Advertising-supported on-demand TV is the coming thing. Industry insiders are convinced it is the key to maintaining subscriptions at their current high levels. Despite many viewers’ aversion to ads, the belief is that people will put up with them in return for lower monthly fees.
The obituary of TV advertising has been written many times since the 2008 financial crisis and, each time, it has confounded the doomsayers. The television ad market suffered its steepest downturn on record between April and June 2020. There were declines of close to 50% during the worst of the pandemic, yet it has bounced back.
ITV has told investors it expects its ad revenues to be up as much as 90% in June – thanks in part to the Euros, rescheduled from 2020, and the return of Love Island.