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.
Tuesday, April 11, 2017
Media Trends, Question 1 (April 18th)
What do
you think is the most important trend that is cutting across all media industries
and having the biggest impact on both professionals and consumers? Limit:
12 responses
Throughout this semester, I have learned about all of the different media industries, the trends and our predictions for the future. I think the most important trend that is cutting across all media industries and having the biggest impact on both professionals and consumers is social media. If you think about it, you can find anything possible on social media. From movie reviews, to the latest world news, the sports scores from the weekend and photos of your favorite celebrities, it all appears over social media. I think this trend has really skyrocketed in the recent years when technology changed and improved, as well as the apps we use on a regular basis. These social mediums such as Instagram, Snapchat, Facebook and Twitter keep us in sync with what’s going on in the world, from celebrity news to regular world news. What is the first thing you do when you wake up in the morning? Most likely check your phone. We are now addicted to our cellphones and the social media apps on them. Adweek recently explained, “With the explosion of live content across Facebook, Instagram, Twitter and others, consumers are more connected to their friends and their own communities, but also to brands, celebrities and other social influencers” (Cohen). They explain how social media keeps us in the loop and connected with one another. But not only does it keep us connected with our friends and family, also our favorite celebrities.
Along these lines, the more popular social media becomes, the more companies will pay for social advertisements. Media Post recently reported, “By 2017, Instagram’s ad revenues will grow more than four times in size to reach $2.39 billion, according to recent estimates from eMarketer. By then, the mobile-first social network should represent nearly a third -- or 28% -- of Facebook’s total mobile ad revenues” (O’Malley). This is interesting to me because it means that Instagram and Facebook are in competition with one another. Obviously they are different, but they are two forms of social media that will continue to grow. And as for the amount of social media usage in our world, it is taking over our lives. The National recently published an article explaining the insane amount of time we spend on social media. “Viewing the world through the prism of social media causes you to pay selective attention. Instead of experiencing a parade, you photograph a particular dancer – missing all the others – and post it on Instagram. Instead of listening to a song and enjoying it, you listen to a few verses and share it on SoundCloud...” (Narayan). It is evident that people rely heavily on social media, and it will be interesting to see what happens to these social mediums in the coming years, and the apps that come out in the near future.
I think the most important trend that is cutting across all media industries and having the biggest impact on both professionals and consumers is the Internet, or more specifically the shift in how consumers consume media using the Internet. Since “The rise in technology and TV-connected devices has given consumers, marketing agencies and advertisers a vehicle for boundless choice” (“Forces of Nature”), the way we consume media is different then ever before. For example, when it comes to television, “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”). More and more people are moving towards streaming sites such a Netflix, Hulu, and Amazon, not only to watch current and past television shows that originally aired on TV, but also for their increasing original content. Most people don’t have time to watch a show when it airs live or they don’t want to deal with commercials or they like to binge watch, so they are moving more towards online streaming to watch shows how and when they want to watch them, thus hugely impacting the television industry. However, this trend is not only effecting television, it is effecting all media industries. For news and magazines, more people are switching to online subscriptions, using their phones, or going to social media to get their fix. In 2015, print and digital editions of magazines saw a 6% decrease in audiences from 2014 (“Magazine Media Factbook”). However, mobile web saw an 8% growth in the same year (“Magazine Media Factbook”). Magazines are great at utilizing the popularity of social media too, showing growth in likes and followers on Facebook, Twitter, Google+, Instagram, and Pinterest during the third quarter last year (“Magazine Media 360”). Newspapers and magazines are seeing this trend towards the Internet and social media to get news and are utilizing this change in media consumption to stay relevant and alive.
The shift in how consumers consume media using the Internet is also impacting the music industry. A lot of people disliked paying so much for music, so they would download it illegally on the Internet so they didn’t have to pay. People saw and understood this was happening, and streaming sites have started becoming more and more popular over the years as a cheaper alternative to listen to music. In fact, “80% of music listeners used an online streaming service in the last 12 months” (Nielsen Music 360). This is an increase from 75% in 2015 (Nielsen Music 360). As for sports media, while traditional TV will most likely always be needed, streaming and social media are getting in on the action now as well to compensate for declining viewership. For example, on the streaming side, “Disney is paying $1 billion for a 33% stake in Major League Baseball’s BAMTech streaming-media unit, and with the investment ESPN is planning to launch a new “multi-sport” subscription streaming service” (“ESPN to Launch”). For social media, Twitter has a deal with the MLB for live-streaming rights to one baseball game per week and Facebook is now trying to get in on the action as well (“Facebook Wants MBL”).
And last but not least: the film industry. Less and less people are going to the movie theaters. And more and more people want to be able to just sit in their homes and watch their movies how, when and where they want to watch them. We are all about convenience these days. And with streaming services such as Netflix and Amazon getting into the film production business, we are getting this convenience from them. As Galloway put it, “the upstarts aren’t just going to siphon away the biggest and best projects, they’re going to release them in the biggest and best ways, too. They are financial and artistic behemoths – and they understand the future better than any of the great Hollywood institutions that remain rooted in the past” (Galloway). Amazon has even been releasing films into theaters and for potential Oscar-nominated films, “there were 15 movies in the package and none of them came from the usual suspects. All were being released by one company: Amazon” (Galloway). So the Internet and more specifically streaming services have definitely been hugely impacting the film industry. In fact, all media industries have been strongly impacted by consumers increasing use of the Internet to get all their media fixes in one prime location that’s fast, easy, convenient and mobile. And this change is the most important trend that is cutting across all media industries and having the biggest impact on both professionals and consumers because media professionals have had to make changes and adapt to this new trend while consumers are taking advantage of the changes as well as instigating them through their media usage.
Works Cited: “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. Galloway, Stephen. "Challenges From Amazon and Netflix Signal the End of the Studio System." The Hollywood Reporter 1 Aug. 2016. Web. "Magazine Media 360 Social Media Report Q3 2016." MPA: The Association for Magazine Media. Accessed 20 Feb. 2017. Web. "Magazine Media Factbook 2016-17." MPA: The Association of Magazine Media. Accessed 20 Feb. 2017. Web. “Nielsen Music 360 2016 Highlight Report.” Nielsen January 2017. Web. Spangler, Todd. “ESPN to Launch Over-the-Top Sports Service After Disney’s $1 Billion Investment in MLB’s BAMTech.” Variety 09, Aug. 2016. Spangler, Todd. “Facebook Wants MLB Live-Streaming Rights, Which Twitter Already Has for 2017 Season.” Variety 22 Feb. 2017.
In my opinion the most important trend that is cutting across all media industries and having the biggest impact on both professionals and consumers is the shift from traditional mediums to the digital space. One such area of entertainment where the digital world is having a major impact is in broadcast and cable television because they are struggling with attracting and keeping viewers because of the many SVOD platforms that are offered on the market, which viewers find much more appealing than traditional television. According to Jason Lynch from Adweek, “Audiences are watching more TV than ever—a recent Nielsen study showed that U.S. adults consume an entire hour more of media per day than they did last year, and that SVOD penetration (those with access to streaming services like Netflix and Hulu) is about to surpass DVR penetration in U.S. households” (Lynch). Traditional television is dying… that is just a fact. Not only is this having a major impact on professionals in the TV industry, but it’s having an impact on consumers as well. 5 years from now, consumers could be consuming media strictly through SVOD platforms such as Netflix or Amazon because they have access to every episode of a television show instantly. Being able to view all episodes of a season is called stacking rights and Although, more networks are pushing for stacking rights according to a survey done by Alan Wurtzel where he found that, “Viewers are more willing to embrace these new technologies, but they are being more discerning about which shows they watch. Seventy-five percent of those surveyed by Wurtzel's team said they'd watch more TV if full-season stacking, or the ability to watch all previous episodes from a show's current season, were available. While only the previous five episodes of a show are usually available to stream via VOD or digitally, more networks have been pushing for stacking rights in their negotiations with studios” (Lynch). Maybe stacking rights is an avenue that networks need to go down to say afloat.
