The media is in trouble.
Anyone who reads my articles understands this. It is a topic we covered over the past couple years. Hollywood is in shambles. This not only applies to the movie divisions but also television. Over the past year, many of the traditional television assets had to be written down as their present values were not reflected on the balance sheets.
Now we see another potential dagger in the legacy media. This one could hit them directly in the wallet, at a time when they can ill afford it.
Let us take a look at what could happen that could be the death of cable television.
Before getting into the core of the discussion, we first should look at what is keeping cable alive.
In my opinion, there are three factors which still feeds the cable television empire and has people still subscribed to the cable and satellite packages.
They are:
Obviously, the first is a dying breed. The Boomers are dying off, to the tune of 5,800 per day in the United States. These people are not being replaced in the ratings since younger generations are not tuning in.
Live sports will likely continue to be popular, especially in the era of AI generated content.
The third on the list is potentially being targeted.
RFK Jr. has pledged to stop the advertising of Big Pharma on television. He is now the head of HHS, a powerful position in this fight. That said, it is unlikely he has the authority to take this action, at least on his own.
It does not mean he does not have influence. The FCC and FTC are the agencies that will also have direct input. Of course, it all comes under the direction of the Administration and the directive out of the White House.
The United States is one of two countries that allows Big Pharma to advertise; along with New Zealand. Why does much of the world not allow this yet the US does?
Many will claim that it is a free speech situation. That is not the case because there are many products which are legal to purchase (presuming you are of age) yet cannot advertise.
In the United States, it is legal to:
In spite of these products being legal, the companies that offer the products cannot advertise on television.
When it comes to the products that Big Pharma pushes, they are illegal without a prescription. This means an individual cannot go out and simply purchase the product. It has to go through a doctor.
So who are they advertising to? The majority of the advertising public is not able to purchase it. It is one thing to allow for advertising/marketing directly to doctors but we know Big Pharma is not spending billions on television ads to reach doctors.
This is the bulk of the discussion.
If it comes to pass that advertising by Big Pharma is outlawed, this is a huge blow to cable television. One of the pillars still keeping it alive would be dead. With the Boomers waning in number, we have 2 of the 3 being fulfilled.
We could be watching the end of cable as we know it. This will hurt the major networks that depend on that feeder for viewers.
