What do
you think is the most important trend that is cutting across all media
industries and having the biggest impact on both professionals and consumers?
*Note: For the final blog posting, you must still use
three readings to support your responses. They can be from any point in the
semester and they must be assigned readings for the class (no additional outside
article/source required). Limit: 12 responses
There is no doubt in my mind that the number one trend that is cutting across all media industries and having the largest impact on professionals and consumers is streaming. Streaming will continue to influence every media industry that it has been impacting, and will do so even more so.
ReplyDeleteFor each media industry there is a new leader within it that is pushing streaming, with the only exception being the video game industry. Even within the video game industry companies are starting to push streaming video game services instead of purchasing titles, but that has yet to catch on. But for the other major media industries there is a major push to offer subscription-streaming services. Disney, the leader in all major media conglomerations is making the push twofold. First, there’s, “ESPN+, the upcoming direct-to-consumer subscription streaming service from Disney Direct-to-Consumer and International in partnership with ESPN and featuring ESPN branded content, will launch on April 12 and offer fans a dynamic lineup of live sports, original content and an unmatched library of award-winning on-demand programming – all for a subscription price of $4.99 per month.” (Adler) Then there’s Disney’s other push to have a Disney branded streaming service which will hold all of the Disney, Pixar, Marvel, Star Wars and more brands under the Disney umbrella’s movies. Their reasoning for this being as Disney CEO Bob Iger puts it, “Our goal here is to be a viable player in the direct-to-consumer space, [a] space that we all know is a very, very compelling space to be in.” (Udland) Not to mention another leader of the television and film industry is Netflix, a company that has built its legacy on providing streaming HD film and television for a cheap monthly price.
The music industry has seen the same impact if not a greater one from the development of streaming as the main way consumers get new music. According to Ashley Cullins of The Hollywood Reporter, “The internet killed the music industry in the 2000s but now appears to be bringing it back to life. After a period of decline for physical sales, the past few years have seen streaming music services pump billions back into circulation (with $7.7 billion in total revenue in 2016, according to the Recording Industry Association of America).” (Cullins) Streaming has also led to the sustainable success of artists who would not have otherwise made it in the traditional music industry of yore. The ability of artists to promote themselves online and then self publish using Spotify, Apple Music, or other streaming platforms has done wonders for may artists. Also we see that audiences are listening to a much more diverse collection of music because there isn’t the risk of trying something new and not enjoying it. I don’t see what other trend in the media landscape could possibly be influential on professionals and consumers than streaming is.
Adler, K. (2018). ESPN+ to Launch April 12, Bringing Sports Fans More Live Sports, Exclusive Originals and On-Demand Library – All for $4.99 Per Month - ESPN MediaZone U.S.. [online] ESPN MediaZone U.S. Available at: https://espnmediazone.com/us/press-releases/2018/04/espn-to-launch-april-12-bringing-sports-fans-more-live-sports-exclusive-originals-and-on-demand-library-all-for-4-99-per-month/ [Accessed 6 Apr. 2018].
Cullins, A. (2018). Music Experts Discuss Why the Internet Is Now Saving the Recording Industry. [online] The Hollywood Reporter. Available at: https://www.hollywoodreporter.com/news/music-experts-discuss-why-internet-is-saving-recording-industry-1078058 [Accessed 12 Apr. 2018].
Udland, M. and Finance, Y. (2018). Disney's new streaming service shouldn't scare Netflix. [online] Yahoo.com. Available at: https://www.yahoo.com/finance/news/disneys-new-streaming-service-shouldnt-scare-netflix-174745047.html [Accessed 12 Apr. 2018].
Whether it’s a quick tweet to a customer, or a like on Instagram, consumers find it quite impactful when industries reach out to them.
ReplyDeleteThe trend that I believe to be the most important, cutting across a wide-array of media industries and having the biggest impact on both professionals and consumers is higher engagement rates. With the increase of technology, now more than ever it is important for industries to have a close connection, on both the professional and consumer side. Consumers like when professionals reach out to them and vice versa. Industries are now noticing how impactful social media engagement really is. Feedback is extremely important to companies in order to know what they are doing right, wrong and how to improve themselves. This strategy benefits the professionals because they get to know directly what the consumers are broadcasting about the product etc. The consumers, on the other hand, enjoy the attention the professionals give to them. Creating an interaction makes a huge difference when deciding on or sharing an opinion of a product.
One way that people create buzz and let opinions be known is by using the social media platform, Twitter. The truths can be found in the tweets. Hashtags are in particular the ways of distinguishing the main subject of the tweet that leads to a bigger cause/idea. It’s as easy as plugging a hashtag into the twitter search engine and tweets related to will come up. Some examples of the truth found on Twitter from 2017 are: “How much has #magmedia grown? The #MM360 Brand Audience Report shows 6.4% average performance growth in 2016”, as well as, “The top 25 #print magazines reach more adults and teens than the top 25 primetime TV shows” (The Association of Magazine Media 2018).
Companies have even found ways to increase their engagement with their consumers by incorporating advertising in his or her everyday news feed scroll, with its catchy persuading strategy, “Picture this: You're scrolling through your feed on Instagram and notice what appears to be an endorsed advertisement for a new workout supplement. The post has received hundreds of thousands of likes and dozens of comments.” With this ‘new’ way of approaching consumers, it leaves them interested into wanting to know more and “makes you feel inclined to purchase the supplement” (Meltzer 2018). Many companies have in fact adopted this strategy because of how successful it has been and influencers are using “social media platforms to connect with their audience on a personal level” (Meltzer 2018). This type of online interaction has created a strategy known as influencer marketing, which sparks viral conversations regarding the quality of products. This strategy is so successful because it specifically tailors to the consumer while maintaining the important aspects of the brand at the same time.
