Tuesday, February 13, 2018

Lifestyle & Niche Media Blog 4, Question 1 (Feb. 20th)


What is the appeal of lifestyle and niche cable TV channels and/or programming? How are these channels/programs managing to retain viewers in the SVOD era? Limit: 6 responses

6 comments:

  1. At first glance it may be puzzling to see how well cable networks such as HGTV and Discovery are doing lately, but upon closer examination it isn’t hard to tell why. The last two years have felt like a never ending nightmare for some as we experienced the deaths of countless celebrities and perhaps the most toxic political environment in living memory. This is where channels like HGTV step in which is why, “The escapist appeal of looking at other people’s beautiful homes turned Home & Garden Television into the third most-watched cable network in 2016, ahead of CNN and behind only Fox News and ESPN” (Smith). The network provides a getaway from everything that is wrong in the world. There are no politics on HGTV and while it features predictable shows that is precisely why so many are watching. It feels good to not be surprised or horrified by what might happen next. A student from Ohio State says it best to Bloomburg that, “HGTV is not something that’s going to hurt me. I watch it and dream of what I want for my future house” (Smith). This window-shopping mentality is what keeps bringing back audiences that don’t even own homes or couldn’t afford one anyway. It is a fun escape from reality to pretend what life might be like in these beautiful houses and how Chip and Joanna might fix your home.
    Not every niche network is having as good a time as HGTV however. In fact, just this past month it was announced that, “NBCUniversal’s little-watched Esquire Network is gone as a linear channel as of the summer. Cloo, a tiny portion of NBCU’s cable business, went dark on Feb. 1” (Littleton). These smaller channels just can’t keep up in the ratings game and coupled with the emergence of skinny bundles is a death wish. Those that are opting for skinny bundles just don’t have the room for a lot of these smaller niche networks and in turn there are difficult decisions that need to be made.

    Some niche networks and channels are managing to stay relevant in the SVOD landscape however, even if it’s not working for Esquire there are ways it can work. Discovery is working with Amazon to produce VOD content channels that are gaining momentum fast, especially “In niche categories where we have a dominant consumer and brand advantage, such as ID and Turbo Velocity, we see huge potential to expand these genres on and off the traditional TV screen” (Lafayette). They have developed a true-crime VOD channel which is attracting 10,000 new net subscribers every month and they have plan to launch several more (Lafayette). Discovery is embracing the fact that their content all fit into different niches and attract different audiences. This understanding of their audience has allowed them to leap ahead of their competitors and into the future of SVOD with the help of Amazon. Discovery understands that rather than fight they change they should be jumping head first.

    Lafayette, Jon. Discovery Puts Numbers on Direct-to-Consumer Business. 15 Feb. 2017, www.broadcastingcable.com/news/currency/discovery-puts-numbers-direct-consumer-business/163348.

    Littleton, Cynthia. “Niche Cable Channels Fall Victim to Peak TV.” Variety, 8 Feb. 2017, variety.com/2017/tv/news/cable-channels-peak-tv-1201979592/.

    Smith, Gerry. “HGTV Will Never Upset You: How the Network Beat CNN in 2016.”Bloomberg.com, Bloomberg, 28 Dec. 2016, www.bloomberg.com/news/articles/2016-12-28/hgtv-will-never-upset-you-how-the-network-beat-cnn-in-2016.

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  2. The appeal of lifestyle programming is its way of appealing to one’s dreams. Niche cable TV channels strike the same emotional chords. Who wouldn’t want to redesign their home into their dream house? What would life be like to have your favorite chefs come to your favorite restaurant and cook for you? These programs and channels help us dream of the possibilities.

    Despite our new streaming way of life, lifestyle and niche programs are going to struggle with finding new audiences unless they start striking deals with the major streaming services. However, the programs and shows that come from these channels as they are on television are great to have on while doing other tasks. Many of them are available for on demand and that lets the viewer re-watch their favorite segment and binge dozens of them that are never quite the same despite each episode being similarly structured (Hahm, 2017).

    All of the huge networks and streaming services are pumping three times as much money into only a third of the programming that these channels provide (Desta, 2016). What the lifestyle and niche channels are doing is creating a formula that people can become comfortable with; this helps retain viewers despite their competition. That formula also allows for a low budget-high quantity product which helps to appeal to advertisers.

    The chances that I’m ever going to own a home is becoming slimmer as time goes on – along with everyone else born after 1995. Shows on the channel HGTV let viewers fantasize about what it would be like to have 100% individualized home (Hahm, 2017). It also provides young adults with the knowledge of how much work it would take to make a dream house, but reassures them that it is absolutely possible.

    Niche cable has such a strong following since their programs usually revolve around a hobby or a career that people are already passionate about. Discovery Network is a prime example because they are creating a whole week of programming that is just about building cars and motorcycles starring their already famous show casts (Nordyke, 2018). Not only is the week going to draw in the people who are already fans of the shows that are premiering, but other gearheads and car lovers. It’s a great way to stay alive in the current streaming habits.

