Audience fragmentation and the internet are not a threat say free to air network execs
High quality content will ensure a bright future for free to air TV, say the executives in charge of more than $3 billion in advertising at the big three commercial networks.
Moderator John Sintras, chairman, Starcom MediaVest Group questioned Kurt Burnette, chief revenue officer, Seven West Media, Louise Barrett, chief sales officer at Ten and Peter Wiltshire, group sales and marketing director at Nine, on second screen viewing, catch up TV and fragmenting audiences.
Nine’s Wiltshire told the room at the Mumbrella360 conference the challenges presented by fragmentation of audience across different devices were actually an opportunity for the TV networks.
“ I think the big opportunity is available screen time – more screens, more users, more devices, you know more opportunities to view,” said Wiltshire.
“At the end of the day we are all content producers and publishers, we pay a truck load for the rights for a lot of the content and internally on building it – so however we disseminate it, as long as you can measure those audiences and how they are consuming your content then who cares where it’s going or being consumed.”
Barrett pointed out that while there is much talk of a rising challenge to traditional free to air broadcasters, the reality was the majority of premium content being created was still produced by old media operations.
“It all boils down to having premium quality content,” Barrett said.
“The Google’s or whoever of the world are curating content, not actually producing premium quality content yet, they are talking about it, but you know a lot of their stuff is kittens dressed in dresses, kids doing funny things when it’s really about delivering premium quality content and delivering it across any device on any platform.”
Burnette would not be drawn on what Seven West Media was putting into online and second screen investment versus traditional free to air broadcast, instead emphasising the amount was significant through the joint venture with Yahoo in the shape of online arm Yahoo!7, which operates the companies catch up and streaming sites and apps.
He added: “I think a great example of that which epitomises most of our content is that Home and Away in the last four years the ratings are exactly the same, averaging 1 million people but it’s also in one month streaming 1.3 million full episodes.
“That’s where we are trying to grow it out (the audience). It’s not about diminishing returns on that investment and content, its about growing that real opportunity for all of us there.”
Wiltshire pointed to the recent first State of Origin match which received 560,000 streams, up from 118,000 just 12 months ago at a time when the broadcast live match received a record audience as well.
“That’s a five time increase in 12 months, so consumers are hungry for it, they’re driving to it so there’s good examples of growth”, he said.
On the question of whether they see companies like Google as a friend or foe the trio seemed confident their content offering remained superior and was not going to come under threat anytime soon from the internet and technology companies.
I don’t think they are friend or foe like I said before they are not yet producing premium quality content – we are, said Barrett.
The three also ruled out joining forces to build a shared second screen app.
“I think we have been down that track I don’t think its going to happen but I don’t think there’s an appetite, said Barrett.
“There’s challenges to it. Getting all three networks to do anything is a challenge.
“It’s not about one place to go for everything – if you want a second screen experience. I think it’s less about whether the networks come together its about what is the model that delivers the best outcomes for viewers and business.”
Robert Burton-Bradley
“High quality content will ensure a bright future for free to air TV, say the executives in charge of more than $3 billion in advertising at the big three commercial networks.”
If this is the case Free to air TV is in a world of pain. Lets see what high quality content is on Free to Air TV right now:
Good Wife – Channel Ten, delayed by months.
Game of Thrones – PayTV once they figured out it was good and had an audience.
Fargo – SBS, delayed by months.
The Americans – Channel Ten, delayed.
House of Cards – PayTV
Mad Men – Pay TV
Orphan Black – SBS, delayed by months.
Veep – PayTV
Silicon Valley – PayTV
I could go on…
Lucky for the free to air broadcasters they have their anti-siphoning list because without their protected sport they would be out of business if they were relying on high quality content.
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I think the fragmentation and social media distractions do impact eyes on viewers for all TV media.
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“Work is a rubber ball. If you drop it, it will bounce back. The other four balls– family, health, friends, integrity– are made of glass. If you drop one of these, it will be irrevocably scuffed, nicked, perhaps even shattered.” ― Gary Keller
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having a shared, combined second screen app would make it easier for consumers/audiences to watch things, as well as easier for media buyers to buy and measure one thing rather than 3.
why the pushback on doing this, other than all wanting to control the digital space..? isnt the greater consumer experience a more pressing reason?
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Dear hmmm, the push back is about cost for the Networks and they still haven’t figured out how to monetise these additional screens.
Once they can get an earn from the technology cost….more will happen.
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Dear I Wonder, You have nailed it perfectly. That all sounds like three executives with their head in the sand This next quote from Barret highlights these execs have no-idea-“The Google’s or whoever of the world are curating content, not actually producing premium quality content yet, they are talking about it, but you know a lot of their stuff is kittens dressed in dresses, kids doing funny things when it’s really about delivering premium quality content and delivering it across any device on any platform.”…really. What about Netflix? What they deliver is a product far superior to yours.
Go back and learn from your other dinosaur friends- newspapers, and learn from their mistakes. Otherwise in two years time you will have minimal significance.
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It is certainly a lot harder and more expensive to develop quality , or hit, TV shows (not always the same thing) than it is to create quality text-based content. So in that respect , the broadcasters are somewhat more protected, and less vulnerable than newspapers to the ravages of internet-driven fragmentation and competition. But they’re not totally immune either. New players with deep pockets to buy/ commission and distribute hit shows (Netflix, Amazon etc) will threaten
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I love that little book “Who Moved My Cheese”. Maybe a little less BS and a little more R&D.
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