YouTube ‘vloggers’ are a prime example of directly expressing their opinions to consumers AND professionals at the same time. For example, well-known YouTube vlogger PewDiePie will let companies know exactly how he feels, as well as how he feels about other vloggers, which is what he’s most known for. This establishes that imperative close connection between producer, consumer AND audience. Vloggers will even work with brands to promote their products and weeve them in their videos, creating sponsored content.
Past presidents of the United States, and even current president, Donald Trump has gotten involved in this trend. Engaging with people and sharing his own opinions on Twitter has influenced many of the people that read them, often getting offended and angered. However, it is notable that he is directly getting content out to his audience. Despite the negativity and backlash that his audience gives in response, he is influencing them at the same time, whether it be positive or negative.
ReplyDeleteOne can also see this occurring with celebrities and the way they promote their brands. For example, Beyoncé is said to acquire $1 million for a social media post that is sponsored and Selena Gomez earning half a million, as well as Kendall Jenner earning up to $300,000. You don’t have to be a celebrity though to be a social media influencer, and that is another reason why being more engaged through social media is a success. With technology, anyone can put their hands on it and start making videos, promoting brands or giving feedback to companies.
As one can see, this trend of a higher engagement rate (in social media specifically) is only increasing and probably will continue to increase in the upcoming years because it is so impactful to both the professionals, brands, and the costumers consuming the products. One tweet can go a long way into persuading someone or something.
"Tweetable Truths About Magazine Media 2017." MPA: The Association of Magazine Media. Accessed 7 Feb. 2018. Web.
Meltzer, Lauren. "Social Media ‘Influencers’ Add a New Twist to Advertising," CBS Marketplace 8 Feb. 2018. Web.
Main, Sami. “PewDiePie and the Potential Dangers of Social Influencer Marketing for Brands”, Adweek 15 Feb. 2017. Web.
Viser, Matt and Wu, Yan. “11 Months, 1 President, 2,417 Tweets,” Boston Globe 26 Dec. 2017.
I think that after all of the topics we covered this semester it’s clear that one of the most important trend is streaming. It is something that stretches across most disciplines we talked about, from T.V to Film, music and even streaming news videos. Streaming is currently something that if you don’t get on board with it, chances of you lasting much longer as a company diminish.
ReplyDeleteFirstly, looking at the article “’No One Is Clamoring to Be at Facebook’: A TV Creator’s Guide to Streaming Platforms’ from The Hollywood Reporter by Bryn Elise Sandberg and Lacey Rose its clear to see why creators en bulk are making the jump to creating content for streaming specific platforms. Most of the top companies, Netflix, Amazon, Hulu and Apple have multibillion dollar budgets. This is a testament to how well they are doing, how much money they are bringing in with their success.
More than this however, streaming is also extremely pervasive in music. Despite the fact that I still like to purchase music (both tangibly and digitally) I realize that I’m in the minority there. There are extreme benefits to streaming music and I acknowledge that too. What I think really embodies how well streaming is going in the music industry is the fact that Pandora, arguably one of the weaker music streaming platforms, still reported $395 million dollars in profit for the fourth quarter of 2017. This is a huge growth for them according to Colin Stutz at Billboard who penned the article “Pandora Reports $395M in Q4 2017 Earning, 25 Percent Subscriber Growth”. This is huge for Pandora looking at their competition. Spotify and Apple Music are very strong in addition to that and didn’t lose any money or subscribers when Pandora had this spike. This is a testament to how strong the streaming services in the music industry are.
Lastly, I think one of the greatest signs that streaming is one of the biggest trends of the past year or so is the fact that Disney is acquiring a majority shares in Hulu. This obviously relates back to the TV industry but also impacts the film industry. Looking at the article “How Disney Will Benefit From Becoming Hulu’s Majority Owner Via Its Fox Deal” by Natalie Jarvey and Georg Szalai written for The Hollywood Reporter. What that article points out is that this acquisition positions Disney to have not just Hulu but multiple “streaming services focused on different audiences, with Hulu likely to be positioned as a more adult oriented service”. Disney has also talked about launching its own streaming platform in the coming year in addition to Hulu which then presumably would be more targeted at a younger audience.
Looking at all of this it is clear that streaming is the new wave that media industries are riding. It is usually extremely lucrative for those companies that can successfully transition to streaming, even for those companies that aren’t considered the most popular.
Works Cited
Jarvey, Natalie, and Georg Szalai. “How Disney Will Benefit From Becoming Hulu's Majority Owner Via Its Fox Deal.” The Hollywood Reporter, 14 Dec. 2017, www.hollywoodreporter.com/news/how-disney-will-benefit-becoming-hulus-majority-owner-fox-deal-1067567.
Sandberg, Bryn Elise, and Lacey Rose. “Amazon - ‘No One Is Clamoring to Be at Facebook’: A TV Creator's Guide to Streaming Platforms.” The Hollywood Reporter, 4 Oct. 2017, www.hollywoodreporter.com/lists/how-sell-your-content-netflix-facebook-streaming-services-1045458/item/amazon-sellers-guide-streaming-universe-2017-1045479.
Stutz, Colin. “Pandora Reports $395M in Q4 2017 Earnings, 25 Percent Subscriber Growth.” Billboard, 21 Feb. 2018, www.billboard.com/articles/business/8213901/pandora-395m-q4-2017-earnings-25-percent-subscriber-growth.
