Financial analysts at LightShed Partners are urging broadcast networks to consider scrapping most entertainment programming, arguing that non-sports content has become largely irrelevant to viewership while NFL games alone drive the vast majority of value and retransmission fees.
In a new note to investors, analysts Richard Greenfield, Brandon Ross, and Mark Kelley highlight steep long-term declines in non-sports programming and the overwhelming dominance of NFL content.Citing data presented by the NFL to the FCC, the analysts write that “it has become apparent how irrelevant all non-sports programming is to broadcast TV viewership.”
Over the past 20 years, non-sports broadcast primetime viewership has fallen more than 75%, while NFL regular season viewership has risen over 30%. Last season, NFL audiences on CBS and NBC hit all-time highs despite ongoing cord-cutting that has reduced broadcast reach overall.
“The obvious question is why broadcast networks bother investing in general entertainment programming,” the analysts wrote. “Given that general entertainment programming is not driving retransmission consent fees, if any of these forms of programming cannot cover their production costs via advertising and streaming syndication revenues, should they exist at all?”
