Welcome to the blog of Dr. Lisa Burns' Media Studies senior capstone class (Section A) at Quinnipiac University. If you're looking for the latest on media industry trends and insightful media analysis, you've come to the right place.
Sunday, January 22, 2017
Media Convergence & Multiple Screens Blog 1, Question 1 (Jan. 31st)
How have traditional media corporations adapted to the changes in how
audiences consume media? Limit: 8
responses
“The rise in technology and TV-connected devices has given consumers, marketing agencies and advertisers a vehicle for boundless choice” (“Forces of Nature”). Due to these ever increasing choices, the way audiences consume media has been going through major changes in recent – and not so recent anymore – years. The millennial generation is all about technology as well as instant gratification, leading to this shift in how they consume media. When it comes TV shows, audiences might want to watch them on an actual TV screen every week (though we hate commercials), or we might want to watch them some other day during that week when we have the time, or we might want to sit down one Friday night and binge watch an entire season or five of a show. So, all in all, we want it when we want it, where we want it. And today’s audience is all about convenience. So, how have traditional media corporations adapted to these changes in how audiences consume media? As for television, they’ve been making big changes to in order to cater to their audiences changing preferences. Some people like watching their shows every week when they air on TV, others like to watch them at their convenience online, others like to binge watch seasons of shows at a time. To adapt to these different preferences corporations have had to make this all possible in order to reach the greatest audience. Therefore, they air episodes of a show on TV on a specific day and time of the week. The next day, they make these shows available OnDemand for those who couldn’t/didn’t want to watch them when they aired on TV. They also make their shows available online on their websites for people to watch from their laptops or tablets or smart devices for even more convenience since “Smartphones, tablets, PCs, and TV-connected devices combine for over half of the average audience” for people ages 18 to 34 (“The Nielsen Comparable Metrics Report”).
Works Cited Andreeva, Nellie. “In-Season Stacking Rights – The New Upfront Battleground,” Deadline 12 May 2016. Web. “Comparable Metrics Report Q2 October 2016.” Nielsen. October 2016. Web. “Forces of Nature: The Media Universe Moves at the Pace of Technological Change.” Nielsen.com. 5 Jan. 2016. Web. Pelts, Shirley. “Why Comcast Considers Stacking Rights as Important,” Market Realist 8 Sept. 2016. Web. Wilson, Benji. “How Netflix Changed the Way We Watch TV.” The Sydney Morning Herald 15 Dec. 2016. Web.
Works Cited Investopedia. "Netflix May Produce Bollywood-Style Original Shows, Says CEO." Investopedia. N.p., 03 Nov. 2015. Web. 30 Jan. 2017. Masters, Kim. "As Michael Lynton Exits, Will Sony Double Down on Hollywood or Sell? ." The Hollywood Reporter. N.p., 16 Jan. 2017. Web. 30 Jan. 2017. Selyukh, Alina. "Big Media Companies And Their Many Brands - In One Chart." NPR. NPR, 28 Oct. 2016. Web. 30 Jan. 2017.
Works Cited Baar, Aaron. "There's Room For Traditional Media In Streaming World." 02/26/2016. MediaPost, 25 Feb. 2016. Web. 30 Jan. 2017.
"Forces of Nature: The Media Universe Moves at the Pace of Technological Change. Nielsen, 5 Jan. 2016. Web. 30 Jan. 2017.
Kandell, Jonathan. "Netflix Is Creating a Cordless Nightmare for Traditional Media." Institutional Investor. N.p., 05 Oct. 2015. Web. 30 Jan. 2017.
Roxborough, Scott and Georg Szalai. "Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon," The Hollywood Reporter 28 Dec. 2016. Web.
The rise of streaming content, including sites such as Netflix, Hulu, and Amazon is beginning to cause an issue for traditional media corporations. “The heated competition for our attention and for advertising dollars is increasingly pitting traditional media and entertainment stalwarts against internet and telecom giants” (Hollenhorst, Park, and Selyukh, 2016). In the millennial age people want media at their fingertips, and streaming allows this to happen. Currently, being successful in the media is all about growth, scale, and leverage (Chmielewski, 2017). What this means for traditional media corporations is striking deals and gaining ownership of more content. “Traditional media conglomerates are increasingly bumping up against powerful tech and telecom companies in the rush to reach users and attract advertisers across as many screens and platforms as possible” (Hollenhorst, Park, and Selyukh, 2016). Larger studios are gaining ownership of smaller companies to be able to distribute more across a variety of platforms, such as online or via mobile devices. For example, Comcast owns Xfinity, NBC, Focus Features, plus many other companies and has stake in Buzzfeed, Hulu, Vox Media, among other companies. By owning more, Comcast has more to distribute, which means more revenue. The current top six media conglomerates are Comcast, the Walt Disney Company, 21st Century Fox, Time Warner Inc., CBS Corporation, and Viacom (Hollenhorst, Park, and Selyukh, 2016). Although gaining ownership of various companies is one way traditional media corporations are adapting to changes in how audiences consume media, they are also participating in in-season stacking rights, which “allow networks to stream all episodes from a series’ current season on its platform” (Andreeva, 2016). Originally, networks were only allowed to have access to the “five rolling” most recent episodes, but with in-season stacking it allows traditional media corporations to remain in competition with streaming services, especially Netflix, since the streaming service “expressed its disinterest in deals that devalue programming as networks retain stacking rights” (Sikka, 2015). By giving a network full in-season rights, it lowers the revenue that would go to a streaming service since viewers can watch the show without paying for said service. Another benefit to in-season stacking rights as Comcast noticed, is that “viewers are increasingly preferring to view content through a mixture of live and on-demand” (Pelts, 2016). By including a current full season online via a network, viewers can choose to watch the show live or go back and watch an episode later; it gives viewers more options to watch their favorite shows and allows them not to miss an episode if they don’t have time to watch live.
