For the last ten years, major television networks across both the UK and Canada have been reporting low turnover and even losses. In 2014, some of the biggest names in the industry have had no choice but to admit that profits are down, and the entire market has become unstable. Today, we’re going to look at some of the reasons this situation come about. After reading through this post, you should have a better understanding of why experts are predicting the end of TV as we know it by 2020.
Of course, the blame for this does not rest solely at the feet of TV networks themselves. There have been many changes and advancements in the way we get our news and view media over the last few years. We performed a lot of research when planning this article. So, we wholeheartedly believe the issues highlighted below are those most responsible for the situation as it is today.
Lack of quality programming
While the younger generation seems to enjoy reality programs, they don’t watch as much TV as older people. For that reason, many viewers over the age of thirty feel there’s nothing good to watch on TV these days. A lack of quality programming means people are looking elsewhere for entertainment.
Reduction in advertising interest
TV networks used to charge extortionate prices for prime time adverts, but companies are no longer willing to pay such a high premium. Indeed, were it not for specialist firms that deal with DRTV media buying, there would be very few ads on TV at all these days. Businesses that deal with “direct response television media buying” purchase ad slots in bulk. That helps to ensure their clients achieve the lowest possible prices.
Rise of online streaming
Online streaming websites like YouTube and Netflix have played a big role in the decline of television. There can be no denying that using those sites is favourable at the current time as they have better programming and no adverts. Sure, YouTube might try to advertise at you, but you can neutralise their efforts with add-ons like Adblock. Also, Netflix have been making huge investments in new series and even some films. That means there is lots of quality original content available.
Lack of mobility
If you pay for a Sky television subscription, you can only make use of your purchase at home. However, subscribing to services like Netflix allows you to watch programs and films, regardless of where you might be. There’s nothing stopping you from catching up with your favourite programs while on the move, or even when visiting friends at their house.
As you can clearly see from all the points we’ve just made, it is no surprise the traditional TV experience is changing. Will networks crumble and disappear by 2020 as expected? We’re not too sure. If things carry on the way they’re going at the moment, it is unlikely television companies will stay afloat. However, if they opt to move with the times and make clever alterations to the way in which they operate, there is still hope in sight.