At first glance, the numbers suggest the opposite. This drop-off in network audiences took place even as the number of TV households grew to 99 million last year from 83.3 million in 1983. Yet the three networks still bring in almost double the total advertising revenue of cable. A fragmenting media market has made mass audiences harder and harder to reach, and the networks offer an unparalleled platform to reach those audiences through their prime-time programming. They generate a level of excitement that brings a cachet to brands well beyond mere audience share.
Network television remains squarely at the center of the pitched battle for consumers' attention.
While the mass market is becoming more valuable, so are targeted audiences. This can be seen in the tremendous shareholder value and new audiences that specialized cable and satellite networks are creating. The ability to reach teenagers, women or Wall Street investors is crucial to many advertisers. A quick glance at the media plans of many major advertisers makes this abundantly clear. The amount advertisers are willing to pay for these outlets is growing even faster than network ad rates are increasing.