“We expect US broadcast television companies’ EBITDA growth to come in at around only 1.8% over the next year or so,” said Jason Cuomo, Moody’s VP-Senior Credit Officer. “Broadcasters’ earnings are heavily influenced by the health of the advertising market, given their revenue mix is still weighted toward ad revenues, but today this ad-supported business model is under attack.”
Moody’s estimates that advertising accounts for 50% to 60% of broadcasters’ advertising mix. But on a national basis broadcasters are looking market share at an accelerating pace to Google and Facebook, Moody’s said. Those digital companies have global scale and advanced programmatic ad systems that target consumers more effectively, raising returns for marketers.