Roundtable discussion: That's entertainment

For years, TV was the dominant platform in people’s homes for news and entertainment. But with the rise of social media platforms like YouTube and the changing perception of what it means to be a ‘celebrity’ – a new form of entertainer has emerged: influencers. According to a study by Defy Media, 63% of respondents aged between 13-24 said that they would try a brand, or a product recommended by a YouTube content creator, whereas only 48% mentioned the same about a movie or TV star.

Adam Rubins, chief executive of Way to Blue said influencers are important because they are ‘relatable’: “I’m a big believer in the rise of influencers because I see it through my kid’s eyes. They will wake up at six in the morning, run downstairs and the first thing they will put on is YouTube. The reason is twofold; accessibility and authenticity – which is what social media is all about.”

Kat Bain, business director at Rapp believes the meteoric rise of the ‘YouTuber’ has exerted a wider influence on the way traditional celebrities and sportspeople now increasingly share ‘behind-the-scenes’ footage of their own lives. She said: “It’s interesting how the artists now have to make themselves brands to be able to appeal to the audience. They have to put themselves out there, they have to be live on all the different social media platforms and give really good access to their lives for their fan base. Same thing with professional sportspeople, particularly footballers, but you have to be careful, as that sort of thing can divide a sporting fanbase quite easily. Some supporters would rather their star striker was busy in training rather than sharing social posts about their latest haircut.”

Caroline Buckingham, client strategy manager at Croud, having worked extensively with the games industry believes that influencers are very much here to stay: “I do think that they have massive roles to play and it’s about finding the right influencer and associations for the brand, because there are so many of them out there now.

“If you look at the gaming industry, every new game launch has two or three brand associates and influencer partnerships attached. Some people love watching their favourite influencers playing a game as much as they enjoy playing the game themselves. They want to go online and have conversations with these influencers and the fandoms about the nuances of their favourite games or shows. There are lots of the extra elements that influencers bring and add to the conversation with your target audience.”

Buckingham observed that brands are starting to look at the whole picture by tracking results and attribution models to see what works and, crucially, when. “For example, if your football team has lost its last three games, the team posting a humorous video from a training session will get them slaughtered by fans.”

In the modern world of entertainment marketing then, we are all stars and, perhaps more importantly, everyone is a critic. Will Amazon and Netflix disrupt cinema chains? Could cinema chains be the next victim of digital disruption?

This was raised by Rob Hinchcliffe, content and community director atTh_nk who said cinema chains are stuck between a rock and a hard place; their physical footprint makes it difficult for new challengers but at the same time they are facing pressure to innovate – quickly.

Hinchcliffe said, “Most people, on average, go to the cinema a few times a year. If you are a consumer that wants to communicate with a brand on an ongoing basis, how do you do that when you will only engage with that brand two or three times a year? I think digital can help with this, but they need to disconnect the physical and digital experience.”

This then led to the disruptor on everyone’s lips – Netflix. There have been murmurs that Netflix has been eyeing up movie theatres for a while. Should cinema chains be worried about Netflix?

Rubins said: “At some point, even Netflix is going to have to change their model, because they will peak and start to flatten out and then what do they do? Do they go ad-funded or look for something slightly different. What’s interesting about Netflix is that they really understand data. They use that data to help define the actual product itself and increase value whereas cinemas don’t really use data that effectively - they are still marketing themselves to 100% of the population as opposed to targeting cinema goers.”

For Rubins, it is inevitable that Netflix will buy a cinema chain, but he noted that commercially it makes more sense for Amazon to pivot into the cinema business: “With a cinema chain you get real-estate and Amazon can do something really interesting. For Netflix, it kind of makes sense but if you’re Netflix and you’ve got an 80-billion-dollar evaluation, you’re not going to increase that substantially by buying a cinema chain.

“If you’re going to buy a cinema chain, you’re going to have to disrupt it and the only way to do that is through data and owning that conversion platform from start to finish.”

Keep your eyes on the screen. When it comes to disruption, it seems that the entertainment industry has only just begun.

This is an edited version of an article that appeared in The Drum Network Entertainment special.

The first part of the round table debate can be found here.

Roundtable participants:

Rob Hinchcliffe, content and community director, Th_nk

Kat Bain, business director, Rapp

Adam Rubins, chief executive, Way to Blue

Caroline Buckingham, client strategy manager, Croud