New Era University

College of Arts and Science

9 Central Ave, New Era, Quezon City

Purposive Communication October 16, 2019

1 Psych – 4

Future of Broadcast Industry

Submitted by Marinella L. Truelda

Submitted to Prof. Rosalie D. Cervantes

Reference 1 Innovation in Technology

Today, innovation in technology is changing the way digital media is consumed

more quickly than ever before. Tech-savvy consumers are creating an ever-
growing market for data-intensive HD and UHD content, consuming content
online, on the move and on-demand.

Consequently, across the broadcast and media industry, traditional broadcasters

are seeing competition from Over-the-Top (OTT) operators such as Amazon Prime
and Netflix, as well as traditional telecoms operators such as Virgin and BT, all of
whom are trying to capture their slice of the content pie.

To face up to the challenge of these new players, traditional broadcasters are

creating their own on-demand channels through which people can consume linear
and non-linear content - content which is being made available for longer and
longer periods of time.

Our work with broadcasters has shown us that offering complete visibility,
management, and control of the cloud is powerful - not just for cutting costs, but
also to help companies re-engineer their future, and to be competitive in a noisy
and demanding market place.

Undoubtedly, the future of broadcast and media is the platform - which is why
laying the right technology foundations is so vital for the industry. Through our
collective expertise of analysts and engineers, we help companies easily build the
digital platform that is right for them. In the process, we help them to reimagine
their business and go beyond the competition. Get in touch if you’d like to learn
more.

Reference 2 Shaping the future of Broadcasting, INSIDE RADIO 2019

As radio and TV continue to develop ways to adapt their linear media-oriented

business models to respond to today’s on-demand world, a new report identifies
five trends that continue to shape the broadcast media sector. The report from
Revenue Analytics, a revenue management and price optimization consulting firm,
is based on research conducted among North American television and radio execs
as well as industry sources.

While broadcast revenues have been under pressure for years due to the rise of
digital competitors, “there are signs on the horizon that the broadcast sector
could be turning around,” the report says. Despite slow and steady growth in
global entertainment and media revenues, “radio has been able to hold onto its
audiences and advertisers, in contrast to other media sectors, such as
newspapers, that have been slow to adapt to changing times,” according to the
report.

Reference 3 “2019 Dynamic Pricing & Revenue Managements Trends In Media.”

Digital Dominates

Audio streaming has enjoyed a six-fold leap in the past eight years, according to
Triton Digital, from an average of about a million concurrent listening sessions on
weekdays in 2010 to almost six million at the start of 2018. Meanwhile, digital ad
spend overtook TV for the first time in 2016. And, for the first time in media
history, analysts at eMarketer are forecasting a majority of U.S. advertising dollars
will be spent on digital media in 2019 (54.2%). The driver behind these spending
shifts: more advertisers looking for greater audience targeting ability and at
cheaper rates. But there is good news for broadcasters. According to Celine
Matthiessen, VP, Analysis and Insights for BIA Advisory Services, “There’s an
opportunity around digital that [traditional media] sellers might be overlooking.
Buyers of traditional media are extremely comfortable purchasing a myriad of
digital ads from their local sales person, so sellers should be prepared to sell offers
across multiple platforms.”

Personalization Imperative

Data privacy issues aside, consumers are increasingly willing to provide personal
information about themselves in exchange for a more personalized content
experience. “All of that personalization has the potential to drive significant
revenues for those forward-thinking media companies that are set up to be able
to use their audience data to its greatest advantage” to target consumers at the
ultra-micro level, the report says. Yet many traditional broadcast companies
simply aren’t set up this way – including 50% of North American media executives
who participated in the Revenue Analytics survey, who said that their company’s
ability to monetize targeted audience profiles was either “okay” or “totally
ineffective. “A main issue is that few of these companies have made the necessary
investments in their people, processes and technology to be able to effectively
mine their data at the necessary operational scale,” the report surmises.
Broadcast companies face a tough choice: “Either adapt their targeting
methodology to deliver more personalized brand messaging, or risk losing
consumer engagement for the sake of maintaining ‘business as usual.’”

Programmatic Platforms Proliferate

The ease of buying digital media programmatically has some agencies and
advertisers demanding similar systems from radio and TV. By 2020 it’s been
projected that nearly $5 billion in TV ad spending will be transacted via automatic
means. The report makes the case that audio is the next natural frontier for
programmatic buying and selling. Research conducted by WideOrbit of nearly
9,000 radio industry professionals indicated a threefold rate of growth in the
number of U.S.-based ad buyers who used programmatic to purchase radio and
digital audio advertising between 2017 and 2018.

Consolidation Gives Rise To ‘Supercompetitors.

Mega mergers are back, whether it’s AT&T-Time Warner or Entercom-CBS Radio.
There’s hope that what PwC calls “supercompetitors” could help traditional
broadcasters fight erosion from digital behemoths like Facebook and Google.
Galaxy Media CEO Ed Levine, for instance, argues that “radio needs to be set loose
to compete with the two digital giants, which, being unregulated, have an unfair
advantage that’s allowed them to siphon off radio’s ad dollars.” But while
consolidation is great for building scale, growing share and achieving efficiencies,
don’t forget about radio's local essence: “Leveraging local insights will allow them
to take advantage of market nuances and respond quickly to changes,” the report
contends.

