Streaming won’t kill TV, but it’s going to make media buying harder
The new range of video streaming services will not kill TV, but will make it harder still for advertisers to reach mass audiences argues Paul Brooks.
In a world where everything changes, nothing changes! I remember a presentation back in 1998 with the opening slide posing the inflammatory statement “The death of Television.”
I cannot recall how many times I have been asked or presented that question in the last 17 years, but what I can recall is only last week I was asked it again by a ‘media expert’.
Let’s be clear: the likes of Netflix, Presto, Quickflix and Stan will not kill television, the same way that Spotify, Rdio and Pandora have not killed Radio. If anything, they will pose the biggest threat to video and DVD stores.
Another question worth raising is whether SVOD will facilitate “boutique” content providers who exist to fill audience niches like a World Movies service or someone who provides highbrow content? This also includes whether such providers would rely on advertising or purely subscription.
Paul, what about the problem of people recording shows and zapping through ads, not to mention killing the goose that laid the golden egg ie: Reality shows that encourage people to jump onto social media during the ad break?
Surely the traditional 4 or 5 minute ad break as we know it, is on it’s last legs?
You make some great points here Paul.
What’s interesting is that even if they don’t move to ad-funded models these services are likely to impact the violume and value of existing media from an advertising point of view. The simple fact is that more time is likely to be spent viewing content without ads, in many ways pushing up the value of those services that can deliver advertisers mass reach (or close to it) against brand safe content.
I disagree with Paul on Australia not been able to support three or more players.
We’ve had three commercial networks for how long now in Australia not to mention the ABC and SBS, and besides I think a lot of people will end up taking out more than one subscription.
Interesting conversation thread. I have just founded a tech-start-up in the Film, TV & Digital Media space called ‘Pitch Point’ which is currently in development. I’m gaining traction fast as it will allow content creators to effectively ‘pitch’ their work direct to the Industry. I’d love to get some feedback from anyone interested in hearing more!
Most people (sample size 1) who record shows only zap through the first ad break, they then just view they show as it if was on tv…until they remember that they can fast forward the ads.
I for one am excited about the idea of premium programmatic for SVOD aka PPSVOD
@ David Henselin: The economics of FTA TV and SVOD are very different. Content and infrastructure costs for both are enormous. But at $10/month per subscriber the SVOD players are going to have to sign up (and keep) literally millions of customers. As with pretty much everything digital, volume and scale are critical to success. With a total population of 22m, Australia just doesn’t have the sort of scale to keep multiple SVOD players in business.
@ David Henselin: The economics of FTA TV and SVOD are very different. Content and infrastructure costs for both are enormous. But at $10/month per subscriber the SVOD players are going to have to sign up (and keep) literally millions of customers. As with pretty much everything digital, volume and scale are critical to success. With a total population of 22m, Australia just doesn’t have the sort of scale to keep multiple SVOD players in business.
‘I remember a presentation back in 1998 with the opening slide posing the inflammatory statement “The death of Television.”’
and it happened…
… these walking dead networks have nothing on their ancestors, but still trade on the mystique of a time when they were dominant.
Hollywood isn’t likely to give up its current business model without a fight. Selling to a few streaming services rather than hundreds of mom and pop video stores that have to pay whatever price they are offered doesn’t sound all that attractive to film investors.
As for internet TV, where is the business model ? Cable has had minimal impact on FTA and it gets much more subscription revenue and is a virtual monopoly. Giving stuff away for free is not a business.