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Trends reshaping the future of news stations

Trends reshaping the future of news stations

2017 witnessed Israel’s Channel 1[1] nightly news ending its 49-year old journey abruptly. Closer home, NDTV took its English business news channel NDTV Profit[2] off the air in June. Regional (Kannada) news channel Udaya News[3] also shut down operations in 2017 due to losses.

In countries like the UK and the US, television viewership has declined on an average by 3 to 4% annually since 2012. When compared with the decline in newspaper circulation, there is a steep decline of 25 – 30% since the 2000s in the traditional consumption of news.

Though traditional television formats like 24-hour news channel and evening bulletins still cater to a large audience, with news being easily accessible in the age of digital media, television news providers are facing aging and eroding audience on traditional platforms.

Legacy broadcasters like PSB, BBC, CNN, RTL, ARD/ZDF, TF1, France Télévisions, ITV, etc. are experimenting with online video news to reach younger audiences in this changing environment. Print media, both in India and abroad, like the Daily Telegraph, Vice, Economic Times, Times of India, and New York Times, have started incorporating video as part of their digital strategy. The industry also has some pure digital players like NowThis, WatchUp, Huffington Post, and BuzzFeed is focused on building an audience for distributed viewing via platforms like Facebook and YouTube.

While these are still on experimental stage, we list four key trends below that will reshape the face of news channels:

Mobile Journalism

Thanks to social media, even an ordinary man is a broadcaster today. The newsroom has evolved from being linear to circular. People know what is happening in the blink of an eye. With social media channels becoming a valuable tool to reach out to the potential viewers, news broadcasters are in a rat race to deliver news first across all available platforms. This has led to the emergence of mobile journalism.

Reuters Institute’s Digital News Report indicate a steady growth in mobile use for news. From newsgathering to production, distribution, and consumption, mobile affects every stage of news. Newscasters have started reporting live from the venue using applications like Skype, Hangout, Google’s Duo, etc. Mobile phone cameras are replacing DSLRs to capture superior quality images and videos to be telecasted directly. There is no time lag from ground zero to the living rooms of the viewers, as the production control room (PCR) patches the audio/video of the reporter with the anchor and he is live on-air in practically no time with his news report.

However, broadcasters need to realize that ‘mobile first’ journalism does not only mean rearranging the newsroom or having a responsive website, but about having hyper-relevant, short, and visual stories to tell. Content management system needs to accommodate new and varied formats to cater to multiple devices and platforms.

Distributed Content

Both digital start-ups and legacy broadcasters have started pursuing distributed video strategies. Broadcasters are offering content on third-party platforms without dragging users away from the platform they choose to be on. Analytics company Tubular Labs report BuzzFeed, NowThis News, and AJ+ among the top ten most viewed ‘creators’ across Vine, Facebook, YouTube, and Instagram.

Tubular Labs estimate that CNN generated 214 million views in January 2016 and Fox News about 172 million[4]. CNN’s ‘Great Big Story’ initiative is an example of how some legacy broadcasters have embraced distributed viewing, and one clear takeaway is that socially distributed videos should be different not only from television clips, but also from website content[5].

However, broadcasters need to address the challenges around monetization and the risk of losing a direct relationship with the audience while pursuing distributed video strategies.

Live Streaming News

Live streaming news is still in its infancy. While some breaking news like terror attacks and events like Olympics do see a spike in the audience, the regular news is yet to catch up. However, news agencies and broadcasters do realize the demand for content around live events.

Apps like Twitter’s Periscope, Meerkat, and Facebook LiveStream are offering live streaming to witness events, where much of the content is offered by ‘citizen journalists.’ Broadcasters like BBC is developing its mobile aggregated content and live video stream – Newstream – that would offer both in-depth analysis and immediate stories. CBS News runs a 24/7 online live stream running content from the news division and affiliates.

However, broadcasters need to address the editorial challenges and the business prospects around live streaming to explore this trend completely.

Long Form

Broadcasters are also experimenting with a longer form of content, mostly interactive videos and documentaries to stand out in the competition. News agencies like Sky News and New York Times are experimenting with virtual reality, allowing users to have an immersive experience of major events from their smartphone. Vice, which started as a print magazine has built an online presence among the younger audience with its documentaries. Although the long form of content is yet to have mass adoption, producers foresee it developing into a mainstream application helping brands carve out a distinct identity.

However, the challenge is to find an approach that adds value to the longer form of content and stays beyond 24 hours – be it by being compelling, having a background, novelty or an angle to the story.

