Analyst firm warns there will be not 1 but 2 collapses in traditional TV advertisingBRISTOL, UK–(Jan. 16, 2019)–, Rethink Technology Research , a research and analyst firm that focuses on the IoT, video, and wireless markets, says its Rethink TV service has forecast not one, but two major price corrections in Broadcast TV advertising coming over the next five years. This is according to its new Report “The Year of TV living Dangerously – How and when traditional TV advertising value collapses,” released today.
Rethink TV sees US broadcast TV advertising taking the hit first, a full 20% softening in price, only cushioned by some improved uptake of Addressable advertising. This fall will occur over 2019 and 2020, caused by the rising tide of SVoD and vMVPD viewing, which sees broadcast ratings plummet even further.
A secondary hit will happen when major US sports begin to go online, and in some cases, direct to consumer, lowering the interest in live broadcasts. European advertising markets will mimic this behavior, and slowly so will all TV advertising markets around the world.