TV Faces Massive Disruptions, More Digital Content

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June 10 (Bloomberg) -- Horizon media Director of Research Brad Adgate and Simulmedia Founder and CEO Dave Morgan discuss the future of television and advertising on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)


Class i am not surprised.

A great demand because ratings decline.

You have to buy more commercial units to get the same advertising you get the year before and the year before.

They get rewarded or failure, which is wonderful.

How does that happen?

Class what drives rates is demand here not ratings.

Say you are doing a five rating and you do five points, you have 100 units.

To get those 100 points, you have to buy more.

That drops the prices.

That is the reason you say television advertising is still your tuesday very classy s. 100 -- yes.

Gross viewership is up.

Total viewership is continuing to grow.

We have probably last note, but even though all of the units have gotten small, there are a lot more viewing units than ever before.

There has not been another platform that allows you to reach the broadest number of people in one shot.

That is basically all it is.


We have seen a decline of other platforms that used to give some of that.

Newspapers and magazines and radio.

Which have gone digital.

Either gone digital or crushed by it.

You know, even television is getting a little push back.

The cord cutters tend to be younger folks, people who live alone.

These are the ones who have cut the cord and are watching content strictly like netflix.

On mobile devices.

Is the clock ticking?

It was a story out last week that mcdonald's, clearly one of the largest advertisers out there, recently set up an office in silicon valley, a digital office.

They want to not only figure out their own strategy with reaching consumers on social media, but they are also looking at, how they use the digital space to get to more users?

Yes, there is an inevitable massive destruction coming.

Whether it is four years, six years, eight years, or 10 years, no one is certain.

In spite of growing viewership or solid viewership, the efficiency in which it sells its ads is declining.

The 50 spots that used to be 20 spots, the measurements have not kept pace.

No one knows what they are getting.

Most people do not go to mcdonald's with a badge on, this is my sex, age, demographic profile.

Is an interesting point.

Television is getting grayer.

The primetime audience on networks, the median age was 55. 20 years ago, it was 40. jimmy fallon, his median ages in the 50's area the president of entertainment says, since she started the show, three months, 320 million views online.

Those are the people 18-34 that a company like mcdonald's is interested in.

I want to bring up this chart.

They made some predictions.

In 2014, tv has 38% ear they are the winner.

I think it is interesting that in four years, tv and digital will basically be equal in the proportion of bad -- ad spin they will get.

Digital is a grab basket of a lot of things and no one has massive gale.

Tv is a single scale business where about eight organizations can five organizations and transact about $60 billion over the course of handshakes, faxes, and hugs on the golf course.

Google wants to change that.

They spent about $100 million.

Qwest it has been very aggressive.

They have done studies to say we can reach as many 18-40 years olds as abc family.

They guarantee advertising commitment, something done in the up front with the idea they will get more at allers.

And over 40% of users who watch the videos are over the age of 45. these are the appealing things youtube brings, but if you ask them, they would like to get cbs type dollars.

There are two things people forget.

The tv network spent $35 billion last year on programming.

To put into perspective, judge judy a half-hour will queue more adults in america than all of you to all day.

Qwest but they will be 50 plus.

[laughter] thank you.

Coming up, a former nbc universal chairman and ceo changes the channel.

We will talk to him about his new partnership that may change the way -- plus,. can't or do on being in this position.

We will tell you about the challenge she faces today in virginia in the primaries.


This text has been automatically generated. It may not be 100% accurate.


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