Share-Builders Blog

Redefining TV Preferences - How Daypart Revenue Contribution is Changing

Written by Joe Campbell | Jun 7, 2023 8:00:00 PM

Linear television has been a staple of entertainment and information for many decades, with millions of people tuning in daily to watch their favorite shows and news programs. However, in recent years, there has been a noticeable change in TV ratings and daily viewing habits across all dayparts.

Prime, in particular, has been impacted significantly by the rise and rapid growth of streaming services like Netflix, Amazon Prime Video, and Disney+, as well as platforms offered by the networks themselves, such as Peacock and Paramount. These platforms offer a vast library of content, including original series and films, and are available to viewers on a subscription basis. With the ability to watch what they want, when they want, viewers no longer have to be tied to a specific time slot to catch their favorite shows.

 

The decline in TV ratings has also had a significant impact on advertisers. With fewer viewers tuning in, advertising rates have decreased, making it more difficult for stations to generate revenue. This has led to a reduction in the amount of money available for the production of new content, which has further contributed to the decline in ratings.

Gone are the days when Prime would represent anywhere from 20-25% of a stations revenue in a year. Just since 2019, we have seen this percentage decline to 15% on average, and in some cases less than 10%. Due to less of a lead-in from Prime viewership, Late News has also seen a decline in demand. But changes in viewership doesn’t necessarily mean declines across all dayparts. Where we have seen this demand and revenue increase is in Early News and Morning News. Between the top two news dayparts, what used to represent 30-35% of a stations revenue, now represents almost 50% of revenue on average.

 

Despite the decline in TV ratings, the future of television is far from bleak. Local TV stations must capitalize on what they do best, local news and the increasing growth in Sports, which is projected to grow 15-20% in 2023, according to this article.  ShareBuilders has a number of tools to help you better understand the specific trends of your station’s dayparts and guide you through strategies to maximize revenue where growth opportunities exist.