Media Consumption Changing Landscape
Changes in technology and availability have impacted the way people consume media and the way people consume media has had a large impact on the media industry and created change in the landscape.
• VCRs came into the home and took viewership away from TV and gave us movies at our convenience
• The internet came along and allowed people access to content they had never seen before. We were able to watch things from around the world instantly and you didn’t have to wait for the news to come out.
• Then the introduction of PVRs allowed consumers to watch and control the content when and how they wanted.
• Netflix started streaming content from a large library of old movies and TV shows and allowed you to access their service from you computer and anywhere
• The Media landscape began to change and fast!!
Impact on Content
• Now more than ever content is King! It can be consumed anywhere and anytime!
• The landscape now has increased competition which decreases costs and increases the offerings. There is a lot of content out there and often has lower audiences.
• Consumers seek out new and unique content. They find it on Youtube, Snapchat, Facebook, Netflix, Instagram and can watch it on their TV, computers, tablets and now their phones.
• All suppliers are now in the content game. Broadcasters are creating content for all of their company divisions. Companies are making acquisitions to gain more content to be able to compete.
• Now anyone can create content and post it where many consumers can see it and the goal is usually to get as many views or likes as possible this brings increased clutter and fragmentation of content.
Impact on the Media Industry
• Fragmentation – More available ad space with decreasing reach
• More Competition for suppliers – Costs should go down but with increased pressure for new and unique content the costs get higher
• Consolidation – The media industry is shrinking with big BDUs buying assets to ensure they can compete. Media Agencies are also going through consolidation and with that they think they need less people to do the same work. It is increasing stress and affecting morale.
• Monetization – With all the assets being purchased to compete, monetization is becoming increasingly more difficult. There are assets that advertisers don’t trust with low reach and the cost of programming on major networks is increasing but advertisers are not willing to pay higher costs. People are being downsized to make up for the increase in costs and the low revenue generated.
• Less suppliers – “The Frightful Five” – Google, Amazon, Microsoft, Facebook, Apple which usually results in higher costs.
• All content that you desire at your fingertips with less interruption.
• More sponsorships and integrated content to battle the fragmentation and get the advertisers message heard.
• Less people and more technology to do the work.
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