    In order to stay competitive against the streaming era, they need to start proving their worth. All of the major television players are focusing on skinny bundles as a reaction to the current content shock (EffectiveMediaServices, 2018). As networks are starting to condense and throw away certain channels or programming, lifestyle and niche channels are going to be one of the first to be in the line of fire. Their survival is all about building those strong communities and keeping people’s dreams and hobbies alive.



    Works Cited


    Desta, Y. (2016, December 28). HGTV Helped People Cope with the Apocalyptic Gloom of 2016. Retrieved February 19, 2018, from https://www.vanityfair.com/hollywood/2016/12/hgtv-2016-success


    Hahm, M. (2017, November 13). Why millennials are obsessed with HGTV. Retrieved February 19, 2018, from https://finance.yahoo.com/news/millennials-obsessed-hgtv-205022165.html


    Media Services, E. M. (2018, February 16). News & Events. Retrieved February 19, 2018, from http://www.effectivemediaservices.com/news-events/tvs-dead-zone-how-the-cable-sector-is-killing-off-struggling-networks


    Nordyke, K. (2018, January 24). Shark Week Network Discovery Adding Another Themed Week to Schedule (Exclusive). Retrieved February 19, 2018, from https://www.hollywoodreporter.com/live-feed/shark-week-network-discovery-adding-themed-week-schedule-1077750


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  3. It’s no secret that cord-cutting has become a popular trend over the past few years. According to an article from Variety, “In 2017, a total of 22.2 million U.S. adults will have cut the cord on cable, satellite or telco TV service to date — up 33% from 16.7 million in 2016 — the researcher now predicts. That’s significantly higher than eMarketer’s prior estimate of 15.4 million cord-cutters as of the end of this year. Meanwhile, the number of “cord-nevers” (consumers who have never subscribed to pay TV) will rise 5.8% this year, to 34.4 million” (Spangler.)

    Because of this, it is surprising to see lifestyle and niche cable TV channels doing well. Adding to the surprise is how invested millennials are in HGTV. According to the article, Why Millennials Are Obsessed with HGTV, “Operating revenue at HGTV remains the highest among its six properties, which include Food Network and Travel Channel. There was a 1.3% increase in revenue in the three months that ended September 30, 2017 compared to a year ago” (Hahm.) Later on in the article, it is stated “Scripps, which Discovery is acquiring in a deal expected to close by early 2018, has been doubling down on online content to appeal to millennials. Scripps’ digital arm, Lifestyle Studios, just launched Genius Kitchen, a digital platform that targets 21- to 35-year-olds” (Hahm.) In addition, Scripps launched a brand called Handmade by HGTV, which has amassed 2.3 million Facebook followers and 320,000 YouTube subscribers. Together, Gen Z and Millennials account for 75% of Handmade’s audience” (Hahm.)

    Another potential appeal for HGTV is the number of celebrities that have openly stated that they are fans of the network’s programs. These celebrities include Washington Redskins quarterback Kirk Cousins, Taylor Swift, and Hilary Clinton (Smith.) Cousins has previously stated that he prefers HGTV to ESPN, while Swift has taken her love for “Fixer Upper” to social media, and Clinton has referred to shows like “Love It or List It” and Beachfront Bargain Hunt” as “relaxing, entertaining and informative” (Smith.)

    These channels and programs are coming up with ways in order to retain viewers in this era that is being dominated by SVOD services like Netflix and Hulu. For example, in the article by the Hollywood Reporter, Discovery Network is adding “Motor Mega Week” into its schedule to go along with its hit series “Shark Week” (Nordyke.) That is not all. In addition, in 2015, Discovery purchased exclusive rights to the Olympics across Europe for 1.6 Billion (Roxborough.) HGTV has come up with their own plan to keep viewers around. That plan includes renewing their contract to keep hit show “Property Brothers” on the network. (O’Connell.)
    Spangler, Todd. “Cord-Cutting Explodes: 22 Million U.S. Adults Will Have Canceled Cable, Satellite TV by End of 2017.” Variety, 13 Sept. 2017

    Hahm , Melody. “Why Millennials Are Obsessed With HGTV.” Yahoo! Finance
    Smith, Gerry. “HGTV Will Never Upset You: How the Network Beat CNN in 2016.” Bloomberg.com

    Nordyke, Kimberly. “'Shark Week' Network Discovery Adding Another Themed Week to Schedule (Exclusive).” The Hollywood Reporter, 24 Jan. 2018

    Roxborough, Scott. “Discovery Wants to Leverage the Olympics to Create a ‘Netflix of Sports’ for Europe.” The Hollywood Reporter

    O'Connell, Michael. “'Property Brothers' Ink New Deal to Stay Put at HGTV (Exclusive).” The Hollywood Reporter, 5 Feb. 2018