To survive the rat race and remain profitable, news broadcasters need to devise new strategies to reach out to the masses effectively. The news is no longer only about what is happening, but about how the common man wants to view and interpret what has happened and predict the future outcome.

[1] https://www.timesofisrael.com/with-two-hours-notice-and-after-49-years-channel-1-news-goes-off-the-air/
[2]http://www.business-standard.com/article/companies/ndtv-to-bring-down-curtains-on-ndtv-profit-117060101597_1.html
[3] https://tvnews4u.com/sun-tv-network-mulls-closing-operations-udaya-news-gemini-news/
[4] https://tubularlabs.com/yt/cnn, https://tubularlabs.com/fb/foxnews
[5] http://www.gulfcoasthurricanecenter.com/many-people-turning-away-local-news/
What will 2018 hold for media broadcasters?

What will 2018 hold for media broadcasters?

2018 will see broadcasters streamline their content, technology, and operations for a new segment of customers who consume content on-demand. Driven by the changing content consumption, we foresee media organizations looking at following:

Dawn of the OTT Era

Industry reports reveal that an average Indian consumes 8.5 hours of video content every month on Facebook and YouTube, which accounts for 47 percent and 42 percent of market share. Add the popularity of Over the Top (OTT) platforms like Hotstar, Netflix, Amazon Prime Video, Jio TV, and VOOT to that, and you’d realize that the way Indians consume digital content has changed over the years.

In India, the popularity can be attributed to access to faster and cheaper internet, affordable smartphones, and the wide range of content on offer. With over 460 million internet users, India is the second largest online market[1] whose smartphone penetration rate is expected to reach more than 28 percent by 2018.

While some broadcasters have already launched their platform like Ozee, others will pick this trend in 2018 and look at launching their platforms. Some may also look to optimize and produce their content on commercially successful OTT operators. Broadcasters will be seen investing in tools and technology to prepare their content and distribute it to CDNs.

Solving the Content Conundrum

OTT has changed the way content is created and consumed. As viewers consume content anytime, anywhere, and on any device, the demand for short-form, high quality ‘snackable’ content has been on the rise. Citizen journalism is gaining momentum, with viewers recording events and posting live on social media for the global audience.

Original, consistent, and addictive content is on demand. With players like Apple planning to invest over $1 billion in original content and Facebook spending a chunk of its marketing budget on content, fresh content production depending on current affairs, mood, and preference of the viewers is on the rise.

However, creating fresh consumable content is only one side of the story. To retain subscribers and provide a shared experience across devices, OTT providers also need to recreate the legacy content with proper archiving, metadata and tagging, and digitization. For this, broadcasters will need to dig into their archives to sort, organize, digitize, restore and optimize legacy content to enable easy search, access, and distribution of content across channels.

Embracing Virtualization

Newer digital broadcast avenues like OTT are creating pressure on traditional broadcasters to lower their Broadcast Operations and Engineering (BO&E) budgets. A survey by Devoncroft reveals that more than 40% M&E vendors have products that operate in a virtualized environment. While it is debatable if ‘virtualization’ refers to only IT infrastructure or the entire content supply chain, the fact is – new, small, and medium-sized broadcasters are gradually migrating their infrastructure to cloud-based solutions.

Moving to IP comes with the benefits of using a standardized connectivity and infrastructure to transport videos from locations to the central facilities and on to distribution. Therefore, broadcasters will continue digital transformation keeping content at the center of business to achieve faster time-to-market, scalability, and agility at a lower TCO.

Enhanced User Experience with 4K, HD Formats

A 2016-report by Chrome Data Analytics and Media[2] reveals that 8.34 million households in India have HD televisions, of which 89 percent have DTH HD connection and 11 percent have digital cable HD connection. However, only 9 percent or 91 channels out of 857 permitted private satellite television stations and more than 190 government channels in India are High Definitions (HD).

With the market share of OLEDs, 3D and 4K television increasing every day, viewers often forget to ask – does India have enough 4K and 3D channels? Wikipedia lists only five 4K channels and one 3D channel.

To address the change in viewership, media organizations will continue to upgrade their technical infrastructure to broadcast in HD or beyond (4K). With 2019 General Elections in sight, it is expected that news broadcasters will upgrade their technology, investing in workflows and solutions for presentation and analysis of election results in high definition.

To summarize, 2018 and 2019 will be the year of digital transformation and adoption of technology focusing on improving the viewer experience.