Big TV advertisers are cutting ad spending on broadcast and cable networks.

These include General Motors, PepsiCo, Domino's Pizza, General Mills and Cracker Barrel.

This is testing the TV industry’s 50 year-old way of doing business, The Wall Street Journal reported.

TV ad spending fell in the initial weeks of the corona virus pandemic.

It was insulated from a bigger drop because the majority of $42 billion spent on national TV ads is bound by contracts.

The 1st real opportunity advertisers had to cut future spending began May 1.

Companies now have the option to cancel up to 50% of their 3rd-quarter ad spending.

The companies are worried about selling their products in a prolonged economic downturn.

They wonder what programming networks can offer with the near-total shutdown of production in Hollywood.