Cable Channels Gain on Broadcast Networks

Preliminary figures for advance sales indicate that the cable channels will collectively sell about $8 billion in airtime to advertisers this season, up 7 to 8 percent from last year’s total. By contrast, the broadcast networks sold about $9.1 billion to $9.2 billion, up about 1 percent over last season. The shift in advertising dollars from broadcast to cable is not new, but it is particularly pronounced this year. There are several explanations, analysts say, including the fact that the most popular cable channels on their best nights, now attract nearly as many viewers as some of the less popular broadcast networks. Over all, the ratings gap, once vast, has been gradually narrowing. While all the broadcasters, save for Fox, posted significant ratings declines in the television season that ended in May, many cable networks are setting new ratings records. But ratings are not the only explanation. Other factors include the increasing fragmentation in media, which forces advertisers to place more bets in different places; the development of new niche channels, which can siphon ad dollars away from general-interest programming; and last winter’s writers’ strike, which made the fresh content available on cable look more attractive.
http://www.nytimes.com/2008/06/24/business/media/24adco.html?ref=todaysp...
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