In the rapidly evolving media landscape of 2025, a significant shift is anticipated as consumers increasingly move from traditional pay television to streaming platforms. This transition is expected to put considerable pressure on linear TV networks in the United States. According to Seth Shafer, a senior research analyst at S&P Global Market Intelligence, this year could be pivotal for global media, with more sports programming and advertising dollars flowing toward streaming services. The decline in traditional multichannel households and the rise of digital video alternatives are key factors driving this transformation.
The Transformation of Media Consumption in 2025
In the heart of the bustling city of Las Vegas, just before the CES 2025 conference, a report titled Trends in Global Media highlighted the impending changes in media consumption patterns. Seth Shafer's analysis suggests that 2025 will witness a substantial realignment within the media industry. The U.S. market, in particular, is set to experience intense competition, leading to an increase in mergers and strategic partnerships. Media companies are focusing on profitability and may benefit from potential deregulation.
Shafer estimates that the number of traditional multichannel households in the U.S. will drop by 9.3% in 2025. This decline is primarily due to more consumers opting for digital video and streaming platforms over traditional cable services. Broadcast TV station owners face a significant challenge as carriage disputes lead to creative bundling options. Operators are pushing back against rising fees from stations and networks, which has resulted in cost-cutting measures such as dropping certain channels.
Additionally, the forecast for the U.S. broadcast station industry is not optimistic. Total advertising revenue is expected to decrease by 9.3%, reaching $32.83 billion in 2025, down from $36.19 billion in 2024. This decline is partly because 2025 is neither an election nor an Olympic year, traditionally lucrative periods for advertisers. Despite these challenges, there are some positive indicators. Total TV station revenue, including retransmission consent revenue, is estimated to reach $37.60 billion in 2025, which is slightly higher than the previous non-political year of 2023.
Sports media rights present another complex issue. While sports content remains highly valued, the expenses associated with broadcasting games have surged significantly. An increasingly fragmented audience spread across various platforms necessitates a more strategic approach to securing investments in live sports.
From a journalist's perspective, this report underscores the importance of adaptability in the media industry. As viewership patterns continue to evolve, media companies must innovate and explore new business models to remain competitive. The shift towards streaming platforms highlights the need for content providers to focus on delivering high-quality, engaging content that resonates with modern audiences. The future of media lies in embracing change and finding innovative ways to connect with viewers in an increasingly digital world.