Nielsen’s smaller estimate for the total universe of TV viewers...
Nielsen’s smaller estimate for the total universe of TV viewers is an overlooked factor in this year’s lower TV ratings, Sanford Bernstein analyst Todd Juenger wrote in a note to investors. With Nielsen estimating a 1 percent reduction in total…
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TV households and a 2.7 percent reduction in viewers 18-49, a show’s total projected audience would drop by that factor even if the percentage in a Nielsen TV panel watching it remained the same as a year earlier, he said. “This effect has been compounded in Q1 because total consumption of TV is down ~1% as well,” he said. Why the drop? “The cause for the decreased addressable universe is debatable,” he said. “We believe it is primarily due to a lack of household formation and poverty. Others argue it is evidence of cord-cutting,” he said. But while ratings fell during Q1, demand from advertisers to buy spots remained high, leading to higher pricing, he said.