Media Buying and Inbound Marketing Blog

Traditional Media Companies are in Trouble!

By Jane Peters on August 7, 2015 |

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More people are watching more TV than ever before, so why are the traditional media companies in trouble? Cord cut_the_cordcutting...the growing trend where audiences quit subscribing to cable and look for alternative ways to consume content.  A combination of higher and higher prices coupled with some of the worst customer service on the planet have led consumers to look for alternative ways to consume content. 

This week, earnings reports from top media companies have been less than wonderful. Viacom, Disney, and CBS all saw investors selling off shares resulting in the worst week since 2008.

Streaming services such as Netflix are eroding the cable base and hurting the industries share prices.  More and more people are ditching TVs and cable. The selling of these stocks is a true indication that traditional TV is in trouble.

Thursday the earnings reports made clear that many are suffering a major exodus as pay-TV subscribers cut the cord, raising concerns about the long-term outlook for the entire sector.  Even small declines result in a loss at the bottom line. (Disney indicated on Tuesday that ESPN has lost as many as 3.2 million.)

Viacom Inc. VIA-13.35% led the decliners, trading down more than 20% at its worst levels, after the company reported fiscal third-quarter sales that missed expectations. The sell off extends the -7.5% decline on Wednesday, and brings the stock’s three-month loss to 41%.

Netflix Inc.’s NFLX, +2.21 stock has soared 56%.

DISH shares were down  -2.5% Thursday, after the company said it lost 81,000 pay-TV subscribers during its second quarter, compared with a 44,000 loss in the same period a year ago.

Shares of Time Warner Inc. TWX-0.81% which owns the HBO network, were down about 5% at a nine-month low, extending a 9% loss suffered Wednesday. 

Reaching your audience isn't as easy as it used to be.  Now more than ever you need a media plan with a focus on inbound marketing. 

Media Management Services, Inc has been in the business of helping clients find solutions to meet their marketing and advertising goals for over 34 years.  We're not just another ad agency or media buying service, but advertising and marketing consultants that provide solutions to accomplish your  goals.

Traditional media is great for attaining the largest reach and delivering broad branding messages, but the new digital platforms provide a tremendous opportunity to reach niche buyers directly with targeted messages that cost a fraction of the traditional media.

Inbound marketing helps potential customers find you or your company through search. With the right tools, small and medium sized businesses can compete effectively with the big companies that could dominate market share with large TV and radio budgets. 

If you would like to learn more, contact us for a FREE consultation.

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