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  4. I think that in the year 2018 when it is so easy to be connected to everything in the world people can get worn down by the constant cycle of bad new, reaction, reaction to the reaction and so forth. In the same way that fantasy programs such as Game Of Thrones or Doctor Who can be used as a type of escapism so is lifestyle television. Part of the appeal is being able to shut off your brain and just daydream. Whether it’s about houses, nature, or another sub sect of lifestyle and niche cable the formula relies on escapism. The cable news business model is often viewed as playing towards peoples fears and angers to keep them watching. It could be argued that the spike in people watching mindless programming is a means of counter-balancing the cable news. Think of cable news as an acid while HGTV is a base. Gerry Smith points out in his Bloomberg article, HGTV Will Never Upset You: How the Network Beat CNN in 2016 that, “The escapist appeal of looking at other people’s beautiful homes turned Home & Garden Television into the third most-watched cable network in 2016, ahead of CNN and behind only Fox News and ESPN. Riding HGTV’s reality shows, parent company Scripps Networks Interactive Inc. has seen its shares rise more than 30 percent this year, outperforming bigger rivals like Walt Disney Co., 21st Century Fox Inc. and Viacom Inc.” The escapist nature of these programs has been prevailing, so much so that HGTV has, “aired 23 different flipping shows over the past few years.” (Smith)

    These channels and programs are able to retain viewers and maintain their business by employing a few tactics that are commonly practiced in today’s cable market. First, they make shows on the cheap. Programs about flipping houses or real estate are incredibly cheap to produce and are mostly written in the editor’s bay. Secondly, they use what Melody Hahm calls in her article, Why Millenials Are Obsessed With HGTV, “star power.” Fans of the show not only become accustomed to the content and structure of the show, but they also get used to the hosts. Hosts such as the twin brothers from “property brothers” become part of a show’s brand. They are recognizable, and fans will stay on HGTV and watch when they see the familiar faces. To touch upon an earlier point, these shows also scratch the fantasy itch that some viewers may have. They get to see what changes people are making to their houses, or look at the property they are investing in and the viewer can daydream about a new addition they want for their house or the house they would buy if they had the money for it. Channels such as HGTV provide an escape from reality that in an increasingly connected world is not sold by many other media providers.

    Hahm, Melody. "Why Millennials Are Obsessed With HGTV." Finance.yahoo.com. N.p., 2018. Web. 20 Feb. 2018.

    Smith, Gerry. "2016 Was Tough. HGTV Helped Us Get Through It." Bloomberg.com. N.p., 2018. Web. 20 Feb. 2018.

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  5. The age of SVOD services has almost entirely revolutionized the way media is created and consumed. While certain broadcast and cable companies are desperately trying to reinvent themselves, others are sticking to their ways. Lifestyle and niche cable TV programs are an example of this. HGTV has been running the same kind of shows since it began in the mid 1990’s have no intentions of changing. This tactic has not only kept their audience, but continues to draw people in. According to Yahoo Finance, 55% of their audiences are millennials and Gen Z (Hahm). Their ability to appeal with such a massive amount of young viewers proves they are doing something right.

    Shows such as House Hunters, Property Brothers, and Fixer Upper have the ability to cultivate a niche audience while being able to appeal to everyone. The younger generations are considered dreamers who think creatively, always looking to improve and innovate. Growing up with apps such as Pinterest, we have gravitated to a more DIY society who craves authenticity and uniqueness in a world that has become so superficial. The “real” feeling of these show comes from the unscripted nature, which is refreshing because everything these days is scripted.

    Another reason these channels/programs are seeing success is because they provide a sense of comfort and familiarity while adapting to the changing times. For example, House Hunters follows the same template every episode, but the prospective owners change, the location changes, and the style inevitably changes but the show itself remains intrinsically the same. According to CountryLiving, “The network [HGTV] has stayed consistent with this strategy. ‘We super-serve our viewer what she likes, and we give her more and more of it,’ Scripps chief programming officer Kathleen Finch explained to Bloomberg in 2016” (Murtaugh).

    Not only do these programs provide entertainment but they also help people learn and think creatively. This is refreshing to viewers because many shows, movies, and especially news networks are completely artificial, mindless, and politically charged. Especially in the midst of controversy and political tensions, viewers want to escape from reality for a little while, and a show like The Property Brothers will never go near the subject of politics. According to Bloomberg, “A lot of the news these days is really stressful... HGTV is not something that’s going to hurt me. I watch it and dream of what I want for my future house” (Smith).
    In the age of mass media and technology, change is inevitable. However, certain channels/shows have been changed beyond recognition so much so that they have lost themselves and their niche audience. Niche cable TV channels are definitely doing the right thing by sticking to their tradition because why mess with something that’s already great? They know exactly who they are and who their audience is, they know what they are and they know what they are not- which is something every media company should seriously consider.

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  6. Works Cited

    Hahm, Melody. “Why Millennials Are Obsessed with HGTV.” Yahoo Finance. 13 Nov. 2017.
    https://finance.yahoo.com/news/millennials-obsessed-hgtv-205022165.html

    Murtaugh, Taysha. “Where Have All the Gardening Shows Gone?” CountryLiving. 5 Apr. 2017. https://www.countryliving.com/gardening/a42522/hgtv-programming-where-are-gardening-shows/

    Smith, Gerry. “HGTV Will Never Upset You: How the Network Beat CNN in 2016.” Bloomburg. 28 Dec. 2016. https://www.bloomberg.com/news/articles/2016-12-28/hgtv-will-never-upset-you-how-the-network-beat-cnn-in-2016

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