The most important trend facing the media industry today is definitely the switch to streaming services. Streaming has been a dominant force facing the television and movie industries. While adaptations have been made by both parties to control this new way of consuming content, more growth is certainly to come. Traditional television viewership has been on a decline for the past few years now that streaming has come into play. According to the Hollywood Reporter, “The shift is redrawing the hierarchy of the television industry, where all five broadcast networks saw a decline in total viewers last season while the streamers committed about $20 billion to programming delivered without a cable subscription” (Jarvey 2017).
ReplyDeleteThe evolution essentially started with VOD services. Most networks offer an option on their website to watch a show 12 hours after it airs live. This was put into place after TiVo and DVR devices were put into place as well. Unlike online streaming platforms, these options require a cable subscription. Nielsen has now learned to adapt to tracking these ratings with L+3 data, that tracks the viewership from the 3 days after the show premiered. This shows a clear effort that industry is making waves to adapt to these changes.
Streaming has been a growing force in the television industry for quite a few years now. With the evolution of Netflix, Hulu, Amazon Prime, etc., companies have the opportunity to release original content along with pre-aired series. An article from the Hollywood Report makes a good point that “Netflix, Amazon, and Hulu began buying from pretty much everyone as they stocked up on originals. But that strategy has started to shift as deep-pocketed Netflix and Amazon are making a clear push to own their scripted fare, while Hulu remains focused on buying both from studios — including Sony, Warner Bros., and Universal — and from indies like The Handmaid's Tale producer MGM” (Goldberg 2017).
Even with these well-established platforms, other companies are planning to enter the streaming game in the future. Apple is planning to launch their own streaming service, while YouTube and ESPN have recently released their platforms. Another article from the Hollywood Reporter actually states “With the explosion of streaming services in Hollywood, agents and executives have more options than ever when it comes to where they take their TV shows. And now that Apple is the newest entrant in the increasingly competitive arms race for prestige programming, they have yet another attractive (and deep-pocketed) buyer” (Sandberg 2018). This goes to show that this shift is far from over, and is still in that transitional phase with more and more players entering the field.
Consumers are now posed with the question as to cut their cable cord or not. While tradition television consumption is not completely dead, we are seeing more and more cord cutters each year. With expanding budgets and the appeal of lower prices, many are attracted to this deal. While professionals are still finding ways to adapt, consumers are also figuring out which means of watching television is the best fit for them.
Works Cited
Goldberg, Lesley. “Scripted Originals Hit Another Record High in 2017.” The Hollywood Reporter, 5 Jan. 2018, www.hollywoodreporter.com/live-feed/scripted-originals-hit-record-high-2017-1071899.
Jarvey, Natalie. “YouTube Grows Up: Inside the Plan to Take on Netflix and Hulu.” The Hollywood Reporter, 4 Oct. 2017, www.hollywoodreporter.com/features/youtube-grows-up-inside-plan-take-netflix-hulu-1045443.
Sandberg, Bryn Elise, and Lacey Rose. “Facebook - ‘No One Is Clamoring to Be at Facebook’: A TV Creator's Guide to Streaming Platforms.” The Hollywood Reporter, 4 Oct. 2017, www.hollywoodreporter.com/lists/how-sell-your-content-netflix-facebook-streaming-services-1045458/item/facebook-sellers-guide-streaming-universe-2017-1045489.
I think that the most important trend that is becoming a vital part of the media industry and having the biggest impact on both professionals and consumers is online streaming services, which are also known as OTT (over-the-top) services. According to comScore’s State of OTT, OTT/streaming services are defined as “using apps to stream video content via the internet to a television set.” This streaming service allows consumers to view content on a number of mobile services and ultimately allows greater convenience. The evidence to support streaming services as a growing trend is first that OTT services have changed the revenues for many companies. According to a recent Wrap article, streaming companies like Netflix and Hulu are increasing revenue at a fast rate. More specifically, Hulu’s revenue increased from 2016-2017 allowing the company to reach $1 billion (Burch). In addition, streaming services are seeing an increase in subscribers while standard TV companies are seeing a decrease in consumers. Between 2016 and 2017, the streaming company Netflix had an increase of 850,000 subscribers (Burch) and Hulu reached 17 million subscribers for the first time (O’Connell). Within that time, the number of television subscribers decreased by 3% (Burch). All in all revenue and the number of consumers using OTT services has steadily increased while consumers viewing traditional media has decreased thus demonstrating the trend of shifting to streaming services.
ReplyDeleteAs the number of jobs in technology continue to grow, this trend is having many effects on professionals in the field. First, larger corporations are finding dramatic ways to try to stay ahead of the trend. As OTT services are impacting the industry, larger companies are consolidating as lots of smaller companies offering OTT services are becoming rampant. An example of this was highlighted in the Variety article Disney to Buy 21st Century Fox Assets for $52.4 Billion in Historic Hollywood Merger, in which the author highlights that Disney is looking to reach more consumers by merging with 21st Century Fox, which has a large presence in the direct-to-consumer streaming distribution. Disney Chairman and CEO, Bob Iger, commented on this merger and what he said speaks volumes about the importance of OTT services as Disney looks to continue its market dominance. Iger stated, “[t]he acquisition of this stellar collection of businesses from 21st Century Fox reflects the increasing consumer demand for a rich diversity of entertainment experiences that are more compelling, accessible and convenient than ever before” (Littleton). As Iger notes, the future seems pretty clear for what the consumer is looking for; compelling accessible and convenient content. This is something that only OTT delivers. 21st Century Fox has something to gain from this merger as well. Even though it is a big name in the media industry, other companies catering more to consumers’ wants for streaming are becoming much more powerful so 21st Century Fox can be left in the background if it does not merge (Littleton). Other positive effects on professionals include increasing revenues and growth for OTT companies like Hulu and Netflix, as previously mentioned. Unfortunately, not every professional group is benefitting from this trend. In fact, traditional TV companies are struggling to keep viewers. More specifically, in just 2017 alone, 46% of consumers ended traditional pay TV services (Burch).