Although traditional media and streaming services are often in competition, traditional media corporations can sometimes benefit from this new media emergence. Netflix spends billions of dollars each year and the majority of this revenue is used to pay studios for licensing agreements (Leung, 2016). “Netflix provides the cash up front and orders two seasons of most series – appealing in a business in which many shows are cancelled in the first season” (Masters, 2016). So, although Netflix can be seen as competition, it also can provide a source of revenue for studios as well and allows traditional media to have their content seen in the new and growing way via streaming services and on-the-go. Overall, “the rise in technology and TV-connected devices has given consumers, marketing agencies, and advertisers a vehicle for boundless choice” (Forces of Nature, 2016), which is allowing traditional media to remain in the game and adapt to the changes of how audiences consume media.
Works Cited:
Andreeva, Nellie. "In-Season Stacking Rights — The New Upfront Battleground," Deadline 12 May 2016. Web.
Chmielewski, Dawn. "Hollywood's Merger Mania - Inside the Studios' ‘Size Anxiety,’ Scramble to Match Silicon Valley," The Hollywood Reporter 11 Jan. 2017. Web.
"Forces of Nature: The Media Universe Moves at the Pace of Technological Change." Nielsen.com. Accessed 10 Jan. 2016. Web.
Leung, Andrew. “How Does Netflix Pay Studios? What the Streaming Giant Does to Obtain Content.” ArtsMic.com. 4 Feb. 2016. Web.
Masters, Kim. "The Netflix Backlash – Why Hollywood Fears a Content Monopoly," The Hollywood Reporter 14 Sept. 2016. Web.
Pelts, Shirley. "Why Comcast Considers Stacking Rights as Important," Market Realist 8 Sept. 2016. Web.
Selyukh, Alina, Maria Hollenhorst, and Katie Park. "Big Media Companies And Their Many Brands — In One Chart." NPR 28 Oct. 2016. Web.
Sikka, Puneet. "TV Stacking Rights – Why Netflix’s Loss in Hulu’s Gain," Market Realist 22 June 2015. Web.
Erin Rodrigue (1/3) It is no surprise that SVOD services like Netflix, Amazon, and Hulu are disrupting traditional media programming. According to Nielsen, this surge in users joining streaming sites is occurring because, “the rise in technology and TV-connected devices has given consumers, marketing agencies and advertisers a vehicle for boundless choice.” Choice is a foremost factor contributing to the shift from traditional media programming to online streaming. Streaming sites give consumers the choice of when to watch, where to watch, and how to watch. No longer does the consumer have to be glued in front of the TV at a specific time to watch a particular show or movie. These streaming sites have gained so much popularity that an increasing number of people rely on these sites as their main source for entertainment and television viewing. IHS expects Amazon Prime to garner 64 million subscribers worldwide by 2020, more than double the number it has today. Netflix, Amazon Prime’s closest competitor, should hit 130 million subscribers globally by 2020. (Roxborough, Szalai) Netflix’s popularity gained momentum when the site started producing original content, like Fuller House and Stranger Things, that attracted more subscribers.
Erin Rodrigue (2/3) According to Hub Entertainment Research, in the face of changing technology, traditional media must “adapt to some new models that include shorter content, more experimental approaches and micro-targeting genres” to match the popularity of Internet TV. (Baar) Many media companies are swaying between traditional distribution and direct-to-consumer models. For example, Bravo distributes TV programs on a weekly schedule, but also posts to their website new episodes the day after they aired. Moreover, Bravo also has an app called Bravo Now that allows users to watch full episodes of their favorite shows on their iPad and IPhone. Other networks like Fox, Comedy Central, and VH1 have followed suit, developing and distributing content online and with apps. According to the US Bureau of Labor Statistics, Americans average 168 minutes a day watching TV and 198 minutes a day using apps, with Millenials by far the heaviest app users. (Kandell) These traditional TV networks are challenged to provide consumers more choice and flexibility. I predict that more traditional networks will try to attract consumers into consuming their content on their websites and apps. This gives consumers the choice of when to watch and how to watch (laptop, iPhone, tablet, ecetera).
Erin Rodrigue (3/3) Traditional media must find other ways to attract more viewers to watch their quality content at a more competitive, inexpensive price. These TV networks could increase their collaboration with Netflix and Hulu by letting these sites stream their older programming. Family Guy and SpongeBob SquarePants are two programs that are currently streamed on Netflix.
