The mass TV audience was born in the early 1950s. A close relationship was formed between major brands who wanted to promote their products, and program directors eager to generate viewership and monetize their exclusive content. For many years, this system remained the same, but recently new forces have emerged to challenge and break the traditional media value chain. Rather than remaining a static group of consumers waiting patiently for content to be distributed, it is now the public that is taking control.
The traditional media and entertainment value chain included:
- Content creators: The creative force behind content (actors, directors, scriptwriters, etc.)
- Content owners: Studios
- Production and aggregation: Production companies
- Distribution: Broadcasters
- Consumption: Audiences accessing content via cable or satellite
The advertising side included:
- Advertisers (brands)
- Creative agencies
- Media planners and media buyers
- Broadcasting
For almost half a century, the world of television was based on a reliable system in which brands worked with agencies that handled advertising buys. Media planners applied ad buys to broadcast content, while studios distributed content to broadcasters. Comfortably seated, the audience was ready to absorb this content. It was a very linear process, where everyone had their place and seemed content with it. The whole process was built on quantity.
Technology creates the conditions for change… and the public leads the way.
New technologies and consumer habits have completely overturned this process. For example, video users are transforming the industry and shifting priorities by consuming content from a multitude of devices, channels and sources. Consumers now have a huge number of consumption options (streaming via PC, online video viewed from mobile or tablet, TV box, video apps) while also having the power to skip advertising and make their own programming.
One thing is clear: Audiences are no longer passive. They have become active participants, choosing the content they wish to view. As a result, players in the traditional value chain find themselves confronted with both tremendous opportunities and worrying threats.
