Traditional linear television has been around for more than 80 years, and in that time audiences have got used to its look and feel. They appreciate a lot of what it gives them: there are values in linear television that appeal.
Programs are shown at appropriate times. There are regulations around the amount of advertising and the way it can be presented.
The linear advertising experience is the result of all those years of striving to deliver for both audiences and advertisers. It is in everyone’s best interests if spots are not repeated too often as audiences will disengage. Choosing the right commercials for the program ensures that audiences are likely to be receptive.
Scheduling and commercial campaign placements have become core skills in running a successful linear channel. We tend to call this superior experience the “broadcast premium.”
But new entrants to the market, like the digital-first providers, now see the broadcast premium as something they aspire to. They want to give audiences the convenience of watching when and where they like, but still with the qualities associated with linear channels.
In simple terms, digital and linear media services are converging. This is an inevitable, inexorable process. But it does throw up three big issues that need to be addressed.
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Media and entertainment is a well-established industry, with a heritage to be proud of. But maintaining a pivotal role in the consumer landscape for several decades comes with a unique set of challenges. As media and broadcast has evolved from a handful of linear channels through to a multi-platform ecosystem, more content needs to be reformatted and repurposed to reach an increasingly fragmented audience.
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Long-established media organizations that serve up our favorite films and episodic content are often sitting on an enormous amount of valuable media that could be the key to unlocking new revenue opportunities, whether it’s repacking existing programs for new streaming opportunities or enhancing a new program with rich archival material. However, you need a cost-effective way to rescue and reuse archived content from the siloed systems and labyrinth of formats and files accumulated over the years. It has to be an accessible component of your media supply chain.
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It is worth stating, at the very beginning, that there is nothing inherently exciting, engaging or sexy about the cloud. Or about IP media connectivity. They are, in the very best sense of the term, enabling technologies.
What they enable is a massive cultural shift in the media industry. This is the opportunity for a completely fresh look at how we do business, how we satisfy our viewers and subscribers, and how we make money.
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You don’t need to be Nostradamus to work out that linear TV will one day go the way of Monty Python’s parrot: it will cease to be. The timing, however, is less predictable. Because unlike Python’s Norwegian Blue, scheduled TV continues to provide meaningful company in our living rooms. It will inevitably fall from its perch, but with a sizeable audience still feeding it, there’s plenty of life in the old thing yet. As legacy media inches towards a digital-only world, the prolonged squawk of scheduled TV is a major complication. Companies need to deliver for today while planning for a different tomorrow.
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The media industry has evolved over the past century, from inventions to disruptions in communication and new-age technologies. In the early 1900s, radio was the crucial link to information, followed by television which by the mid-1900s became the most potent medium for news and entertainment. The late 20th century introduced the internet, and service & media providers entered a new evolution of connectivity. Websites and social media platforms flood the market, providing more choices than ever before. In the 21st century, smartphones are standard, and content consumption requires anytime, to any device, and anywhere access. The traditional television model is disrupted with streaming services like Netflix and Hulu and social media becomes a primary source of news and entertainment with Facebook, Twitter, YouTube, etc.
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Technological transformation offers a host of benefits: it streamlines workflows, reduces inefficiency, and makes life easier for media professionals. So why is such beneficial change frequently met with resistance?
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The demand for free ad-supported streaming TV (FAST) has exploded over the past few years, with virtually no sign of slowing. Variety Intelligence Platform (VIP+) Analysis predicts that FAST ad revenue will rise from between $3.5 and $4 billion in 2022 to between $5.3 and $6.1 billion in 2025. Moreover, Amagi’s most recent consumer report found that nearly one-third of American households said they would cut their TV subscriptions first in an economic downturn, with almost two-thirds of that group saying they would switch to FAST.[1] The reason is simple: When subscription rates and pay-TV services chip away at already fragile consumer budgets, consumers will simply turn to platforms that stream their favorite content free-of-charge, yet with ad support.
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The most successful content providers build their systems based on foundational partnerships out of view of the end user, yet deeply considerate of their patterns and preferences. For such partnerships themselves to be successful requires the right interlocking mesh of forward-thinking requirements, adaptable tools capable of receiving and applying the requests and experienced teams driving the vision to fruition.
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Cloud-based asset management, post production and distribution are now the norm in the media and entertainment (M&E) industry. If you want to stay competitive, you need more than a technical partner who simply recognizes your business demands. You need a partner who inherently understands how cloud-native architecture provides unique benefits and possibilities that can keep your company ahead of the curve.
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