Like every train wreck, you can see it coming but only at the point of impact does anyone really pay attention to it.
But the more significant shift can’t be blamed on the strike. In the past television season, there has been a sharp increase in time-shifting. Some of the six million are still watching, but on their own terms, thanks to TiVos and other digital video recorders, streaming video on the Internet, and cable video on demand offerings. So while overall usage of television is steady, the linear broadcasts favored by advertisers are in decline.
It’s probably unfair to say television execs are a bunch of lemmings who have no one to blame but themselves. All of the major networks minus CBS have expanded into cable and an increasing number have integrated their online offerings, as opposed to treating them as side projects. In the final equation I think this is less about a new technology, or in the case of DVRs an old technology, altering audience behavior and more about consumer attention spans and competitive activities.
It’s a fact that people watch less television today than they did even just a few years ago, and when combined with the explosion of content that is available and you have a perfect storm that results in substantially greater complexity in attracting an audience.
This complexity is also why television sitcoms have become much more targeted and are allowed a much shorter period of time to develop. The days of a Seinfeld or Cheers pulling down 15 or 20 share are gone and won’t be seen again.
Another dimension to all of this is that consumption of web-based video often happens at work, which may or may not have implications for content producers. I’d have to think that through a little before commenting. But one interesting side observation is the globalizing consequence of web-based video, which of course is not limited to a specific broadcast network and a geography.
- 30 percent of daily video consumption comes from Indians outside of India, largely from the Bay area and New York.
This international aspect represents a phenomenal opportunity for content networks to rethink the way they do advertising to appeal to new audiences online that they would never have the opportunity to reach through broadcast.
In the end the big television network will prosper as new channels for delivering content create new placement opportunities for advertising.
On the production side of the business it is clear that a decade of changes in the way that television shows are developed, financed, and syndicated has resulted in a broad array of content development capabilities across every genre, meaning there is no shortage of content to pump online.
Having a broad portfolio of content and a seemingly endless opportunity to distribute content doesn’t equate to content that audiences find appealing, so if there is one thing that could be targeted as white space at this point, it would certainly be instrumentation of the player endpoints and the content itself to register user engagement and subjective qualitative aspects.