‘Diagonal’ partnerships help digital-native and traditional media navigate new TV ecosystem

Dazn’s acquisition of Australian pay-TV provider Foxtel and ITV’s distribution of long-form content on YouTube have a common denominator, which they also share with the numerous hard-bundling agreements Netflix has with pay-TV operators.
These deals represent a new type of partnership that combines traditional media companies who are geographically limited with native digital media organisations who are global in nature.
Guy Bisson, executive director and co-founder at Ampere Analysis, has been explaining the phenomenon and why it represents a major inflection point for the TV industry.
In a presentation at The Future of TV Advertising Sydney last month, Bisson explained how the global video ecosystem has evolved to include global content providers (like Disney+, Paramount+ and Apple TV+), global content distributors (like YouTube. Meta and TikTok), regional content providers (like BBC, ABC and NBC) and regional distributors (like Comcast). Now these four distinct sectors are increasingly copying each other, combining or collaborating.
Bisson believes the future of media strategy, partnerships and M&A (mergers and acquisitions) is diagonal, meaning we will see alliances between these different groups. DAZN and Foxtel is a diagonal combination, for example. YouTube and ITV is diagonal collaboration. Netflix with Comcast (as an illustrative pay-tv provider) is another diagonal collaboration.
Bisson (pictured above) also provides an example of how a global distributor simply copied the model of a regional distributor, as with Amazon and its Prime Video Channels subscription add-ons, where the streamer takes on the role of aggregator.
The future of entertainment is diagonal
In March, Bisson authored a new Ampere Analysis report that states how the “future of entertainment is diagonal” and in Sydney he gave an early public airing of his analysis that, as everyone converges towards streaming, we need a complete rethink on how media owners reach audiences and monetise them.
He believes the new approach to monetisation presents an existential challenge to some companies, requiring new thinking.
Bisson provided 2024 figures showing that what he calls ‘old world’ media (encompassing theatrical, transactional, broadcast free-to-air and pay-TV) was worth $394 billion. The ‘new world’ consists of streaming and online video, and was worth $399 billion. From this point, the value of the ‘old world’ is declining while the ‘new world’ grows, he predicted.
Traditional media must find growth in the new world, but is faced with a landscape where geographically distinct licensing – once standard practice because the means of distribution was also geographically limited [e.g. over-the-air signals or cable network footprints] – can often no longer be applied.
Also, time-based windowing has compressed. Bisson showed how the content monetisation pipeline used to begin in theatrical (cinema) before moving through transactional, subscription and free-to-air windows before other licensing. This has now collapsed to theatrical, streaming and then other licensing.
“Streaming dismantles these two key planks – geographic and time-based exploitation,” Bisson declared. “By its nature, streaming is global.
“The new content delivery ecosystems are characterised by the convergence of all windows and business models – with the exception of theatrical – to a single form of distribution, which is streaming. It also sees the removal of geographic limitations on business because of the global nature of that system,” Bisson adds.
“Streaming is leading to greater business convergence between existing traditional sectors and newer sectors that are also streamed, like social media,” he concludes.
This increased convergence is playing out in the collaborations outlined above, like Dazn and Foxtel.
‘Broadcastification’ of streamers
Addressing an audience of Australian media owners and media buyers, Bisson focused on the implications of the new world order for local broadcasters, noting the ‘broadcastification’ of global streamers. This is where streamers increasingly mimic broadcasters with their content line-up, with more crime procedurals, reality TV, gameshows and sport, for example.
Commercial broadcaster content strategies have long been geared to engaging multiple demographics on a regular basis to deliver mass reach to advertisers. The ‘broadcastification’ of global streamers could be an example of what Bisson earlier referred to as convergent evolution – the biological concept where organisms that are subjected to the same pressures adapt in similar ways.
Bisson highlighted the ITV/YouTube deal to distribute long-form broadcaster content on the video sharing platform (and the Channel 4/YouTube deal that preceded it) as food for thought in all markets.
Using its own consumer tracking in online UK homes (harnessing self-reported viewing), Ampere Analysis data shows that 23% of homes report watching YouTube that are not watching ITV broadcast channels or the ITVX streaming service.
In Australia, 36% of homes report watching YouTube but not Nine broadcast channels or the 9Now BVOD offer. Half of Australian homes say they watch YouTube but not SBS broadcast channels or SBS OnDemand.
Bisson stresses that the data focuses on homes reached, and this does not mean these homes will watch the broadcaster content if it is placed on YouTube. However, it does show the potential to use YouTube to reach viewers beyond owned-and-operated broadcaster services.
The Ampere Analysis executive stressed that broadcasters can only use YouTube as a global distribution partner if the ad sales shares are mutually beneficial. However, he cited the ITV deal as significant, with 3% of the ITV content that is now on YouTube being long-form. 31% of the Channel 4 content found on YouTube is long-form, Ampere Analysis calculates.
Bisson also showed that there are two clear peaks for viewing of Channel 4 assets on YouTube – one for those under 10 minutes and another for those of approximately 45-50 minutes in length.
His argument is that YouTube should be considered less as a broadcast killer and more as a potential partner. “If broadcasters stop worrying about YouTube eating their lunch, they can start to position it as a distributor.”
Landmark YouTube/broadcaster deals
The Media Leader has previously reported on how Channel 4 signed a landmark deal with YouTube in 2022 that allows the broadcaster to sell the advertising placed against its content. This business model was the basis for a similar YouTube partnership with ITV announced in December.
Channel 4 is confident that YouTube audiences are additive. Like Channel 4, YouTube is seen by ITV as a way to engage audiences where they are, rather than as a marketing tool to push them into BVOD. Both broadcasters have a sales team focused on YouTube and both see this as an opportunity to offer advertisers a premium content product via YouTube.
Channel 4 talks of a “premium sell across social to accompany linear and owned-and-operated streaming”. ITV says advertisers get access to its “premium, brand-safe content on a new platform.”
Kelly Williams, managing director, commercial at ITV, has since offered a frank analysis on the deal, saying it was a non-starter as little as two years ago.
Speaking during an RTL Ad Alliance event last month (when the German and international sales house unveiled its latest consumer research: ‘The New Life of the Living Room’), Williams said there were three challenges when putting long-form content on YouTube.
“First is the worry that it will cannibalise content viewed in your own streaming services. The second challenge is the expected revenue split, and third is the fear that YouTube is competing with broadcasters for advertising.
“So, it was not an easy decision. Channel 4 went first, and we watched carefully how that played out. It became clear it was not cannibalising Channel 4 streaming, but delivering new viewers.”
ITV is effectively buying inventory from YouTube and then selling it, with a deal that made the economics workable. “We feel it could be an interesting revenue stream,” Williams added.
Williams doubled-down on the belief that broadcasters can provide a premium environment within YouTube. “We can offer advertisers a trusted, brand-safe environment [on the platform] and that is part of the sell for us.”
Other broadcasters could be encouraged by these developments and the growing interest among media buyers in the concept of distinguishing premium content from user-generated content on video sharing platforms. In the UK, Barb defined ‘fit for TV’ as brand-safe, regulatory friendly content with editorial oversight to help media buyers understand what content on video sharing platforms (like YouTube) could potentially be moved into their ‘TV’ buying bucket.
Bisson is positive about YouTube/broadcaster partnerships for long-form content, but views them as just one example of how the TV ecosystem is reshaping.