So Much Content, Now Viewers Need Help Finding It

“For the first time, content is not the problem.” That is an observation from a longtime friend who used to build and manage cable systems. Her point is that almost anything anyone would like to watch or hear is available — somewhere. The challenge is finding it, or at least finding it without investing a disproportionate amount of time and energy on the search. As she lamented, “We used to have TV Guide.”

This conversation has been on my mind since we spoke. The answer becomes even more complicated when one considers two other factors. The first is that electronic entertainment choices have expanded beyond linear options to include on-demand streaming — both audio and video, social media and video games.

The second consideration is that, for most media businesses, advertisers are an important part of the revenue mix. Breakeven means capturing the attention of both consumers and those who want them to be exposed to a particular message.

Deloitte recently published its 15^th Digital Media Trends – Fall Pulse survey. The authors found that most consumers are spending more time with online entertainment at home. They attribute this to concerns about delta and other COVID-19 variants. No matter the reason, this is a shift in consumer behavior that is likely to continue. In fact, Digital News Daily’s Karlene Lukovitz just reported that third quarter time spent viewing streaming is up 21% worldwide. North America recorded only a 2% increase, but it’s an increase.

Successful media and entertainment companies will respond by including a substantive online strategy in their 2022 plans. It won’t be enough to simply put content online and/or make it streaming-accessible. Content will need to be appropriate to the medium. Additionally, they will need to make consumers aware of the content and where to find it.

Another Deloitte conclusion is that consumers are guided by “cost and content.” Some consumers are “cost sensitive and frustrated by so many options.” This seems to support the case for ad-supported, on-demand offerings.

The study authors coined the term “churn and return” to describe the behavior of those subscribers, more typically younger generations, who disconnect a service only to re-subscribe within the year. They cancel when they’ve finished with the content that attracted them only to reconnect when a new season of a favorite program is released or something new captures their attention.

My guess is that all subscription services include other content that would both engage and provide value to these consumers. The problem is more likely one of awareness and engagement and not about quality. A side note here is that, despite the temptation, it is better to create incentives to keep subscribers rather than making cancellation more difficult. Taking the later approach is what the Deloitte experts term “the second-largest frustration people have with SVOD services.”

What’s important here is that SVOD is only one slice of the electronic entertainment pie. All media businesses need to keep this in mind and plan accordingly if they want to keep, and keep growing, their audiences. The key is on-demand access to content, not whether it is part of a subscription package. That is what is driving podcasts, YouTube viewership, social media content and video gaming. All of these serve mobile consumers and can be produced by any media business. To be successful in 2022, media companies must include them in their plans.

Advertisers are the other piece of the media revenue puzzle. One thing that clearly needs fixing is planning and measuring. Someone needs to take change of this and make it an industry-wide effort.

Those technical questions aside, savvy media companies will be tailoring content to reach their advertisers’ target audiences where the audiences are. Deloitte suggests including social media strategies and video games content in the product mix to reach audiences outside of the living room. These product extensions can also help make audiences aware of other, similar, content on other platforms, while benefiting advertisers supporting the content. And don’t discount the value of social media influencers who can help your advertisers sell their products. They may be a valuable addition to 2022 plans.

To make this work, media businesses are going to have to find a way to break down long-fortified silos to share content and strategies to better serve stakeholders. They need to leverage their vast assets and resources and find ways to deliver content to consumers when, where and how they want it. At the same time, it is essential that they find a way to communicate what’s available and why it’s valuable — both to consumers and to advertisers.

In the early 1990s, Bruce Springsteen sang about “57 Channels (and Nothin’ On).” Today’s audiences have access to millions of mobile and home entertainment options and, overwhelmed by search options, they still think there’s “nothin’ on.” Content is not the problem. Media companies must make fixing this a priority for 2022.

Former president and CEO of the Media Financial Management Association and its BCCA subsidiary, Mary M. Collins is a change agent, entrepreneur and senior management executive. She can be reached at [email protected].