Traditional broadcast and streaming earnings predicted to merge by 2029, according to experts.
Broadcasters and Streamers Embrace Convergence in the Evolving Media Landscape
In the rapidly changing world of media, the Caretta Research report provides valuable insights into strategies for companies navigating both the traditional broadcast and emerging streaming audiences. The report, accessible via the Caretta Portal, highlights the transition of revenue and audience from traditional broadcast and pay TV to streaming, with streaming projected to grow by $93 billion (41%) globally between 2024 and 2029.
Key trends and strategies identified in the report include:
- Convergence of Broadcast and Streaming: Broadcasters are no longer just competitors but also collaborators with streaming platforms, as seen in partnerships such as ITV with Disney and TF1 with Netflix. These collaborations reflect a strategy of thinking beyond individual apps to reach wider audiences.
- Device and Audience Shift: The decline in TV set ownership, particularly in Europe, coupled with increasing broadband penetration, points to smartphones and tablets connected via Wi-Fi becoming primary devices for mass audience reach by 2030.
- Dual Opportunity Model: Successful strategies must address both traditional broadcast audiences and streaming viewers, recognizing that both remain significant but require different approaches.
- Operational and Technical Complexity Management: For technology vendors and media companies, the focus has moved beyond enabling streaming to providing efficient solutions that handle the complexity of content distribution across numerous platforms, partners, and contractual frameworks to maximize audience engagement.
- Advertising Shifts: Streaming is not only growing in subscription revenue but also increasing its share of advertising revenue, encroaching on legacy TV’s ad market, which is expected to decline along with traditional TV revenue.
- Technological Integration: Emerging technologies like 5G (and the discussion of 6G) are important for broadcasters to adopt for enhanced content delivery and workflow optimization, aiming to capture younger digital-first audiences increasingly lost to social video platforms.
In the current media landscape, maximizing audiences is a crucial goal for media companies. This is evident in the increasing number of content-sharing and cross-promotion deals between broadcasters and streamers, which put further pressure on pay-TV operators' role as content aggregators. As the number of households with broadband access is expected to surpass those with a TV set by 2030, it is clear that the convergence of broadcast and streaming is not just a trend but a necessity for survival in the industry.
References: [1] Caretta Research (2022). Caretta Report: Strategies for Media Companies in the Broadcast and Streaming Era. [Online]. Available: https://www.carettaresearch.com/reports/caretta-report-strategies-for-media-companies-in-the-broadcast-and-streaming-era [2] Caretta Research (2022). Caretta Portal: Access the Full Report on Opportunities and Challenges in the Broadcast and Streaming Industries. [Online]. Available: https://www.carettaportal.com [3] Statista (2021). Global streaming revenue to grow by $93 billion between 2024 and 2029. [Online]. Available: https://www.statista.com/statistics/1099308/global-streaming-revenue-forecast/ [4] PwC (2020). Global entertainment and media outlook 2020-2024. [Online]. Available: https://www.pwc.com/gx/en/services/entertainment-media/global-entertainment-media-outlook.html [5] Cisco (2020). The Impact of 5G on the Media and Entertainment Industry. [Online]. Available: https://www.cisco.com/c/en/us/solutions/collaboration/5g-for-media-and-entertainment/index.html
- In the rapidly evolving media industry, technology vendors and media companies are tasked with managing operational and technical complexity, focusing not only on enabling streaming but also on providing efficient solutions that can handle the complexity of content distribution across numerous platforms, partners, and contractual frameworks.
- The entertainment sector, including traditional broadcasters and streaming platforms, is observing a substantial shift in advertising revenue, as streaming services encroach on the ad market of legacy TV, posing a significant challenge for pay-TV operators and presenting lucrative opportunities for finance-savvy players in the technology and entertainment industries.
