Wednesday, July 22nd, 2015

The challenge of Traditional Producers When Competing with Streaming Services

Jonathan Blum

Internet has become a fundamental part of our daily lives, evolving at a phenomenal speed. What was once only a little-used and difficult-to-access work tool, has transformed to become one of the main information and entertainment benchmarks for all population segments, regardless of age.

TV On Demand and Livestreaming services are now starting to compete strongly with some traditional media. In fact, according to an study carried out by members of the FBR Capital Markets, it is forecasted that by 2016, the Netflix audience (currently 33.1 million views in the United States alone) will surpass channels like the ABC, CBS, Fox and NBC.

Entertainment consumer trends are changing significantly and viewers have access to content on several screens. In fact, according to GFK MRI, a little over 40% of North American viewers are what we call “digital enthusiasts,” who subscribe to at least three online TV services in addition to their traditional Pay TV service.

A study published by Ernst & Young showed that 58% of viewers use their laptop to watch television, followed by smart TVs at 47%, desktops at 39% and smartphones and tablets at 28%. Not only that, every day viewers are increasingly tending to “multitask”. It is calculated that 57% of North Americans use the computer while watching television, 44% use their smartphone and 23% their tablet. This is effectively a new generation who demand multiplatform content.

While it has been a challenge for traditional content producers to develop formats and strategies that cover all screens and complement each other in a “conversational” way, it has also been an opportunity to impact on a greater number of viewers through various channels and offer their advertisers a broader range of spaces to impact on their target audiences.
Definite keys to successfully competing in this new context are working alongside Netflix, Hulu Plus and Amazon Prime to develop novel formats capable of attracting new viewers and developing much more personalized multiscreen content.