MY BEP EXPERIENCE

Posts Tagged ‘TV

Since summer I have been working on TV strategy at Antena3 in Madrid. It was a fascinating time for me and a decisive moment for the industry as well. Again, technology has a major impact on this business and starts to disrupt an established business model.

Probably my key learning was that broadcast TV is increasingly faced with new competitors. Content conversion has the effect that all kind of media products find their way to our TV screens, as those become connected devices.  This enables all content producers to embed video based advertising. This is a threat to broadcast TV’s dominance over the “spot”.

We are now up against the big newspapers (you can scrap the papers if you want), magazines, video-portals or even music streaming services. These are all brands you like and trust but never put them in relation with your TV? If you had the choice, would you rather stick with the news from your TV station or switch to your favourite newspaper that now also is available as VOD on your TV? I personally watch TV because I don’t have that many alternatives for the big screen and when it comes to news, I might even prefer a different brand over the established prime-time news offer from broadcast TV.

Just check out these videos from the New York Times R&D lab and their efforts to create a more audio-visual offer to their readers, if you have your doubts on what I just said.

In a world where distribution is no longer a key success factor for broadcast TV stations, content brands become more and more important.

As traditional TV stations are looking to monetize their content in a multi-media setting, the importance of self-produced content increases. Consumers are increasingly focused on on-demand offers and are less likely to follow linear programming patterns. This requires a radical mindset shift from the stations, but also from the advertising buyers. If linear TV becomes less attractive to the audience, it will be harder and harder to aggregate mass audiences at prime time. I think attention from one individual should not be worth less than the joint attention of millions. But this is all still in the making and quite frankly a bit fuzzy.

Check out this article from Advertising Age who covers a great deal of relevant topics around TV and advertising.

At Antena3 these trends are clearly recognized and many initiatives already in place. All self-produced content is available at Antena3videos also for mobiles. My argument about brands and production was also subject to a presentation I gave. Please find an abstract below.

Don’t get me wrong, I think there is a bright future for TV ahead of us. The content is still loved by a great number of people and stations have a great advantage in terms of branding. You cannot easily take away the 70-year-old legacy of motion picture distribution. This has a deep brand value. But it will probably take some time for stations to adapt to the new reality and dispose of its capital intensive asset based that was built to take advantage of distribution monopoly.

That’s all folks, until next time
Tobi

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This is my third week working in the TV broadcasting industry and the question I keep asking myself is: How disrupted is that business?

I don’t have an answer yet, because I am too busy understanding the status quo of this industry, which is overwhelming for a newbie like me.

The talk is dominated by “audience share”, “gross rating points” ” reach” and “prime time”. The industry seem to work by some very well defined rules around these parameters. It does not take a genius to figure out that technological and social developments will have an impact on how things work in the TV business. I will try my best to figure them out and share them with you over the next couple of month.

In the end this is essentially an advertising driven business and therefore I think a good starting point is to review some social media dynamics. This video  does a great job in putting things into perspective.

More to come, stay tuned
Tobi

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