Deep economic recession plus the rise of broadband and online video players and evolving consumer behavior has sparked a chain reaction from industry players and their shareholders. For some it’s meant decline, for others rebirth. At the core of the turbulence has been a fundamental shift in broadcasting economics. Simply put, audience numbers alone no longer necessarily translate into revenue following the traditional equation.
Advertiser-funded models are seeing budgets carved up and spread across new media, with knock-on effects on pricing. Subscription-funded models have to deliver better content and new services just to hang onto their customers and defend ARPU without huge increases in subscriber acquisition costs.
So while responses to the most difficult period in the industry’s history have redressed some deep-seated complacency by spawning new business models and sparking innovation, the challenges of the future are no less acute. A new battle for sustainability is about to start. Constant reinvention will be required.
This is today’s Future of Broadcasting.