Pivotal Changes As A Necessity For Local TV
At the MFM CFO Summit held last month, Brent Magid, CEO and president of Frank N. Magid Associates, entitled his presentation “Key Trends in Media: Pivot for Success.” With millions of TV viewers tuned in to March Madness over the past couple of weeks, his use of the term “pivot” is well-timed.Basketball players must pivot for tasks like squaring to the basket, blocking out for a rebound, or getting away from defensive pressure. In a similar way, TV stations and other media need to keep one foot rooted in the core business while making calculated and strategic changes in position.
Basketball players must pivot for tasks like squaring to the basket, blocking out for a rebound, or getting away from defensive pressure. In a similar way, TV stations and other media need to keep one foot rooted in the core business while making calculated and strategic changes in position.Magid opened his presentation with a look at the key trends now influencing media consumption. Today we’ll look at two of the pivotal changes he says TV stations and other media enterprises should be considering.
Magid opened his presentation with a look at the key trends now influencing media consumption. Today we’ll look at two of the pivotal changes he says TV stations and other media enterprises should be considering.Invest In Platforms That Are Growing
Invest In Platforms That Are Growing
Viewers aren’t rejecting TV programming. Consumption has remained steady over the past five years, at an average of 5 hours and 25 minutes per day in 2012 and 5 hours and 24 minutes/day in 2017.
Viewers aren’t rejecting TV programming. Consumption has remained steady over the past five years, at an average of 5 hours and 25 minutes per day in 2012 and 5 hours and 24 minutes/day in 2017.What has changed is how they are watching. While viewership of video programming on TV sets has declined by more than 30 minutes per day over the past five years, video consumption on mobile devices increased from 9 to 31.
What has changed is how they are watching. While viewership of video programming on TV sets has declined by more than 30 minutes per day over the past five years, video consumption on mobile devices increased from 9 to 31.As one might expect,
As one might expect, popularity of viewing on digital devices is even higher among Millennials. When asked to evaluate the statement “My phone is my TV,” a whopping 40% agreed. That’s in contrast to the average of 27% from all smartphone users.
Today’s consumers are shifting from “best screen available” to “best experience available.” It follows, says Magid, that stations need to consider complementary extension offerings as well as standalone digital products.
Diversify Distribution And Embrace Nonlinearity
Magid reiterated that only three in ten consumers who plan to discontinue their cable or satellite TV service consider cost as the chief reason for doing so. Other reasons included control, convenience, customization, and other features that align with SVOD services.
These revelations reinforce the importance of giving the customer more convenience and control with alternative platforms. “OTT and OTA strategies have become essential in an environment where pay TV continues to see declines,” observed Magid. “Diversifying distribution and effectively monetizing those platforms are essential to maintaining relevance.”
The increase in cord shaving can be an opportunity for broadcasters. Magid encourages TV stations to capitalize on consumer demand for them as part of an MVPD’s “skinny” bundles. Consumers find these packages attractive and local TV plays a key role in creating that value.
In addition, Magid recommends that stations produce and distribute long-form video for outlets beyond the television screen. It certainly makes sense that banner ads and short-form video are not going to be enough to drive significant revenue growth.