Works Cited Baar, Aaron. "There's Room For Traditional Media In Streaming World." 02/26/2016. MediaPost, 25 Feb. 2016. Web. 30 Jan. 2017. "Forces of Nature: The Media Universe Moves at the Pace of Technological Change. Nielsen, 5 Jan. 2016. Web. 30 Jan. 2017. Kandell, Jonathan. "Netflix Is Creating a Cordless Nightmare for Traditional Media." Institutional Investor. N.p., 05 Oct. 2015. Web. 30 Jan. 2017. Roxborough, Scott and Georg Szalai. "Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon," The Hollywood Reporter 28 Dec. 2016. Web.
Traditional media corporations have adapted to the way people consume media because they have allowed themselves to stay relevant by being apart of the user experience. Time Warner owns many different stations but one for example is CNN. CNN is no longer just a news station like it originally was. Now people can access CNN by desktops, on their website. The website is divided into different categories in order for users to have easy access to the information that they are particularly interested in. CNN has also adapted to its users by having a live feature on their website. This is a great tactic to reach more people because it is convenient for the people that want to watch the news but do not have access to cable to do so. CNN also has an app so that users can access the same information that is on their website on mobile apps which makes it easy for consumers to take in the news conveniently whether it be during their commute or waiting for an appointment. Lastly, CNN sends push notifications to desktops, tablets, and smartphone devices which allows users to be disrupted if they are interested in the content they are providing. CNN is just one example a media corporation has reached their consumers in the different ways that technology has allowed them to do. According to Neilson, 186 M people are accessing information on desktops and 176M are accessing through Smartphones. Neilson also reported that over 90% of adults listen to the radio. It makes sense that CNN has a radio station because it allows them to reach a large amount of people. These statistics show that as technology changes the media corporations have to think of what is next in order to stay relevant and keep people interested and consuming part of their corporation. CNN has turned from a news station to being everywhere the consumer is, which is why the network continues to be so relevant.
People not only consume news, movies and television differently than before but now authors and publishing companies have created books in the vision of the media consumers. Who would have thought that you would be able to access a book differently than reading the paper version? Now large publishing companies like HarperCollins, publish content for Kindles, E-readers, tablets, smartphones and even PDF for a person to download onto their desktop. Instead of going out to a Barnes and Noble and browsing around for the book a consumer wants to purchase it is made so simply that they can go onto one of their devices and download so simply. Most traditional media corporations have remained smart when it comes to thinking of the consumer and how they want to receive their media. Most media corporations have adapted to the mobile and social age, which has allowed them to remain successful and relevant. The media corporations that have not adapted or do not know how are the ones that struggle and become obsolete.
"Comparable Metrics Report Q2 October 2016." Nielsen October 2016. Web. "Forces of Nature: The Media Universe Moves at the Pace of Technological Change." Nielsen.com. Accessed 10 Jan. 2016. Web. Young, Vicki M. "Traditional Media Adapting to Digital Trends Through Acquisitions." WWD. 26 Mar. 2013. Web. 30 Jan. 2017.
It will be interesting to see if other websites like Netflix and Sling start to stream more Television shows as to creating their own content. These media conglomerates are also utilizing their own websites as well as apps to stream media. In a way, they are making consuming media easier by allowing you to access it in the palm of your hand. IPhone and Android apps have been created by many of the big media corporations which very much helped them adapt to the change in how audiences are consuming media. These apps are giving consumers easy access to media since consumers no longer have to be sitting watching the TV at a specific time, they are now able to take their favorite shows everywhere they go and even watch them on the go. Works Cited "Forces of Nature: The Media Universe Moves at the Pace of Technological Change." Forces of Nature: The Media Universe Moves at the Pace of Technological Change. Nielsen, 5 Jan. 2016. Web. 29 Jan. 2017. Roxborough, Scott, and Georg Szalai. "Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon." The Hollywood Reporter. N.p., 28 Dec. 2016. Web. 29 Jan. 2017. Sikka, Puneet. "TV Stacking Rights: Why Netflix's Loss in Hulu's Gain." Yahoo! News. Yahoo!, 22 June 2015. Web. 29 Jan. 2017.
Traditional media corporations have moved from the media outlets that dominated the second half of the 20th century, as a response to changing consumer habits and preferences. As smartphones become more crucial in our daily lives, we begin to shift our attention to streaming rather than downloading. As reported by Nielsen’s Comparable Metrics Report, smartphones are the most often used media devices among adults, with averaging 6 days of the week. They are also spent on the second most time, falling behind TV. Such dependence on smartphones among consumers naturally prompts traditional media corporations to adjust their ways of reaching their business targets and communicating their material. One major media outlet that smartphones have introduced to us consumers is social media. Traditional media corporations like Time Warner, who owns CNN has had to adjust to this outlet by becoming prominent in Twitter, Instagram and Facebook. Hosts of CNN shows have also contributed to this adjustment by utilizing the outlets through their personal accounts, such as Van Jones, a known political consultant from CNN frequently going live on Facebook and commenting on recent developments in politics. Smartphones have also had an impact on how consumers go about their daily lives. The instant gratification that social media and the smartphone technology grants consumers makes us less willing to follow set schedules. We are going from following TV guides to making our own guides, and this introduces the “On-Demand” concept. Without a doubt, Netflix has followed a successful business strategy in becoming the most prominent video streaming outlet. Traditional media corporations in Hollywood, such as 21st Century Fox, Universal, and Disney have adjusted to this trend by working with Netflix in lending their films to the streaming service. TV shows, on the other hand have really shifted from cable to streaming. As a Netflix spokesperson states they are, “… doing something that's never been done before … In doing so, we are disrupting traditional business models and creating new norms.” Which explains Netflix’s success. But the backlash that this unprecedented trend has created ultimately hurts Hollywood with Netflix becoming more and more powerful, and as a result, more demanding and frugal with producers and writers. According to Kim Masters of The Hollywood Reporter, this will ultimately result in lack of creativity and failure of studios in the long run. Changing consumer preferences certainly drive Netflix and other media companies’ business strategies. “Most importantly, consumers and viewers like what we do, and we plan to keep doing it” explains the spokesperson at Netflix, which is more than enough to give us the general idea behind how influential consumer behavior is when it comes affecting traditional media corporations’ approaches to the media.