The impact this has had on consumers is that OTT services have allowed convenience for them to view their content. According to the Wrap article Netflix Has as Many Subscribers as Cable TV, New Study Says, it is clear that consumers are using streaming more frequently. Hulu now has more than 54 million users, while Netflix has more than 110 million. Ironically, the 3% decrease in traditional TV viewers, mentioned above, corresponds with a 3% increase in Netflix consumers. There has also been an increase in users of OTT services in all age groups, meaning it has a diverse audience. While it may not be surprising that more 18-24 year olds are using streaming services, it is shocking to see the growing trend of the population age 50 and above using OTT services. In fact a PWC report called it a “streaming explosion for all ages” (Burch). With this type of growth and diversity of streaming services demonstrates how they are a growing trend, unlikely to fade.
DeleteWorks Cited
Burch, Sean. “Netflix Has as Many Subscribers as Cable TV, New Study Says.” TheWrap, TheWrap, 19 Dec. 2017, www.thewrap.com/netflix-passing-cable/.
Littleton, Cynthia, and Brian Steinberg. “Disney to Buy 21st Century Fox Assets for $52.4 Billion in Historic Hollywood Merger.” Variety, 14 Dec. 2017, variety.com/2017/biz/news/disney-fox-merger-deal-52-4-billion-merger-1202631242/.
O'Connell, Michael. “Hulu Subscriber Base Passes 17 Million.” The Hollywood Reporter, 9 Jan. 2018, www.hollywoodreporter.com/news/hulu-subscriber-base-passes-17-million-1073256.
Rich, Mike and Andrew Lipsman. "State of OTT." commScore. Accessed 14 Jan. 2018. Web.
I definitely think that cord-cutting is the most important trend across all media industries. Everyday people are watching cable less and less and instead streaming their television. Streaming content is the easiest way to be entertained in this day in age. We can watch last night’s episode of “Scandal” on the train, we can watch “The Voice” live from our laptops and we can let our children watch “Doc McStuffins” while we shop around the grocery store. Streaming/ cord-cutting is effecting the television industry in many different ways. People are still watching tv but they are watching it at different times and on different platforms. Streaming/cord-cutting also impacts the social media industry because people interact with their shows on social media.
ReplyDeleteAccording to NBC News, satellite and cable are still an important part of many Americans' lives, with 196.3 million people paying for traditional television service this year (Newcomb). People are still watching tv and I think people will always watch tv but the way they are watching is changing. Who knows if the future will have all television shows on streaming services; maybe one day everyone will have cut the cord and switched to streaming services like Hulu and Netflix. This past awards season left “The Handmaid’s Tale” as the best drama series which was historic for streaming services so I definitely see a trend in the future and predict that more Netflix and Hulu originals will take home awards in the near future. This year Hulu even beat Netflix for most awards so a change is coming but whether it is good or not can be argued; people are watching television at all times of the day and doing it when it is most convenient for them which makes it easier than ever to stay up to date with our favorite shows.
Shonda Rimes told Yahoo Finance all about her new involvement with Netflix. The “Scandal” and “Grey’s Anatomy” creator has recently made a deal to work for Netflix and what she likes about it is its target market (Mangalindan). There is no defined target market for Netflix like Freeform or ABC may have; everyone has Netflix which offers more flexibility with programming with Netflix. I can watch “The Office” one day and “Altered Carbon” the next day. They are both extremely different shows with different audiences and different content yet both are available for any Netflix user. Could this be the future of television? Will everyone eventually cut the cord and start streaming everything? Signs lean toward yes when considering Apple’s new plan for their own streaming services. YouTube is working towards their own streaming services too apart from YouTube Red.
I really do think that streaming and therefore cord-cutting is the biggest trend that the media industry needs to watch out for. Regardless of age or television preference, homes everywhere are making the switch. It’s also important to note that the younger generations are more familiar with smart tvs and streaming than anything else. According to ComScore, “millennials and Gen Xers now spend much more time on digital media than watching live TV, a sign of shifting media consumption dynamics” (Fulgoni). It's definitely something to keep an eye on.
References
Fulgoni, Gian. "The Future of Digital Platforms," Local Online Advertising Conference 2018, 12 March 2018, New York City.
Mangalindan, J.P. "‘Scandal’ creator Shonda Rhimes – Why I left ABC for Netflix." Yahoo Finance. 11 Nov. 2017. Web.
Newcomb, Alyssa. "2017 Emmy Awards: Hulu’s Big Win Spotlights Future of Digital." NBC News 18 Sept. 2017. Web.
I think when looking across the board at the various modern day media industries, we can all note that the trend of streaming is having a monumental impact on each of these industries. With the development and popularization of new digital mediums within the past few years (for example, smartphones/TV’s), consumers have been given access to more content than they know what to do with and in a very convenient manner. Streaming spans from movies and television, to now even how consumers get their news as well as listen to their music.
