Legacy media is facing a two-pronged conundrum: TV networks are in decline as a dismal ad environment drags on revenue. In the meantime, streaming remains unprofitable for the majority of players as costs rise and subscriber growth stalls.
Most recently, Paramount (PARA) reported linear ad revenue slumped 15% year over year in Q4, steeper than the 12% drop expected by analysts and also worse than the 14% drag seen in the third quarter.
Warner Bros. Discovery (WBD), Disney (DIS), and Comcast (CMCSA) also saw ad revenue in their traditional broadcast and cable businesses slump this earnings season.
It’s a tough spot for media companies, which have invested in expensive streaming endeavors amid the mass exodus of pay TV consumers.
Prior to the cord-cutting phenomenon, linear advertising and cable affiliate fees had consistently boosted revenues. But as ad buyers now flee traditional TV…
