Feast for the Screens: Thanksgiving TV Broadcasts Smash Records Amid Cord-Cutting Challenges in the Industry

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Business / Thursday, 30 November 2023 17:38

"Thanksgiving TV Triumph: Record-Breaking Viewership Defies Cord-Cutting Trends"

This year's Thanksgiving TV broadcasts have given media companies a reason to be thankful, shattering records despite the industry grappling with cord-cutting challenges. NBC soared to new heights during the 97th annual Macy’s Thanksgiving Day Parade, attracting an unprecedented 28.5 million viewers, marking a 6% increase from the previous year, as reported by Variety. Notably, this achievement stands out amid a growing trend of consumers ditching traditional cable subscriptions.

Despite the surge in cord-cutting, over two-thirds of the parade's audience—approximately 22.3 million viewers—chose the traditional TV route, underscoring the enduring appeal of linear broadcasting. Football, too, emerged as a ratings juggernaut during the holiday season. CBS' Thanksgiving broadcast featuring the Dallas Cowboys' victory over the Washington Commanders became the most-watched program on any network since Super Bowl LVII earlier in the year, capturing a staggering 41.8 million viewers based on Nielsen data. The game's viewership surged by an impressive 31% from the previous year's CBS Thanksgiving game.

While CBS did not disclose Paramount+ ratings, the network reported achieving its most-streamed NFL regular season game on the platform. Meanwhile, Fox's Packers-Lions matchup drew 33.7 million viewers, marking the most-watched Thanksgiving Day game ever for the 12:30 p.m. ET timeslot, and reflecting a 6% increase from the comparable game in the previous year. Notably, Fox's success comes without a dedicated streaming platform for its main programming.

NBC Sports, too, celebrated a milestone with its broadcast of the San Francisco 49ers' triumph over the Seattle Seahawks, ranking as the second-most-watched Thanksgiving primetime game ever. With an average viewership of 26.9 million across the network's platforms, this game also secured the title of NBC Sports' most-streamed primetime NFL Thanksgiving game, with Peacock leading the online viewership.

Collectively, the three Thanksgiving Day games amassed an average viewership of 34.1 million, marking the highest recorded for Thanksgiving Day, according to the NFL's announcement on Tuesday. In a landscape dominated by cord-cutting concerns, these record-breaking figures signify a resilient and thriving viewership for traditional television, defying industry expectations.

"Amazon's Big Play: $100 Million Investment in Black Friday NFL Game Signals Shift in Streaming Landscape"

Amazon made a substantial foray into the Thanksgiving sports bonanza, reportedly shelling out a whopping $100 million to broadcast the New York Jets and Miami Dolphins matchup on Black Friday. The e-commerce giant aimed to establish a tradition with the Black Friday NFL game on its Prime Video platform, adding to the existing $1 billion annual investment for NFL's Thursday Night Football. The strategic move also saw Amazon leveraging the NFL broadcast to drive product sales on the bustling shopping day.

While the ratings for the Friday game are yet to be disclosed, sports media consultant and former Fox Sports executive Patrick Crakes anticipates a nuanced performance. "It would make sense that it’s not going to do as well as the Thursday games because it’s a different platform on a different day," he noted. However, Crakes emphasized that this doesn't diminish its value, as the $100 million investment serves as a marketing tool, contributing to Amazon's broader goals, whether in growing Prime subscribers or boosting retail sales.

The Thanksgiving broadcasts, including Amazon's ambitious Black Friday endeavor, proved to be a triumph for the advertising market. Kevin Krim, CEO of data analytics firm EDO Inc., highlighted the strong response from consumers to big discount messages, affirming the success of the traditional TV advertising model.

In a landscape where cord-cutting poses challenges to the industry, the Thanksgiving ratings success becomes pivotal. The viewership demonstrated that linear TV need not suffer for streaming to achieve robust ratings, and vice versa. Crakes emphasized the enduring power of traditional TV, stating, "When it gets the right content in the right context, it blows everything else away." While acknowledging the industry's inevitable decline, he emphasized why it won't disappear entirely.

The record-breaking ratings on Thanksgiving underscore the potential harmony between streaming and linear mediums, challenging the perception of them being at odds. This complementary performance aligns with predictions suggesting that companies may eventually offer consumers bundled cable and streaming services under a single price tag, consolidating the two rather than fragmenting the viewing experience. Amazon's substantial investment serves as a testament to the evolving dynamics of the streaming landscape, signaling a significant shift in how audiences engage with sports content.

"Future of Streaming: Liberty Media Chairman Foresees Cable and Ad-Supported Streaming Integration"

In a forward-looking stance, Liberty Media Chairman John Malone anticipates a bundling of the ad-supported tier of streaming platforms with cable plans. According to Malone, cable and streaming are intricately connected, suggesting an impending integration of the two services. This perspective aligns with the evolving landscape described by sports media consultant Patrick Crakes, who envisions a coexistence of linear and streaming viewing, eventually leading to a reintegrated bundle.

Crakes emphasizes that the challenge lies in figuring out the monetization aspect of this integration. "The question is, how do you make the monetization work? We haven’t figured that part out yet," he acknowledged. Despite this uncertainty, he underscores the cooperative nature of linear and streaming, where linear can experience a gradual decline, and streaming can concurrently grow. The synergy between the two, according to Crakes, is evident in their ability to complement each other, suggesting a collaborative trajectory for the foreseeable future.

As the industry grapples with the intricacies of this integration, it's clear that the relationship between linear and streaming is not one of competition but cooperation. While the finer details of monetization are yet to be resolved, the overarching theme points toward a landscape where these mediums work in tandem, offering viewers a seamless and consolidated entertainment experience.

Disclosure: CNBC's parent company is NBCUniversal.

In conclusion, the evolving landscape of the streaming industry signals a shift towards integration rather than isolation. Liberty Media Chairman John Malone's anticipation of bundling the ad-supported tier of streaming platforms with cable plans reflects a recognition of the intrinsic connection between cable and streaming services. Sports media consultant Patrick Crakes echoes this sentiment, envisioning a future where linear and streaming viewing coexist, potentially culminating in a reintegrated bundle.

While the challenge of monetization remains a puzzle waiting to be solved, the collaborative nature of linear and streaming becomes increasingly evident. The notion that these mediums can complement each other suggests a symbiotic relationship where linear may experience a gradual decline, and streaming concurrently sees growth. Despite the uncertainties surrounding the finer details of this integration, the overarching theme points towards a future where the convergence of linear and streaming mediums offers viewers a cohesive and consolidated entertainment experience.

As the industry navigates this transformative period, the prospect of a harmonious relationship between linear and streaming unveils new possibilities for delivering content to audiences. In this evolving landscape, the cooperative synergy between these mediums may pave the way for innovative approaches to content distribution, making it a journey worth observing in the dynamic realm of media and entertainment.