Another area of media where the digital world is having a major impact is in the film industry. Old school Hollywood is dying and the studio system is slowly on its way out because of the growth of SVOD platforms such as Netflix and Amazon who constantly are producing original content for their streaming service. Stephen Galloway from the Hollywood Reporter “met with a handful of publicists who’d dropped by THR’s offices to talk about the upcoming awards season. The thought of planning for the next Oscars in mid-July was as depressing to me as it must have been to them. But I sat as they unveiled a slate of movies including Woody Allen’s Café Society, the Kate Winslet-starrer The Dressmaker and the Matt Damon-produced Manchester By the Sea. These were all solid films (and may even include a few genuine contenders), but what struck me more than their quality was their quantity. There were 15 movies in the package and none of them came from the usual suspects — Fox Searchlight, Focus Features, etc. All were being released by one company: Amazon” (Galloway). The point is that Amazon has the cash flow to push one of their productions directly into theater without the backing of a major studio. Netflix is starting to enter the film market as well just like Amazon and “In all likelihood, Amazon and Netflix’s fiercest digital competitors will also throw their hats in the mix. It can’t be long before China’s Wanda and Alibaba enter the fray; can Google and Facebook be far behind” (Galloway)? I’ve been saying this all semester, entertainment is going digital and there is no way to slow that change down. This is due to the fact that these digital giants like Amazon and Netflix have the money to enter a market and do well, especially when it comes to TV and Film. Throwing money into an original production costs nothing to them and what’s crazy is that they know they are putting out quality content as they are more accepting of a well written story compared to the studio system where big blockbusters are preferred.
Works Cited
Lynch, Jason. "Advertisers Beware: Audiences Are Taking Longer Than Ever to Watch TV Shows." – Adweek. N.p., 2 Aug. 2016. Web. 13 Feb. 2017. .
Galloway, Stephen. "Galloway on Film: Challenges From Amazon and Netflix Signal the End of the Studio System." The Hollywood Reporter. N.p., 01 Aug. 2016. Web. 17 Apr. 2017.
The most important trend that is cutting across all media industries and having the biggest impact on both professionals and consumers is millennials’ media habits. We spoke as a class early on in the semester about the changes that millennials make to the work place. They are changing both the professional side, and the consumer side.
There are so many differences between me and my father. From our dreams and goals, to hours worked, to appropriate time to eat, drink and sleep. There are so many. In the Doig household, this creates a lot of drama. In a media sense, industries are needing to change the way they are producing media for my generation because it is so different and unpredictable. Nielsen states, “Millennials’ don’t have a uniform media palate. Their lives are in rapid transition as they finish their educations, join the workforce, move into their own homes and start families. And how they connect and what they connect with follows suit”. (Neilsen) We are confident, achievement orientated, creative, digital, restless and subjective, to name a few.
One of the main reasons that I choose Millennials as my answer for this question is because each blog could have been turned into a millennial argument. Each transition made, from paper to electronic, from hard copy to digital, from long script to tweet, each movement could be argued is powered through the millennials’ desires.
Firstly, from a professional side. Millennials should be taking over all media positions from CEO to a regular employee. They are efficient, tech savvy and ultimately, they understand what their fellow millennials consume. Unfortunately, businesses are unsure about this generation and are reluctant to offer them positions. Cam Marston believes that the reason is because business leaders judge this new generation to have, “too much entitlement, not enough loyalty, no work ethic, only interested in themselves, and on and on”. These myths are not stopping millennials from finding jobs, but are certainly hindering chances. With time, I hope to see a consistant change in the landscape of professional media employees. With many changes to the way we consume, we need people to keep up with the changes and offer some new efficient skills. Millennials are, “flexibilty and respect for the individual, as well as the organization, are good for everyone. Loyalty from younger employees, once earned, is long-lasting. The adjustments you make to accommodate the changing attitudes of today's youth will be returned to you tenfold with decreased turnover, improved morale, and measurable business results” (Marston). After all, millennials know what millennials want to consume.
Next, from a consumer standpoint. The way we are now consuming media has changed enormously over the past decade. We are now able to consume media without a DVD player and CD. Neilsen displays, “In regard to technology ownership (penetration), 78% of On Their Own Millennials have subscription-based video on demand (SVOD) services (such as Netflix and Hulu), which is 14 percentage points higher than Dependent Adults (64%) and 20 percentage points higher than Starting a Family Millennials (58%)”. (Neilsen) Millennials are driving the need for technological changes. Millennials as noted, have the highest subscription of SVOD services. Finally, this group is breaking the traditional of a formal trustworthy newspaper, for quick short updates throughout a debatably credible social media platform.
Millennials, if not directly, have been a part of discussion throughout this semester. We are what is driving the SVOD services like Netflix and HULU, driving the updates in consumption of music outlets like Apple Music and Spotify, and lastly what is changing the picture of what a media professional is.
Citations. Marston, Cam. "Myths About Millennials: Understand the Myths to Retain Millennials." About.com. Accessed Jan. 3, 2014. Web.
"Insights ." Facts Of Life: As They Move Through Life Stages, Millennials' Media Habits Are Different and Distinct. Nielsen, 24 Mar. 2016. Web. 17 Apr. 2017.
"Millennials vs. Baby Boomers - Who Would You Rather Hire?" Time 29 March 2012. Web.
Throughout the semester we have learned about all different forms of media and specific media trends that are impacting both professionals and consumers. The most important media trend in my opinion, is the advancement and rapid growth of subscription video on-demand services (SVOD.) In the past winter, Netflix and Amazon took its online streaming service everywhere and expanded into many new countries (Roxborough and Szalai.) Netflix and Amazon have been growing exponentially and affecting the cable industry left and right. According to IHS a research group based out of London, Amazon Prime is expected to hit 64 million subscribers by 2020, which is more than double the 30.5 million that it has today. Netflix, which hit 86 million subscribers as of the third quarter this year, should expect to see that number go over 130 million subscribers by 2020 (Roxborough and Szalai.) These on-demand services are not only competing with traditional cable and over-the-air services, but Netflix for example is trying to become their own premium channel brand. Majority of the success from Netflix recently has been because of their original shows such as, House of Cards, Stranger Things, Orange is the New Black, and newly released 13 Reasons Why. The demographic that is known as millenials has been highly attracted to on-demand services because of the binge watching factor. The way it used to be, people would have to wait a full week to find out what happens in the new episode of a show, but now with on-demand, we can watch multiple episodes in a row. Although SVOD’s may be scaring the cable companies, NBC ratings experts refute this claim. Symphony Advanced Media measures the average audience in the 18-49 demographic for each episode within 35 days of a new Netflix series premier between September and December. They found that Jessica Jones averaged 4.8 million viewers in demographic, which is comparable to How to Get Away with Murder and Modern Family (Lynch.) Alan Wurtzel, president of research and media development for NBCUniversal says that most viewers of those SVOD shows return to their old viewing habits by the third week. The cable companies argue that Netflix uses you for the money up front because they believe that there isn’t enough content on Netflix for subscribers to stay interested. One reason I chose SVOD services as the most impactful media trend is specifically because the ratings numbers for Netflix. Netflix added more subscribers during the fourth quarter last year than any other quarter in its history. The company grew its subscriber base by 7.05 million during this period, which brought its total to 93.8 million (Jarvey.) When it comes to competition, no other streaming service has numbers like Netflix and this will push the other companies to want their services to compete highly with Netlifx. HBO is said to be releasing more binge watching shows where they will release more seasons at once. Although I do not think standard cable will ever go away, the numbers will continue to rise for streaming services as long as more original content is produced.
Szalai, Scott RoxboroughGeorg. "Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon." The Hollywood Reporter. N.p., 28 Dec. 2016. Web. 17 Apr. 2017.
Jarvey, Natalie. "Netflix Reports Its Strongest Subscriber Growth in History." The Hollywood Reporter. N.p., 18 Jan. 2017. Web. 17 Apr. 2017.
I would say that the most prominent trend that is cutting across media industries lies in the change of consumption. In this technological age, more and more people, especially Millennials, want greater choice in when they consume media and how they consume media. The best example of this is with the rise of SVOD platforms and, consequently, the decline in traditional television. Broadcasting and cable networks have had to work harder in order to attract new viewers and keep existing ones. The growth in SVOD options like Hulu and Netflix have changed the industry. Jason Lynch wrote in Adweek, “Audiences are watching more TV than ever—a recent Nielsen study showed that U.S. adults consume an entire hour more of media per day than they did last year, and that SVOD penetration (those with access to streaming services like Netflix and Hulu) is about to surpass DVR penetration in U.S. households” (Lynch). Moreover, in 2016 Netflix topped all five broadcast networks, like CBS and ABC, with a total of 43 originals. Netflix originals like The Crown and Stranger Things have done a great job to attract new consumers. I expect in a few years for the TV industry to have moved more towards fully streaming since that is the current mean for consumption. At the moment broadcasting networks are holding up in competition, but with popularity growing in SVOD services this might be the only option left for traditional TV networks.
