Getting a clear understanding of the change happening to TV viewership in Europe today is anything but clear.
Consider the confusing streaming saga of the FA Cup. According to the official FA broadcast list, outside of the UK, a variety of different media companies are going to be streaming the game in a patchwork across different EU countries while Disney+, Sony and Fox have locked up rights in major markets in South America and Asia. ESPN is now the exclusive streaming partner in the US.
Media companies are scrambling to assemble streaming experiences for audiences, who are moving away from traditional linear broadcast at record rates. For media companies with traditional broadcast businesses, this shift will require new digital strategies that not only satisfy audience demand, but also drive revenue from subscriptions and advertising sales.
To succeed in the new era of live streaming, broadcasters need to embrace data, technology and analytics to build modern businesses that can compete against digital giants and scale while maintaining efficiency and profitability.
Assembling the TV audience of the future
Linear TV has a deep history and legacy that has been slow to evolve in the past 20 years of digital media. Audiences turned to their computers and mobile phones for some content, but broadcast TV did not need to alter much because people still watched traditional TV.
With the rise of streaming, linear TV is suddenly required to change. Audiences are now cutting the cord on their old TV cable and broadcast subscriptions and moving to FAST streaming apps and subscriptions to get a more fluid, on-demand experience.
Many traditional media companies have been caught off guard, with old processes, rules and agreements that are slowing their ability to shift their business.
In a streaming environment, audiences behave differently. They watch content asynchronously, binge watch entire seasons of shows, or watch content on-demand. Only live TV like the FA Cup delivers the predictable scaled viewership that broadcasters are used to. Because of this valuable captive audience, broadcasters have been competing with up-and-coming streaming companies for the rights to live sports.
As broadcasters work to preserve their audience, they are starting to see that they need a way to bring broadcast and streaming together to create a cohesive business model and be able to sell advertising effectively. In the UK, as well as being available on the BBC, the FA Cup Final will be broadcast on ITV and streamed on ITVX.
Creating a new digital business
Streaming content looks the same as broadcast content, but that’s where the similarity ends. Streaming is a digital platform, which means traditional broadcasters have no choice but to embrace the data and technology needed to drive a streaming business.
Rather than build a separate streaming business with different technology and processes, broadcasters must consider how they can evolve their current business to create a cohesive and flexible multichannel business that supports both sides. Only with a unified, hybrid approach can broadcasters have a full understanding of their audience and sell to advertisers effectively.
Consider these critical elements required for a unified business:
- Unified Data – First, broadcasters need data about their audiences to be able to properly count viewership across linear and streaming. This data needs to bring together traditional broadcast viewer metrics with digital viewer metrics in a common currency that can be used to sell and manage advertising and optimise pricing and business investment. Second, broadcasters need to unify their content and product data. Ad sales teams in particular can not be expected to create a cohesive proposal for an advertiser across two completely separate broadcast and streaming planning systems. Advertisers simply expect to be able to reach their audience on the content of their choice and media companies must meet this demand.
- Streamlined process – Broadcasters will lose countless hours to manual work and data entry if they keep streaming separate from traditional ad sales processes. Sales and ad operations teams in particular will be considerably more efficient and effective if they can easily create a single proposal, manage ad operations across channels and deliver unified reports.
- Modern technology – Streaming is a digital platform and installing modern technology needed to take advantage of everything it has to offer will set a broadcaster up for success. From targeting and yield management to creating unique ad products – media companies should be strategic in their technology investments, building for the future opportunities that streaming will bring.
Now is the time to go digital
The FA Cup is just one of many major streaming events in the past few years that have caused broadcasters to take notice of the change in the industry. As more viewers shift to streaming, the pressure to deliver great experiences and great advertising products for streaming has never been higher.
Now is also an opportunity for broadcasters to assess their traditional business and bring their entire strategy into the future. Rather than allowing legacy processes to hold them back, broadcasters have a chance to bring what works from the old and marry it seamlessly with the new to create the business that will carry them forward profitably.
