The Local Broadcaster Squeeze Play?
Broadcasting is moving into the device age where IP connected devices are fragmenting the local audience and local advertisers continue shifting budget to digital advertising platforms. New consumer services like Simple.TV, Dyle and Aereo stand to erode national GRP and cut off retransmission fees.
National broadcasters act more like cable networks, seeking larger retransmission fees from MVPDs, and larger content licensing from affiliate/distributors. And nationals will be on connected devices, participating in TV Everywhere to earn more MVPD fees. Your local broadcast brand may get a logo in the national’s TV Everywhere app for live broadcasts, if the national carries all the effort and brings the local along. Your local broadcast On Demand content may not be part of those TV Everywhere services.
Local needs to be as strong in On Demand as it is in Live. Consumers are changing their viewing behavior away from TV by Appointment. Are you getting your local broadcast brand and content to the devices that are capturing the behavior shift, and in the On Demand format that consumers want?
Local content needs to be autonomous, independent of any one device, but compatible with all. And the businesses that prosper in this age will be the ones that adopt a platform agnostic strategy, breaking down platform silos, and getting their content in front of ALL of audience.
Cord cutting has helped over the air digital antenna growth of late fueled also because of supplemental content available from Netflix online that when used together with OTA, provides a semblance of a full pay TV service.. But as the economy improves, and “cord nevers” grow up, will OTA sustain that growth? And if OTA forces a loss of retransmission fees, inherently, can local make it up WITHOUT getting more content to more screens?
Data shows that a majority of connected TV viewers decrease Live TV viewing. Connected TV is an On Demand dominated experience today.
Connected TV already in use in 25% of US TV households – and growing to > 50% market usage by 2016. Will OTA keep pace? And as market penetration of Connected TV grows, Live Viewing will decrease.
Either way – local broadcasters need to be on all connected device types with their best leading content – video. They need to push out their local brand within the constricts of TVE and also outside of the payTV eco-system (going over the top on their own). They need to become adept at being a video on demand solution, combining with always available viewing with their live/linear/local uniqueness.