Where is television headed

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Learn more and compare subscriptions content expands above. Full Terms and Conditions apply to all Subscriptions. Or, if you are already a subscriber Sign in. Other options. You do not have to be profitable anymore to be worth something. Netflix was recently ranked as the number one fastest growing U.

They have tons and tons of data and this is the future of content. So, what does the future of television hold? In the next five to ten years, even more content will be created by looking at data. Highly personalized, niche content will be delivered straight to the people who really want to watch it. Netflix is already experimenting with interactive content that allows viewers to choose their own adventures.

The future of television is changing quickly and shows how customers crave personalized, convenient content. As data capabilities increase and more streaming services are created, the future of television will be customer-driven and vastly different from the past. My closing thoughts are streaming giants are not just competing with one another, they are competing with any entertainment experience that draws their viewers away from their services, for example experience companies like Topgolf, or even Airbnb experiences that get people out of their house and doing things away from a screen.

We are now in the experience economy, and while the future of TV is exciting, perhaps the future of experiences and interactive content could be even more so. Blake Morgan is a customer experience futurist, keynote speaker and author of two books including The Customer Of The Future. You can stay in touch with her here on her newsletter. A growing number of studios, cable networks, and MVPDs have made their content available on demand.

This fragmentation presents a challenge to advertisers because the technology to serve, deliver, and measure advertising in nonlinear platforms lags significantly behind the usage of those platforms. In recent years, subscription-based, ad-free, video-on-demand services have become wildly popular.

Netflix, the largest ad-free subscription service, reported that monthly viewing hours of its content increased from 1. If Netflix were a television network, it would rank as one of the top five most viewed networks today.

Broadcast and cable TV premiums are beginning to erode. Broadcast and cable networks have long been the go-to destination for advertisers because of their ability to deliver a massive number of viewers at one sitting in real time. Water-cooler events, such as the Super Bowl and the Oscars, provide singular opportunities for companies to advertise their message to millions of viewers at once—and the power of these live formats is increasing. But advertisers can now aggregate audiences of similar size in real time via OTT entertainment programming.

And these platforms benefit from real-time bidding, with better demographic targeting, at more efficient cost. Much of the growth in online advertising has come from nonlinear, digital-native content—content that never airs on TV and subsists primarily on preroll advertising. See Exhibit 2. To become more attractive to advertisers, the nonlinear TV ecosystem needs to improve its measurement and delivery of ads across DVRs, set-top-box video on demand, and OTT platforms.

As consumers become more conscious of the price-to-value ratio in television viewing, the days of passing network license fee increases along to consumers are over. This has led to increased tension between cable networks and MVPDs. Networks continue to negotiate aggressive rate increases. But in such a cost-competitive environment, MVPDs find it difficult to pass those increases on to consumers.

The favored lever for MVPDs is to market lower-priced packages with fewer channels, a trend that cable networks may not be able to reverse in future distribution deal cycles. Top content is thriving, but middle-tier content will eventually decline. From through , the ten highest-rated cable networks achieved a compound annual growth rate CAGR of 7. Live sporting events, hit content, and original, niche programming continue to generate strong viewership and rates, while middling entertainment networks are falling behind.

Quibi could either become a failed experiment or an antidote to the current stream fatigue and overload that bogs down most viewers trying to decide what to watch.

OTT media services have grown rapidly over the last six years, and with billions being invested as we speak, they show no signs of stopping anytime soon. As for the US and similarly mature markets, consolidating and packaging traditional live TV, internet, and streaming services into bundles is going to be the way companies stay competitive and grow their userbases and revenue without losing customers to the overabundance and fatigue mentioned above.

Plus, not every OTT content provider is offering the same service. Some, like Apple and Amazon, want their service to be your hub for reaching other shows. And others still want to be a smaller, leaner, cheaper version of what you can get elsewhere by packaging it differently. The consolidation is coming, however. Whether this means TV networks will fold into streaming services or vice versa remains to be seen.

Plus, the monetization of these services is going to play a big role going forward. Entertainment is an expensive industry, especially if you want to be competitive with the big players in terms of star power, quality, and scaling up of content libraries. While subscription fees are the most common way services pay for themselves, advertising on OTT media platforms will rise in popularity, as will midstream transactions and micropurchases and even co-branded merchandise launches.

Ultimately, what the future of the OTT media landscape will come down to is innovation, creativity, and adaptation. The companies that watch how the waters are changing as more players enter the field and adapt to the ways consumers react will be the most likely to survive, as will those who consistently put out the highest caliber content that viewers actually want to see.

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