Works Cited "Comparable Metrics Report Q2 October 2016." Nielsen October 2016. Web. Masters, Kim. "The Netflix Backlash – Why Hollywood Fears a Content Monopoly," The Hollywood Reporter 14 Sept. 2016. Web.
Traditional media corporations have ultimately been forced to adapt because there is always competition. The millennial generation is very demanding; expecting easy and convenient media at any given time. There is always a new show coming out and the way consumers choose to watch media changes as well, though online content seems to be the most popular choice. As stated in FORCES OF NATURE: THE MEDIA UNIVERSE MOVES AT THE PACE OF TECHNOLOGICAL CHANGE, “the rise in technology and TV-connected devices has given consumers, marketing agencies and advertisers a vehicle for boundless choice” (FORCES OF NATURE: THE MEDIA UNIVERSE MOVES AT THE PACE OF TECHNOLOGICAL CHANGE). Similarly, stated in Why Comcast Considers Stacking Rights as Important, “the convenience of accessing content anytime and anywhere has been one of the reasons that millennials are watching content online” (Pelts). Our generation is very fast-paced and techy savvy. Media preference varies for everyone; while adults working all day prefer to watch television at night, children between the ages of 10-16, might prefer to watch their shows earlier in the afternoon when they return home from school. As a result, it’s up to the media corporations to do their best in fulfilling the consumers needs. Even though traditional media has evolved greatly, it still uses older mediums such as television, radio, newspaper and magazine ads. However, it has been forced to be reactive and proactive to the consumers needs. Our current media is faster and is usually consisted of online platforms such as online video, social networks, and online streaming (Traditional Media vs. New Media in Corporate Video). For example, Netflix and Hulu are well known networks that specialize in online streaming. The process of adding or dropping a new show is usually not a complicated negotiation, given studios will add a show they believe will be more successful versus a show that’s heading towards failure. However, this year there’s a new element that has made negotiations more complicated, and that is “in-season stacking rights.” These rights allow networks to stream all episodes of a series, including the current ones. Supposedly, ABC and NBC are in favor of pursuing in-season stacking rights on all new shows, but it’s difficult to tell whether this decision will be beneficial from a financial position (Andreeva). According to Chuck Satfler, president of program strategy and COO of FX Networks, “…networks need to have control of their content. To have a show like ‘The Americans’ and (consumers) can’t go back to the beginning of the season – that doesn’t make any sense” (Wallenstein). Another example is the competition between Netflix and Amazon. Both of these companies benefit from the subscribers who pay a monthly fee for subscription video on demand (SVoD). Netflix has been dominant over Amazon because it’s international expansion has been successful; supporting 21 languages worldwide. Amazon Prime recently released its “full online video” service last December, but it’s still struggling to keep up. Ultimately, it’s each corporation’s decision on how they want to portray their business. The angle they choose to appeal to their customers is crucial and makes them different from their competitors. Netflix is trying to become a global channel brand, while Amazon has shown interest in sports rights and partnerships with third-party content providers. It’s all about keeping things interesting, but convenient for the consumers (Roxborough and Szalai). I think media corporations are all trying to find their own niche. I could definitely see companies merging together within the next year or so in order to become something bigger because it’s always about competition and what the consumer wants.
Andreeva, Nellie. "In-Season Stacking Rights — The New Upfront Battleground: Pilot Season 2016." Deadline. Deadline, 13 May 2016. Web. 31 Jan. 2017.
"Forces of Nature: The Media Universe Moves at the Pace of Technological Change." Forces of Nature: The Media Universe Moves at the Pace of Technological Change. Nielsen, 5 Jan. 2016. Web. 31 Jan. 2017.
Pelts, Shirley. "Why Comcast Considers Stacking Rights as Important." Why Comcast Considers Stacking Rights as Important - Market Realist. Market Realist, 8 Sept. 2016. Web. 31 Jan. 2017.
Roxborough, Scott, and Georg Szalai. "Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon." The Hollywood Reporter. The Hollywood Reporter, 28 Dec. 2016. Web. 31 Jan. 2017.
Https://www.facebook.com/Keywestvideo. "Traditional Media vs. New Media in Corporate Video." Corporate Video Blog. Key West Video Inc., 20 June 2016. Web. 31 Jan. 2017.
Wallenstein, Andrew. "In-Season ‘Stacking’ Rights: TV Biz Battles for Binge Viewing." Variety. Variety, 21 Oct. 2013. Web. 31 Jan. 2017.
