Amazon will destroy traditional media unless it nails addressable TV, warns Starcom
Amazon’s subscription content service, Amazon Prime Video, will be in 30% of Australian homes within two years, and there’s not much time for legacy media and brands to get ready, Starcom has warned at its 2018 Media Futures launch.
The report said the media battleground of the future will be personal television, with Starcom national strategy director Graeme Wood noting: “If we don’t as an industry create an ad-funded addressable platform to compete, we’re going to lose all of that potential to deliver the power of TV, with the personal relevance of digital for good.”
Starcom’s Media Futures warns of the looming Amazon threat
There isn’t much time left to solve the problem, Wood warned.
See above comment in website space. Yeah I know
Same old research, grounded in zero data.
NetFlix, Prime and many other non-ad funded streaming services have been in other developed markets for years. TV ad spend has not exactly fallen off a cliff in those markets.
Why does Starcom think Australia will be any different?
Cliff? No, but fair to say an relative decline in TV spend in those markets over time? Digital (for the first time) beat TV ad spend in the US in 2017. Doubtful there’s near future where time spent on netflix/prime decreases versus traditional, non-addressable, ad funded TV. Seems perfectly fair to plan for ways to reach these viewers spending increasingly more of their TV viewing time on non-ad funded TV?
Yes, completely agree with your point. Streaming TV services will have a profound impact on TV consumption patterns and ad revenues overtime.
My problem is with the assertion in this report that Prime will be the death of TV. There is zero evidence to back it up. Not even any anecdotal evidence.
Asking the simple question of what local content does Prime have (answer not a lot) would tell the dimmest strategist that Prime is unlikely to be killing TV anytime soon.
oh, yeah – definitely agree. “Destroy” in the headline is a bit of an overstatement