The Evolution Of the Sales Organization

To keep pace with all these changes, media companies have had to rethink the
way their sales organizations do business. Sure, in-person relationship-based sales
are still important. But the traditional ways of selling media are giving way to an
approach that prioritizes customer metrics, real, demonstrable results, and uses
tools.

Reference 4 The Future of Television and Radio Industry

The TV and video market is highly dynamic and is characterized by a great number
of drivers: digitalization, new market offers, and disruption by digital players
ensure rapid change. Moreover, consumer expectations and usage habits are
changing rapidly in the age of video-on-demand and mobile media consumption.
This Deloitte Germany study on future scenarios for the TV and video industry by
2030 demonstrates what market players need to be ready for.

VoD and digital platforms as game changers

Traditional media concepts are a thing of the past, the entire industry is
undergoing fundamental change: streaming services are no longer just platforms
for the consumption of films and TV programs, now they are investing in the
production and licensing of globally successful own content – and are thus in
direct competition with the traditional TV and video industry. At the same time,
broadcasters and media companies are launching their own on-demand offerings
and global content producers are setting up their own streaming services.

Also, on-demand video has radically changed consumer behavior: consumers

increasingly expect relevant and attractive TV and video content that can be
accessed anytime, anywhere, and in the format that best suits their immediate
needs.

Reference 5 Four future scenarios for 2030

The swiftly changing market landscape and ongoing diversification make it difficult
to make long-term predictions about the future. That is why we chose a holistic
approach for the Deloitte study on future scenarios for the TV and video industry
by 2030 and look beyond the customary planning horizon of three to five years
with the help of scenario design.

Our scenarios are based on a comprehensive set of drivers that will influence the
future of the TV and video industry. We bundled these with the help of expert
interviews and an external environment analysis based on natural language
processing algorithms, and evaluated them in a matrix in relation to their degree
of uncertainty and their individual effects on the TV and video industry.

Digitalization, personalized advertising, and less regulation

For the purposes of the study we identified additional factors that will clearly
determine the main future developments in the TV and video industry in the
foreseeable future:

Digitalization is fundamentally changing production processes and the distribution

of content. All-IP is becoming the standard for TV and video, and fast fiber optic
networks and 5G are enabling ever more flexible and mobile consumption of
media content. These are being joined by new, intelligent recommendation
functionalities based on artificial intelligence and analytics to address consumers
in a targeted way.

Video-on-demand is gaining ground on a broad front, but traditional, linear

television continues to assert its role – especially in the area of popular live
content such as sports and major events.
TV and video advertising is adapting to new formats and relying more and more
on the personalization of advertising content. The analysis of user data makes it
possible to optimize ads and content, increase the benefit for potential customers,
and ultimately to win them over as consumers. The extent to which this will
happen, however, depends very much on the willingness of consumers to hand
over their data.

Market regulation in the media industry will be more moderate than it is today. In
particular in the area of online and mobile services, this will reduce the regulatory
pressure on all market participants, especially on the traditional media
companies. Network neutrality remains.

Four future scenarios for 2030

As a result of our analysis, we developed the following four future scenarios for
the TV and video industry by 2030:

Scenario 1: Universal Supermarket

Scenario 2: Content Endgame

Scenario 3: Revenge of the Broadcasters

Scenario 4: Lost in Diversity

The Future of Broadcast Industry

Today, innovation in technology is changing the way digital media is consumed

more quickly than ever before. Tech savvy, consumers are creating an ever-
growing market for data-intensive HD and UHD content, consuming content
online.
Consequently, across the broadcast and media industry, traditional broadcasters
are seeing competition from this innovation. To face-up with the challenge of
these new players, traditional broadcasters are creating their own on-demand
channels which people can consume linear and non-linear content.

As the radio and TV continue to develop ways to adapt their linear media-oriented
business models to responds to today's on-demand world. According to Revenue
Analytic 2019 the following are some revenue management trends in media, first
is the Digital Dominates where in an audio streaming has enjoyed a six-fold leap in
the past eight years. Second is Personalization Imperative, data privacy issues
aside and consumerd are increasingly willing to provide personal information
about themselves in exchange for a more personalized content experience. Third
is the Programmatic Platforms Proliferate, the ease of buying digital media
programmatically has some agencies and advertisers demanding similar systems
from radio and TV. The TV and radio is highly dynamic and characterized by a
great number of drivers: digitalization, new market offers and disruption by digital
players ensure rapid change. Media now are investing in the production and
licensing of globally successful own content. Broadcasters and media companies
are launching their own on-demand offerings and global content producers setting
up their own streaming services.

As a result of rapid changing and innovation of technology that surely affects

media and broadcasting industry universal supermarket, content endgame,
revenge of broadcasters and lost in diversity are the future scenarios for the TV
and video Industry by 2030.