Cable news revenue far outstripped audience growth in the past year. Cable news revenues were up 9 per cent last year even though ratings were only up 1 per cent, according to Pew’s annual State Of The News Media report.
How has it managed to weather the storm?
Cable news has a stable business model. According to Pew, cable news pulled in $1.8 billion in subscription fees and another $1.4 billion in advertising revenues. That model may sound familiar—it’s how newspapers have traditionally operated. However, unlike newspapers, cable is gaining subscribers (fees were up 8 per cent). As we’ve discussed before, there is no evidence that “cord cutting” is actually happening.
- Online news seems to be monetizing better than most people think
- There is no evidence to suggest advertisers are irrationally holding on to print (revenues for newspapers and magazines are falling faster than their audiences)
Photo: Pew State Of The News Media
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