“The rise in technology and TV-connected devices has given consumers, marketing agencies and advertisers a vehicle for boundless choice” (“Forces of Nature”). Due to these ever increasing choices, the way audiences consume media has been going through major changes in recent – and not so recent anymore – years. The millennial generation is all about technology as well as instant gratification, leading to this shift in how they consume media. When it comes TV shows, audiences might want to watch them on an actual TV screen every week (though we hate commercials), or we might want to watch them some other day during that week when we have the time, or we might want to sit down one Friday night and binge watch an entire season or five of a show. So, all in all, we want it when we want it, where we want it. And today’s audience is all about convenience.
ReplyDeleteSo, how have traditional media corporations adapted to these changes in how audiences consume media? As for television, they’ve been making big changes to in order to cater to their audiences changing preferences. Some people like watching their shows every week when they air on TV, others like to watch them at their convenience online, others like to binge watch seasons of shows at a time. To adapt to these different preferences corporations have had to make this all possible in order to reach the greatest audience. Therefore, they air episodes of a show on TV on a specific day and time of the week. The next day, they make these shows available OnDemand for those who couldn’t/didn’t want to watch them when they aired on TV. They also make their shows available online on their websites for people to watch from their laptops or tablets or smart devices for even more convenience since “Smartphones, tablets, PCs, and TV-connected devices combine for over half of the average audience” for people ages 18 to 34 (“The Nielsen Comparable Metrics Report”).
Works Cited
Andreeva, Nellie. “In-Season Stacking Rights – The New Upfront Battleground,” Deadline 12 May 2016. Web.
“Comparable Metrics Report Q2 October 2016.” Nielsen. October 2016. Web.
“Forces of Nature: The Media Universe Moves at the Pace of Technological Change.” Nielsen.com. 5 Jan. 2016. Web.
Pelts, Shirley. “Why Comcast Considers Stacking Rights as Important,” Market Realist 8 Sept. 2016. Web.
Wilson, Benji. “How Netflix Changed the Way We Watch TV.” The Sydney Morning Herald 15 Dec. 2016. Web.
Works Cited
ReplyDeleteInvestopedia. "Netflix May Produce Bollywood-Style Original Shows, Says CEO." Investopedia. N.p., 03 Nov. 2015. Web. 30 Jan. 2017.
Masters, Kim. "As Michael Lynton Exits, Will Sony Double Down on Hollywood or Sell? ." The Hollywood Reporter. N.p., 16 Jan. 2017. Web. 30 Jan. 2017.
Selyukh, Alina. "Big Media Companies And Their Many Brands - In One Chart." NPR. NPR, 28 Oct. 2016. Web. 30 Jan. 2017.
(Rodrigue, Cont)
ReplyDeleteWorks Cited
Baar, Aaron. "There's Room For Traditional Media In Streaming World." 02/26/2016. MediaPost, 25 Feb. 2016. Web. 30 Jan. 2017.
"Forces of Nature: The Media Universe Moves at the Pace of Technological Change. Nielsen, 5 Jan. 2016. Web. 30 Jan. 2017.
Kandell, Jonathan. "Netflix Is Creating a Cordless Nightmare for Traditional Media." Institutional Investor. N.p., 05 Oct. 2015. Web. 30 Jan. 2017.
Roxborough, Scott and Georg Szalai. "Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon," The Hollywood Reporter 28 Dec. 2016. Web.
Olivia Dufault
ReplyDeleteThe rise of streaming content, including sites such as Netflix, Hulu, and Amazon is beginning to cause an issue for traditional media corporations. “The heated competition for our attention and for advertising dollars is increasingly pitting traditional media and entertainment stalwarts against internet and telecom giants” (Hollenhorst, Park, and Selyukh, 2016). In the millennial age people want media at their fingertips, and streaming allows this to happen. Currently, being successful in the media is all about growth, scale, and leverage (Chmielewski, 2017). What this means for traditional media corporations is striking deals and gaining ownership of more content. “Traditional media conglomerates are increasingly bumping up against powerful tech and telecom companies in the rush to reach users and attract advertisers across as many screens and platforms as possible” (Hollenhorst, Park, and Selyukh, 2016). Larger studios are gaining ownership of smaller companies to be able to distribute more across a variety of platforms, such as online or via mobile devices. For example, Comcast owns Xfinity, NBC, Focus Features, plus many other companies and has stake in Buzzfeed, Hulu, Vox Media, among other companies. By owning more, Comcast has more to distribute, which means more revenue. The current top six media conglomerates are Comcast, the Walt Disney Company, 21st Century Fox, Time Warner Inc., CBS Corporation, and Viacom (Hollenhorst, Park, and Selyukh, 2016).
Although gaining ownership of various companies is one way traditional media corporations are adapting to changes in how audiences consume media, they are also participating in in-season stacking rights, which “allow networks to stream all episodes from a series’ current season on its platform” (Andreeva, 2016). Originally, networks were only allowed to have access to the “five rolling” most recent episodes, but with in-season stacking it allows traditional media corporations to remain in competition with streaming services, especially Netflix, since the streaming service “expressed its disinterest in deals that devalue programming as networks retain stacking rights” (Sikka, 2015). By giving a network full in-season rights, it lowers the revenue that would go to a streaming service since viewers can watch the show without paying for said service. Another benefit to in-season stacking rights as Comcast noticed, is that “viewers are increasingly preferring to view content through a mixture of live and on-demand” (Pelts, 2016). By including a current full season online via a network, viewers can choose to watch the show live or go back and watch an episode later; it gives viewers more options to watch their favorite shows and allows them not to miss an episode if they don’t have time to watch live.
