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Despite Viewership Drop TV Still Gets Big Bucks

2-1-2013

Business Insider reports on a Morgan Stanley presentation detailing a 50 percent drop in broadcast TV audience ratings since 2002. Perhaps a piece worth reading and printing as you take the information Arbitron pushes out, regarding radio listening, which they say remains high and steady. Morgan Stanley analyst Ben Swinburne says TV audiences have declined, but because those audiences still remain large the ad dollars continue to flow that way. Read the full piece including fascinating charts HERE




(2/1/2013 7:22:20 PM)
This phenomena is no different than what newspapers enjoyed for years: fewer readers but increased column/inch rates during the same period. How can this be? Fewer viewers, fewer readers, yet healthy revenues? If radio had experienced a similar drop in penetration, radio would have drastically cut rates.
The answer lies with sales management, of course. TV and newspaper owners demanded increased revenues. They didn't bother to ask the sales manager or the sales staff for any input. You see, TV and newspapers are run like a business.

- Phil

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