ReplyDeleteOne of the biggest areas that been impacted by the development of streaming services has definitely been the film and television industry. Companies such as Netflix, Hulu and Amazon Prime have taken over this industry with the release of their original content over the past year that rivals and sometimes even tops broadcast shows. With these companies putting such large budgets towards their original content, they’ve been taking away from the whole idea of the traditional movie/television studio. In discussing Netflix’s impact, Stephen Galloway states “Netflix has also been in the vanguard of laying siege to the old bastions of Hollywood power, with a war chest of $5 billion to spend on different forms of content — multiples of the amount spent annually by any single studio, and many times what each studio makes in profits. Most newcomers are restricted by a lack of funds, but Netflix has money to throw around. This isn’t a short-term experiment, it’s the beginning of a long-term plan.” And he’s right. Netflix plans on only increasing the amount of original programming they release yearly, along with their budgets, and rival companies plan on doing the same. Besides just enjoying the quality of the content that these streaming companies are giving consumers, a huge factor is simply the convenience of having all this visual content at the tip of our fingers, being able to view it whenever we’d like. With Disney planning on creating their very own streaming service as well as the recent release of ESPN+, I believe this is a trend that’s not going away anytime soon.
But it isn’t just the television and film industry that we’ve seen impacted by streaming. The music industry also has taken a huge turn with the development of such platforms such as Apple Music and Spotify. These sites allow users convenient access (that’s a keyword with these platforms) to millions of songs. As Fortune notes with Apple Music for example, “Subscribers can access a catalog of about 40 million songs for about $10 per month—or nearly the entire iTunes catalog, which boasts 45 million songs.” Even as Ed Christman from Billboard notes as well, “ For the full year of 2017, Billboard estimates that Apple added about 6 million paid subscribers in the U.S., while Spotify added about 5.2 million subscribers.” It’s safe to say the numbers are there and people are enjoying having these large amounts of libraries of songs at their disposal for $10 a month.
No matter the content, these companies and the platforms they’ve worked to popularize have taken over the media industry in a variety of aspects. But this isn’t a trend a I see slowing down in the near future as consumers stay on board for these convenient streaming platforms.
Galloway, Stephen. “Challenges From Amazon and Netflix Signal the End of the Studio System”. The Hollywood Reporter. Aug 1, 2016.
http://www.hollywoodreporter.com/news/amazon-netflix-challenge-hollywood-studio-916045
Reuters. “A Quick Guide to Apple Music, Spotify, and More Top Music Streaming Services” Fortune. Sept. 11, 2017. http://fortune.com/2017/09/11/spotify-apple-music-tidal-streaming/
Christman, Ed. “Apple Music, Spotify Battle Heats Up Again as Race for US Subscribers Gets Closer” Billboard. Feb. 5, 2018.
https://www.billboard.com/articles/business/8098161/apple-music-spotify-streaming-wars-subscribers-advantage
The biggest trend that appears to be having the biggest impact on both professionals and consumers, while cutting across all media industries, is cord cutting and streaming as opposed to cable TV subscriptions. The writing has been on the wall for a long time now as traditional TV subscriptions are being replaced nationwide with households opting instead to cut the cord and stream all of their content. The convenience and cost of streaming makes it a no brainer for many households that can no longer afford the high price for cable. My family alone pays around $180 a month for Charter Spectrum at my dad’s, and the same for Frontier at my mom’s. In a new poll from PricewaterhouseCoopers, “73 percent said they pay for traditional pay TV — a 3 percent drop from 2016 — which matches the percentage of respondents who said they subscribe to Netflix” (Burch). The poll asked around 2,000 people so of course this isn’t a perfect representation of the real numbers but “Netflix added another 850,000 domestic subscribers during its last quarter, and saw its total U.S. customer base swell to more than 50 million in 2017” (Burch) which means it seriously is beginning to challenge cable subscriptions in this country.
ReplyDeleteThe means required to stream content has become much easier in recent years as there are so many options for streaming and “According to Nielsen’s Q2 2017 Total Audience Report, 58.7% of TV homes in the U.S. now own at least one internet-enabled device capable of streaming to a TV set” (Nielsen). This includes smart TVs, Roku, Apple TV, Google Chrome, Amazon Fire, and more. The world of streaming is no longer reserved for the tech savvy and the young. Anyone can purchase a device that allows them to do it and nearly everyone already owns a smart phone or computer capable of streaming anyway. Pretty soon it’ll be hard to find a TV in the store that isn’t Smart enabled. They’ll all come with streaming services built in and the reasons for having a cable subscription will continue to dwindle. This affects TV, the movie industry, sports, and news. The way consumers want to receive their content is changing and all of these industries have to start changing.
Some are already making the change as more and more industry people are jumping off the sinking cable ship. One of cables darlings, Shonda Rhimes has already made the jump to Netflix stating that, “the idea that I get to write in whatever manner I want to write, in whatever form I want to write because I want to write it….You know what audience is coming to you, so you know what your advertisers are looking for. None of that is a worry in streaming” (Mangalindan). This trend is going to continue because what Shonda says is exactly right. Netflix, and the other platforms, are giving content creators the freedom that cable couldn’t provide even if they wanted to. The professionals are starting to make the move and the more of them that begin to follow the changing tides, the more consumers that will follow.
Burch, Sean. “Netflix Has as Many Subscribers as Cable TV, New Study Says.” TheWrap, TheWrap, 19 Dec. 2017, www.thewrap.com/netflix-passing-cable/.
Mangalindan, J.P. "‘Scandal’ creator Shonda Rhimes – Why I left ABC for Netflix." Yahoo Finance. 11 Nov. 2017. Web.
Nielsen. Streamer Things: Internet Enabled TV Connected Devices Found in Nearly 60 Percent of US TV Homes. 16 Nov. 2017, www.nielsen.com/us/en/insights/news/2017/streamer-things-internet-enabled-tv-connected-devices-found-60-percent-us-tv-homes.html.