Even magazines, which usually take a few days to arrive in the mail, can be downloaded digitally in seconds. Digital editions of magazines have allowed consumers to access and read content across a range of devices and channels at their own pace. The total number of adults who read digital edition magazines has grown rapidly since 2011. (Magazine Media Factbook 2016/17) However, consumers are increasingly seeking free content for news and entertainment, resulting in a decline of magazine subscriptions over the years.
The last example is the increase of streaming in the music industry. Consumers do not buy CDs anymore and prefer to stream music on platforms like Spotify and Apple Music. In fact, music streaming has passed the milestone of 100 million paying subscribers worldwide and paid streaming subscribers brought in $1.01 billion in the first half of 2016, which was more than double the $478.6 million for the same period in 2015 (Levine).
From television to magazines, many types of media have noticed consumers switching to entertainment in the digital space. I myself prefer to watch content through YouTube instead of traditional television programming. Millenials especially want more choice when it comes to how they consumer media and when they consume media. Convenience seems to be the utmost priority for consumers nowadays, and streaming and digital content meet that need.
Levine, Robert. "Is the Record Business Really Back? How Streaming Is (And Isn't) Turning a Profit." Billboard. N.p., n.d. Web. 28 Mar. 2017. Lynch, Jason. "Advertisers Beware: Audiences Are Taking Longer Than Ever to Watch TV Shows." – Adweek. Adweek, 2 Aug. 2016. Web. 10 Feb. 2017 Goldberg, Lesley. "500 Scripted Shows?! How Netflix, Amazon Are Sending Originals to All-Time Highs." The Hollywood Reporter. N.p., 5 Jan. 2015. Web. 10 Feb. 2017. "Magazine Media Factbook 2016-17." MPA: The Association of Magazine Media. Accessed 20 Feb. 2017. Web.
Throughout the semester I have noticed a trend in the popularity of streaming across all platforms. Consumers are streaming music, television shows and movies from a multitude of devices and services. The ability to stream media and have it at your fingertips has made consuming media even more convenient for our generation. In the music industry, Spotify, Pandora and Apple Music seem to be the top choices for music streaming services. “Streaming led the U.S. music industry to its first back-to-back yearly growth this millennium and in the first half of 2016 was the single highest source of revenue in the U.S. recorded-music industry,” thus streaming has not only connected more consumers to content, but it also brought in some money for the industry itself (Rys, Dan). According to Billboard, Spotify and Apple Music added over 20 million subscribers in 2016. One could say that the convenience of being able to have any song in the palm of your hand might be the reason streaming has been so successful in the music industry. Tin Westergren, founder and CEO of Pandora said, “every day tens of millions of people trust us to choose the exact right song for them. That’s why they spend more time with Pandora than any other music service” (Enter Pandora). In a way, he is saying that consumers are more likely to stream over buying music and making their own playlists. Lately, the trend in the music industry has been towards getting all the music you could possibly want in a fast, convenient and cheap way, which is why streaming has been so successful.
The same can also be said for the television and film industry. Currently, the streaming service Netflix is by far the leader when it comes to streaming in the film and television industry. Hulu, Amazon and Sling have stepped up their games in a hope to compete with Netflix’s success. “Hulu struck a deal with Time Warner’s Turner Broadcasting System to show Adult Swim original series such as Rick and Morty and Black Jesus and Cartoon Network’s The Amazing World of Gumball and Steven Universe,” this deal on top of their deal with Fox for their show Empire has made Hulu a stronger contender in the streaming world (Sikka, Puneet). “It’s becoming an internet TV world, which presents both challenges and opportunities for Netflix as we strive to earn screen time,” showing that the world is very dedicated to the world of streaming (Jarvey, Natalie). The ability to “binge watch” season after season of a show has not only made consuming content very easy, but it has also made catching up on a series even easier since Netflix tends to have everything from the first season to the last episode of the show’s most recent season. Streaming seems to transcend across all media industries. Consumers are enjoying how streaming makes most content easily accessible as well as portable. They are no longer tied to their television sets or CDs, instead they can continue on with their days without having to leave their media behind. I can see streaming having a larger impact on the industry once all of these streaming services start turning in large profits.
Over the course of the semester we have looked at multiple industries that are affected by the same trend, streaming. Although streaming has done a good job at bringing consumers on demand entertainment to the convenience of their own home, it has left professionals scrambling in an attempt to adapt to the new trend. Streaming is pushing business and individuals from traditional media into a digital space whether they like it or not. The streaming trend is best exemplified by how it has changed the television/film industry and how it has changed the music industry. First, we need to point out the major players in the game. As far as television goes, Netflix, Hulu, and Amazon dominate the internet television streaming space whereas Spotify and Apple Music are the two musical streaming contenders. Netflix was the first streaming providers to make waves in the traditional television industry. One Hollywood agent said, "Out of the blue Netflix comes into the market and says, ‘We're going to give you a number [to license a network show].’ For the studios, it was, 'Holy shit. Do we even need a cable sale?' They all got addicted to crack” (Masters). Since Netflix was able to acquire over 80 million global subscribers and start putting pressure on studios and cable providers, the television industry was forced to change its traditional ways. Streaming even brought about new issues like stacking rights and ways to deliver old content to new consumers such as content viewed on the long tail. Regardless, television streaming including SVOD and OTT have impacted professionals by introducing new ideas and has impacted consumers by bringing a brand new way to consume media right to the tips of their fingers in the comfort of their own home.
Spotify and Apple Music, among other services, has totally changed the game when looking at the music industry. They have changed so much that the way awards are given to artists has been reconsidered to the point where there is now a conversion, similar to an exchange rate, from things such as how many streams constitutes an album sale. Streaming has been overall beneficial to the music industry, though. According to Nielsen Music, 2016 became the first time ¬streaming overtook sales as the music industry's dominant model, accounting for 51.3 percent of album consumption and besting physical and downloads combined (Rys). Streaming has also brought an affordable yet vastly large library of music to people who would normally be illegally downloading their music for free. Needless to say, the music industry is finally looking up now that Spotify and Apple Music have transferred music pirates into a combined 60 million paid subscribers in the United States. For better or for worse, streaming is the new norm for today’s media consumers, especially people from the millennial generation. Streaming has had the biggest impact on both professionals and consumers, so much so that the streaming trend does not seem to be only a trend. Rather, it looks like streaming is here to stay and it will continue to dip itself into every industry imaginable. Works Cited Masters, Kim. "The Netflix Backlash: Why Hollywood Fears a Content Monopoly." The Hollywood Reporter. N.p., 14 Sept. 2016. Web. 18 Apr. 2017. Rys, Dan. "2017 Streaming Wars: Will Spotify, Apple Music or Amazon Dominate?" Billboard. N.p., 6 Jan. 2017. Web. 18 Apr. 2017.
I believe you would be hard pressed to find a trend more relevant in today’s society than that of digital consumption, in any industry. All semester we’ve been discussing the various ways in which traditional industries can remain alive while competing with the now prevalent digital this, that, and the other. When we were talking about the Super Bowl in week 3, one of the points that came across in many of the articles was how the event itself is losing its luster in the eyes of advertisers. Sure, you’ll still see plenty of companies advertising, but think about how the quality has declined in recent years. If you need further proof of how pervasive this trend is, consider the implications that Netflix (!!) bought ad time to premiere the trailer for the second season of Stranger Things. This was the first instance something like this has ever been done before, and a great example of how traditional means are no longer enough. One reporter summed it up well when he said, “Television advertising continues to be an important part, but on its own it’s not enough anymore” (Maheshwari 2017). If you stop and think for a moment, the fact that a monolithic event such as the Super Bowl (of all sporting events) has been impacted by the shift in consumer habits to digital media, I truly believe that speaks to how significant this trend is.
Continuing with this idea, looking at Netflix as a whole is another prime example of where this trend has shown up. Netflix as its own concept is enough of an example, because I would argue ten to fifteen years ago no one would have ever imagined they would be watching television or movies, on demand, streamed through the internet. Aside from that, I think Netflix also provides insight as to how professionals have been forced to adapt to try to keep their competitive edge. Producers of traditional television shows, ones that might appear on Netflix after their season finale airs live, have now resorted to less traditional means to draw in viewers when the show is still in season. I’m talking about stacking rights. We know some consumers have shifted towards the Netflix “binge” viewing habit, where they prefer to wait until they can view the entire season, but now we see this idea being picked up with traditional TV executives. NBC Chairman Bob Greenblatt described this tactic as being, “…the future of our business; stacking is important to us. It is the order of the day” (Andreeva 2016). Execs know what consumers are looking for today, and it’s simply a sign of the times that they are choosing to adapt their offerings to fit the trends.
