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Top 6 Threats for Television Broadcasters

Top 6 Threats for Television Broadcasters

Streaming services have been threatening to take a bite out of linear TV broadcast viewership for quite some time. However, it is only recently that television broadcasters have begun to feel the threat. According to a study conducted by Michael Nathanson of MoffettNathanson, Netflix’s US subscribers were up to six percent in 2015 from 4.4 percent in 2014.

As the future of television broadcast is threatened, we list six top challenges faced by broadcasters due to the rise of digital and streaming media.

1. The Rise of Alternative Media Channels

With the digital revolution gaining momentum, viewers now want to cherry pick their favorite channels, which is why streaming services over the internet are on an all-time rise. There has been a shift in the viewing habits, posing a threat to the decade-old model built around satellite and cable TV offering ‘bundled’ channels to consumers at a fixed price that offered little choice to viewers.

Now, viewers can access video channels like Amazon video, Netflix, Hulu; choose a subscription of individual channels like Showtime or HBO, or watch programs streamed on YouTube and other free online channels.

With the rise of alternative media channels, television broadcasters are facing a major threat in the form of what is popularly known as ‘cord cutting.’ According to a 2016 research by Leichtman Research Group , the cord-cutting trend began in 2013 when cable providers lost 100,000 subscribers. The figures went up to 150,000 in 2014 and 385,000 in 2015, thanks to on-demand platforms like Netflix that charge a fraction of what television broadcasters charge to stream programs.

2. Content and Network Security

Missed your favorite prime-time show? Login online to watch it anytime you want. Viewers now have the option to enjoy their favorite programs on any smart devices anytime they want. With the emergence of TV Everywhere, pay-tv operators are now offering TV Everywhere to provide value add and retain their subscribers.

However, TV Everywhere has its risks for broadcasters. As broadcasters use new media platforms to reach their millennial viewers, they are prone to security threats like hacking, malware, and cyber-attacks. Often, viewers also compromise their security by sharing devices, accounts and personal information to access the content, thereby giving easy access to hackers. Moreover, with the easy availability of network infrastructures, programs are being redistributed in real-time over the Internet illegally, resulting in loss of estimated billions of euros across the TV industry worldwide.

To address this challenge, broadcasters need proper infrastructure, security policies, and firewall protection to ensure hackers do not have access to the content. Moreover, old content needs to be digitized, archived and stored with proper tagging to ensure long term usage.

3. Changing Viewer Behavior and Preferences

As new digital platforms evolve, there is a distinct shift in consumer behavior and preferences. Users no longer consume what is being offered to them, but choose from a host of options available to them anywhere, anytime across multiple channels.

Traditional content providers are fighting hard to ride the digital wave and secure their place in the value chain by understanding customers’ interests and upselling the right products to cater to their preferences. TV broadcasters are facing a significant threat due to changing preference of the viewers and need to create and recycle content to cater to the changing behavior.

4. Content Protection and Piracy

In a world where news and videos go viral in minutes, content can travel across geographies fast. Thanks to the Internet, viewers now have the power to generate the content they like, share it with the world and gain instant popularity.

However, reliability and accuracy of such content remain a concern. Broadcasters might get into legal hassles like copyright issues or defamation if the authenticity of user-generated content is not verified. Similarly, illegal commercial distribution of content originally owned and produced by broadcasters may lead to revenue loss.

5. Mismanaged Content

Mismanaged content is a major challenge that broadcasters face today. While there is a lot of new content generated both by the user and broadcasters every minute, it might not be organized for future usage. Much of the content is not tagged correctly and do not have metadata, which makes it impossible for broadcasters to compartmentalize for reuse, often leading to content duplication.

With a huge amount of content already being created alongside legacy content, broadcast organizations need to organize and tag content to ensure easy search, access and distribution of existing content.

6. Lack of Quality Content

With modern technology and changing of viewers’ preference, there is a huge demand for content. However, to meet the growing need, quality of the content often takes a backseat.

