MIPTV tradeshow, the most important international event for audio visual content, has highlighted on its latest edition how the Media & Entertainment industry is getting more and more dominated by Millennials. Content consumer habits are changing and giving rise to a complicated relationship between the size of the audience and the productions’ monetization. From MediaBank we have analyzed all the future trends presented at MIPTV 2016, which in our experts’ opinion, will completely take over the TV market. Welcome to the new era of content consumption.
The change has come. Traditional television as we knew it is starting to lose attention rates, while content consumption is leaving behind the one-way relationship that characterized it. Now the Media & Entertainment industry tends to be more like a conversation between two main actors (screens and audience) where the consumer is taking control of the situation, leaded by the digital natives: Millennials. The range of possibilities opened now for this sector seems to be infinite. The TV market is no more a mature and standstill sector as we thought some years ago. And Media companies right now have to cope with a new challenge: trying to understand this whole new scenario that they will have to face sooner or later.
MIPTV, one of the most prominent trade shows for audio visual content, has included in its latest edition in Cannes (from the 4th to the 7th of April) various conferences and seminars about the challenges that industry will have to face to deal with “The Hashtag Generation” or “The Power of Fans”. What lies behind these new brand names? What are the main changes that the industry could experience in the short term? On the following lines, we present 5 trends that we have identified at MIPTV and which are expected to completely change the film and TV ecosystem:
- New platforms lead to new content: If the audience is located in multiple platforms nowadays, why not creating exclusive content for each one of them? This is the latest bet of the French group Vivendi. Its new Chairman, Vincent Bolloré, unveiled during the trade show one of the biggest exclusive news of this edition: the group’s new production company Studio Plus will create series and premium content exclusively for mobile phones. ‘Mobile is the first screen, especially for a whole new generation, with 3.7 billion mobile users. 60% of smartphone users watch short video daily. But there is still no premium content for the’, said Dominique Delport, Vivendi Content President. Studio Plus is expected to launch its first TV series for mobile comprising 10-minute chapters on September 2016. Initially, it will be focus exclusively on European and Latin American markets.
- The size (of the audience) matters and its monetization could become a problem: Some digital platforms such as Youtube or Dailymotion have gathered such amount of viewers on a global scale that traditional TVs probably would have never imagined this could be possible on the first years of the Internet era. However, there is an important disadvantage here: viewers are not used to pay for the online content they consume. And even when they pay for it via microtransactions or subscriptions ( in the case of services like Netflix or Hulu) the annual income obtained per each viewer is much more lower than the annual income that traditional TVs obtained through advertising….And here is where the issue needs to be addressed. The audio visual content business model is changing and the balance between having access to millions of users or obtaining a huge annual income per each viewer seems to be complicated. Where should be the middle point located here? According to Bain company’s study exclusively developed for MIPTV 2016, these pure high-scale, low-value models may not prevail forever and success will require more arrows in the monetization quiver, like monetization through product placement (just like video bloggers do) or through crowdfunding.
- Life is a drama (and fiction too): Drama has been the star content of the latest MIPTV’s edition for sure. The launch of the brand new MIPDrama Screenings for the first time in all its history is a sign of how huge is betting Europe on this particular genre. The high quality fiction and drama demand is rising especially among TV series. According to Fréderic Vaulpré, Vice President of Eurodata TV Worldwide, “more and more people from the movie industry are now doing television”, which also highlights the sweet moment that TV fiction is going through.
- Unity, makes strength?: After the emergence of some new platforms such as Netflix, Hulu or Amazon, production companies, televisions and TV pay channels across Europe have started to make the next move focusing on owning IP, increasing their equity, expanding their portfolio of original drama… And now, on internationalization of big media groups and market concentration. The French media company Newen recently bought by commercial network group TF1; Lagardere company last year acquisition of the Spanish Boomerang; its drama production company, Atlantique Productions, partnership with Germany’s Beta Film to launch Dramacorp; or StudioCanal investment in the Spanish Bambu Producciones and the British Urban Myth Films and SunnyMarch (co-founded by the actor Benedict Cumberbatch) are just a few examples of this market concentration. Among them, it is also relevant to pay attention to French RTL, a company which has invested almost simultaneously in North American multi-channel networks (MCNs) BroadbandTV, in StyleHaul, a ‘highly specialized’ YouTube women’s fashion-themed video content network; and in SpotX, a video inventory management platform.
- Young audience is starving for new and original content – and the market is working extra hours to meet their expectations: Telemundo Internacional President, Marcos Santana, talking of Latin American TV markets, stated: ‘Young viewers who traditionally watched Latin American series five years ago […] are more open to see any kind of fiction in prime time, Korean, Turkish, American, whatever. That’s forced us as producers to raise the bar on quality notably over the last five years’. Audience is no more local, but global. And very demanding. That is why big media companies such as the British Sky (which annually spends over 7.1 billion dollars on content) are widening even more this business unit, by including more original content and big productions. Sky’s ‘The Young Pope’ production, starring Jude Law, and in collaboration with HBO and Canal Plus is just one example on how it looks set to amp up further its content drive.
All these latest trends show how future for the Media & Entertainment industry will rely on three basic features: multiscreen, ubiquity and global reach. These characteristics are something that we have been anticipating from MediaBank and the three of them perfectly define some of the latest businesses that successfully entered in the industry in the last years, thanks to the recently changed habits in content consumption.
MediaBank: the Market Place the industry deserves
From MediaBank, we have joined this new revolution, in order to help equally production companies, TVs and new platforms to find a common place where supporting and complementing each other through the buying and selling of their original content.
This new digital environment requires a new platform like MediaBank. We work hard to become a platform of reference for the sector and to allow a quick, easy and safe exchange of audio visual content, ready to be broadcasted in whatever platform and geographical area is needed.
We want MediaBank’s users to focus on what they really need: finding the ideal content for their programming or the best way to launch and monetize their productions. That is our main goal. This new adventure that we have started has one protagonist: stories. And we would like to contribute to their change. You do not know anything about our new adventure yet? Go to our website and discover what MediaBank can offer you and your content.