Olivia Dufault Cont...
DeleteAlthough traditional media and streaming services are often in competition, traditional media corporations can sometimes benefit from this new media emergence. Netflix spends billions of dollars each year and the majority of this revenue is used to pay studios for licensing agreements (Leung, 2016). “Netflix provides the cash up front and orders two seasons of most series – appealing in a business in which many shows are cancelled in the first season” (Masters, 2016). So, although Netflix can be seen as competition, it also can provide a source of revenue for studios as well and allows traditional media to have their content seen in the new and growing way via streaming services and on-the-go. Overall, “the rise in technology and TV-connected devices has given consumers, marketing agencies, and advertisers a vehicle for boundless choice” (Forces of Nature, 2016), which is allowing traditional media to remain in the game and adapt to the changes of how audiences consume media.
Works Cited:
Andreeva, Nellie. "In-Season Stacking Rights — The New Upfront Battleground," Deadline 12 May 2016. Web.
Chmielewski, Dawn. "Hollywood's Merger Mania - Inside the Studios' ‘Size Anxiety,’ Scramble to Match Silicon Valley," The Hollywood Reporter 11 Jan. 2017. Web.
"Forces of Nature: The Media Universe Moves at the Pace of Technological Change." Nielsen.com. Accessed 10 Jan. 2016. Web.
Leung, Andrew. “How Does Netflix Pay Studios? What the Streaming Giant Does to Obtain Content.” ArtsMic.com. 4 Feb. 2016. Web.
Masters, Kim. "The Netflix Backlash – Why Hollywood Fears a Content Monopoly," The Hollywood Reporter 14 Sept. 2016. Web.
Pelts, Shirley. "Why Comcast Considers Stacking Rights as Important," Market Realist 8 Sept. 2016. Web.
Selyukh, Alina, Maria Hollenhorst, and Katie Park. "Big Media Companies And Their Many Brands — In One Chart." NPR 28 Oct. 2016. Web.
Sikka, Puneet. "TV Stacking Rights – Why Netflix’s Loss in Hulu’s Gain," Market Realist 22 June 2015. Web.
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
DeleteErin Rodrigue (1/3)
ReplyDeleteIt is no surprise that SVOD services like Netflix, Amazon, and Hulu are disrupting traditional media programming. According to Nielsen, this surge in users joining streaming sites is occurring because, “the rise in technology and TV-connected devices has given consumers, marketing agencies and advertisers a vehicle for boundless choice.” Choice is a foremost factor contributing to the shift from traditional media programming to online streaming. Streaming sites give consumers the choice of when to watch, where to watch, and how to watch. No longer does the consumer have to be glued in front of the TV at a specific time to watch a particular show or movie.
These streaming sites have gained so much popularity that an increasing number of people rely on these sites as their main source for entertainment and television viewing. IHS expects Amazon Prime to garner 64 million subscribers worldwide by 2020, more than double the number it has today. Netflix, Amazon Prime’s closest competitor, should hit 130 million subscribers globally by 2020. (Roxborough, Szalai) Netflix’s popularity gained momentum when the site started producing original content, like Fuller House and Stranger Things, that attracted more subscribers.
Erin Rodrigue (2/3)
DeleteAccording to Hub Entertainment Research, in the face of changing technology, traditional media must “adapt to some new models that include shorter content, more experimental approaches and micro-targeting genres” to match the popularity of Internet TV. (Baar) Many media companies are swaying between traditional distribution and direct-to-consumer models. For example, Bravo distributes TV programs on a weekly schedule, but also posts to their website new episodes the day after they aired. Moreover, Bravo also has an app called Bravo Now that allows users to watch full episodes of their favorite shows on their iPad and IPhone. Other networks like Fox, Comedy Central, and VH1 have followed suit, developing and distributing content online and with apps. According to the US Bureau of Labor Statistics, Americans average 168 minutes a day watching TV and 198 minutes a day using apps, with Millenials by far the heaviest app users. (Kandell)
These traditional TV networks are challenged to provide consumers more choice and flexibility. I predict that more traditional networks will try to attract consumers into consuming their content on their websites and apps. This gives consumers the choice of when to watch and how to watch (laptop, iPhone, tablet, ecetera).
Erin Rodrigue (3/3)
DeleteTraditional media must find other ways to attract more viewers to watch their quality content at a more competitive, inexpensive price. These TV networks could increase their collaboration with Netflix and Hulu by letting these sites stream their older programming. Family Guy and SpongeBob SquarePants are two programs that are currently streamed on Netflix.
Works Cited
Baar, Aaron. "There's Room For Traditional Media In Streaming World." 02/26/2016. MediaPost, 25 Feb. 2016. Web. 30 Jan. 2017.
"Forces of Nature: The Media Universe Moves at the Pace of Technological Change. Nielsen, 5 Jan. 2016. Web. 30 Jan. 2017.
Kandell, Jonathan. "Netflix Is Creating a Cordless Nightmare for Traditional Media." Institutional Investor. N.p., 05 Oct. 2015. Web. 30 Jan. 2017.
