CNBC ratings continue to plummet while the cable “bundle” crumbles, indicating that it could be a bear market for the “World’s number one business news network” in 2015.
But it is the loss of the bundle, a virtual monopoly that controls what news cable viewers see, that might hurt CNBC the most.
Bundle’s relation with CNBC ratings
The bundle is a requirement by cable companies to force feed their audience content such as CNBC’s business news. In most basic cable packages, CNBC is the only choice, whereas other business networks, such as Bloomberg or Fox Business Network, are generally part of a premium package. As the “bundle” of these curated news choices is liberated – Dish Network recently announced it was “going over the wall” and offering a cable lineup to an internet audience – CNBC could face a future where it is increasingly a paid choice on an alacart menu.
Moving away from the bundle means additional competition for CNBC. The ratings slide that has been documented could get even worse. It is for this reason that CNBC has embraced a bold and decisive action: Shoot the messenger.
According to a Wall Street Journal article, CNBC will become the first TV network to opt out of the common Nielsen ratings, saying they don’t accurately measure the network’s true viewership. (Bloomberg News does not subscribe to the Nielsen ratings at all, while Fox Business Network does.)
CNBC’s viewers measurement process
Instead of Nielsen, CNBC will hire Cogent Reports to measure its viewers, but the measurement process is going to take place more to CNBC’s liking. The new ratings system has been set up to include ratings from outside the home, as Cogent will survey over 1,000 investors and financial advisers on their viewing habits during the day.
While CNBC insists that Nielsen ratings are inaccurate during the afternoon, at night, when the network’s ratings are climbing, they use the Nielsen system. “Only using the numbers you like is a little tough to sell,” Paul Rittenberg, executive vice president of advertising for Fox Business Network, was quoted as saying. Another ValueWalk media source joked: “Since now both CNBC and Bloomberg will not be rated by Nielsen – I (think) that makes FOX Business Network the #1 business network on television?”
Nielsen numbers to end 2014 show CNBC having its worst ratings since 1995 while Squawk Box, its mainstay morning news program, delivered its lowest rating ever with its prime demographic, ages 25 to 54. “How does a program like CNBC remain relevant?” Squawk Box co-host Joe Kernen was heard saying on the program when he interviewed a young tech entrepreneur.
The answer to that question might be found in reporting the real news. In 2014 the network softpeddled many hard news stories. This included censoring a quote by hedge fund legend Carl Icahn when he warned about the derivatives that underlie the economic system, a topic generally discussed behind the scenes.
As it moves to an internet-based, pay as you go audience, the big question is: Will mainstream establishment gloss news find an audience willing to pay for that content?
Finally, with these Nielsen ratings (see below), can you really blame the network?
Network Business Day Lows
A25-54: CNBC delivered its lowest rated year since 1992 with A25-54 (39,000) and for P2+: CNBC delivered its lowest rated year since 1995 with P2+ (175,000)
Business Day Yearly Trends
P2+ and A25-54: CNBC has been down consecutively for the past 6 years (since 2009)
CNBC Program Highlights 2014
- Squawk Box delivered its lowest rated year ever with P2+ and A25-54
- Squawk on the Street delivered its lowest rated year ever with P2+ and A25-54
- Fast Money/Halftime Report delivered its lowest rated year ever with P2+ and A25-54
- Power Lunch delivered its lowest rated year ever with P2+ and A25-54
- Street Signs delivered its lowest rated year ever with P2+ and A25-54
- Closing Bell (3p-5p) delivered its lowest rated year ever with P2+ and A25-54
- Closing Bell (3p-4p) delivered its lowest rated year ever with P2+ and A25-54
- Closing Bell (4p-5p) delivered its lowest rated year ever with P2+ and A25-54
- Fast Money delivered its lowest rated year ever with P2+ and its 2nd lowest rated year ever with A25-54 (lowest rated year ever is 2013)
- Mad Money delivered its 2nd lowest rated year ever with P2+ (lowest rated year is 2013) and its lowest rated year ever with A25-54
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