3 ways TV broadcasters can contend with video-on-demand
Traditional TV broadcasters are faced with unprecedented competition from subscription video-on-demand platforms
To keep up with the competition, TV broadcasters must adapt by adopting a hybrid approach that blends both linear video and cross-channel.
Broadcasters are challenged by the pressure to implement both a rapid and efficient transition. Success may lie in adopting a scalable approach, based on technical capabilities that will allow them to maintain a competitive advantage whilst responding to changing expectations.
Let’s look at how broadcasters can keep up and diversify their offerings.
Diversify content offerings
The staggering increase of connected TV adoption is a significant indicator of changing user behavior when it comes to television consumption. Integrating broadcast TV into digital channels will be crucial to maintain relevance and secure a long-term position in the value chain.
To retain current audiences and to attract new ones, broadcasters will need to diversify their offerings and provide high-quality content that is consumable across different channels. These include CTV (connected TV), OTT (over-the-top), and VOD (video-on-demand).
One of the ways to do this is to create CTV-specific media brands, as well as produce exclusive content for OTT channels that are owned and operated by the umbrella brand. Take the Discovery channel, for example, who recently rolled out Discovery plus on all OTT channels. They have made hundreds of hours of library content available for subscribers, including Food Network, Animal Planet, and more. Univision was able to launch an exclusive news channel for their Prende TV Channel, a perfect example of a CTV-specific branded channel.
The introduction of these new channels not only makes it possible to offer engaging content to more diverse, often younger viewers, but also contributes to future revenue diversification. By targeting new audiences with exclusive digital offerings, the aim is to avoid jeopardizing historical offerings and to meet audiences that have already dropped out of traditional TV consumption where they are more likely to be.
Additionally, it is important to adopt technology partners that are capable of monetizing across all distribution channels. By adopting an ad operations stack that can deliver ads across channels and platforms that can meet the objectives of different types of campaigns, both branding and performance, broadcasters will be able to address a wide range of advertising challenges and maximize revenue while delivering outcomes for advertisers.
Understand the power of programmatic
The steady increase in ad spends moving into programmatic channels is a key indicator of future growth within this sector. Broadcasters need to internalize a sense of programmatic thinking to be up-to-date when integrating into more digital channels, specifically when it comes to CTV.
Choosing the right adtech partners is key to ensuring campaign success, positive user experiences, and compliance. Focusing on technological capabilities such as ad break management will be crucial, in addition to selecting ads that drive the highest yield for broadcasters while respecting category exclusivity. They should also be capable of centralizing the management of all types of inventory, whether it be CTV, OTT, or VOD, to streamline a hybrid approach.
Make use of valuable data
When it comes to diversifying revenue streams, broadcasters are in a unique position. They already have access to valuable data and great knowledge of their existing audiences. Broadcasters are in a strong position in comparison to other digital players, who face the disappearance of third-party cookies, and therefore difficulties in direct identification and targeting of users. Thanks to their privileged relationships with their subscribers, broadcasters are also well placed to obtain consent from their audiences. They can do this by offering free or paid access to their services in order to collect valuable first-party data. This affirmative consent is also mediated by the CTV platforms where the broadcaster channels reside, making it crucial that broadcasters and distribution partners are aligned toward this objective.
With this first party data, broadcasters can then leverage their position by collaborating with industry players, specifically with local telecom operators. If done correctly, broadcasters can use their data sources to build solid business models for both users and advertisers: one that offers personalized experiences and content, and that facilitates the delivery of relevant advertisements. This will optimize publishers’ revenue, and in turn, advertisers will increase campaign performance, reach, and targeting capabilities.
The fate of broadcast TV will lie in their ability to adopt a hybrid approach to attract new audiences by utilizing both linear video, and cross-channel assets. Diversifying content offers, revenue streams, and selecting the right technological partners to deliver campaign success will be essential to face the new, extremely agile and aggressive competitors. Adopting a hybrid, scalable approach will be the first step towards success.