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.
Wayne, the problem is there are too many TV "news"GRPs already available and invariably, the average minute news viewer---no matter who puts the content out---is an old viewer---with a median age around 65-70. Put those two facts together and station groups are dreaming if they think they can easily build upon their local news franchises to create national news networks---with glaring holes in their market by market coverage---simply by adding a national/international news team and trying to sell time to national advertisers. I happen to have watched a number of the News Nation ( Sinclair ) reports and find them interesting and well done---especially the political interviews hosted by Chris Cuomo--- But is that enough to woo the big ad dollars away from the broadcast networks and cable chanels? I wonder about that.
I watched when it was NEWSY which was low-budget had a Headline News feel to it straight foward news not bias or opinion like the cable news channels mentioned. When it went OTA only I didn't watch it when cable companies dropped it in 2021, WXMI Fox17 in West Michigan airs a couple of Scripps News 1PM to 1:30PM & 7PM to 7:30PM also on Sat 10:30PM when there isn't any sports over runs or late whenever the 10PM news comes on after a late college football game. I wonder if that means come Nov 18 if Fox17 will just air syndication which would be a full hour of ICrime 1PM to 2PM & Modern Family or Two & Half Men at 7PM to 7:30PM.