15.2 Changing business models and industry structures
5 min read•july 30, 2024
The television industry is undergoing a seismic shift as traditional business models clash with emerging ones. Streaming services, data-driven content strategies, and direct-to-consumer platforms are reshaping how we watch TV and how companies make money from it.
This transformation is forcing media conglomerates to adapt or die. They're restructuring, investing in original content, and embracing new technologies. Meanwhile, is democratizing creation and influencing mainstream TV in unexpected ways.
Traditional vs Emerging Business Models
Revenue Sources and Distribution Methods
Top images from around the web for Revenue Sources and Distribution Methods
Subscription Video on Demand Trends in North America | Transmedia Newswire View original
Is this image relevant?
SVOD Revenue Forecast to Reach $34.6 Billion by 2021 View original
Is this image relevant?
More Pay-TV Providers in Europe Offer Streaming Video View original
Is this image relevant?
Subscription Video on Demand Trends in North America | Transmedia Newswire View original
Is this image relevant?
SVOD Revenue Forecast to Reach $34.6 Billion by 2021 View original
Is this image relevant?
1 of 3
Top images from around the web for Revenue Sources and Distribution Methods
Subscription Video on Demand Trends in North America | Transmedia Newswire View original
Is this image relevant?
SVOD Revenue Forecast to Reach $34.6 Billion by 2021 View original
Is this image relevant?
More Pay-TV Providers in Europe Offer Streaming Video View original
Is this image relevant?
Subscription Video on Demand Trends in North America | Transmedia Newswire View original
Is this image relevant?
SVOD Revenue Forecast to Reach $34.6 Billion by 2021 View original
Is this image relevant?
1 of 3
Traditional television business models rely heavily on and subscription fees from cable and satellite providers
Emerging business models include (SVOD), (AVOD), and direct-to-consumer (DTC) streaming services
of traditional television faces challenges from on-demand content consumption patterns in emerging models
Traditional models involve complex rights negotiations and distribution agreements
Emerging models prioritize content ownership and direct consumer relationships
Content Strategies and Viewer Engagement
Emerging business models leverage data analytics and personalization to enhance viewer experiences and inform content creation decisions
Shift from appointment viewing to impacts content release strategies and audience engagement in emerging models
Hybrid models combining elements of traditional and emerging approaches become increasingly common as the industry evolves
Traditional models focus on scheduled programming (weekly episodes, seasonal releases)
Emerging models offer flexibility in content consumption (entire seasons released at once, interactive content)
Technological Advancements and Adaptation
Emerging models utilize advanced streaming technologies for seamless content delivery
Traditional models adapt by incorporating (online access to cable subscriptions)
Emerging models implement sophisticated recommendation algorithms to personalize user experiences
Traditional models integrate to enhance viewer engagement (live tweeting, companion apps)
Both models explore opportunities in virtual and augmented reality for immersive content experiences
Streaming Services' Impact
Market Disruption and Audience Fragmentation
Streaming services lead to , resulting in decline of traditional pay-TV subscriptions and advertising revenue for broadcast and cable networks
Rise of streaming fragments audiences, challenging mass-market approach of traditional television
Targeted content strategies become necessary to address niche audiences
Streaming platforms disrupt traditional content distribution windows, altering release patterns and syndication models for television shows and movies
Competition intensifies for premium content, driving up production costs and changing dynamics of talent acquisition in the industry
Industry Response and Adaptation
Traditional broadcasters and cable networks launch their own streaming platforms, often cannibalizing their linear TV offerings (HBO Max, Peacock)
Streaming services accelerate trend towards in media industry
Content producers increasingly become distributors to maintain control over their intellectual property
Traditional networks explore partnerships with streaming platforms for content distribution (CBS and for Star Trek: Discovery)
Cable providers offer and to compete with streaming services (Sling TV, YouTube TV)
Content Landscape and Viewer Expectations
Abundance of content on streaming platforms changes viewer expectations
Programming decisions and content quality across entire television ecosystem influenced by streaming trends
Niche content finds new life on streaming platforms (revivals of canceled shows, international content)
Streaming services invest heavily in original content production to differentiate offerings (Netflix's Stranger Things, Amazon's The Marvelous Mrs. Maisel)
Traditional networks adapt programming strategies to compete with binge-worthy content (limited series, event programming)
Media Conglomerates' Adaptation Strategies
Organizational Restructuring and Integration
Vertical integration through mergers and acquisitions to control both content creation and distribution channels (Disney's acquisition of 21st Century Fox)
Development of proprietary streaming platforms to compete directly with pure-play streaming services (Disney+, HBO Max)
Restructuring of internal organizations to prioritize streaming and digital initiatives over traditional broadcast and cable operations
Formation of and alliances with technology companies to enhance distribution capabilities and improve user experiences (Comcast and Apple TV+)
of and intellectual property to create comprehensive offerings across multiple platforms
Content Strategy and Investment
Investment in original content production to differentiate offerings and attract subscribers in increasingly competitive market
Leveraging existing intellectual property and franchises across multiple platforms and formats (Marvel Cinematic Universe across films, TV shows, and theme parks)
Adoption of processes for content creation, marketing, and audience targeting
Exploration of interactive and immersive content experiences to engage audiences (Black Mirror: Bandersnatch)
Development of diverse content portfolios to appeal to global audiences and niche markets
Technological Innovation and Data Utilization
Implementation of advanced analytics platforms to gain insights into viewer behavior and preferences
Investment in and for content recommendation and personalization
Development of proprietary streaming technologies to enhance user experience and reduce reliance on third-party solutions
Exploration of emerging technologies such as virtual reality and augmented reality for new content formats
Utilization of to inform content acquisition, production decisions, and targeted advertising strategies
User-Generated Content's Influence
Democratization of Content Creation
User-generated content (UGC) blurs lines between professional and amateur content creation, challenging traditional notions of television programming
Platforms like YouTube and TikTok emerge as significant competitors for audience attention
UGC influences content formats and distribution strategies in broader television industry (short-form content, vertical video)
Low production costs and rapid content creation cycles of UGC put pressure on traditional television production models to become more agile and cost-effective
Rise of enables wider participation in content production
Industry Integration and Talent Discovery
UGC becomes source of talent discovery and content inspiration for traditional television networks and streaming platforms (Justin Bieber, Shawn Mendes)
Rise of creates new opportunities for brand integration and advertising within user-generated content
Traditional TV advertising models adapt to incorporate influencer partnerships and sponsored content
Television networks develop shows based on popular UGC creators and formats (YouTube Red's Cobra Kai, TikTok-inspired reality shows)
Streaming platforms invest in acquiring and promoting UGC creators to attract younger audiences
Challenges and Cultural Impact
User-generated content fosters more interactive and participatory media culture, influencing audience expectations for engagement with television content
Concerns about content quality, copyright infringement, and platform responsibility emerge as significant challenges in integration of UGC into broader television ecosystem
UGC platforms grapple with content moderation and ethical concerns related to user privacy and data usage
Traditional media companies develop strategies to authenticate and verify UGC for use in news and entertainment programming
Impact of UGC on attention spans and content consumption habits influences broader television industry's approach to storytelling and audience engagement