By no means is this trend limited to television either. I could keep going with examples of this in the film, music, and even sports industry. It simply reaches across the spectrum and into all aspects of consumers’ lives. I believe one of the things that makes it as effective and lasting as it has been thus far, is the fact that it impacts both consumers (who are driving the trend in a way) and the professionals (who have little to no choice but to adapt and adopt to stay alive). Some trends gain popularity quickly because they are much adored by the consumers, but fail to gain purchase long term because professionals do not believe it will last. In this instance, professionals have realized that this trend is one that’s here to stay and have been forced (or perhaps willingly) to make the changes that have allowed them to continue their success.
Andreeva, Nellie. “Network Ownership & In-Season Stacking Rights Rule 2016 Upfronts”. Deadline 19 May 2016. Web.
Maheshwari, Sapna. “$5 Million for a Super Bowl Ad. Another Million or More to Market the Ad.” New York Times, 29 Jan. 2017. Web.
I think that the biggest trend that has been on the rise for the past several years is streaming, and it doesn’t look like it will go away anytime soon. We see streaming cutting across all media outlets and industries, whether it is with music, TV shows or films. Streaming online really alters media industries because it changes the way we consume media. It creates concepts like the long tail and cord-cutting, and it compels advertisers to find different ways to reach consumers. Streaming services are dominating the industry, with Netflix reaching over 94 million subscribers in January. (Jarvey) While there may be several reasons for why consumers switch off their cables and turn to streaming, one factor that repeatedly reminds itself is convenience. With the fast-evolving technology and excellence of tech companies like Apple mastering the art of personalization towards consumers, people don’t want to adjust their schedules according to the TV guide anymore. Streaming services like Netflix, Hulu, Amazon Prime and HBO Go grant consumers the crucial aspect of convenience, which is hard to walk away from once tried. We see that streaming is prominent among young adults and millennials, and that older audiences tend to stick with their traditional media sources. This is very difficult to change but I think that more and more consumers from different backgrounds also start noticing the benefits of streaming and possibly starting to use both outlets according to Nielsen. Streaming has also revolutionized the music industry, allowing it to turn profits for the first time in almost a decade. It has granted consumers a perfect balance between convenience and legitimacy. It is as easy as downloading music from Limewire or converting YouTube into mp3, but for a reasonable fee, it adds legality into the process and gives consumers a sense of morality when they know they are contributing to the artists for their work. Many people choose streaming not only because of this, but also because it is incredibly convenient to have billions of songs just a click away, and not have them take up any disk space. Before streaming, songs had to be downloaded which was a major inconvenience for consumers. Another aspect that streaming services like Spotify, Apple Music or Pandora bring their consumers is quality. Overall, I think that streaming has been the perfect fit for consumers’ need for convenience, quality and customization in the 21st century. It has dramatically influenced various industries, and forced them to change their methods; but this ultimately worked in favor of consumers. I think that the streaming model has been very successful and as long as companies take the right measures to fit into this model, they will succeed in being sustainable and prosperous.
I think the most important trend has been the popularity and growth of streaming services; for both music and film industries. As we have talked about it in class, we know the music industry has seen an immense growth in revenue since apple music and streaming services have become popular. Spotify recently just acquired 50 million paid subscribers while Apple music has 30 million. According to Billboard, Sony, Warner and Universal attained double-digit percent boosts in earnings in the past year, and that was all from the new trend of streaming services. In the music industry situation, it benefits the artists just as much as the users. The users are able to subscribe to a service and attain unlimited amounts of music. As for the artists, they are starting to get paid for what they deserve. Streaming services also adds more competition and opportunity for artists. For the film and television industry, streaming services, like Netflix and Amazon, have taken advantage of making and distributing scripted originals. This has been a major change and important trend popularized by streaming services. This trend has started to benefit and please the demands of the consumers, not the professionals. I feel like this is important though because they have found a way to attract more of a diverse audience. As streaming services have benefited consumers it has also hurt traditional television. So we are starting to see a shift in companies and professionals as the demands of the consumers change. Netflix and SVOD outlets have put broadcast TV on their heels. John Lynch of NBC states, “Amazon's Man in the High Castle, which that company said was its most-watched original series ever, had 2.1 million viewers.” Steaming services has given consumers more freedom and control over what they watch and how they watch it. Contrary to this, it limits professionals to more competition throughout the film and music industries.
Gensler, Andy. "Spotify Officially Hits 50 Million Paid Subscribers." Billboard. N.p., 02 Mar. 2017. Web. 18 Apr. 2017.
Throughout the semester we have studied various trends in our current media industry. I feel that there has been one underlying theme in these trends we have touched upon throughout the semester. I think the most important media trend of late is the switch from the more traditional platforms to digital. This has affected all aspects of media; how it is viewed, created, studied, etc. Much of our class this semester has had roots in this switch, whether discussing the importance of social media or streaming video on demand services (SVOD), we have touched upon much of the digital world. Many people are cutting the cord and switching to only streaming services, “according to Richard Cooper, a research director at London-based group IHS Markit, both Amazon and Netflix should expect strong double-digit growth in the coming years,” (Roxborough and Szalai). This large increase in SVOD subscribers and users effects not only television, but advertising as well. The increase in social media usage has also affected ads and how the television and film industries go about their business.
Consumers are watching a lot of TV lately and, in the past, this would be a great thing for the industry, but the majority of this viewing is being done through SVOD services, “a recent Nielsen study showed that U.S. adults consume an entire hour more of media per day than they did last year, and that SVOD penetration (those with access to streaming services like Netflix and Hulu) is about to surpass DVR penetration in U.S. households” (Lynch). Ad sales are based off the number of viewers within three or seven days of an episode premiering. Because of the switch, audiences are changing the way in which they watch TV, “Audiences are taking their sweet old time when it comes to watching these shows,” (Lynch). This trend is clearly affecting many aspects of the television industry. Many may say this trend is cause a slow death of the television industry, but I see it merely as a transition period.
The increase in digital media usage is also affecting the film industry. The increase in SVOD services is giving companies like Amazon and Netflix the ability to produce original movie content and this content they have produced is of no ordinary quality being nominated for Academy Awards. These companies are definitely a threat to the traditional film industry, “Amazon’s entry in the film business is still relatively small-scale…But the company is just dipping its toes in an industry it knows little about. It has the personnel, the deep pockets and the sheer chutzpah to make its investment much, much bigger. And it will,” (Galloway).
Everything is going digital, especially the entertainment industry. This trend has affected the industry greatly and will continue to do so. Years from now, everyone may make the switch and the industry has so choice but to adjust to this trends, otherwise I don’t see it surviving
Lynch, Jason. "Advertisers Beware: Audiences Are Taking Longer Than Ever to Watch TV Shows." – Adweek. N.p., 2 Aug. 2016. Web. 13 Feb. 2017. .
Galloway, Stephen. "Galloway on Film: Challenges From Amazon and Netflix Signal the End of the Studio System." The Hollywood Reporter. N.p., 01 Aug. 2016. Web. 17 Apr. 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.
Blog #8
ReplyDeleteThroughout this semester, I have learned about all of the different media industries, the trends and our predictions for the future. I think the most important trend that is cutting across all media industries and having the biggest impact on both professionals and consumers is social media. If you think about it, you can find anything possible on social media. From movie reviews, to the latest world news, the sports scores from the weekend and photos of your favorite celebrities, it all appears over social media. I think this trend has really skyrocketed in the recent years when technology changed and improved, as well as the apps we use on a regular basis. These social mediums such as Instagram, Snapchat, Facebook and Twitter keep us in sync with what’s going on in the world, from celebrity news to regular world news. What is the first thing you do when you wake up in the morning? Most likely check your phone. We are now addicted to our cellphones and the social media apps on them. Adweek recently explained, “With the explosion of live content across Facebook, Instagram, Twitter and others, consumers are more connected to their friends and their own communities, but also to brands, celebrities and other social influencers” (Cohen). They explain how social media keeps us in the loop and connected with one another. But not only does it keep us connected with our friends and family, also our favorite celebrities.
