And as they invest in more differentiated content, networks will have to exercise greater control of their rights related to streaming if they are to better monetize TVE, OTT, and expanding third-party distribution opportunities.
As the bundle gets reshaped, the networks with weaker brands, less differentiated content, and fewer fans will be the ones most exposed to potential distribution and advertising losses in this environment. cable operator, is offering stand-alone streaming services such as HBO NOW, Hulu, and others in combination with broadband Internet access as specific — typically younger — segments of users choose video streaming over pay-TV.
Specifically, the expansion of digital technology, manifested in more ubiquitous fixed and wireless network connectivity enabling growing numbers of connected devices and new routes to the user, is altering the industry’s structure, driving new ways to produce, distribute, and monetize content across its landscape.
Creators can more readily pursue opportunities outside traditional studios and distribution channels.
Instead, they must start repositioning themselves as pay-TV bundles resized into “skinnier” packages and other new combinations.
To consistently be in the “must have” category, networks have to offer a steady supply of original and unique acquired content to cut through the clutter and create meaningful fan bases, making their networks, brands, and shows “indispensable” to distributors as well as advertisers.
In every E&M sector, disruptive companies are racing against incumbents to drive fan value — to be the first to deliver what users want, perhaps even before it is clear they want it. Any companies hoping to join the fray will need to be better than the competition at locking up fan engagement, loyalty, and spending, and at investing in efforts that drive fan value.
In a fragmenting viewing landscape with growing pressure on the traditional pay-TV bundle, networks can no longer rely on their historic approaches to achieve favorable advertising and subscription revenues.But adoption of TVE has been disappointing, owing to low overall awareness, a lackluster user experience, and authentication difficulties. And they are doing all of this while offering viewers lower prices compared with what traditional pay-TV bundles cost.