When an elephant enters a room, one must acknowledge it.
Donald Trump won a second, non-consecutive Presidential term, first done by Glover Cleaveland, and Republicans control both the Senate and House, giving them a sweeping mandate to govern.
Based on rhetoric, policy outlines and plans, here’s how the election may impact the media, tech and advertising industry.
More consolidation. Trump has promised to gut regulatory agencies, including the FTC which reviews uncompetitive mergers and acquisitions. Expect a business friendly climate for larger companies to go shopping with accompanying layoffs as a result.
The FCC, the agency which handles licenses for media organizations, will see major shifts as Trump has promised to bring them under Presidential authority. Expect more fragmentation as power shifts from mainstream to upstart media as well as defunding for public broadcasters.
Media fragmentation is now a feature and not a bug. Algorithmic information feeds have created ideological echo chambers, and mass media's hegemony over a broad US market is gone, creating scattered perspective realities amongst populations. Major independent podcasts regularly get more viewership than CBS, NBC, and FOX combined.
Current polling and market research has once again proven fundamentally flawed due to antiquated data collection methodology, rendering it altogether useless. This represents a deep and exciting opportunity for disruptors to take market share from established players.
Monopoly cases. This ones a toss up for me. On the one hand, gutting of government agencies like the FTC will reduce the government’s ability to bring cases. On the other, Trump’s populist platform and his combative relationship with big tech calls for reform. Expect vigorous lobbying from big tech.
The administration has promised tariffs and limits on imported goods, especially on China. Tariffs will push prices for general consumer goods higher, pushing a flat tax to consumers. In technology, chips and components are the most imported goods. Also expect more limits on foreign investment in American businesses.
Lower taxes on corporations. Trump already lowered corporate taxes from 35% to 21%. He’s floated lowering it once again which would increase corporate profits.
Mind yourself and your business. Elephants tend to trample the little guys underfoot.
3 Stories Dominating Media and Tech Headlines
Warner Bros. Discovery's streaming platform, Max, gained 7.2 million new subscribers in the third quarter, reaching a total of 110.5 million globally. This marked Max's highest quarterly growth since launch, fueled by international expansion and increased advertising revenue, while other areas like traditional TV continue to struggle.
Why it matters: Streaming revenue is slowly replacing declines in traditional TV viewership, impacting how media companies balance streaming and legacy business units.Â
Media execs express optimism about potential industry consolidation under a possible second Trump administration, which they believe could enable faster dealmaking and regulatory changes. During the company's third-quarter earnings call, Zaslav highlighted the importance of consolidation for strengthening companies and enhancing the consumer experience. The sentiment was echoed by other industry executives, such as Sinclair CEO Chris Ripley.
Why it matters: Zaslav’s comments come amid Warner Bros. Discovery’s reported challenges, including a 17% decline in studios revenue and a 58% drop in adjusted EBITDA due to weaker theatrical performance, underscoring the potential appeal of strategic mergers in a disrupted media landscape.
Democrats spent $460 million more on traditional advertising, but they still lost handily. Meanwhile, Trump’s campaign relied on independent podcasters, Twitch, and influence networks, allowing him to tap into consumers disillusioned by traditional media outlets. The difference was paid vs. earned media, with Trump’s campaign outpacing Harris’.Â
Why it matters: Doubling down on the original points made in the first paragraph, media fragmentation is a feature, not a bug, of our new media ecosystem. Podcasts, indie channels, and creators have outpaced the reach and influence of traditional media.Â
Creativ Spotlight - Star Trek Fleet Command Battle Pass
Our talented creative team support Scopely’s launch of the Star Trek Fleet Command Battle pass! The pass includes ships, cosmetics, bonuses, and currency to advance Commander’s dreams of space exploration everywhere.
Checkout the game, available on PC, tablet, and mobile!
Stat of the Week - Top Issues Discussed on the Internet
Chart by Miles Mahoney
Creativ Insights broke down the top issues voters are talking about by share of voice by ingesting 360,000 comments specific to the election. The largest conversation outside of the candidates was America's involvement in foreign wars.
General conversations on America's foreign policy took the top spot, followed by the Israel & Gaza conflict, taxes, and then Russia and Ukraine. Taxes, reproductive rights, immigration came, and China were secondary conversations happening across the web.
To download our full report click the link here!
One Fun Thing - Thankskipping
If it feels like Christmas starts earlier and earlier each year, that’s because culturally it does. Ad campaigns for holiday shopping begin in November and last through the holiday season.
Give thanks this November that Thanksgiving hasn’t been commercialized… yet.