Welcome news indeed, considering the number of traditional pay-TV households has dropped from 101 million in 2013 to 87 million today.
While direct-to-consumer strategies got much attention during entertainment giants’ quarterly earnings season, some management teams also surprised Wall Street with stronger-than-expected U.S. TV networks advertising results despite continued declines in pay TV subscribers and ratings amid cord-cutting.
Like Discovery, Viacom reported a 6 percent increase in ads, with CEO Bob Bakish saying, “The biggest headline of the quarter is that domestic ad sales returned to growth for the first time in 20 quarters.” The performance “ushers in a new era of advertising growth at Viacom,” he added. Zaslav suggested that digital platforms may have been hurt in their ad appeal due to cases where ads showed up next to content deemed offensive to children. “Advertisers are finding that television is still the most effective platform … and so I think there is a move back,” the Discovery boss said. “In addition to that, there is a feeling of safety.”
Brian Wieser, global president, business intelligence at ad giant GroupM highlighted, though, that newly acquired digital businesses helped boost Discovery and Viacom’s figures.
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