Brightcove – UK media makeover: new opportunities for local broadcasters
Marc DeBevoise, Chief Executive Officer, Brightcove
In recent years, media consumption in the UK has seen a drastic transformation. Streaming giants like Netflix, Amazon and Apple have increasingly dominated the scene, leading to shifts away from traditional broadcast viewing. Ofcom’s Media Nations report highlights that streaming has become a primary mode of content consumption for many, with more than 80% of UK households now having access to at least one streaming service.
Despite early fears that streaming would undermine local broadcasters, the opposite has proved true. As audiences flock to digital platforms, UK broadcasters have a major opportunity to reach new viewers, particularly younger audiences, and to monetize local programming in fresh, compelling ways.
UK broadcasters have actively responded to the digital shift by launching streaming services and catch-up platforms including BBC iPlayer, ITVX and All 4, to align with changing viewer expectations. With advances in technology, it has never been easier for broadcasters to deliver live and on-demand content.
Embracing digital opportunities
Local broadcasters in the UK, while contending with issues around content rights, still control a vast amount of valuable, locally produced content, especially in categories such as news, sports and current events. This gives them a unique advantage: the ability to bring their regionally focused content directly to audiences through digital means, capturing new engagement and expanding their market presence.
There’s also an increasing understanding that global media companies, despite their scale, aren’t set to dominate every market. Regional media organizations have a detailed grasp of local preferences and trends, which gives them a competitive edge. Some of our UK-based customers have shown that regional broadcasters can gain traction and become leaders if they prioritize audience-focused streaming services.
Broadcasters in the UK can harness steaming to drive revenue growth and enhance their brand presence by focusing on three key areas:
- Precision advertising: Streaming offers more targeted advertising options, making it easier to reach specific audiences and track effectiveness, which ultimately leads to a great ROI. First-party data on streaming platforms can allow UK broadcasters to deliver ads that resonate more directly with local viewers, adding value beyond traditional demographic targeting. Connected TV is quickly becoming a leading advertising platform, giving local broadcasters the chance to capitalize on their region-specific content.
- Enhanced monetization models: While streaming audiences don’t replace broadcast viewers one-to-one, streaming platforms unlock multiple revenue opportunities through models like ad-supported (AVOD), subscription (SVOD), transactional (TVOD), and free ad-supported TV (FAST). With the ability to target ads more accurately, streaming CPMs are often higher, and the availability of premium paid options also introduces new revenue streams. A hybrid approach, combining free and paid content, could allow broadcasters to reach a wider audience while boosting revenue.
- Adaptability of digital media: The flexibility of digital platforms empowers broadcasters to experiment with programming and engage different viewer segments, which can lead to higher CPMs and more effective use of advertising inventory. Digital media allows broadcasters to quickly test new shows of coverage strategies and receive immediate feedback, enabling them to optimize their approach.
Addressing technical hurdles
The transition to streaming, while lucrative, requires a robust technical infrastructure which can be complex and resource-intensive. The investment needed to build and maintain a seamless streaming platform can be significant with ongoing requirements for a skilled team to ensure high performance, stability and innovation.
To overcome this, many broadcasters are partnering with expert providers like us at Brightcove. These partnerships streamline the setup and maintenance of streaming platforms, enabling broadcasters to concentrate on content creation and audience engagement, all without getting bogged down by technical challenges.
What does the future hold for the UK media landscape?
The evolution of streaming is allowing UK broadcasters to move beyond traditional, broad demographic targeting, enabling them to deliver tailored content that appeals to specific audiences. With streaming, broadcasters are positioned to offer advertisers a valuable platform for increasing brand awareness and reaching high-value viewers more directly.
Looking ahead, the integration of AI promises to reshape how broadcasters manage and present content. AI tools, such as automatic summarization, text-to-video transformations, and enhanced ad targeting, will help broadcasters deliver highly relevant and engaging content faster.
The notion that streaming poses a threat to traditional broadcasting no longer rings true. For UK broadcasters willing to embrace digital strategies, the shift to streaming represents an opportunity to strengthen audience engagement, expand reach, increase revenue, and play a pivotal role in the future of media.
