• by Wayne Friedman , Staff Writer, August 6, 2024

Anxiety over the stock market adds to already major concerns of legacy TV companies -- especially those still hovering on the profitable fringe.

Looking specifically at Paramount Global and Warner Bros. Discovery, both pretty much followed the stock market on Monday, with respective declines of around 3%.

Most of the day the market witnessed all major indices -- Dow Jones Industrials, S&P 500 and the Nasdaq -- down a worrisome 2.5% to 3.0%.

Analysts point to the possibility of a recession due to slowing U.S. economic growth.

For their part, legacy TV network-based media companies have been seeing some of this activity slowdown starting a few months ago -- since at least the fourth quarter of 2023 and then accelerating to some extent into the first quarter of this year. 

Streaming platforms are in the spotlight. Some research points to slight increases in overall streaming “churn,” where subscribers can easily opt out of individual streaming platforms, only to return later on. 

Others will point to an increase in all types of ad-supported streaming options -- those from premium streamers with options of reduced subscription fees combined with limited advertising (Disney+, Paramount+, and Peacock), as well as the continued growth of FAST channels (free ad-supported streaming TV). 

More recently there has been the rise of “bundling” -- in an effort to acquire more long-term subscribers -- consumers who would be less likely to drop multiple streaming platforms in one opt-out move. 

So now what? If we were to enter into a recession, what would happen to on-the-fringe streaming businesses -- especially Max, Peacock, Paramount+, or AMC+?.

Consumers will no doubt make tough decisions -- what to keep and what will sit on the sidelines.

Conversely, if these premium streamers shrink in size and take on less-than-premium monikers, does this mean those digital-first operations find even more ways to separate themselves from these wannabes?

Will Netflix, Prime Video (Amazon), YouTube (Google) (and perhaps even Apple TV+) form a new super streaming group of businesses? 

Video advertisers might find these channels a more stable bet for their future campaign needs.