OTT services are currently the most important trend that are cutting across media industries and having the biggest impact on professionals and consumers. The rising demand for “over the top” services, and the rising trend of cord cutting among consumers is having major implications on the media world. People are increasingly seeking to ditch cable for OTT services such as Netflix or Hulu. With this being the new trend, we see other companies trying to jump on the bandwagon, including YouTube and Facebook, who have begun creating their own television services. Netflix is at the forefront of this trend, seeming to have the most established brand and loyalty among recent years. In an article from The Ringer, Victor Luckerson discusses Netflix, writing “Netflix is now spending about as much on content as all of Time Warner’s television units (Turner, HBO, and Warner Bros.) combined. Nancy Dubuc, CEO of A+E Networks, acknowledged that many of her viewers no longer want to watch ads, an option that Netflix first made feasible.”(Luckerson). The idea of not having advertisements, and having full time access to a variety of shows is overwhelmingly popular among consumers, making the switch from cable to OTT a lot easier, and simultaneously more cost effective.
ReplyDeleteThe content on streaming services has also pulled in more people, both consumers and actors. In an article discussing Shonda Rhimes decision to swtich to Netflix, she comments on the transition. She writes, ““On Netflix, I think, there’s not necessarily a sense of, ‘You have to make a particular kind of show for a particular kind of branded audience,'” ‘Scandal’ creator Shonda Rhimes told Yahoo Finance”(Mangalindan). The idea of OTT services is essentially brilliant, as it serves niche audiences, but also allows for enough diversity to gain bigger audiences for various content. Hulu has also established itself as a brand worth subscription recently, making the decision to cut cords all the more motivating for consumers. After receiving such high acclaim for their original show The Handmaid’s Tale, Hulu has made a prominent name for itself. Luckerson touches upon Hulu’s service, writing “Hulu is now the only streaming service where you can binge 30 Rock, How I Met Your Mother, and Living Single, to name a few beloved programs. The 11-year-old company, whose tagline for years could have been I guess since there’s nothing on Netflix …, is finally starting to develop an identity all its own.” Services like Netflix and Hulu have such dominance because of their ability to create creative original content, as well as provide unlimited access to already established series. This, combined with an elimination of advertisements sets them apart from cable, and they have proven to triumph. Tim Goodman sums up this transition nicely in his article in the Hollywood Reporter, stating “At this point in the daily earthquake world of the television industry, it's advisable to not look away for too long. You might not recognize the ground when you look back”(Goodman). The television industry has experienced these vast changes at a very rapid pace, and now we are seeing professionals within the media industry work tirelessly to keep up with the trend.
Goodman, Tim. "Has Anyone Noticed That the TV Industry Has Lost Its Shit Lately?" The Hollywood Reporter 15 Sept. 2017. Web.
Luckerson, Victor. “Hulu Is Hollywood's Last Line of Defense Against a Tech Takeover.” The Ringer, The Ringer, 12 Jan. 2018
Mangalindan, J.P. "‘Scandal’ creator Shonda Rhimes – Why I left ABC for Netflix." Yahoo Finance. 11 Nov. 2017. Web.
Live streaming applications and OTT services are the most popular trend that is cutting across all media industries. During this semester, our class talked about media companies and tech startups that were trying to optimize its opportunities to achieve success. From radio to film, the pace of digital and technology is making it more difficult to track audiences as well as meet their needs. Many top media brand names like CBS and ESPN have turned to live streaming apps and OTT services to keep up with the rapid transformation. Sahil Patel, contributor from DigiDay, wrote about how news organizations and broadcasting stations are turning to live stream for views and daily hits on stories. Patel talked about how CBS is offering CBSN, a digital live-streamed news app to its viewers. Patel quoted Beth Weeks, associate director of media for DigitasLBi who said “CBSN presents an opportunity to engage cord cutters, knowing consumers don’t need to authenticate via a subscription, which is common among other news publishers and is available on a multitude of platforms” (1). News is not the only one making active changes, sports is also following the trend of live streaming games and sports content through digital media platforms.
ReplyDeleteESPN released their ESPN+ app for serious sports fans who want to watch games live and have OTT sports content at their fingertips. ESPN+ is a Direct-to-Consumer subscription-streaming app with access to thousands of live sports, original content and an on-demand video library (Adler 1). Kristie Adler wrote the article “ESPN+ to Launch April 12, Bringing Sports Fans More Live Sports, Exclusive Originals and On Demand Library- All for $4.99 Per Month” a few weeks ago. Adler mentions the groundbreaking news is creating more variety and valuable media business model because: “ESPN+ is the first direct-to-consumer service offering from Disney Direct-to-Consumer and International, the multiplatform media, technology and distribution organization for high-quality content created by Disney’s Media Networks and Studio Entertainment groups” (1). This made me question if ESPN would attract that audience and if there is a good balance between the live sports and the short form content on their app. One thing that is certain is live TV viewing is not going anywhere, but its constant influx will have new and legacy media companies competing to track and target that group.
ComScore released their live TV statistics that determined people are watching more live content than OTT and VOD combined. Approximately 84% of viewers are spending their time watching live television. On the other hand, the types of programs that they are live watching fluctuate. Ninety percent watch News and Sports TV content live according to comScore TV cross-platform metrics. Overall, live viewing will not be going anywhere, but learning about viewers who watch over five hours of TV with both OTT and TV services creates more questions and curiosity about how to blend both platforms on the media business side.
I am posting my works cited just after this post because it did not fit.
