In recent years, media consumption has undergone a dramatic transformation. It’s no secret that global companies like Netflix, YouTube/Google, Amazon and platforms like Roku and Samsung TV Plus have dominated the scene, significantly impacting traditional broadcast and cable viewing. Nielsen’s The Gauge, which analyzes U.S. TV-viewing trends, highlights streaming as the predominant form of content consumption, with over 41% of people’s viewing time being spent streaming their content versus 20% viewing on broadcast and 27% on cable (as of July).
For years, many claimed streaming and the dedicated companies and platforms behind it would destroy local broadcasters and local content. What’s become clearer recently is that this surge in streaming consumption doesn't spell the end for local broadcasters; instead, it has opened up opportunities to reach and engage new, younger audiences and maximize ad revenue around local content.
Many local broadcasters have already embraced streaming, adapting part of their offerings to meet the digital demand. With new technology, the ease of transitioning broadcasts online has improved, making it even easier for local stations to stream their content directly to consumers, including full live streams and high-value segments like local news stories, sports updates and weather reports.
Now, broadcasters must accelerate their digital presence and utilize the full power of streaming to grow their business and remain front-of-mind with consumers. What remains especially true is the value of this local content to local audiences, and with streaming, broadcasters can meet the audience wherever and whenever they want to consume.
The Opportunity for Broadcasters in the U.S. and Abroad
While local broadcasters face unique challenges, particularly regarding content rights for their affiliated networks, they tend to own significant portions of their content, especially local elements (sports, news, weather, etc.). This presents a unique advantage. Broadcasters can leverage local content to establish a meaningful online presence to compete and lead in their markets.
On a global level, the assumption that large streaming and media companies like Netflix will dominate every market internationally is being challenged. Leading regional media companies possess an intrinsic understanding of their markets backed by robust data. This insight places them in a favorable position to outperform global giants, especially as some global media companies scale back their international streaming efforts. As we are seeing with some of our media customers at Brightcove, leading regional media companies will thrive in their respective regions if they take the right steps to meet modern audiences with modern streaming services.
By prioritizing their digital presence to meet the consumer shift toward streaming, local broadcasters and regional media leaders can capitalize on substantial advantages that come from running a streaming platform, including:
- Targeted Advertising: Streaming allows for more focused, precise and timely advertising, which is easier to measure and often more valuable in terms of return on investment (ROI). The immediacy and robust first-party data delivers incremental value versus the traditional broad demographic approaches used in broadcast advertising. Connected TV is one of the hottest platforms for ads in the market right now, and local broadcasters are equipped to efficiently execute on these platforms with their content.
- Multiple, Improved Monetization Opportunities: While the viewer shift from traditional broadcast to streaming might not be one to one, the potential for monetization through streaming can be significantly higher with various monetization models (AVOD, SVOD, TVOD, FAST, etc.). Given their improved targeting and younger demographics, advertising costs per thousand (CPMs) in streaming and CTV are higher. There are also more opportunities to charge for premium content. Hybrid models are also possible, potentially delivering a dual revenue stream. Ultimately, there is an opportunity for this shift to streaming to be vital in reversing the trend of shrinking revenue streams and fostering renewed growth in the broadcast industry.
- Digital Flexibility: Digital platforms enable broadcasters to shift content strategies quickly and segment their audience more effectively. This allows for targeted content and advertising, yielding higher CPMs and less wasted coverage and inventory. It also enables broadcasters to easily test and experiment with their coverage models and new programming.
The Technical Challenge
While streaming can be a profitable segment for local broadcasters, its infrastructure demands of streaming can be daunting and costly. Not only is the cost of creating the tech infrastructure in-house extremely high, but maintenance requires large dedicated teams to ensure uptime and quality and keep the platform updated with the latest technological advances that provide audiences with the quality viewing experience they demand.
Broadcasters can mitigate this challenge by partnering with experienced and specialized providers like Brightcove, which offer solutions and services to serve the end-to-end needs of media companies seeking a digital and streaming-focused future. The future of broadcasting will continue to evolve with advancements in targeted advertising, user data integration, and content reformatting to enhance relevance and engagement.
The right partner can take this on to transform the experience for broadcasters, allowing them to focus on creating the right content rather than technological developments or worrying about how to get their content to their viewers.
The Future of Streaming and the Media Industry
Broadcasters have been effectively selling their inventory to a broad demographic, but the wave of streaming now allows them to be hypertargeted and deliver the right content to the right people, effectively increasing their value and monetization. They can have one of the most attractive platforms for major organizations to reach buyers, increase brand awareness and build loyalty. With the right technological partner, this can be done quickly and cost-effectively.
As we look to the future, the industry will continue to evolve. The integration of AI will further revolutionize content creation and distribution. AI capabilities like automated summarization, article-to-video transformations, and optimized ad placements will enable broadcasters to deliver more relevant and engaging content at an unprecedented pace. These are all things we’re working on at Brightcove.
The narrative that streaming is detrimental to the broadcasting industry is flawed and potentially untrue if broadcasters embrace it. With the right strategies, partnerships and vendors, local broadcasters and regional media leaders can harness the power of streaming to enhance engagement, expand their reach, increase revenue, and ultimately drive the future of media.
