• The tvRoom
  • Posts
  • Cable Companies Battle FTC’s Click-to-Cancel Rule

Cable Companies Battle FTC’s Click-to-Cancel Rule

Plus, Apple’s AI Ads Fail to Impress

November 05, 2024

Welcome to The TV Room. Your weekly digest of television, streaming, and digital media insights that matter.

This week we're covering:

  • 📺 FTC’s Cancel Rule Meets Cable Pushback

  • 🍎 Apple’s AI Ads Fail to Impress

  • 🎥 Creative Spotlight: Kleenex - “The Big Day”

  • 🪜 Companies Moving Away From MLM

Cable giants fight FTC's click-to-cancel rule

Major cable and advertising companies are suing to block the FTC's new "click-to-cancel" rule that would make it as easy for consumers to end subscriptions as it was to start them.

The NCTA, representing Comcast, Charter, and Disney, along with the Interactive Advertising Bureau and the Electronic Security Association (including ADT), filed a lawsuit on October 23, calling the rule "arbitrary, capricious, and an abuse of discretion."

At stake are over 1 billion paid subscriptions across the US economy. The FTC's rule, set to take effect in mid-2025, would require:

  • Online cancellation options if customers signed up online

  • Clear disclosure of terms before collecting billing info

  • Explicit consumer consent for recurring charges

  • No misrepresentation of cancellation terms

The FTC says it receives 70 complaints daily about difficult cancellations, up from 42 in 2021. Chair Lina Khan stated, "Too often, businesses make people jump through endless hoops just to cancel a subscription."

But cable companies argue they need flexibility to explain "better options" to canceling customers. NCTA CEO Michael Powell claimed during a January hearing that "a consumer may easily misunderstand the consequences of canceling" and raised First Amendment concerns about restricted communication.

The lawsuit was strategically filed in the conservative 5th Circuit Court of Appeals, known for limiting federal agency authority. A similar suit was filed in the 6th Circuit by newspaper and small business groups.

Tensions are heating up between consumer advocates and subscription businesses, with the FTC receiving 16,000 public comments since it proposed the rule in 2023.

Read More:

Join Our tvRoom Community Huddle

Are you eager to learn more about starting with Performance TV? Maybe you're looking for tips on how to expand your efforts? Whether you're just beginning or aiming to boost your current strategies, our community huddle is the ideal spot to gather insights and exchange experiences.

Why Attend?

  • Get Started: If you're new to Performance TV, this huddle will give you the foundational knowledge you need to begin.

  • Scale Your Efforts: For those looking to expand their reach, discover strategies to scale effectively.

  • Expert Guidance: Take advantage of the valuable CTV marketing experience from your peers!

Nov 13 Weds. 12:30 PST → Registration Link

TV Industry Updates

  • Attention metrics milestone: Adelaide becomes the first attention metrics firm to enter the Media Rating Council accreditation process.

  • Sports ad saturation: Over 22,000 advertisers vied for NFL viewers, with some allocating up to 30% of their upfront budgets to sports.

  • Apple's AI ads misfire: New Apple Intelligence ads strain to find relatable scenarios, with critics saying the spots feel hollow and built on deception.

  • SMB TV revolution: Vibe launched AI tools to help small businesses access CTV ads, with 80% of its 3,000 advertisers new to TV.

  • Direct selling shift: DPG Media will stop selling app ads in the open programmatic market, requiring advertisers to buy directly starting in November.

  • Google's AI search tool: Google quietly tests new Search Bidding Exploration tool to help advertisers find valuable traffic in low-volume search queries.

Stay up to date on the latest in TV advertising by joining our Slack community!

Creative Spotlight: Kleenex - “The Big Day”

Kleenex captured a heartfelt first-day-of-school scene as a young boy comforted his teary mother with a tissue pack, set to a cover of Bob Marley’s "Three Little Birds."

The Details:

  • The ad captured a relatable moment of a mother’s unexpected emotions on her son’s first school drop-off.

  • The son returns to offer his mother a Kleenex.

  • The tagline wrapped up: "For whatever happens next, grab Kleenex."

What We Loved: The ad flipped expectations by focusing on the parent’s emotions instead of the child’s, creating a touching moment that hits home.

Marketing Mix

  • Unified marketing: Teams adopted unified platforms for real-time collaboration and data-driven decisions to keep up with tech changes.

  • MLM shift: Companies moved away from MLM models due to consumer shifts and regulatory pressures.

  • Multi-channel reach: Brands need to look beyond just TikTok and Instagram, as YouTube remains the most popular platform for 18-29-year-olds.

  • Friendship paradox: Research showed the "friendship paradox" helped marketers reach highly connected individuals.

  • Gen Z branding: Gen Z valued authenticity over polish in branding, per experts.

The TV Room is your go-to source for staying ahead in the world of television and digital media. Want to chat about these stories with other industry pros? Join our Slack channel to continue the conversation.