Branding in the future of the audiovisual industry
Is TV dead? Absolutely not, but the audiovisual industry is mutating at an extraordinary speed (and what remains to be seen …). In the new environment, how will consumers behave when faced with a huge offer? What role do brands play? Where will the battle for control of the audience be fought? Who will survive in this sector?
In the following lines we will review the current situation of the sector, the disruptive elements that will change it forever and the central role of content and brands.
The TV and audiovisual industry today
Currently, traditional, conventionnal TV, which we see by DTT, continues to hoard more than 3 and a half hours of our time, it has a massive penetration of more than 90% and also monopolizes many of our coffee conversations.
TV consumption has been fragmented into a large offer, where the leader monopolizes only 15% of the screen quota. On the internet, the same content of “traditional TV”, is approximately the share of a conventionnal channel (10%).
Along with this model, we enjoy subscription services, which according to the Dimensión report by Kantar in 2019 52% of the population is already subscribed.
In this new business have entered both traditional operators seeking to make their catalogs (catalogues?) profitable, as well as telcos (telecommunication companies) eager to monopolize everything that can travel through their fibers or new pure players like Netflix. Also some not as pure like Amazon for example, who is more interested in continuing to know more and more about us. And in no time, the new Apple TV, adding for its users all the platforms to which they are subscribed, providing recommendations regardless of the origin of the content (wow!)
We cannot forget the irruption of social networks such as Youtube, Twich (eGames), Facebook and Instagram in the current audiovisual offer.
And the future?
As in so many markets, it is marked by some unstoppable tendencies.
I like to highlight the following 3:
- The reduction of barriers that the digital environment allows, places the distribution of audiovisual content in a strategic position. Consuming anywhere, anytime, any platform content cannot be reversed, and producers or other actors in the sector must take it into account from the beginning, being a determining factor even in the design of the content.The use of more than one platform / device will be highlighted simultaneously, with complementary contents that enrich the experience for the consumer.
- Artificial Intelligence, together with the large amount of consumer information, will make it possible to fine-tune recommendation engines, easily giving way to another key concept in the digital environment: the personalization of the offer. This calls into question one of the most deeply-rooted forms of TV consumption: “whatever they throw at me!”, Which will be replaced by very sophisticated systems that can get to know your mood just by hearing your voice to refine the recommendation.Likewise, big data and AI will allow designing the ideal persuasion strategy to get a certain user to decide to see certain content whenever it suits a media or a brand (modification of induced behavior of the audience).
- New business models, with infinite possible combinations between free and paid, with or without advertising, included in packages of many other services … New models that give way to new ways to finance the production of content. Brands will actively participate in these new models, providing not only financial muscle but also value for consumers.
The keys to success
Of course I do not pretend to have the absolute truth, the title of the section would give to understand it …, but I am convinced that the aspects that I will comment next will be capital in the new audiovisual industry. Ensuring success will depend on many other things.
In my opinion, the two key factors are:
The content of the audiovisual industry
The big audiences of the traditional media, the millionaire investments for rights, the core of the offers of the telcos platforms, the phenomenon of youtubers and influencers, the success of Netflix or HBO, the obsession of the brands …, above all, the need (the pleasure) to experiment, get excited, be informed or entertained, laugh, cry, find references and inspiration, vibrate, comment at work, reunite the family and learn…, it will always be the content.
The content, in all known formats and those that are to come (such as virtual reality, augmented reality, immersive experiences …), live or not, will remain the king of the industry, be configured as configured.
The brands are labels that help the consumer to simplify their processing of information and perception of an offer of products or services, often enormous. Under the label in question we store stimuli, experiences, opinions, impacts of advertising messages …, in short, values of that brand, which guarantee that it will meet our expectations.
These functions, that of simplifying a complex environment and giving guarantees, are also crucial in the audiovisual industry, since identifying the issuer of the content will often be the key to accessing or not accessing it.
The brands of these content issuers will guarantee the veracity of the information, or emotions or entertainment …, they will be the access doors and the filters to what we will consume in the audiovisual world.
And which brands will develop this function? Current operators are already positioned in the fight for audience time, but commercial brands, in an environment without technological barriers to access the content, will have much to say. In the same way that we are not surprised to see contents by Red Bull, many other brands are already working to offer their customers content that is relevant to them and that helps transmit their values.
In conclusion, we find another industry in which technology allows us to disintermediate the relationship between supply and demand, where content will remain the king and where the power of the brands that serve us this content will be crucial: the battle is served!