COVID-19 has been having a devastating impact on the TV broadcasting industry as firms have been reluctant to spend on ads, says GlobalData, a leading data and analytics company.
Danyaal Rashid, Thematic Analyst at GlobalData, comments: “COVID-19 has led to significant cuts in TV ad spending, affecting those broadcasters that rely on ad revenue to survive. Brands are reluctant to burn their limited cash reserves on ads, especially since this won’t stimulate demand in an economy shut down by non-market forces.”
TV broadcasters may be experiencing higher viewing numbers during this COVID-19 lockdown, but their bottom lines will be significantly hurt by falling ad revenues. In GlobalData’s Thematic Rankings for the music, film and TV sector, TV broadcasters have fallen several positions due to their exposure to COVID-19. Comcast has fallen four places, from eleventh to fifteenth, while India’s Zee TV has fallen seven places, from ninth to sixteenth.
Rashid continues: “While TV broadcasters sre struggling, streaming services have been doing very well. This could be a turning point in the TV industry, with a significant pivot towards streaming. The revenue of subscription-based streaming platforms such as Netflix will remain unaffected by cuts in TV ad spending.”