TV networks’ streaming and linear ad businesses’ performance in Q4 2024: What’s ahead

The current state of TV network owners’ advertising businesses is under scrutiny as the shift to streaming continues. While the companies are experiencing growth in their streaming ad businesses, it is not enough to offset the decline in traditional TV ad revenue. Despite this trend, not every TV network saw a decrease in traditional TV advertising in the fourth quarter of 2024.

AMC Networks in the U.S. reported a 12% decrease in ad revenue year over year, while Fox experienced a 21% increase. NBCUniversal maintained a flat standing, Paramount saw a 1% decrease, TelevisaUnivision in the U.S. had a 2% increase, and Warner Bros. Discovery faced a 12% decline. Fox stands out due to its successful performance in traditional TV ad business, largely boosted by the U.S. presidential election and the Major League Baseball playoffs.

Moreover, Fox’s free ad-supported streaming service Tubi witnessed a 31% increase in ad revenue year over year, even excluding political revenue. This growth is in line with the general trend of streaming ad businesses, which are still in their developmental stages. Paramount and Warner Bros. Discovery provide further insights into the comparison between traditional TV and streaming advertising revenues.

Paramount recorded a 9% increase in streaming ad revenue alongside a 4% decrease in traditional TV ad revenue. On the other hand, Warner Bros. Discovery saw a 26% increase in streaming ad revenue while facing a 17% decline in traditional TV ad revenue. Despite the growth in streaming ad revenue, it still represents only a fraction of overall ad revenue for both companies.

Additionally, Comcast-owned NBCUniversal attributed its minimal 0.4% year-over-year growth in overall ad revenue to the success of its streaming service Peacock, offset by lower revenue from its networks. Disney, although not extensively reporting on its ad business, revealed a 16% increase in overall streaming ad revenue year over year, excluding the Disney+ Hotstar service.

In conclusion, the ongoing shift to streaming has led to diversified revenue streams for TV network owners, with traditional TV ad businesses showing decline while streaming ad businesses are gradually expanding. The balancing act between the two forms of advertising remains a key challenge for companies navigating the evolving media landscape.