Signal Winter 2022 Newsletter

8 Programmers still want more money for TV channels. You may have noticed that content providers are moving more shows to direct-to-consumer apps, which decreases the value of their cable TV channels. This football season, for example, the NFL Network is only carrying seven out of 272 games. Major League Baseball aired some of their games only on Apple TV, and Thursday night NFL games are only on Amazon Prime. Disney’s Mandalorian can only be viewed exclusively online. Monday night football games are shown both on ESPN and the ESPN+ app, which further dilutes the value of the ESPN channel. Additionally, Bally Sports and Midco Sports have launched their own direct-to-consumer apps. I wish I could say that a decrease in TV content has come with a decrease in rates from programmers, but in fact it’s just the opposite. Content providers continue raising their traditional cable TV rates while reducing the programming on their traditional TV channels. Broadcasters are no different. Over the last few years, viewing for local broadcast channels like KELO-CBS, KSFY-ABC, and KDLT-NBC has decreased dramatically while more content is moved to Paramount+, Peacock, etc. However, the retransmission fees they charge to access the local channels have increased by 31 percent, and they’re increasing again on Jan. 1, 2023. Broadcasters are raising your rates to cover reduced viewership and advertising revenue. These higher prices and lack of ala carte options have shifted people’s viewing habits toward streaming. Those who haven’t considered streaming are left paying the bill. Streaming Continues to Shake Up TV Industry By Ross Petrick General Manager/CEO Netflix, Disney+ and Amazon Prime, OH MY! As the number and cost of streaming services continue to rise, one thing is certain: Viewers are consuming more streaming content. According to Nielsen data from September 2022, streaming content consists of 37 percent of total viewing, while cable TV is at 33 percent and broadcast TV is around 24 percent.