To ensure quality, broadcasters need to utilize the content that is already in use. Recycling legacy content and going regional to cater to different geographies are some of the measures that content creators need to take apart from creating new content.

The television industry is gearing up to meet the digitization challenge. As viewers are spoiled for choice, the television ecology is becoming more democratic. Broadcasters are propagating online programs to catch the viewers’ attention and become accessible to new audience.

6 Key Broadcast Industry Trends to Watch Out for in 2017

6 Key Broadcast Industry Trends to Watch Out for in 2017

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.

  1. Big Data Analytics for Viewer Insights

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.

  1. Virtual Reality Gets Mainstream

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[1] 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.

  1. Increased Adoption of Over-the-top (OTT) Content

Industry reports[2] predict that by 2021, video will account for 70% of the mobile traffic. Forrester[3] 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.

  1. Create Viewer-centric Content

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.

  1. Ultra HD/4K Production

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.

  1. Internet of Things Gets Real

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

Audiovisual Content Monetization: How Ready Are You?

Audiovisual Content Monetization: How Ready Are You?

Television is no more the only go-to entertainment device. According to a report[1], as viewers consume TV shows and movies in various devices on-the-go, television has lost 13 percent of its viewers in 2015.

With the millennials abandoning television faster than anybody else, broadcasters are aggressively exploring new ways to package content and share it across multiple platforms. Consumers now want more variety and quality content to be delivered to the right device at the right price, which is why providers are looking beyond repackaging the same old content to make it available.

As content becomes the leading online commodity, broadcasters and media organizations are trying to monetize their content. The need to create, convert, and manage digital content has brought forth new technologies, competitive paradigms, and business dynamics in the industry.

Consumers now expect instant access of all content – news, entertainment, corporate, social, media or personal across devices. This has resulted in companies innovating to create ways to monetize content. The biggest challenge that organizations are facing is not technology but availability of content in the consumable format. If monetization is the immediate priority, content owners need to focus on:

  1. Digitization of their historic analog content
  2. Management and optimization of newly produced content

A lot of content still lies in old format like video tapes or film. Organizations need to convert these to digital files and create relevant metadata and support index to aid effective and seamless content retrieval. To facilitate this, content curators need to assess the audio-visual assets to determine the appropriate platform to store, access and distribute the content. Moreover, content, as an asset, needs to be managed well to ensure optimal distribution across channels to generate parallel revenue streams.

Once digitized and managed well, media asset managers not only undertake the effort to digitize and manage content to ensure easy search and availability, they also present an array of options to monetize the content.

Subscription Plan

Common for all types of digital content, be it gaming, streaming content (like Hulu, Spotify, or Netflix), software, or magazine and newspapers, subscription model primarily use paywalls, through which users subscribe to content for a monthly or annual fee. Broadcasters have the option of implementing paywall after a free trial, immediately on consuming the content, or pay-as-per-use. Some content are also charged after a specific number of views, which allows broadcasters to generate revenue from ad.

Transaction Plan

Consumers have access to digital content after paying one-time transaction fee, where they pay-to-own the track, movie, image, or article, or pay multiple times as they use the content. Multiple transactions allow users to have time limited access of content and applications. iTunes and YouTube movies are examples of content being available in this model.

Freemium Plan

Under this plan, content is offered for free, while the broadcasters charge premium for selective content. For example, Angry Birds game is available for free, but users need to pay for an ad-free version or to purchase goods and levels within the game.

Ad-support Plan

Common across digital verticals, ad-supported free content earns revenue from ads, like banner or C. While content is provided free, advertisers use the platform to run ad campaigns and pays the content owner for using the platform.

While organizations try different plans across different platforms to broadcast and monetize content, what needs to be kept in mind is one-size-fits-all doesn’t work for all content owners. Media asset managers and broadcasters need to identify the ideal plan that suits the overall business objectives of the organization.

[1] https://www.accenture.com/us-en/insight-digital-video-connected-consumer