Along these lines, the more popular social media becomes, the more companies will pay for social advertisements. Media Post recently reported, “By 2017, Instagram’s ad revenues will grow more than four times in size to reach $2.39 billion, according to recent estimates from eMarketer. By then, the mobile-first social network should represent nearly a third -- or 28% -- of Facebook’s total mobile ad revenues” (O’Malley). This is interesting to me because it means that Instagram and Facebook are in competition with one another. Obviously they are different, but they are two forms of social media that will continue to grow. And as for the amount of social media usage in our world, it is taking over our lives. The National recently published an article explaining the insane amount of time we spend on social media. “Viewing the world through the prism of social media causes you to pay selective attention. Instead of experiencing a parade, you photograph a particular dancer – missing all the others – and post it on Instagram. Instead of listening to a song and enjoying it, you listen to a few verses and share it on SoundCloud...” (Narayan). It is evident that people rely heavily on social media, and it will be interesting to see what happens to these social mediums in the coming years, and the apps that come out in the near future.
DeleteWorks Cited
Cohen, David. "Here." – Adweek. Adweek, n.d. Web. 17 Apr. 2017.
Narayan, Shoba. "Is Social Media Taking over Your Life? There’s an App for That." The National. N.p., 05 Nov. 2013. Web. 17 Apr. 2017.
O'Malley, Gavin. "Instagram Ups Ad Time For Brands." 02/05/2016. N.p., 4 Feb. 2016. Web. 17 Apr. 2017.
I think the most important trend that is cutting across all media industries and having the biggest impact on both professionals and consumers is the Internet, or more specifically the shift in how consumers consume media using the Internet. Since “The rise in technology and TV-connected devices has given consumers, marketing agencies and advertisers a vehicle for boundless choice” (“Forces of Nature”), the way we consume media is different then ever before. For example, when it comes to television, “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”). More and more people are moving towards streaming sites such a Netflix, Hulu, and Amazon, not only to watch current and past television shows that originally aired on TV, but also for their increasing original content. Most people don’t have time to watch a show when it airs live or they don’t want to deal with commercials or they like to binge watch, so they are moving more towards online streaming to watch shows how and when they want to watch them, thus hugely impacting the television industry. However, this trend is not only effecting television, it is effecting all media industries. For news and magazines, more people are switching to online subscriptions, using their phones, or going to social media to get their fix. In 2015, print and digital editions of magazines saw a 6% decrease in audiences from 2014 (“Magazine Media Factbook”). However, mobile web saw an 8% growth in the same year (“Magazine Media Factbook”). Magazines are great at utilizing the popularity of social media too, showing growth in likes and followers on Facebook, Twitter, Google+, Instagram, and Pinterest during the third quarter last year (“Magazine Media 360”). Newspapers and magazines are seeing this trend towards the Internet and social media to get news and are utilizing this change in media consumption to stay relevant and alive.
ReplyDeleteThe shift in how consumers consume media using the Internet is also impacting the music industry. A lot of people disliked paying so much for music, so they would download it illegally on the Internet so they didn’t have to pay. People saw and understood this was happening, and streaming sites have started becoming more and more popular over the years as a cheaper alternative to listen to music. In fact, “80% of music listeners used an online streaming service in the last 12 months” (Nielsen Music 360). This is an increase from 75% in 2015 (Nielsen Music 360). As for sports media, while traditional TV will most likely always be needed, streaming and social media are getting in on the action now as well to compensate for declining viewership. For example, on the streaming side, “Disney is paying $1 billion for a 33% stake in Major League Baseball’s BAMTech streaming-media unit, and with the investment ESPN is planning to launch a new “multi-sport” subscription streaming service” (“ESPN to Launch”). For social media, Twitter has a deal with the MLB for live-streaming rights to one baseball game per week and Facebook is now trying to get in on the action as well (“Facebook Wants MBL”).
DeleteAnd last but not least: the film industry. Less and less people are going to the movie theaters. And more and more people want to be able to just sit in their homes and watch their movies how, when and where they want to watch them. We are all about convenience these days. And with streaming services such as Netflix and Amazon getting into the film production business, we are getting this convenience from them. As Galloway put it, “the upstarts aren’t just going to siphon away the biggest and best projects, they’re going to release them in the biggest and best ways, too. They are financial and artistic behemoths – and they understand the future better than any of the great Hollywood institutions that remain rooted in the past” (Galloway). Amazon has even been releasing films into theaters and for potential Oscar-nominated films, “there were 15 movies in the package and none of them came from the usual suspects. All were being released by one company: Amazon” (Galloway). So the Internet and more specifically streaming services have definitely been hugely impacting the film industry. In fact, all media industries have been strongly impacted by consumers increasing use of the Internet to get all their media fixes in one prime location that’s fast, easy, convenient and mobile. And this change is the most important trend that is cutting across all media industries and having the biggest impact on both professionals and consumers because media professionals have had to make changes and adapt to this new trend while consumers are taking advantage of the changes as well as instigating them through their media usage.
DeleteWorks Cited:
Delete“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.
Galloway, Stephen. "Challenges From Amazon and Netflix Signal the End of the Studio System." The Hollywood Reporter 1 Aug. 2016. Web.
"Magazine Media 360 Social Media Report Q3 2016." MPA: The Association for Magazine Media. Accessed 20 Feb. 2017. Web.
"Magazine Media Factbook 2016-17." MPA: The Association of Magazine Media. Accessed 20 Feb. 2017. Web.
“Nielsen Music 360 2016 Highlight Report.” Nielsen January 2017. Web.
Spangler, Todd. “ESPN to Launch Over-the-Top Sports Service After Disney’s $1 Billion Investment in MLB’s BAMTech.” Variety 09, Aug. 2016.
Spangler, Todd. “Facebook Wants MLB Live-Streaming Rights, Which Twitter Already Has for 2017 Season.” Variety 22 Feb. 2017.
In my opinion the most important trend that is cutting across all media industries and having the biggest impact on both professionals and consumers is the shift from traditional mediums to the digital space. One such area of entertainment where the digital world is having a major impact is in broadcast and cable television because they are struggling with attracting and keeping viewers because of the many SVOD platforms that are offered on the market, which viewers find much more appealing than traditional television. According to Jason Lynch from Adweek, “Audiences are watching more TV than ever—a recent Nielsen study showed that U.S. adults consume an entire hour more of media per day than they did last year, and that SVOD penetration (those with access to streaming services like Netflix and Hulu) is about to surpass DVR penetration in U.S. households” (Lynch). Traditional television is dying… that is just a fact. Not only is this having a major impact on professionals in the TV industry, but it’s having an impact on consumers as well. 5 years from now, consumers could be consuming media strictly through SVOD platforms such as Netflix or Amazon because they have access to every episode of a television show instantly. Being able to view all episodes of a season is called stacking rights and Although, more networks are pushing for stacking rights according to a survey done by Alan Wurtzel where he found that, “Viewers are more willing to embrace these new technologies, but they are being more discerning about which shows they watch. Seventy-five percent of those surveyed by Wurtzel's team said they'd watch more TV if full-season stacking, or the ability to watch all previous episodes from a show's current season, were available. While only the previous five episodes of a show are usually available to stream via VOD or digitally, more networks have been pushing for stacking rights in their negotiations with studios” (Lynch). Maybe stacking rights is an avenue that networks need to go down to say afloat.
ReplyDeleteAnother area of media where the digital world is having a major impact is in the film industry. Old school Hollywood is dying and the studio system is slowly on its way out because of the growth of SVOD platforms such as Netflix and Amazon who constantly are producing original content for their streaming service. Stephen Galloway from the Hollywood Reporter “met with a handful of publicists who’d dropped by THR’s offices to talk about the upcoming awards season. The thought of planning for the next Oscars in mid-July was as depressing to me as it must have been to them. But I sat as they unveiled a slate of movies including Woody Allen’s Café Society, the Kate Winslet-starrer The Dressmaker and the Matt Damon-produced Manchester By the Sea. These were all solid films (and may even include a few genuine contenders), but what struck me more than their quality was their quantity. There were 15 movies in the package and none of them came from the usual suspects — Fox Searchlight, Focus Features, etc. All were being released by one company: Amazon” (Galloway). The point is that Amazon has the cash flow to push one of their productions directly into theater without the backing of a major studio. Netflix is starting to enter the film market as well just like Amazon and “In all likelihood, Amazon and Netflix’s fiercest digital competitors will also throw their hats in the mix. It can’t be long before China’s Wanda and Alibaba enter the fray; can Google and Facebook be far behind” (Galloway)?
