At an industry event, Krishan Bhatia, president/Chief Business Officer for global advertising and partnerships for NBCUniversal, said it sees TV consumers spending 70% of their time with linear TV and 30% with digital video (including streaming digital). A year and half from now NBC says it’ll be 50-50.
Bhatia says the streaming world has equaled the perception of TV overall. Consumers no longer distinguish mediums -- linear TV, streaming, or otherwise.
Maybe, we can get a bit more granular here.
This probably is true when content is on the big TV screen. But are consumers feeling the same way when watching “This Is Us” on their iPhones?
NBCU isn’t alone in this thinking. Surely Disney-ABC, ViacomCBS, Fox Corp. and others are seeing the same internal data that NBCU has -- pushed, no doubt, by large streaming investments.
The disconnect, however, still might be the financial numbers.
For the upcoming TV season, starting in September, Media Dynamics estimates this year’s upfront advertising market will land at $19 billion -- up 2.2% from a year ago, but still down from 13% from 2019. At the same time, CTV advertising spending is expected to grow 50% this year to $4.51 billion, according to eMarketer.
So will this and future CTV money continue to go into legacy TV networks owners pockets? Overall, there seems to be a big jump in revenue to near parity -- that is traditional TV upfront ad dollars and newer CTV upfront ad money.
NBC’s projection would surely be trending with sharply rising anticipated spending by marketers. TV networks strongly suggested to marketers to shift around 20% to 30% of their linear TV budgets into streaming platforms now for the upcoming 2021-2022 TV season.
Bottom line: Will TV networks be asking for 50-50 split by next upfront?