Works Cited
Patel, Sahil. “How CBS News Is Trying to Reinvent Itself.” Digiday, 2 Aug. 2017, digiday.com/media/inside-cbsn-a-cbs-news-for-a-new-era/. Web. Accessed 16 Apr 2018.
Adler, Kristie. “ESPN to Launch April 12, Bringing Sports Fans More Live Sports, Exclusive Originals and On-Demand Library – All for $4.99 Per Month.”ESPN, 2 Apr. 2018.
ReplyDeleteComScore, et al. The 2017 U.S. Cross- Platform Future in Focus. ComScore, 2017, pp. 1–72, The 2017 U.S. Cross- Platform Future in Focus.
We have come a long way these last ten years or so in terms of technological advancements. Our society and lifestyles are tied together through the use of various forms of media. The conglomeration of information, work, leisure, and entertainment has increased demand for media and it will only continue to grow.
ReplyDeleteThe most important trend cutting across all media industries are streaming on-demand services. Whether it is a sports game, movies, music, or news people want their content readily accessible. According to The Wrap, “Hollywood in 2018 will be about change. Disruption — both on the business side and the cultural side of the entertainment business — will be the guiding theme”(Waxman). Traditional forms of media have had a difficult time keeping up while others are thriving, regardless film, tv and music are all changing.
The television industry took a hard hit in the age of SVOD. Broadcast and cable networks have had to re strategize how they will be able to profit in this competitive climate. The NBC chairman Bob Greenblatt on The Hollywood Reporter explains his approach to the situation, “’Each platform reaches a different audience, and we want to get as many of them into the tent as possible. Furthermore, we're now reaching more younger people too because viewers on digital and over-the-top platforms are 20 years younger on average for us than those watching the network. … We're also monetizing virtually all of these platforms, too. I want to stay focused on viewership rather than monetization, but it's not a coincidence that NBC Entertainment just had its most profitable year in 17 years — and we just wrapped up our best upfront in eight years’”(Goodman). Rather than seeing the SVOD services as negative, he is working to his advantage. At the end of the day, good content is what will draw in user attention. His advice to the Television industry is worrying about viewership over monetization because quality content is what brings in money.
For the music industry, the problem appears to be much more detrimental. The concept of sharing music rather than buying and owning music has completely transformed this market. The Spotify model of subscription-based music streaming obscured the idea of paying for music. According to Billboard, “Popular and contemporary music aside, think about the fact that 70 percent of streams on Spotify are on songs that have been out for over 18 months. Think further about mood playlists. People streaming music based on playlists that fit their current mood. This is a major aggregate use of the streaming services, and one that brings real economy to the obscure and old. A totally different model than the ones embraced by current record labels”(Bromley). Music streaming has not only impacted the economic side of things, it is changing the way music is listened to and how it is created. Big name artists are more likely to cut deals with streaming apps such as Spotify or Apple music because they don’t have to be tied to labels, no cost of distribution, and have more freedom to create content.
Streaming services on demand are changing the way we consume, market, and produce media across all platforms. We live in an on-demand society ruled by smartphones and OTT services tailored to individual needs. I believe streaming services are here to stay because the concept cuts costs, distribution, opens worldwide markets, and meets consumer demands. It will be interesting to watch this play out over the ten years and examining how these industries will adapt or change.
This comment has been removed by the author.
DeleteWorks Cited
DeleteBromley, Jordan. “The Future of the Streaming Economy: 5 Things to Watch (Guest Column).” Billboard. 23 Jan, 2018.
https://www.billboard.com/biz/articles/news/record-labels/8095808/the-future-of-the-streaming-economy-5-things-to-watch-guest
Goodman, Tim. “Critic's Notebook: Revenge of the Broadcast Networks?” The Hollywood Reporter. 4 Aug, 2017.
https://www.hollywoodreporter.com/bastard-machine/will-be-a-revenge-broadcast-networks-1026912
Waxman, Sharon. “Hollywood in 2018: An Old Order Ends, A New One Rises.” The Wrap. 31 Dec, 2017.
https://www.thewrap.com/hollywood-2018-new-order-netflix-facebook-amazon-disney/
The most notable trend impacting the media industry is the emergence of OTT streaming services. This trend has been made tangible in ever-arising amounts of subscriptions for these services and an increasing amount of cordcutters. Youtube, Facebook, and Apple have been following the precedents established by Netflix and Hulu, and rightly so. The ease and efficiency of OTT services of all types is highly desirable to almost any customer base – “I don’t have to talk to a human” is one of the most cited responses to why apps like Uber are so popular, and the ease of communication offered by OTT services on streaming is very similar to this. The streaming services themselves have been quickly occupying their own niches, forcing late competitors like Youtube and Apple to establish themselves and perhaps convince customers with competing services to cancel their subscriptions. Hulu has been looking to represent the cable TV market online in terms of its program showcase. As Victor Luckerson writes for The Ringer, “A confluence of factors has turned Hulu from a Netflix also-ran to a key strategic asset for Disney and (for now) NBC. Netflix is going all in on original content and abandoning many of the licensed shows that first made its streaming service popular, turning Hulu into the de facto destination for classic TV.”(Luckerson) However, Hulu still faces its own challenge, since a very glaring difference between Netflix and Hulu is the on the former one you don’t watch ads, and on the latter you do. “More than anything, Hulu’s biggest advantage going forward is that Hollywood desperately needs to stop Netflix from remaking all of entertainment in its own image… More than anything, Hulu’s biggest advantage going forward is that Hollywood desperately needs to stop Netflix from remaking all of entertainment in its own image.”(Luckerson)
ReplyDeleteNow, this does not mean TV networks have not been able to adapt, and many of them have done so successfully by streamlining themselves and divesting resources only where its important. As Tim Goodman writes for The Hollywood Reporter, “the broadcast networks are making money — in some cases, lots of it — primarily because they've learned how to make significant ad money off of digital views on multiple platforms. It also appears they're getting paid for people watching shows, in some cases, well after the live-plus-3 and live-plus-7 windows — the most desirable viewing opportunities, from an advertising perspective — have closed.” (Goodman) Companies like the CW have enjoyed much success in this, but momentary adaptation does not equal a competitive edge, which is something will demonstrate itself in the coming years, as traditional TV viewership bases have been steadily declining. Once Video On Demand services experienced their inception in the early 2000s, many networks would begin investing their resources into the close catering of the consumer that typifies OTT services and the streaming era, which even ESPN and Apple(Sandberg) has been investing many resources into, culminating in the creation of ESPN+ and Apple TV, all set against a growing army of cordcutters in the United States and abroad.