ReplyDeleteI’ve been saying this all semester, entertainment is going digital and there is no way to slow that change down. This is due to the fact that these digital giants like Amazon and Netflix have the money to enter a market and do well, especially when it comes to TV and Film. Throwing money into an original production costs nothing to them and what’s crazy is that they know they are putting out quality content as they are more accepting of a well written story compared to the studio system where big blockbusters are preferred.
Works Cited
Lynch, Jason. "Advertisers Beware: Audiences Are Taking Longer Than Ever to Watch TV Shows." – Adweek. N.p., 2 Aug. 2016. Web. 13 Feb. 2017. .
Galloway, Stephen. "Galloway on Film: Challenges From Amazon and Netflix Signal the End of the Studio System." The Hollywood Reporter. N.p., 01 Aug. 2016. Web. 17 Apr. 2017.
The most important trend that is cutting across all media industries and having the biggest impact on both professionals and consumers is millennials’ media habits. We spoke as a class early on in the semester about the changes that millennials make to the work place. They are changing both the professional side, and the consumer side.
ReplyDeleteThere are so many differences between me and my father. From our dreams and goals, to hours worked, to appropriate time to eat, drink and sleep. There are so many. In the Doig household, this creates a lot of drama. In a media sense, industries are needing to change the way they are producing media for my generation because it is so different and unpredictable. Nielsen states, “Millennials’ don’t have a uniform media palate. Their lives are in rapid transition as they finish their educations, join the workforce, move into their own homes and start families. And how they connect and what they connect with follows suit”. (Neilsen) We are confident, achievement orientated, creative, digital, restless and subjective, to name a few.
One of the main reasons that I choose Millennials as my answer for this question is because each blog could have been turned into a millennial argument. Each transition made, from paper to electronic, from hard copy to digital, from long script to tweet, each movement could be argued is powered through the millennials’ desires.
DeleteFirstly, from a professional side. Millennials should be taking over all media positions from CEO to a regular employee. They are efficient, tech savvy and ultimately, they understand what their fellow millennials consume. Unfortunately, businesses are unsure about this generation and are reluctant to offer them positions. Cam Marston believes that the reason is because business leaders judge this new generation to have, “too much entitlement, not enough loyalty, no work ethic, only interested in themselves, and on and on”. These myths are not stopping millennials from finding jobs, but are certainly hindering chances. With time, I hope to see a consistant change in the landscape of professional media employees. With many changes to the way we consume, we need people to keep up with the changes and offer some new efficient skills. Millennials are, “flexibilty and respect for the individual, as well as the organization, are good for everyone. Loyalty from younger employees, once earned, is long-lasting. The adjustments you make to accommodate the changing attitudes of today's youth will be returned to you tenfold with decreased turnover, improved morale, and measurable business results” (Marston). After all, millennials know what millennials want to consume.
Next, from a consumer standpoint. The way we are now consuming media has changed enormously over the past decade. We are now able to consume media without a DVD player and CD. Neilsen displays, “In regard to technology ownership (penetration), 78% of On Their Own Millennials have subscription-based video on demand (SVOD) services (such as Netflix and Hulu), which is 14 percentage points higher than Dependent Adults (64%) and 20 percentage points higher than Starting a Family Millennials (58%)”. (Neilsen) Millennials are driving the need for technological changes. Millennials as noted, have the highest subscription of SVOD services. Finally, this group is breaking the traditional of a formal trustworthy newspaper, for quick short updates throughout a debatably credible social media platform.
DeleteMillennials, if not directly, have been a part of discussion throughout this semester. We are what is driving the SVOD services like Netflix and HULU, driving the updates in consumption of music outlets like Apple Music and Spotify, and lastly what is changing the picture of what a media professional is.
Citations.
DeleteMarston, Cam. "Myths About Millennials: Understand the Myths to Retain Millennials." About.com. Accessed Jan. 3, 2014. Web.
"Insights ." Facts Of Life: As They Move Through Life Stages, Millennials' Media Habits Are Different and Distinct. Nielsen, 24 Mar. 2016. Web. 17 Apr. 2017.
"Millennials vs. Baby Boomers - Who Would You Rather Hire?" Time 29 March 2012. Web.
Throughout the semester we have learned about all different forms of media and specific media trends that are impacting both professionals and consumers. The most important media trend in my opinion, is the advancement and rapid growth of subscription video on-demand services (SVOD.)
ReplyDeleteIn the past winter, Netflix and Amazon took its online streaming service everywhere and expanded into many new countries (Roxborough and Szalai.) Netflix and Amazon have been growing exponentially and affecting the cable industry left and right. According to IHS a research group based out of London, Amazon Prime is expected to hit 64 million subscribers by 2020, which is more than double the 30.5 million that it has today. Netflix, which hit 86 million subscribers as of the third quarter this year, should expect to see that number go over 130 million subscribers by 2020 (Roxborough and Szalai.) These on-demand services are not only competing with traditional cable and over-the-air services, but Netflix for example is trying to become their own premium channel brand. Majority of the success from Netflix recently has been because of their original shows such as, House of Cards, Stranger Things, Orange is the New Black, and newly released 13 Reasons Why. The demographic that is known as millenials has been highly attracted to on-demand services because of the binge watching factor. The way it used to be, people would have to wait a full week to find out what happens in the new episode of a show, but now with on-demand, we can watch multiple episodes in a row.
Although SVOD’s may be scaring the cable companies, NBC ratings experts refute this claim. Symphony Advanced Media measures the average audience in the 18-49 demographic for each episode within 35 days of a new Netflix series premier between September and December. They found that Jessica Jones averaged 4.8 million viewers in demographic, which is comparable to How to Get Away with Murder and Modern Family (Lynch.) Alan Wurtzel, president of research and media development for NBCUniversal says that most viewers of those SVOD shows return to their old viewing habits by the third week. The cable companies argue that Netflix uses you for the money up front because they believe that there isn’t enough content on Netflix for subscribers to stay interested.
One reason I chose SVOD services as the most impactful media trend is specifically because the ratings numbers for Netflix. Netflix added more subscribers during the fourth quarter last year than any other quarter in its history. The company grew its subscriber base by 7.05 million during this period, which brought its total to 93.8 million (Jarvey.) When it comes to competition, no other streaming service has numbers like Netflix and this will push the other companies to want their services to compete highly with Netlifx. HBO is said to be releasing more binge watching shows where they will release more seasons at once. Although I do not think standard cable will ever go away, the numbers will continue to rise for streaming services as long as more original content is produced.
Works Cited:
Lynch, Jason. "NBC Says Netflix Doesn't Yet Pose a 'Consistent' Threat to Broadcasters. Here's Why." – Adweek. N.p., 13 Jan. 2016. Web. 17 Apr. 2017.
Szalai, Scott RoxboroughGeorg. "Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon." The Hollywood Reporter. N.p., 28 Dec. 2016. Web. 17 Apr. 2017.
Jarvey, Natalie. "Netflix Reports Its Strongest Subscriber Growth in History." The Hollywood Reporter. N.p., 18 Jan. 2017. Web. 17 Apr. 2017.
I would say that the most prominent trend that is cutting across media industries lies in the change of consumption. In this technological age, more and more people, especially Millennials, want greater choice in when they consume media and how they consume media. The best example of this is with the rise of SVOD platforms and, consequently, the decline in traditional television. Broadcasting and cable networks have had to work harder in order to attract new viewers and keep existing ones. The growth in SVOD options like Hulu and Netflix have changed the industry. Jason Lynch wrote in Adweek, “Audiences are watching more TV than ever—a recent Nielsen study showed that U.S. adults consume an entire hour more of media per day than they did last year, and that SVOD penetration (those with access to streaming services like Netflix and Hulu) is about to surpass DVR penetration in U.S. households” (Lynch). Moreover, in 2016 Netflix topped all five broadcast networks, like CBS and ABC, with a total of 43 originals. Netflix originals like The Crown and Stranger Things have done a great job to attract new consumers. I expect in a few years for the TV industry to have moved more towards fully streaming since that is the current mean for consumption. At the moment broadcasting networks are holding up in competition, but with popularity growing in SVOD services this might be the only option left for traditional TV networks.
ReplyDeleteEven magazines, which usually take a few days to arrive in the mail, can be downloaded digitally in seconds. Digital editions of magazines have allowed consumers to access and read content across a range of devices and channels at their own pace. The total number of adults who read digital edition magazines has grown rapidly since 2011. (Magazine Media Factbook 2016/17) However, consumers are increasingly seeking free content for news and entertainment, resulting in a decline of magazine subscriptions over the years.
