Opening the floodgates

ITV Studios invested in US digital content specialist Believe Entertainment Group last year. Co-founders Dan Goodman and William H Masterson III believe that the next cycle of media innovation is already upon us.

Dan Goodman

In the early days of digital video, there was a lot of talk and promise about how great content would find its way to consumers ‘on-demand.’ Very early players, like Atom Films, or Mark Cuban’s Broadcast.com and the like, distributed content via ‘broadband’ connections and encouraged consumers to change their viewing behaviours. Advertisers started to take note and it helped to stimulate an early video business through digital.

But sometime around 2004, the TV broadcasters decided to do something bold. They made the move to put select programming on their digital platforms and something happened. Things got very serious, very quickly. Business models were thrown into question. Was this smart? Was it cannibalising the core business? How would cable providers respond? How would advertisers respond? Would anybody want to watch it this way? On and on it went. Most of these questions still apply today, but the key was that legitimate content, real platforms, significant ad dollars and core audiences were being thrown in the lab, evolving, whether they liked it or not. It was the first time that a true business of scale began to show its potential.

William H Masterson III

Since that point there has been incredible innovation and amazing new platforms have emerged to capitalise on this momentum. And it’s been a wild ride. Our own experience has put us in business with some incredible talent, advertisers, distributors, producers and creative-minded executives, all of which would have been completely unthinkable had anyone tried to predict how this would play out even 10 years ago.

But something different has been happening in the past 12 months – the shift that might have the same transformational impact as when TV shows were first put online. And what’s more, it’s happening on a worldwide basis.

E-commerce companies like Amazon and Netflix are winning Golden Globes. These same streaming SVoD platforms, and others, like Hulu, are preferred ‘network’ partners. Foundational players like CBS and HBO are striking out with industry-leading streaming services. Cable companies are following suit. Your neighbour’s 16-year-old daughter has a digital audience in the millions and is making more money than her parents.

The point is that these shifts, and the willingness of incumbents and innovators alike to bring quality programming direct to consumers in such an aggressive way, will open the floodgates to the next new cycle of technology platforms, content creators, advertising opportunity and great, emerging entertainment. And it’s already underway.

OTT platforms are being announced weekly and it’s opening a new licensing business for great quality video. Print publishers are becoming some of the most active and aggressive players in the digital video space, with companies like Time, Condé Nast and Meredith creating premium programming for their audiences. They’re acquiring great content and sourcing in a TV-like way. Doesn’t Billboard have the same music heritage and credibility to deliver programming as anyone?

With that in mind, here are four key considerations for capitalising on the next digital cycle:

1. Now is the time to invest in great content for your platforms. With the recent evolution of media distribution options, we’re seeing many more non-traditional players entering the video space – from social platforms and publishers to streaming services. Everyone is looking for new ways to reach fast-growing online audiences and everyone has the need for great entertainment content.

2. For advertisers, the time has never been better to reach audiences for more robust engagement. These digital platforms are more measurable and targeted, and are showing engagement rates, increased brand metrics and even TV-like audiences. Equally important is the changing media landscape, which is melding great content with consumer-driven viewing platforms, and building the case for brands to be able to buy targeted video across channels versus individually on TV, digital, etc.

3. The opportunity is worldwide. International is bringing significant expansion opportunities for quality programming in the borderless digital video world. Companies will further extend their reach with the continued growth of worldwide digital distribution options, including licensing and SVoD.

4. TV is the new digital and digital the new TV. The idea of TV will continue to move toward this digital infrastructure and create new sources of content and business models for great content. And conversely, great content, talent and creators will drive a redefinition of where and how consumers can get great ‘television’ content.

So be ready, because the next great evolution is here, today, and the future is available for viewing now on a ‘pctabletmobiletelevision’ near you!