Roxborough, Scott and Georg Szalai. "Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon," The Hollywood Reporter 28 Dec. 2016. Web.
Traditional media corporations have adapted to the way people consume media because they have allowed themselves to stay relevant by being apart of the user experience. Time Warner owns many different stations but one for example is CNN. CNN is no longer just a news station like it originally was. Now people can access CNN by desktops, on their website. The website is divided into different categories in order for users to have easy access to the information that they are particularly interested in. CNN has also adapted to its users by having a live feature on their website. This is a great tactic to reach more people because it is convenient for the people that want to watch the news but do not have access to cable to do so. CNN also has an app so that users can access the same information that is on their website on mobile apps which makes it easy for consumers to take in the news conveniently whether it be during their commute or waiting for an appointment. Lastly, CNN sends push notifications to desktops, tablets, and smartphone devices which allows users to be disrupted if they are interested in the content they are providing. CNN is just one example a media corporation has reached their consumers in the different ways that technology has allowed them to do. According to Neilson, 186 M people are accessing information on desktops and 176M are accessing through Smartphones. Neilson also reported that over 90% of adults listen to the radio. It makes sense that CNN has a radio station because it allows them to reach a large amount of people. These statistics show that as technology changes the media corporations have to think of what is next in order to stay relevant and keep people interested and consuming part of their corporation. CNN has turned from a news station to being everywhere the consumer is, which is why the network continues to be so relevant.
ReplyDeletePeople not only consume news, movies and television differently than before but now authors and publishing companies have created books in the vision of the media consumers. Who would have thought that you would be able to access a book differently than reading the paper version? Now large publishing companies like HarperCollins, publish content for Kindles, E-readers, tablets, smartphones and even PDF for a person to download onto their desktop. Instead of going out to a Barnes and Noble and browsing around for the book a consumer wants to purchase it is made so simply that they can go onto one of their devices and download so simply.
ReplyDeleteMost traditional media corporations have remained smart when it comes to thinking of the consumer and how they want to receive their media. Most media corporations have adapted to the mobile and social age, which has allowed them to remain successful and relevant. The media corporations that have not adapted or do not know how are the ones that struggle and become obsolete.
"Comparable Metrics Report Q2 October 2016." Nielsen October 2016. Web.
"Forces of Nature: The Media Universe Moves at the Pace of Technological
Change." Nielsen.com. Accessed 10 Jan. 2016. Web.
Young, Vicki M. "Traditional Media Adapting to Digital Trends Through
Acquisitions." WWD. 26 Mar. 2013. Web. 30 Jan. 2017.
Allison Sicbaldi continued:
ReplyDeleteIt will be interesting to see if other websites like Netflix and Sling start to stream more Television shows as to creating their own content.
These media conglomerates are also utilizing their own websites as well as apps to stream media. In a way, they are making consuming media easier by allowing you to access it in the palm of your hand. IPhone and Android apps have been created by many of the big media corporations which very much helped them adapt to the change in how audiences are consuming media. These apps are giving consumers easy access to media since consumers no longer have to be sitting watching the TV at a specific time, they are now able to take their favorite shows everywhere they go and even watch them on the go.
Works Cited
"Forces of Nature: The Media Universe Moves at the Pace of Technological Change."
Forces of Nature: The Media Universe Moves at the Pace of Technological Change. Nielsen, 5 Jan. 2016. Web. 29 Jan. 2017.
Roxborough, Scott, and Georg Szalai. "Why 2017 Will Be Crunch Year for the Global
Ambitions of Netflix and Amazon." The Hollywood Reporter. N.p., 28 Dec. 2016. Web. 29 Jan. 2017.
Sikka, Puneet. "TV Stacking Rights: Why Netflix's Loss in Hulu's Gain." Yahoo! News.
Yahoo!, 22 June 2015. Web. 29 Jan. 2017.
Traditional media corporations have moved from the media outlets that dominated the second half of the 20th century, as a response to changing consumer habits and preferences. As smartphones become more crucial in our daily lives, we begin to shift our attention to streaming rather than downloading. As reported by Nielsen’s Comparable Metrics Report, smartphones are the most often used media devices among adults, with averaging 6 days of the week. They are also spent on the second most time, falling behind TV. Such dependence on smartphones among consumers naturally prompts traditional media corporations to adjust their ways of reaching their business targets and communicating their material.
ReplyDeleteOne major media outlet that smartphones have introduced to us consumers is social media. Traditional media corporations like Time Warner, who owns CNN has had to adjust to this outlet by becoming prominent in Twitter, Instagram and Facebook. Hosts of CNN shows have also contributed to this adjustment by utilizing the outlets through their personal accounts, such as Van Jones, a known political consultant from CNN frequently going live on Facebook and commenting on recent developments in politics.
Smartphones have also had an impact on how consumers go about their daily lives. The instant gratification that social media and the smartphone technology grants consumers makes us less willing to follow set schedules. We are going from following TV guides to making our own guides, and this introduces the “On-Demand” concept. Without a doubt, Netflix has followed a successful business strategy in becoming the most prominent video streaming outlet. Traditional media corporations in Hollywood, such as 21st Century Fox, Universal, and Disney have adjusted to this trend by working with Netflix in lending their films to the streaming service. TV shows, on the other hand have really shifted from cable to streaming. As a Netflix spokesperson states they are, “… doing something that's never been done before … In doing so, we are disrupting traditional business models and creating new norms.” Which explains Netflix’s success. But the backlash that this unprecedented trend has created ultimately hurts Hollywood with Netflix becoming more and more powerful, and as a result, more demanding and frugal with producers and writers. According to Kim Masters of The Hollywood Reporter, this will ultimately result in lack of creativity and failure of studios in the long run.