The last example is the increase of streaming in the music industry. Consumers do not buy CDs anymore and prefer to stream music on platforms like Spotify and Apple Music. In fact, music streaming has passed the milestone of 100 million paying subscribers worldwide and paid streaming subscribers brought in $1.01 billion in the first half of 2016, which was more than double the $478.6 million for the same period in 2015 (Levine).
DeleteFrom television to magazines, many types of media have noticed consumers switching to entertainment in the digital space. I myself prefer to watch content through YouTube instead of traditional television programming. Millenials especially want more choice when it comes to how they consumer media and when they consume media. Convenience seems to be the utmost priority for consumers nowadays, and streaming and digital content meet that need.
Levine, Robert. "Is the Record Business Really Back? How Streaming Is (And Isn't) Turning a Profit." Billboard. N.p., n.d. Web. 28 Mar. 2017.
Lynch, Jason. "Advertisers Beware: Audiences Are Taking Longer Than Ever to Watch
TV Shows." – Adweek. Adweek, 2 Aug. 2016. Web. 10 Feb. 2017
Goldberg, Lesley. "500 Scripted Shows?! How Netflix, Amazon Are Sending Originals to All-Time Highs." The Hollywood Reporter. N.p., 5 Jan. 2015. Web. 10 Feb. 2017.
"Magazine Media Factbook 2016-17." MPA: The Association of Magazine Media. Accessed 20 Feb. 2017. Web.
Throughout the semester I have noticed a trend in the popularity of streaming across all platforms. Consumers are streaming music, television shows and movies from a multitude of devices and services. The ability to stream media and have it at your fingertips has made consuming media even more convenient for our generation. In the music industry, Spotify, Pandora and Apple Music seem to be the top choices for music streaming services. “Streaming led the U.S. music industry to its first back-to-back yearly growth this millennium and in the first half of 2016 was the single highest source of revenue in the U.S. recorded-music industry,” thus streaming has not only connected more consumers to content, but it also brought in some money for the industry itself (Rys, Dan). According to Billboard, Spotify and Apple Music added over 20 million subscribers in 2016. One could say that the convenience of being able to have any song in the palm of your hand might be the reason streaming has been so successful in the music industry. Tin Westergren, founder and CEO of Pandora said, “every day tens of millions of people trust us to choose the exact right song for them. That’s why they spend more time with Pandora than any other music service” (Enter Pandora). In a way, he is saying that consumers are more likely to stream over buying music and making their own playlists. Lately, the trend in the music industry has been towards getting all the music you could possibly want in a fast, convenient and cheap way, which is why streaming has been so successful.
ReplyDeleteSicbaldi Continued
DeleteThe same can also be said for the television and film industry. Currently, the streaming service Netflix is by far the leader when it comes to streaming in the film and television industry. Hulu, Amazon and Sling have stepped up their games in a hope to compete with Netflix’s success. “Hulu struck a deal with Time Warner’s Turner Broadcasting System to show Adult Swim original series such as Rick and Morty and Black Jesus and Cartoon Network’s The Amazing World of Gumball and Steven Universe,” this deal on top of their deal with Fox for their show Empire has made Hulu a stronger contender in the streaming world (Sikka, Puneet). “It’s becoming an internet TV world, which presents both challenges and opportunities for Netflix as we strive to earn screen time,” showing that the world is very dedicated to the world of streaming (Jarvey, Natalie). The ability to “binge watch” season after season of a show has not only made consuming content very easy, but it has also made catching up on a series even easier since Netflix tends to have everything from the first season to the last episode of the show’s most recent season.
Streaming seems to transcend across all media industries. Consumers are enjoying how streaming makes most content easily accessible as well as portable. They are no longer tied to their television sets or CDs, instead they can continue on with their days without having to leave their media behind. I can see streaming having a larger impact on the industry once all of these streaming services start turning in large profits.
Sicbaldi Sources
DeleteWorks Cited
"Enter Pandora: New On-Demand Streaming Service Launches This Week." Billboard. Billboard, 13
Mar. 2017. Web. 17 Apr. 2017.
Jarvey, Natalie. "Netflix Reports Its Strongest Subscriber Growth in History." The Hollywood
Reporter. N.p., 18 Jan. 2017. Web. 17 Apr. 2017.
Rys, Dan. "2017 Streaming Wars: Will Spotify, Apple Music or Amazon Dominate?" Billboard.
Billboard, 6 Jan. 2017. Web. 17 Apr. 2017.
Sikka, Puneet. "TV Stacking Rights: Why Netflix's Loss in Hulu's Gain." Yahoo! News. Yahoo!, 22
June 2015. Web. 17 Apr. 2017.
Over the course of the semester we have looked at multiple industries that are affected by the same trend, streaming. Although streaming has done a good job at bringing consumers on demand entertainment to the convenience of their own home, it has left professionals scrambling in an attempt to adapt to the new trend. Streaming is pushing business and individuals from traditional media into a digital space whether they like it or not.
ReplyDeleteThe streaming trend is best exemplified by how it has changed the television/film industry and how it has changed the music industry. First, we need to point out the major players in the game. As far as television goes, Netflix, Hulu, and Amazon dominate the internet television streaming space whereas Spotify and Apple Music are the two musical streaming contenders. Netflix was the first streaming providers to make waves in the traditional television industry. One Hollywood agent said, "Out of the blue Netflix comes into the market and says, ‘We're going to give you a number [to license a network show].’ For the studios, it was, 'Holy shit. Do we even need a cable sale?' They all got addicted to crack” (Masters). Since Netflix was able to acquire over 80 million global subscribers and start putting pressure on studios and cable providers, the television industry was forced to change its traditional ways. Streaming even brought about new issues like stacking rights and ways to deliver old content to new consumers such as content viewed on the long tail. Regardless, television streaming including SVOD and OTT have impacted professionals by introducing new ideas and has impacted consumers by bringing a brand new way to consume media right to the tips of their fingers in the comfort of their own home.
Spotify and Apple Music, among other services, has totally changed the game when looking at the music industry. They have changed so much that the way awards are given to artists has been reconsidered to the point where there is now a conversion, similar to an exchange rate, from things such as how many streams constitutes an album sale. Streaming has been overall beneficial to the music industry, though. According to Nielsen Music, 2016 became the first time ¬streaming overtook sales as the music industry's dominant model, accounting for 51.3 percent of album consumption and besting physical and downloads combined (Rys). Streaming has also brought an affordable yet vastly large library of music to people who would normally be illegally downloading their music for free. Needless to say, the music industry is finally looking up now that Spotify and Apple Music have transferred music pirates into a combined 60 million paid subscribers in the United States.
DeleteFor better or for worse, streaming is the new norm for today’s media consumers, especially people from the millennial generation. Streaming has had the biggest impact on both professionals and consumers, so much so that the streaming trend does not seem to be only a trend. Rather, it looks like streaming is here to stay and it will continue to dip itself into every industry imaginable.
Works Cited
Masters, Kim. "The Netflix Backlash: Why Hollywood Fears a Content Monopoly." The
Hollywood Reporter. N.p., 14 Sept. 2016. Web. 18 Apr. 2017.
Rys, Dan. "2017 Streaming Wars: Will Spotify, Apple Music or Amazon Dominate?"
Billboard. N.p., 6 Jan. 2017. Web. 18 Apr. 2017.
Mackenzie Rowe (1/3)
ReplyDeleteI believe you would be hard pressed to find a trend more relevant in today’s society than that of digital consumption, in any industry. All semester we’ve been discussing the various ways in which traditional industries can remain alive while competing with the now prevalent digital this, that, and the other. When we were talking about the Super Bowl in week 3, one of the points that came across in many of the articles was how the event itself is losing its luster in the eyes of advertisers. Sure, you’ll still see plenty of companies advertising, but think about how the quality has declined in recent years. If you need further proof of how pervasive this trend is, consider the implications that Netflix (!!) bought ad time to premiere the trailer for the second season of Stranger Things. This was the first instance something like this has ever been done before, and a great example of how traditional means are no longer enough. One reporter summed it up well when he said, “Television advertising continues to be an important part, but on its own it’s not enough anymore” (Maheshwari 2017). If you stop and think for a moment, the fact that a monolithic event such as the Super Bowl (of all sporting events) has been impacted by the shift in consumer habits to digital media, I truly believe that speaks to how significant this trend is.
