Traditional Broadcasting has to Adapt to Survive

Traditional Broadcasting has to Adapt to Survive

Amazon’s new Video Direct brings a new model to the consumer video market further chipping away at the traditional broadcasting model

Today’s media coverage in the FT has three separate stories that highlight the inexorable change in the traditional broadcast model and the impact of the ever evolving consumer offer.

Vivendi’s Canal Plus is cutting its glitzy parties and beachside coverage of the Cannes Film festival because of losses in the broadcast business. At the same time Disney’s results disappoint, and shares drop 6%, partly due to a fall in its ESPN channel’s subscriber growth and sales, including those at ABC, edging down.

Elsewhere in the media section we learn the ever broadening range of Amazon services is going to take on YouTube with Amazon Video Direct, a new offering for filmmakers and video companies to showcase their own content and earn income from a rent, buy or advertising model.

For the smaller independent production and creative companies, (and creative individuals) often frustrated with the hidden cost of the commissioning process of the big broadcasters or lean budgets of the corporate sector, the new opportunity could be an attractive proposition. Being able to access a rapidly growing market and rub virtual shoulders with some of the big names from TV and cinema is an exciting and potentially financially rewarding proposition. It might also sharpen up YouTube’s paid channels platform that often appear lost in the way it presents content.

Mainstream broadcasters, who face increasing competition in the on-line world and new entrants from the telecomm sector risk further erosion of audiences and strain on the financial model. None of this of course, takes into account the risks to organisations like Channel 4 and the BBC, which BAFTA award winning Wolf Hall director Peter Kosminsky, accused government of trying to eviscerate in his Best Drama award acceptance speech. One thing is for sure, the pressure is on for the traditional broadcasters who, in the long term, are going to have to adapt to survive.

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Last modified on 15 June 2016
Mike Cronk

Mike Cronk is a media technology leader with track record in business change and programme delivery.