“TV is dead” is a phrase that has been repeated for the past couple of years. Is it true? Is one of the greatest inventions of the 20th century coming to an end?
Despite social entertainment and internet streaming media becoming more popular over the years, most reports still highlight television as the number one entertainment source and the number one source for breaking news.
Survival of the fittest in the entertainment market means that SVOD, AVOD, TVOD and Fiber operators want the TV dead. They want to shift the production and production spending from TV to their own platforms, they want to shift advertiser spending from TV to their own platforms. Even though this is a new source of income for them, they want to dominate that market, and to do so they have to market the death of the TV. This may be a big part behind the misconception.
What made SVOD platform so popular?
We believe the answer is “Series”. Yes series that people like to watch or more precisely binge-watch in one sitting.
Another big contributor for the SVOD model being so successful is the international broadcasting capability that allows any viewer in any country to watch the same episode as a viewer in US and at the same time.
A big issue with SVOD that almost no one is mentioning, is the huge fragmentation in its market, with series moving from one platform to the other, forcing viewers to subscribe to multiple platforms.
Even production companies are now creating their own SVOD platforms and stopping licensing to other platforms; the biggest announcement last year came from Disney, when they confirmed their new SVOD platform. (https://www.vox.com/culture/2017/8/8/16115544/disney-netflix-distribution-deal-marvel)
TV is fighting back:
What do you do when you want to rest at home? do you turn on the TV?
When you hear about some breaking news through social media or any other source, what is your first reaction? Do you turn on your TV to watch or wait for the news bulletin?
How do you follow local or international election news? Do you watch debates on TV? Do you stay tuned during result announcements?
TV is still here, and it is not weak. What TV is falling behind on is production of new content and making that content available to a wider national audience or even an international audience.
The real fight is a not a fight between platforms, it’s a fight between content creators and owners. Whoever has the best content and can reach a wider audience can dominate the market, regardless of platform and technology.