Maximizing Content Reach: How Broadcasters Are Leveraging AI To Unlock Global Growth
Key Takeaways:
- Streaming services are fueling a growing appetite for international content.
- Broadcasters can enhance the perceived value of subscription video on demand (SVOD) services and reduce subscriber churn by localizing their back catalogs.
- Expanding audience reach is opening up new revenue opportunities for advertising-based models, as broadcasters tap into broader demographics through localization.
- By leveraging AI, broadcasters can streamline and scale their localization efforts, automating processes to meet the demands of an increasingly globalized audience.
Introduction
Streaming services have transformed how we consume content. With audiences craving diverse international programming, broadcasters face both the challenge and opportunity to adapt through localization. Recent advancements in AI are transforming content delivery. Enabling broadcasters to unlock global growth and meet the content demands of an increasingly interconnected world.
Is streaming still in its golden age?
Global SVOD subscriptions will increase by 321m between 2023 and 2029 to reach 1.79bn — showing continued growth, according to the latest report from Digital TV Research. Leading platforms like Netflix are expected to retain their dominance, with projected revenues of $32 billion by 2028. This positive trend is fueled by international expansion and the ongoing transition of pay-TV subscribers to Over-The-Top (OTT) services. Yet, in the midst of this promising growth story, broadcasters are navigating challenging waters.
Subscriber Churn: A Constant Need for High-Quality Content
Consumers, mindful of their spending, closely tie the value of their subscriptions to the availability of fresh and engaging content. This prompts them to subscribe, binge-watch specific shows, and then promptly cancel once their viewing needs are met or when seeking to economize. According to Antenna, one-third of premium SVOD signups are driven by ‘serial churners’ — making content acquisition a top priority to retain a fickle market.
Intense competition for content
Content production costs are skyrocketing due to rising interest rates and unexpected disruptions like the Covid-19 pandemic and the Hollywood writers strike. Compounding these challenges is a market craving fresh content, which is driving up costs even further.
Maximizing growth opportunities through globalization
In light of these challenges, the key to unlocking growth lies in the strategic localization of content. By adapting content for different regions, broadcasters can tap into three significant opportunities for expansion.
Boosting Revenue with AVOD (Advertising Video on Demand):
AVOD (Advertising Video on Demand) and FAST (Free Ad-Supported Streaming TV) models have emerged as robust, economy-proof monetization strategies for streaming services.
Platforms like Crackle, Pluto, and Tubi have proven the viability of ad-supported content. Disney+ noted that 50% of its new subscribers choose the AVOD option and Netflix’s new ad tier has reached 15 million active users, marking an undeniable audience shift towards ad-funded streaming. This model is especially attractive in emerging markets, offering an affordable viewing alternative that’s quickly becoming the norm.
Expanding globally, broadcasters can capture a larger, more diverse audience, making their platforms prime targets for advertisers aiming for international reach. By leveraging AVOD and FAST models for global expansion, broadcasters not only meet viewers’ preferences for affordable content but also tap into new revenue streams through targeted advertising.
Reviving back catalog classics for new audiences:
Reviving classics for new audiences offers an exciting avenue for publishers to reintroduce timeless stories to the small screen, and uncover the latent value within their content archives. A major hurdle in this process has been the lack of scripts for content pre-dating OTT distribution, turning the task of subtitling and localization into a time consuming, manual endeavor.
Thanks to recent advancements in AI technology, it’s now possible to automate script generation from video content. By leveraging AI in their localization workflow, publishers can offer a more diverse selection of content to viewers, and maximize the revenue potential of existing content assets.
Making a Mark in New Markets:
The global appetite for international content is on a steep rise, driven by the breakout success of specific genres and shows, such as K-dramas and anime, which have cultivated enthusiastic fan bases around the world.
In countries like Saudi Arabia, the demand for international entertainment is surging. The kingdom’s growing fondness for content from Bollywood and Hallyuwood highlights the cross-border appeal of compelling narratives, regardless of their origin.
Similarly, in India, the advent of OTT platforms has significantly widened the scope of interest among viewers for foreign content, especially Korean and Turkish dramas, celebrated for their distinctive storytelling styles. Hits like ‘Parasite’ and ‘Squid Game’ from Korea, alongside Turkish series such as ‘Feriha’, have captivated Indian audiences, reflecting a broader global trend.
This trend is mirrored in the growth of content consumption on platforms like MX Player, which has seen a fivefold increase in Korean and a twofold increase in Turkish content viewership over 18 months. This audience demand signals an interconnected future for global storytelling.
LocAI: Media Localization For The AI Era
Connecting with international audiences through content localization is key to growth in this challenging industry. Artificial Intelligence is transforming how content is delivered globally, offering a blend of productivity enhancements and cost reductions that are hard to ignore. What used to be a post-production challenge — subtitling — is now a strategic advantage, enabling you to significantly widen your audience reach and boost revenue.
LocAI brings teams together in one platform, combining advanced editing features with project management tools, simplifying every step of the localization process. With LocAI, you own your AI model, ensuring that your intellectual property never leaves your ecosystem. Plus, it gets smarter with every use, finetuning its accuracy based on your data and feedback. This adaptability ensures that as your audience develops and your content requirements evolve, LocAI grows with you, future-proofing your localization workflow.
Visit our website to learn more or contact our sales team at sales@neuralspace.ai for a personalized demo.
