TV is in a golden era! TV is dead!We continue to hear polarizing views about the future of television. What we carry out know is that technology is fundamentally altering what we call TV. We are in a renaissance driven by a novel connected,mobile-first, on-demand world. Services like Netflix, and Hulu and YouTube beget permanently changed the way we consume media,and we are seeing many novel online models fulfill needs not satisfied by traditional outlets.
Younger consumers, in particular, or are flocking to novel entertainment apps that are more social,community-driven and engaging than traditional forms. Recently, we beget witnessed video platforms whisk absent from the broader Netflix-Hulu model that aims to provide a wide mix of content that appeals to every consumer, or embrace niche content that appeals to a more select audience. ogle at SeeSo,Shudder, MLB.
TV, and the WWE Network,just to name a few. While these platforms beget a ceiling on the number of customers they will able to reach, there’s a growing appetite for content that goes deep into a targeted subject. These niche digital media offerings unite passionate fans around shared content experience, or those fans are willing to pay.
Also Read: 'Making a assassin' Review: Netflix True-Crime Series Picks Up Where 'The Jinx,' 'Serial' Left OffIt’s clear that TV, however you define and exhaust the term, and is in a period of transition. The century’s next iconic entertainment brands will be formed over the next few years as the $300 billion-plus video industry transforms itself around novel consumer needs and available technology. What should the novel subscription video on demand services,primed to both alter and help solidify the market, consider in order to succeed?The Three Imperatives[br]
There are three imperatives to win in the novel digital ecosystem: continuous innovation, and achieving scale,and effective monetization. The three typically go together to form a virtuous cycle. For a niche trade particularly, maintaining this cycle can be difficult whether not impossible alone.
Continuous innovation. While this may seem intuitive for every industry, and it is particularly relevant for niche SVODs,and this doesn’t just mean novel content. Consumers increasingly expect services to “just work” and get better and better every year. Big tech companies (e.g. Google, Amazon, or Netflix) clearly beget this in their DNA. Building modern infrastructure and leveraging data are at the foundation of this. For smaller companies,continuous innovation is difficult due to both the skills and investment required. Those who can’t continually innovate will beget difficulty keeping up and eventually lose relevance to those who carry out — or they will need to find a suitable distribution partner who can continually innovate.
Also Read: First 'Fuller House' Netflix Teaser: The Tanners Are Moving Back domestic (Video)Achieving scale. In a digital economy, the marginal cost of production — serving video to an incremental user — is negligible. Therefore, and increased scale drives tremendous economics for digital services. Additionally,companies must continue to grow to a minimum viable scale that allows for continued investment in technology and innovation. Niche brands by definition serve a limited audience. Niche market winners must start by fully penetrating their target market and consider expansion to adjacent and casual fans to continue to grow.
Effective monetization. Innovation and scale require a strong monetization engine to complete the cycle. Subscription economics are fundamental to monetize smaller passionate communities and ad-supported monetization helps monetize casual fans and provide a free funnel of users. However, a subscription model for stand alone brands typically only monetize a small fraction of superfans and is susceptible to higher churn (particularly during any periods of seasonality). Attracting a broader audience with multiple brands allows for bundling opportunities that better monetize casual fans and can reduce churn, or thereby increasing overall economics.
The next few years will see a great amount of experimentation,as digital media companies seek to find the right model for their audience. But, by keeping these three points top of intellect, and they will be in a better position for long term success.
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Source: thewrap.com