Linear TV is dead, long live linear TV
S07E12: Game of Streams (Linear TV is dead, long live linear TV)
Our Media Solution Specialist, Magnus Svensson, is sharing his reflections on the online streaming industry in this post. This is part of a monthly series so make sure to follow us here if you do not want to miss an episode.
Ever since I started to work with television and streaming, traditional linear TV has been declared dead. While cord-cutting is increasing and the dominance of traditional linear TV is challenged by digital and on-demand media, it is unlikely to disappear entirely in the foreseeable future. As an example, the US broadcast viewing has increased in the last quarter, mainly driven by live sports (college football and NFL).
First, we need to differentiate between viewing preferences and distribution technology. The way that traditional television is produced and distributed must change, otherwise the death that has been predicted will become true. TV production and play-out based on traditional broadcast equipment and workflows will evolve towards technologies more suited for digital distribution over the internet.
But traditional broadcasters provide something that disappeared with the on-demand transition, the curation of content. A broadcaster often has access to resources and expertise to create a structured schedule of programming where viewers don’t have to spend time browsing and deciding what to watch. Linear TV, or playlists, might be the best content discovery tool that exists. With a curated lineup, viewers are exposed to a broader range of content, including shows or movies they might not have chosen on their own.
With modern technology and workflows, this could be done more efficiently and dynamically. Except for live content, most content is prerecorded and can without the need for transcoding be combined in an infinite number of combinations and cater to specific interests or communities, offering specialized content that might be harder to find in on-demand libraries. Live events can be produced and distributed efficiently using modern internet technology.
Digital transition
The future of traditional linear TV distribution will be prolonged and involve a more integrated media landscape, where traditional broadcasting coexists and collaborates with digital and streaming platforms. During 2023 we saw a shift in the dynamics of carriage agreements between media companies and distribution companies.
The best example is the deal between Disney and Charter. This deal was seen as a transformative step, recognizing the continuing value of linear television while also embracing the growing trend of streaming services.
As part of the agreement, where Charter continued to distribute the channel lineup from Disney, Charter also got the possibility to include Disney+ (Basic with ads) into Charter’s Spectrum TV Select packages, and ESPN+ to Spectrum TV Select Plus subscribers.
At the same time, Charter committed to offer Disney+, Hulu, and ESPN+, for purchase at retail rates to its entire customer base, including its substantial broadband-only segment.
The local broadcaster and distributors
This change has prolonged the coexistence of linear broadcast and cable network assets with streaming platforms. The goal was to extend the viability of traditional linear channels while also leveraging streaming platforms for subscription growth and advertising revenue. But it is only an extension of the life of traditional distribution, not a permanent fix.
Local broadcasters and distributors should use these deals to make the needed proactive steps to remain relevant. Broadcasters must invest in modern platforms including cloud-based remote production and online content playout. Utilizing experience and data analytics to understand audience preferences curating more personalized content offerings.
Capitalizing on the strength of live broadcasting, especially for local sports, local news, and special events, can provide a unique value that larger broadcasters or streaming services cannot replicate.
Broadcasters and TV distributors who successfully adapt to these changes, innovate, and respond to audience needs will be positioned to thrive in the future media landscape. The key is to balance the traditional strengths of broadcasting with the opportunities presented by new technologies and changing viewer expectations.
To watch out for the coming months…
In the coming year, I expect to main trends in the video streaming industry to be AI-powered personalization and growth in live sports streaming.
The advancement of AI will allow for more personalized user experiences. Predictive analytics will be used to recommend content based on viewing habits and behavioral trends, leading to highly individualized content curation. One great example from the audio industry, that is a couple of cycles ahead of video, is the Spotify DJ. This feature stands out for its ability to analyze your music preferences and listening habits to create a customized music stream tailored to your taste.
The consumption of live sports via streaming platforms has taken a big step in 2023 and is expected to grow in 2024. The technology has reached the maturity to handle large scale events during high-demand periods.
Magnus Svensson is a Media Solution Specialist and partner at Eyevinn Technology. Eyevinn Technology is the leading independent consulting company specializing in video technology and media distribution.
Follow me on Twitter (@svensson00) and LinkedIn for regular updates and news.
