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With seemingly disparate events like mobile operators providing seamless unlimited data access to its consumers, entertainment shifting from television to video on demand, and web series gaining popularity over traditional content – 2016 witnessed some major shifts in the broadcast and media industry.
A sudden increase in the popularity of streaming services like Amazon Prime and Netflix and the younger generation’s was observed, leading to movement of TV audience to digital platform.
Let’s take a look at the key trends to watch out for in 2017 that would aid this lateral shift.
Big data analytics will help broadcasters analyze viewer preference and develop content accordingly. By accessing the large amount of data sets already in store, organizations can perform behavioral analytics of the views to understand the nature of content consumption and deliver accordingly.
Organizations will increasingly use big data analytics to build 360-degree audience profiles based on geographic, demographic, economic and psychographic attributes to understand various touch points and have better insights, thereby improving the entertainment experience for the end user.
Big data analytics will not only help broadcasters develop appropriate content, it will also change the advertising principles in the industry. By measuring ‘binge watching content’ more accurately using data analytics, companies can help advertisers package the right kind of experience to cater to different types of binge viewers.
The recent announcement of Netflix to bring its programming to the VR realm, the popularity of Waze and PokemonGo are just the start. A report from Manatt Digital Media projects that revenue from augmented reality and virtual reality will reach $150 billion by 2020. Going by the trend, in 2017, virtual or augmented reality will continue to reshape the face of the broadcast industry. By fostering shared moments and creating a shared space where people can share experience, virtual reality will gain momentum.
With programs like Proto-nominee Convrge that allow people to gather and watch YouTube videos together already in place, the broadcast industry will push this idea further to include streaming sites. While some genre of stories like science-fictions and fantasy are more suited for virtual reality that sitcoms and dramas, the industry is set to experiment more with different genres and take virtual reality to a new level.
Industry reports predict that by 2021, video will account for 70% of the mobile traffic. Forrester forecasts that by 2025, 50% adults under the age of 32 will not pay for TV. Today, if we look around, the prediction seems believable. With viewers increasingly consuming content across devices anytime and anywhere, OTT seems the next big trend in the coming years.
More and more E&M companies are selling their content to streaming services such as Netflix, Amazon, and Hulu. With the streaming services gaining access to new originals as well as libraries of television shows and movies, OTT services are gaining a firmer grasp on the end-user relationship with their advertising free environments.
As the broadcast industry opens up to more delivery options and devices, the packaging and distribution of the content will change significantly. With the viewers empowered to choose the content they want to consume, content curators need to find innovative ways to monetize content that not only attract eyeballs but create repeat viewers.
Creators will continue to move beyond traditional distribution channels and studios to create and retain consumers who are united by shared interests, ideas and experiences. Content creators/ curators will be more receptive of the likes and dislikes of viewers and create and distribute content to suit their needs and preferences, which will create loyal fans that are less likely to churn and have more spending capacity.
2016 saw Netflix leading the 4K streaming with films like Ghostbusters and shows like Breaking Bad and the Blacklist. Amazon has also entered the league with its popular shows like Mad Dogs, Transparent, and Man in the High castle. However, content selection now is limited with criteria for subscribers to access the content.
In 2017, Netflix and other streaming data broadcasters will continue to film or upgrade their new content in the 4K format. Content curators will create more 4K content and expects TV watchers make the jump to the higher-resolution standard.
The broadcast industry is increasingly opening up to Internet of Things and beginning to see the benefits of connected broadcasting. Imagine your favorite program pausing by itself as your doorbell rings or you leave the room. Or taking cues from the surrounding like lighting and time of the day to choose program automatically based on your mood.
The future of IoT for broadcast industry looks promising. 2017 will see more crowdsourced and real-time content being generated, giving broadcasters more chance to know the audience and improve the viewing experience with more engaging and interactive programs.
Sources:
[1] https://www.fastcompany.com/3052209/tech-forecast/vr-and-augmented-reality-will-soon-be-worth-150-billion-here-are-the-major-pla
[2] http://www.digitaltveurope.net/547432/ericsson-viewing-is-shifting-from-tv-as-mobile-video-soars/
[3] http://blogs.forrester.com/james_mcquivey/15-10-07-by_2025_50_of_adults_under_age_32_will_not_pay_for_tv
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