
As a brand, if you’re looking for new linear TV reach, maybe you shouldn’t consider starting up a linear TV news network -- at least according to E.W. Scripps
Company.
In its effort to build a national news operation around its streaming Newsy platform and on the backs of its TV stations, the media company is having difficulty. It
is laying off 200 jobs, according to reports.
In a memo to staffers, Adam Symson, chief executive officer of Scripps, said:
“Amidst an already difficult
linear television advertising marketplace, many brands and agencies have decided that advertising around national news is just too risky for [brands] given the polarized nature of this country, no
matter the accolades and credentials a news organization like Scripps receives for its objectivity.”
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But other large TV station groups keep plowing ahead such as Nexstar Media
Group’s NewsNation, a linear TV news network -- which, according to EDO Ad EnGage pulled in $146.9 million in national TV advertising over the last 12 months.
Other
operations -- some political right-leaning linear TV services, such as Newsmax -- continue to survive.
The truth is that major TV brands -- big automotive, telecommunications,
consumer product companies -- rarely place any media schedules on even the biggest of three cable TV news networks -- Fox News Channel, MSNBC, or CNN. Instead there are small-to-mid-sized brands
and/or direct-response focused advertisers.
That said these networks do see plenty of big pharmaceutical brands placing advertising to grab networks' heavy-skewing 60 plus
viewers.
Fox News Channel's biggest-spending brands over the last 12 months include Balance of Nature ($52 million), Stephen Siller Tunnel To Towers Foundation ($40 million), and
MyPillow ($33 million). Fox News pulled in $1.2 billion in ad revenue over that period.
If that isn’t enough there are massive other issues, from potential edgy, controversial,
or some cases just plain inaccurate editorial content that complicate their business operations
Just a few days ago, Newsmax settled a lawsuit against Smartmatic, where the voting
machine company sued the news operation for around $1.4 billion for continuing to air editorial content saying Smartmatic helped rig the 2020 Presidential election by switching votes. One report
said Smartmatic recently reduced its damage claim by around $370 million.
These legal issues are likely to continue.
Smartmatic has a similar defamation lawsuit against Fox
News, with damages estimated at $2.7 billion. That trial is slated to begin next year.
This all comes on the backs of Fox News settling another massive billion-dollar lawsuit in
April 2023 -- pegged at $787 million -- brought by Dominion Voting Systems.
Going forward, after the new Presidential election in just 40 days, might there be more unrest -- either
from TV networks’ advertisers or possible companies mentioned in connection with iffy or inaccurate editorial content?
Some would believe in addition to premium live sports,
live news content is still a valuable commodity for brands to build their media plans. News flash: It isn’t as easy as it seems.