The television industry is undergoing a fundamental transformation, evolving from being a broadcast focused, mass-market single-event to a sector which is far more complex but potentially more profitable, according to a new report from Deloitte & Touche’s Technology, Media & Telecommunications Group.
According to the report, the growth in on-demand TV, new television services and broadband is making it increasingly hard for broadcasters to target the traditional mass audience.
The research shows that in order to keep up with the ever fragmenting media market, broadcasters must broaden their reach to new media channels and formats and deepen relationships with their customers by offering personalised services.
Deloitte also suggest that broadcasters should lengthen their content lifestyles though the creation of physical products.
Commenting on the current state of the media market, Ed Shedd, media partner at Deloitte said: “In the UK, market share for four of the major broadcasters has been in decline for the last 10 years. Conversely, non-terrestrial broadcast share has gone form 6% in 1993 to 28% in 2005.%
Shedd continued: “Changes such as these have had a profound effect on the structure, dynamics and the future of the of the global broadcast television industry, for both private and public sector. The mass audience is scattering, this trend will continue and its impact will be felt across the entire broadcast network.”
In order to secure their place in the future of the sector, television networks need to move towards a services model, delivering content-driven services that are re-packaged for a wide range of devices, media and consumer goods.
Deloitte suggests offerings could include; on-demand content, interactivity, giving users the chance to participate with shows, and tie-in events.
Shedd pointed out that offering a broader range of services is a powerful way in which television networks can nurture customer relationships and stay ahead of changing market needs.
He added: “It also has potential to provide a reliable stream of subscription revenue and repeat business, which could help offset volatility in other areas of the business. Most importantly, content-oriented service models would allow networks to give consumers the control they demand, the key to customer satisfaction and loyalty in a disaggregated market.”
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