There have been plenty of ongoing conversations around whether traditional broadcasting is losing its grounds to digital video publishers or social network platforms. Working in Mediacorp, Singapore’s National Broadcaster, this is an enterprise-wide concern whether videos published online through social networks or even our own OTT platform Toggle will cannibalise viewerships of Broadcast Television. Is digital transformation a double edged sword for traditional broadcasters?
While it is inevitable that as a society we are shifting to consume more content online, globally people still predominantly watches television as its primary source of entertainment. A total of 81% still watch broadcast TV in comparison to 69% of digital video consumers, according to eMarketer. While a lot of streaming services such as Netflix, Hulu and Amazon started to create their original series that are strictly available on their individual OTT platforms, majority of people still consumes TV programmes whether that be sports, award shows, the news or even television series.
The way I see it, digital video platforms and broadcasters should work together to create a comprehensive experience that allows viewers to build brand affinities through transmedia and multi-channel marketing. Digital video platforms allow increased reach for viewers to consume broadcasters’ content. Sure, more and more people are starting to consume content through mediums aside from television. A lot of youth these days are primarily engaging in content via their smartphones and tablets, making televisions obsolete for these generations.
Let’s take example from countries such as Korea and the United States where their TV programmes are still highly consumed by people globally. Aside from Netflix, YouTube, Amazon and Hulu, production companies are still focused on creating programmes for traditional mediums such as TV and cinemas. Take a look at major channels such as HBO which continuously produces big titles such as Game of Thrones, Westworld and beyond. Their content are still primarily broadcasted on their cable TV channels. But this again comes to the fact that they put a great emphasis in creating excellent content. This comes back to every rule of thumb that a lot of producers and agencies know: “Content is King”.
The general fear of digital
I can say that I’m privileged in a way that I have always been working in the digital space, therefore every digital initiative comes as no stranger to me. However, I understand that more traditional industries are always worried that the rise of technology and the advancement of internet will always interfere with their existing operations in their businesses that has been ongoing for numbers of decades. In some ways it’s true, but this also emphasises the dire need of digital transformation in every industry.
Being involved in the traditional broadcaster space gave me a sense of idea of the challenges we face in the decline of traditional media. People from every spectrum of the generations after them consume content from an array of different platforms at the comfort of their fingertips. We are surrounded by content creators that produces content specifically made for social media. I’ve seen plenty of homes who does not have a single television in their living room and seek entertainment online through their laptops or their smartphones. The number of available content out there is endless so it is fair to say that people’s behaviour changes. As consumers we no longer have the will to free up an hour of your evening to dedicate yourself to a TV show — unless it’s a sporting match. Nowadays you want the instant gratification of watching that particular TV show or movies on demand.
Advertiser dollars are also shifting from traditional to new media. Premium TV ad slots are generally considered to be too expensive for many companies who are now choosing to advertise online. Though not entirely perfect, digital advertisements are more effective in targeting the intended target audiences compared to television or radio slots, though which much more narrow reach. To many marketers, the ROI from digital ad spends are more apparent — hence the gradual shift of ad dollars to social networking platforms or websites.
Going beyond
This highlights the importance of making your content relevant across all platforms, both online and offline. We should go beyond the mindset that digital content providers will cannibalise broadcasters’ viewership. Blockbusters no longer rely solely on its movies to be shown on cinemas and TV channels anymore. Now they work with OTT providers to make their content available to their audience whenever and wherever they want it. This should apply to broadcasters as well by channeling transmedia storytelling both online and offline to ensure the audience can experience their beloved shows beyond the TV screens.
Mediacorp itself recently partnered with iFlix to ensure that our presence goes beyond our TV channels and radio stations by creating tailored content for the online audience. By partnering with another content provider does not mean we will lose viewership, but gain audiences from many outlets elsewhere. We, Bloomr SG, are nurturing a group of young content creators who are seasoned to create videos tailored for social media and we work with them to create content Toggle or for our advertisers. And with our wide array of online and offline products we are giving the push allowing advertisers to run their campaigns across our channels so that they can have a more holistic delivery and we still receive ad dollars coming our way.
Partnering with another content provider does not mean we will lose viewership, but gain more audiences these outlets. Though it is beyond our comfort zone, broadcasters should adapt with the changes in content delivery and the audience’s consumption behaviours. Instead of seeing digital as a threat, we should use it to our advantage. The truth is broadcast industry is more robust than it is — if it can survive cable TV, then we should be able to survive the digital age.
