was up 35% to $11.1 billion for their premium platforms, including Disney+, Max, Peacock, Paramount+ and AMC+. #TV #tvadvertising #linearTV #broadcast #cable #streamingmedia #advancedTV #TVUpfront

Although this year is a softer and slower upfront market with brand advertisers, TV will still receive the bulk of the upfront money. Will broadcast and cable owners attempt to increase rates of issue and IE advertisers more substantially than they already are to make up for deficits? #mediabuying #2024elections #streaming #CTV #Upfronts

What does "outcomes" refer to in the context of connected TV advertising? Why are streaming platforms focusing on outcomes-based measurement? What types of data are significant indicators that a consumer is considering a purchase? Read the following article from AdExchanger for more info: https://lnkd.in/evTnMA2x

📺 Streaming vs Linear TV: The Future of TV Advertising 🚀 Discover the advantages and challenges of each platform in this insightful article by GrapeSeed Media. Explore how streaming has revolutionized advertising and how linear TV is adapting to stay relevant. Check it out here: @grapeseedmedia

These days, we’re always streaming things. If you’re a business professional and someone who watches videos on your smart TV, whether they be from Hulu or another platform, the advertising terms OTT and CTV are certainly relevant to you. However, even so, many are unfamiliar with the specifics of these important terms. Let’s delve into both in more detail, here.

UK-based research firm Ampere Analysis has called on Europe’s commercial broadcasters to take advantage of a forecast slowdown in spending by the major streaming services over the next few years. The latest forecasts by Ampere predict spending by SVoD platforms will reach €10bn (US$10.75bn) in Europe’s major TV markets in 2024, surpassing the investment in original and acquired content by commercial broadcasters, who now face major challenges from streamers, increased pressure on their own content budgets and falling viewer engagement levels. According to Ampere’s Media Consumer behaviour tracker, which conducts biannual interviews with 2,000 consumers, commercial broadcasters have seen an average 16% decline in consumer engagement across Europe’s big five markets since 2016. The result is a fall of nearly €1bn in the linear TV advertising market over the past decade. #Broadcasting #StreamingServices #MediaIndustry #TVMarket #ConsumerEngagement

RTL Group published its quarterly statement for the first nine months of 2024. While the advertising markets, particularly in Germany, and the content production market remained challenging, RTL Group reported a strong operating performance. ▪️ Group revenue was stable at €4.2 billion, as higher TV advertising and streaming revenue at RTL Deutschland and GROUPE M6 were offset by lower content revenue from Fremantle. Streaming revenue grew by 41% to €277 million. ▪️ We made progress on our strategic targets: Streaming services RTL+ (Germany and Hungary) and M6+ (France) continued to grow dynamically, with 6.5 million paying subscribers at the end of September 2024 – an increase of 22.8%. In the first nine months of the year, viewing hours increased by an impressive 60.3% in Germany and 41% in France. ▪️ RTL Deutschland continued to gain TV advertising market share and expanded its audience lead over the main commercial competitor ProSiebenSat1. Looking ahead, we have confirmed our full-year Adjusted EBITA of around €750 million, with a variance of plus/minus €50 million at the lower end of the range. RTL Group revised its full-year revenue outlook to around €6.3 billion (previous guidance: €6.6 billion), due to the German TV advertising market and lower growth of the content production market. Thank you to everyone at RTL for your contributions to these results. Find out more: https://lnkd.in/eVNSK9Cs #RTLresults #media #tv #streaming #digital #online #RTL #RTLGroup #financialresults

Interesting article by TVREV about the inefficiencies of buying linear TV and CTV advertising separately. Holistic TV planning and buying makes marketing $$$ go further by preventing over-frequency and increasing reach. Reach out if you'd like to see case studies or learn more. https://lnkd.in/epNwrkmk