On the bright side

By Sue Thexton 05-03-2015

Rewind 11 years to 2004 and the television industry was looking over its shoulder after witnessing the reshaping of the music business by peer-to-peer sharing. After Napster, in 2003 came MySpace, introducing direct access to musicians and social sharing between friends, beginning the growth of online social networks.

Since then, social platforms such as Facebook, Twitter and YouTube have driven unpredictable evolutions in consumer behaviour and become methods of everyday communication unthought-of previously. Faced with similar changes in consumer behaviour, broadcasters now provide a wealth of on-demand services. As viewers are no longer restricted by time or location to watch shows and films, nearly all global broadcasters offer content via internet-connected devices.

This unpredictability holds resonance at Brightcove, which, when it started 10 years ago, recognised the potential for online video viewing and modeled its business to match the evolving market that surrounded it to thrive in the future.

The problem for any broadcaster seeking to channel their inner Nostradamus is that looking back doesn’t necessarily help reveal what the next 10 years will hold.

The example of the boom in internet and sharing services does demonstrate that as proliferation takes place, it will certainly play a key role in the short to medium term. The same can be said for mobile devices today. In 2014, it is not unusual to see people on the move enjoying TV shows or films on a comparatively small smartphone screen, while in the past four years, tablets have become a staple in consumer and business environments.

Demonstrated by the evolution from mobile phone to smartphone to tablet, device innovation is occurring at a phenomenal rate. This year has seen many in the tech industry explore opportunities in wearable technology, with even Apple having recently announced its first wearable hardware. Video content creators need to remain agile in the face of delivering content across new platforms when they are invented.

An interesting development in parallel to the increase in on-demand, small-screen consumption, is the rise of experiential large-group consumption. In recent years London has given birth to a growing band of outdoor and rooftop cinema clubs, showing classic films to large audiences. As personal viewing becomes increasingly about viewing on the go, social viewing is becoming more about immersion in the experience.

As well as outdoor cinema viewings, companies such as Secret Cinema are creating experiences that allow film-goers to ‘live’ the experience of being in a movie. For the consumer, it is about trying to get as close to the film as possible. Currently reserved for ‘cult’ films, this could be an avenue for new releases to pursue.

The challenge for broadcasters is remaining relevant in the face of these new devices and habits. Most have effectively adapted to the new world of on-demand and catch-up services, but the delivery model is under constant scrutiny. A shift away from TV as the main delivery platform has begun, with mobile devices eroding market share. The reduction in television as the main screen for viewing alters the pressures on broadcasters to have 24-hour content filling the schedule.

The reduced need for constant linear programming presents an opportunity for broadcasters to increase collaboration and international acquisition. The future could see global media organisations creating content centrally and delivering it to country specific broadcasters in partnership.

A further consideration is how a move away from the TV affects advertising revenues, which currently fund many channels, although that is a separate thesis in itself.

Since the media landscape is so dynamic, remaining aware of trends and developments is essential simply to keep pace, let alone innovate. As new sharing environments and content emerge, the way consumers use such commodities creates new expectations for broadcasters to meet.

The rapid rise of Twitch, a platform for gamers to watch live gaming and other content on-demand, is causing a merging of the online gaming and TV industries – a potential evolutionary driver of both. The TV industry needs to position itself for this boom as the scale of audience is much larger in gaming than even the most popular TV show.

Much has changed in the past 10 years for video content industries, driven by new devices and patterns of consumer behaviour. Although these changes may give us some indication of the future, we’re only ever one invention away from restarting the cycle all over again. Although it’s impossible to say what the future will look like, it is pretty certain that it won’t look like what we see today.