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Paid TV is killing traditional broadcasting

Paid TV vs Traditional TV

Today more and more new players in the digital content world are appearing and taking a huge share from traditional TV broadcast. Companies such as Netflix, Youtube, Amazon, Hulu, Roku,Crackle, HBO go, Vevo to mention some of the well known in the USA and many other places around the world. However, there are many other local players that are relevant and local/national TV are migrating trying to compete against the giants. In United Kingdom there are players such as Virgin Media, 40D, Sky, Dave, Blinkbox, BBC player, ITV player just to mention some and places like Mexico has now Blim, Clarovideo,Filmin Latino, Mubi. As you can see the competition is getting more complicated and overtime will become more difficult to capture attention from people. Today the use of mobile to consume content from these platforms is becoming more important and the number of users around the world continue to increase in mobile (see charts).

Mobile Content Consumption Deloitte

If consumers are changing this fast and now more people consume content from their mobile, how fast should traditional TV would have change in order to catch up and avoid losing consumers?, when would they should have understood that digital was going to change the entire industry?.

Today advertising spend in traditional TV is coming down fast, but more important number of consumers. If you had to fight against share of time is one thing because the content development would be key. I am not saying that content is not an issue, it has been for many players, but now they are losing not only time but consumers and to get them back will become more complicated. Moreover, there is one thing that traditional TV does not has and that is analytics, if you can not measure you can not fix. Analytics allow the digital content managers to understand if the content is right, how many people are talking about it, how many time they spend on it, if they share, how they evaluate, just to mention some benefits. However, TV broadcast had Ibope and agency that told companies how many viewers watch a specific TV show. However, getting to know exactly the age, sex, interest or anything else would be imposible on the traditional platform. Today we have bid data to consume and improve our content or even our consumer segments.

What does these really mean for each player involved in the industry:

Usage of Mobile

Advertisers are still spending since not all industries understand digital and still consumption on TV broadcast exist, traditional TV networks are still making some money. But its a matter of time. As we mentioned traditional TV audiences are declining. So, the question is when this shift will make a difference, not if.

Consumers now have more choice, more fun and more content to discover. Consumers seem not to care about content delivery or broadcast business models, they just want to consumer their content on the go more and more.

Brands have more analytics to chose from, they probably never wanted to buy cost per thousand impressions or GRPs (gross rating points); they want to sell their products.

Networks have the biggest challenge, It's seems to be just a matter of time before media without data will be impossible to convince brands to buy for them to sell.

What other industries do you know that are being impact like this? I can think of a few....The digital world it seems to be changing everything.

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