‘O brave new world’ – why agility is TV’s new watchword
Opinion
Despite the sector’s bounceback over the last two years, businesses need to be increasingly cautious of a fall in TV audiences this year. It is imperative that advertisers remain flexible.
For the past two years the film and television industry has experienced change on an unprecedented scale.
The pandemic has been a double-edged sword – closing cinemas and halting productions at the same time as boosting streaming and advertising revenues to record highs. Recent reports have even shown that UK TV advertising drew in over £5bn last year.
TV in particular is showing itself to be not only resilient, but adaptable. As the spectral cloud of the pandemic recedes, and all signs point to a blue-sky period to come, what is on the horizon for the UK’s film and television industry?
Subscriptions – the first to fall?
Many UK households are currently facing a cost-of-living crisis. An ongoing sloth of supply chain issues; the skyrocketing price of oil and energy; and a rising inflation rate that shows no signs of abating, are all factors that may force households to rethink their monthly budgets.
This frugal landscape will require re-thinking and possible rationalisation for the plethora of subscription-based TV streaming platforms in the market. A recent report by Ampere Analysis found that households signing up to all the various entertainment packages (together with broadband and phone) face a bill of £2,500 a year. Given the current landscape, cut backs are inevitable.
Changing market conditions and global volatility will also force production houses to squeeze content budgets and adopt more flexible strategies. Booms by their nature are impermanent, and while TV, in spite of the last two years, is currently enjoying a bounce, businesses need to be increasingly cautious of a fall. It is imperative that companies remain flexible.
Joining the FAST lane
While the streaming wars rage on, a quiet flanking movement has been made by free ad-supported streaming TV, or FAST. Packaged up in smart TVs and apps, FAST is growing, rapidly.
Public service broadcasters have recognised this and are adapting strategies accordingly. Last year, for instance, the BBC launched a range of FAST channels, to be delivered by a mixture of operators such as Pluto TV, Roku Channel, and Amazon’s IMDb TV (amongst numerous others).
FAST channels allow broadcasters to reach new audiences, and to provide greater access to tailored content for the viewer. What’s more, FAST services provide traditional broadcasters with the tools to adapt to modern TV consumption methods as well as acting as a doorway to international markets.
Recent developments in the UK’s television industry show that broadcasters are remaining fleet of foot, and actively moving to counter threats and adapt strategy. The dichotomy established between the public service broadcasters and the VoD streaming giants – old vs new, clumsy vs agile – is reductive, and false.
TV 3.0
You may be utterly fed-up of 2021 buzzwords: the metaverse, web 3.0, NFTs. However, it is undeniable that the future of the media industry has become, to whatever extent, tied to the progress of these new technologies.
While multi-national corporations and household names are present in the developing space, other smaller and independent outlets are moving to join them. The evolving metaverse has the potential to democratise TV production on a scale that we have not yet witnessed.
The alternative methods of content creation that new technology and network sharing offers has applications that are not yet entirely clear, but may provide a path to lower production costs, and alter the way we think about content.
As with everything, the production houses and businesses that react swiftly to change will be best positioned to deal with the fallout. Regardless of the strategy adopted – be it wholesale adoption, or dismissal – media consumption will continue to change, and those who fail to react will be left behind.
Nick Swimer is a partner in the Entertainment and Media Industry Group at international law form Reed Smith