Mackenzie Rowe (2/3)
DeleteContinuing with this idea, looking at Netflix as a whole is another prime example of where this trend has shown up. Netflix as its own concept is enough of an example, because I would argue ten to fifteen years ago no one would have ever imagined they would be watching television or movies, on demand, streamed through the internet. Aside from that, I think Netflix also provides insight as to how professionals have been forced to adapt to try to keep their competitive edge. Producers of traditional television shows, ones that might appear on Netflix after their season finale airs live, have now resorted to less traditional means to draw in viewers when the show is still in season. I’m talking about stacking rights. We know some consumers have shifted towards the Netflix “binge” viewing habit, where they prefer to wait until they can view the entire season, but now we see this idea being picked up with traditional TV executives. NBC Chairman Bob Greenblatt described this tactic as being, “…the future of our business; stacking is important to us. It is the order of the day” (Andreeva 2016). Execs know what consumers are looking for today, and it’s simply a sign of the times that they are choosing to adapt their offerings to fit the trends.
Mackenzie Rowe (3/3)
DeleteBy no means is this trend limited to television either. I could keep going with examples of this in the film, music, and even sports industry. It simply reaches across the spectrum and into all aspects of consumers’ lives. I believe one of the things that makes it as effective and lasting as it has been thus far, is the fact that it impacts both consumers (who are driving the trend in a way) and the professionals (who have little to no choice but to adapt and adopt to stay alive). Some trends gain popularity quickly because they are much adored by the consumers, but fail to gain purchase long term because professionals do not believe it will last. In this instance, professionals have realized that this trend is one that’s here to stay and have been forced (or perhaps willingly) to make the changes that have allowed them to continue their success.
Andreeva, Nellie. “Network Ownership & In-Season Stacking Rights Rule 2016 Upfronts”. Deadline 19 May 2016. Web.
Maheshwari, Sapna. “$5 Million for a Super Bowl Ad. Another Million or More to Market the Ad.” New York Times, 29 Jan. 2017. Web.
I think that the biggest trend that has been on the rise for the past several years is streaming, and it doesn’t look like it will go away anytime soon. We see streaming cutting across all media outlets and industries, whether it is with music, TV shows or films. Streaming online really alters media industries because it changes the way we consume media. It creates concepts like the long tail and cord-cutting, and it compels advertisers to find different ways to reach consumers. Streaming services are dominating the industry, with Netflix reaching over 94 million subscribers in January. (Jarvey)
ReplyDeleteWhile there may be several reasons for why consumers switch off their cables and turn to streaming, one factor that repeatedly reminds itself is convenience. With the fast-evolving technology and excellence of tech companies like Apple mastering the art of personalization towards consumers, people don’t want to adjust their schedules according to the TV guide anymore. Streaming services like Netflix, Hulu, Amazon Prime and HBO Go grant consumers the crucial aspect of convenience, which is hard to walk away from once tried.
We see that streaming is prominent among young adults and millennials, and that older audiences tend to stick with their traditional media sources. This is very difficult to change but I think that more and more consumers from different backgrounds also start noticing the benefits of streaming and possibly starting to use both outlets according to Nielsen.
Streaming has also revolutionized the music industry, allowing it to turn profits for the first time in almost a decade. It has granted consumers a perfect balance between convenience and legitimacy. It is as easy as downloading music from Limewire or converting YouTube into mp3, but for a reasonable fee, it adds legality into the process and gives consumers a sense of morality when they know they are contributing to the artists for their work. Many people choose streaming not only because of this, but also because it is incredibly convenient to have billions of songs just a click away, and not have them take up any disk space. Before streaming, songs had to be downloaded which was a major inconvenience for consumers. Another aspect that streaming services like Spotify, Apple Music or Pandora bring their consumers is quality.
Overall, I think that streaming has been the perfect fit for consumers’ need for convenience, quality and customization in the 21st century. It has dramatically influenced various industries, and forced them to change their methods; but this ultimately worked in favor of consumers. I think that the streaming model has been very successful and as long as companies take the right measures to fit into this model, they will succeed in being sustainable and prosperous.
Works Cited
Delete"Insights ." The Nielsen Comparable Metrics Report: Q2 2016. N.p., n.d. Web. 18 Apr. 2017.
Jarvey, Natalie. "Netflix Reports Its Strongest Subscriber Growth in History." The Hollywood Reporter. N.p., 18 Jan. 2017. Web. 18 Apr. 2017.
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DeleteI think the most important trend has been the popularity and growth of streaming services; for both music and film industries. As we have talked about it in class, we know the music industry has seen an immense growth in revenue since apple music and streaming services have become popular. Spotify recently just acquired 50 million paid subscribers while Apple music has 30 million. According to Billboard, Sony, Warner and Universal attained double-digit percent boosts in earnings in the past year, and that was all from the new trend of streaming services. In the music industry situation, it benefits the artists just as much as the users. The users are able to subscribe to a service and attain unlimited amounts of music. As for the artists, they are starting to get paid for what they deserve. Streaming services also adds more competition and opportunity for artists.
ReplyDeleteFor the film and television industry, streaming services, like Netflix and Amazon, have taken advantage of making and distributing scripted originals. This has been a major change and important trend popularized by streaming services. This trend has started to benefit and please the demands of the consumers, not the professionals. I feel like this is important though because they have found a way to attract more of a diverse audience. As streaming services have benefited consumers it has also hurt traditional television. So we are starting to see a shift in companies and professionals as the demands of the consumers change. Netflix and SVOD outlets have put broadcast TV on their heels. John Lynch of NBC states, “Amazon's Man in the High Castle, which that company said was its most-watched original series ever, had 2.1 million viewers.” Steaming services has given consumers more freedom and control over what they watch and how they watch it. Contrary to this, it limits professionals to more competition throughout the film and music industries.
Gensler, Andy. "Spotify Officially Hits 50 Million Paid Subscribers." Billboard. N.p., 02 Mar. 2017. Web. 18 Apr. 2017.
Lynch, Jason. "NBC Says Netflix Doesn't Yet Pose a 'Consistent' Threat to Broadcasters. Here's Why." – Adweek. Adweek, n.d. Web. 18 Apr. 2017.
Throughout the semester we have studied various trends in our current media industry. I feel that there has been one underlying theme in these trends we have touched upon throughout the semester. I think the most important media trend of late is the switch from the more traditional platforms to digital. This has affected all aspects of media; how it is viewed, created, studied, etc. Much of our class this semester has had roots in this switch, whether discussing the importance of social media or streaming video on demand services (SVOD), we have touched upon much of the digital world. Many people are cutting the cord and switching to only streaming services, “according to Richard Cooper, a research director at London-based group IHS Markit, both Amazon and Netflix should expect strong double-digit growth in the coming years,” (Roxborough and Szalai). This large increase in SVOD subscribers and users effects not only television, but advertising as well. The increase in social media usage has also affected ads and how the television and film industries go about their business.
ReplyDeleteConsumers are watching a lot of TV lately and, in the past, this would be a great thing for the industry, but the majority of this viewing is being done through SVOD services, “a recent Nielsen study showed that U.S. adults consume an entire hour more of media per day than they did last year, and that SVOD penetration (those with access to streaming services like Netflix and Hulu) is about to surpass DVR penetration in U.S. households” (Lynch). Ad sales are based off the number of viewers within three or seven days of an episode premiering. Because of the switch, audiences are changing the way in which they watch TV, “Audiences are taking their sweet old time when it comes to watching these shows,” (Lynch). This trend is clearly affecting many aspects of the television industry. Many may say this trend is cause a slow death of the television industry, but I see it merely as a transition period.
The increase in digital media usage is also affecting the film industry. The increase in SVOD services is giving companies like Amazon and Netflix the ability to produce original movie content and this content they have produced is of no ordinary quality being nominated for Academy Awards. These companies are definitely a threat to the traditional film industry, “Amazon’s entry in the film business is still relatively small-scale…But the company is just dipping its toes in an industry it knows little about. It has the personnel, the deep pockets and the sheer chutzpah to make its investment much, much bigger. And it will,” (Galloway).
Everything is going digital, especially the entertainment industry. This trend has affected the industry greatly and will continue to do so. Years from now, everyone may make the switch and the industry has so choice but to adjust to this trends, otherwise I don’t see it surviving
DeleteLynch, Jason. "Advertisers Beware: Audiences Are Taking Longer Than Ever to Watch TV Shows." – Adweek. N.p., 2 Aug. 2016. Web. 13 Feb. 2017. .
DeleteGalloway, Stephen. "Galloway on Film: Challenges From Amazon and Netflix Signal the End of the Studio System." The Hollywood Reporter. N.p., 01 Aug. 2016. Web. 17 Apr. 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.