Changing consumer preferences certainly drive Netflix and other media companies’ business strategies. “Most importantly, consumers and viewers like what we do, and we plan to keep doing it” explains the spokesperson at Netflix, which is more than enough to give us the general idea behind how influential consumer behavior is when it comes affecting traditional media corporations’ approaches to the media.
Works Cited
Delete"Comparable Metrics Report Q2 October 2016." Nielsen October 2016. Web.
Masters, Kim. "The Netflix Backlash – Why Hollywood Fears a Content Monopoly," The Hollywood Reporter 14 Sept. 2016. Web.
Carly Knowles
ReplyDeleteTraditional media corporations have ultimately been forced to adapt because there is always competition. The millennial generation is very demanding; expecting easy and convenient media at any given time. There is always a new show coming out and the way consumers choose to watch media changes as well, though online content seems to be the most popular choice. As stated in FORCES OF NATURE: THE MEDIA UNIVERSE MOVES AT THE PACE OF TECHNOLOGICAL CHANGE, “the rise in technology and TV-connected devices has given consumers, marketing agencies and advertisers a vehicle for boundless choice” (FORCES OF NATURE: THE MEDIA UNIVERSE MOVES AT THE PACE OF TECHNOLOGICAL CHANGE). Similarly, stated in Why Comcast Considers Stacking Rights as Important, “the convenience of accessing content anytime and anywhere has been one of the reasons that millennials are watching content online” (Pelts). Our generation is very fast-paced and techy savvy. Media preference varies for everyone; while adults working all day prefer to watch television at night, children between the ages of 10-16, might prefer to watch their shows earlier in the afternoon when they return home from school. As a result, it’s up to the media corporations to do their best in fulfilling the consumers needs.
Even though traditional media has evolved greatly, it still uses older mediums such as television, radio, newspaper and magazine ads. However, it has been forced to be reactive and proactive to the consumers needs. Our current media is faster and is usually consisted of online platforms such as online video, social networks, and online streaming (Traditional Media vs. New Media in Corporate Video). For example, Netflix and Hulu are well known networks that specialize in online streaming. The process of adding or dropping a new show is usually not a complicated negotiation, given studios will add a show they believe will be more successful versus a show that’s heading towards failure. However, this year there’s a new element that has made negotiations more complicated, and that is “in-season stacking rights.” These rights allow networks to stream all episodes of a series, including the current ones. Supposedly, ABC and NBC are in favor of pursuing in-season stacking rights on all new shows, but it’s difficult to tell whether this decision will be beneficial from a financial position (Andreeva). According to Chuck Satfler, president of program strategy and COO of FX Networks, “…networks need to have control of their content. To have a show like ‘The Americans’ and (consumers) can’t go back to the beginning of the season – that doesn’t make any sense” (Wallenstein).
Another example is the competition between Netflix and Amazon. Both of these companies benefit from the subscribers who pay a monthly fee for subscription video on demand (SVoD). Netflix has been dominant over Amazon because it’s international expansion has been successful; supporting 21 languages worldwide. Amazon Prime recently released its “full online video” service last December, but it’s still struggling to keep up. Ultimately, it’s each corporation’s decision on how they want to portray their business. The angle they choose to appeal to their customers is crucial and makes them different from their competitors. Netflix is trying to become a global channel brand, while Amazon has shown interest in sports rights and partnerships with third-party content providers. It’s all about keeping things interesting, but convenient for the consumers (Roxborough and Szalai).
I think media corporations are all trying to find their own niche. I could definitely see companies merging together within the next year or so in order to become something bigger because it’s always about competition and what the consumer wants.
Knowles cont. (Works Cited)
ReplyDeleteWorks Cited:
Andreeva, Nellie. "In-Season Stacking Rights — The New Upfront Battleground: Pilot Season 2016." Deadline. Deadline, 13 May 2016. Web. 31 Jan. 2017.
"Forces of Nature: The Media Universe Moves at the Pace of Technological Change." Forces of Nature: The Media Universe Moves at the Pace of Technological Change. Nielsen, 5 Jan. 2016. Web. 31 Jan. 2017.
Pelts, Shirley. "Why Comcast Considers Stacking Rights as Important." Why Comcast Considers Stacking Rights as Important - Market Realist. Market Realist, 8 Sept. 2016. Web. 31 Jan. 2017.
Roxborough, Scott, and Georg Szalai. "Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon." The Hollywood Reporter. The Hollywood Reporter, 28 Dec. 2016. Web. 31 Jan. 2017.
Https://www.facebook.com/Keywestvideo. "Traditional Media vs. New Media in Corporate Video." Corporate Video Blog. Key West Video Inc., 20 June 2016. Web. 31 Jan. 2017.
Wallenstein, Andrew. "In-Season ‘Stacking’ Rights: TV Biz Battles for Binge Viewing." Variety. Variety, 21 Oct. 2013. Web. 31 Jan. 2017.