From acquisitions that rock the business model to ‘connected cars’, the speed of change within the media industry continues to multiply. In order to keep you on point with these industry shifts, we’ve identified the top six trends hitting media for 2015 and why they matter to you:
- Tech Firms buying TV Networks. Tech firms like Yahoo, AOL and Google are buying out TV Networks and their content (such as the recent discussions of Yahoo! Acquiring Scripps Networks to gain access to the audiences of channels like HGTV, Food Network and Travel). The potential benefits of expanding the content ownership, bolstering existing video investments and giving advertisers a more central hub for multi-platform reach are huge.
- Programmatic Videos Ads. Technology algorithm-based ad sales have been primarily focused on optimized ad placement in digital (web and mobile space), but new ventures are focused on taking programmatic to TV and optimizing yield in new innovative ways. Ad sales reps are able to leverage “high touch” advertiser and agency interaction to focus on integrated, multi-platform solutions, paired with “low touch” (and lower margin) programmatic buying.
- Over the Top – More TV Networks and Media companies with Online Consumer-direct Subscriptions Services. Many communication and media companies have already started acting on this trend for 2015. Sling TV, CBS, STARZ, HBO and ESPN have announced plans to offer standalone streaming services, which opens an interesting discussion on predicting the impact to Cable Service providers. We can expect to see more TV Networks, such as Fox, NBCU, Scripps, Viacom, Turner and Discovery, providing online subscriptions services this year.
- eBook Subscription Competition Intensifies. The competition among eBook subscriptions will intensify in 2015 – increasing competition for creators and copyright holders. These “Netflix for Books” services such as Oyster, Scribd, and Amazon Kindle Unlimited, will sign bigger deals for more and better content as well as additional features to make themselves more competitive in the dense market. Consider Audible by Amazon – they built the platform providing enhanced and complimentary content.
- Facebook Tightens its Grip on Publishers. Online publishers rely heavily on Facebook referrals to drive traffic to their sites, which increases ad revenue. Facebook tightening up its policy means a potential move from “pay to promote” to Content Management, data analytics and/or advertising agreements. The platform brings the customers and changes the game.
- Connected Cars. 2015 will be the year of the connected car. Mobile app platform technology is being developed to become part of the car’s head unit. Driven by Apple and Google, as well as consumer demand (or dissatisfaction from current technology), the connected vehicle market will create competition among car manufacturers to stay ahead in defining a profitable connectivity strategy. This trend will also impact reach and advertising revenue for AM/FM radio, as well as subscription demand with Sirius/XM.
How will you innovate to create new revenue opportunities? Understanding and adapting to the changes in media are crucial to your company’s growth and performance. Learn more about these industry shifts and how to stay ahead of the curve here.