Luckerson, Victor. “Hulu Is Hollywood's Last Line of Defense Against a Tech Takeover.” The Ringer, The Ringer, 12 Jan. 2018
Delete‘No One Is Clamoring to Be at Facebook’: A TV Creator's Guide to Streaming Platforms.” The Hollywood Reporter, 4 Oct. 2017
Goodman, Tim. "Has Anyone Noticed That the TV Industry Has Lost Its Shit Lately?" The Hollywood Reporter 15 Sept. 2017. Web.
I think the most important trend that is cutting across all media industries is cord cutting, which has lead to several people subscribing to streaming and OTT services. Streaming and OTT services have been a successful alternate way for people to receive content they would usually receive through cable subscriptions and are certainly a threat to cable companies because of their cheaper prices. According to the Hollywood Reporter, “The shift is redrawing the hierarchy of the television industry, where all five broadcast networks saw a decline in total viewers last season while the streamers committed about $20 billion to programming delivered without a cable subscription” (Jarvey 2017). Consumers are no longer willing to pay high cable prices; they are straying away from the cable companies and subscribing to services such as Hulu, Netflix, and Amazon Video to receive their content.
ReplyDeleteSince gaining popularity, streaming and OTT services have only gotten bigger and better. Personally, since purchasing a Netflix account in high school I have never subscribed to cable since, (with the exception of purchasing Sling TV to watch on my Amazon Fire Stick). The reason for this is because I find that with my school, work and extracurricular activities, I don't have much time to watch cable television, therefore paying a monthly bill was an expense that I could do without. The reason I have kept my Netflix, Amazon Video and Sling TV subscriptions is because they allow me to watch content where and when I want to as opposed to cable where I am limited to watching what is showing at the moment. These services started off with gaining subscriptions because they were the main outlets that provided television shows and movies all on one platform; people love the idea of being able to watch the old and current content of their favorite shows and movies at their own leisure as opposed to when the cable networks programmed to show it. Streaming and OTT services such as Netflix, Amazon, and Hulu also have also been releasing their own original content; this has been setting them apart from the cable companies, attracting new customers and subscribers because there are people who will purchase a subscription just to receive that original content that is only available on streaming and OTT services. Lesley Goldberg also makes this point in her article, Scripted Originals Hit Another Record High in 2017 when she states, “Netflix, Amazon, and Hulu began buying from pretty much everyone as they stocked up on originals. But that strategy has started to shift as deep-pocketed Netflix and Amazon are making a clear push to own their scripted fare, while Hulu remains focused on buying both from studios — including Sony, Warner Bros., and Universal — and from indies like The Handmaid's Tale producer MGM” (Goldberg 2017). This unique business strategy has contributed a lot to each of these companies succeed. It is the reason why consumers are willing to subscribe to one or more streaming or OTT services, rather than purchasing cables services.
The streaming and OTT service trend is becoming so important in the media industry to the point that most media companies are beginning to launch their own services. Companies such as YouTube and ESPN have recently launched their own streaming services; though Disney owns about a third of Hulu, they plan on launching their own streaming service soon and are certainly a service we should all look out for. Natalie Jarvey from the Hollywood Reporter stated, “The Disney boss said the company will, after the deal, have a chance to offer several streaming services focused on different audiences, with Hulu likely to be positioned as a more adult-oriented service, compared with a planned ESPN sports service and a planned Disney family service” (Jarvey 2017).
DeleteBecause of all the various options of watching our favorite programs, we as consumers are met with the option of cutting the cord or keeping cable subscriptions. There is certainly a demographic of consumers who will never cut the cord, however, I think that mainly pertains to the older generations and people who want to view live sports on bigger screens. So while there is still hope for cable companies, I believe their demographic will eventually give in and cut the cord if streaming and OTT services master a way to appeal to their needs more. Media professionals must continue to find a way to keep their prices for streaming and OTT reasonable and their content enjoyable because soon, cable is going to run out of ways to adapt to their targeted audience. Streaming has the ability and the impact to stay widely successful if it can manage to do this.
Works Cited
Goldberg, Lesley. “Scripted Originals Hit Another Record High in 2017.” The Hollywood Reporter, 5 Jan. 2018,
Jarvey, Natalie. “YouTube Grows Up: Inside the Plan to Take on Netflix and Hulu.” The Hollywood Reporter, 4 Oct. 2017,
Jarvey, Natalie. “How Disney Will Benefit from Becoming Hulu’s Majority Owner Via Its Fox Deal.” The Hollywood Reporter, 14 Dec. 2017