Americans “Cut the Cord”, Broadcast shifts to Branded Content


More than ever before, Americans are “cutting the cord”. They are ditching their monthly cable/satellite service and opting for wireless streaming.

But with TV commercials being nonexistent on streaming services like Netflix, what does this mean for broadcast media? Are TV spots a thing of the past? Not yet.


While some research reports this as nothing but a fad that will fade, some networks, like NBC and the CW are taking heed of the changing world of broadcast media and shifting their focus from broadcast advertising to branded content pods. In Q2 of 2016, NBC announced they were cutting 30% of the advertising during Saturday Night Live’s commercial lineup to not only give fans more of the live program but to shift into sponsored branded content. SNL isn’t the only programming to see changes with NBC. They have also partnered with brands like American Express for sponsored content from shows like “The Voice” and “Blindspot”.

NBC isn’t the only network going into branded content.  Target’s relationship with the CW’s ‘Jane the Virgin’ is another instance of branded content in television programming. From the product placement to the writing of the script, Target was embedded so deeply into the character of Jane that she has become their brand ambassador for Target’s new target audience: the millennial Hispanic woman.

The fact is cable providers are seeing a consistent dip every year in paid subscriptions. Fortune reported that “the top 8 cable companies lost 463,000 subscribers in the second quarter of 2015”. But the opportunities are endless in media. From shifting to YouTube advertising to finding creative ways to reach your target audience with the new state of broadcast media, advertising will continue to evolve and adapt to bring new opportunities to its advertisers.

Sources:
“Saturday Night Live’ Will Cut Ads by 30% Next Season” http://adage.com/article/media/snl-air-fewer-commercials-season/303697/?utm_campaign=SocialFlow&utm_source=Twitter&utm_medium=Social
“With So Many Americans Dropping Cable, Will Cord Cutting Doom TV as We Know It? Observers argue the pace of change is greatly exaggerated” http://www.adweek.com/news/television/so-many-americans-dropping-cable-will-cord-cutting-doom-tv-we-know-it-167749 
“‘Jane the Virgin’ and Target’s Televised Push for Millennial Latinas” http://www.racked.com/2015/10/12/9497359/jane-the-virgin-target-product-placement 

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