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Media Intelligence : Media Trends+Strategy 2012
For information on your sector go to www.mediabiznet.com.au MEDIA Trends + Strategy MEDIA Trends + Strategy 37 subscription TV More content, more channels How has StV changed to keep pace with consumer and technology changes? STV has always led in innovation from the release of the first IQ in 2005 to red button technology, and HD viewing. Over the past year, STV content has expanded to new platforms such as the Xbox 360 and the Telstra T-box, and offering an on-demand service, increasing content availability exponentially. FOXTEL broadcast the first 3-D live sporting event in Australia in 2010 and has since established a dedicated 3-D channel airing sport, general entertainment, documentaries and movies. Other innovative programming initiatives include unprecedented round-the- clock coverage of the Winter Olympics and the Delhi Commonwealth Games across six channels in SD and HD. The platforms will continue to innovate both in content production and delivery. What do media buyers and planners need to know about StV for the next 6-12 months? Over the next 6-12 months, great new Australian content and international exclusive programs will premiere across subscription television. From the anticipated debut of the TV1 drama Killing Time to the launch of the new FOX SPORTS AFL channel, subscription television ramps up quality programming in summer, while commercial networks tend to run repeat programming. Because STV runs on a 52- week rating period, content is exclusive and premieres throughout the year. ASTRA released STV content investment figures indicating STV platforms and channels invested $578.4 million into Australian content in 2010, a seven percent rise from the prior year. The result of that investment will be seen on TV screens throughout the coming months. What are the major challenges following the economic downturn? Although a challenging time in terms of competition and a sluggish economic environment, STV saw an increasing number of viewers tuning in through multi-platform devices to access quality and first-run content owing to the myriad of choice offered through 200 channels. STV reach continues to increase and is currently sitting at over seven million viewers through home subscription, not including viewing in pubs, clubs and businesses. With even more content and channels on offer in 2012, including eight dedicated HD channels covering the London Summer Olympics, more Australians will be drawn to the excitement of STV. What trends do you foresee for the medium and StV in the next year? Looking forward, multi-screen and multi-platform interactive content, time-shifted viewing, PVRs and Smart TV technology will continue to influence television viewing. As predicted by PWC, STV will be sector leaders with forecast revenue growth of 5.1 percent, putting us in a strong position. In addition, the Government’s Convergence Review has kept the industry busy rethinking existing regulatory frameworks which were largely based on the delivery platforms that predominated in decades past. We are looking forward to having input into new regulation and shaping the future of broadcast media in Australia. Petra Buchanan CEO ASTRA Viewer control How are you integrating the variety of digital offerings into cross-media platform initiatives? Media brands seeking deep engagement with audiences can no longer regard digital engagement as an option. XYZ Networks operates a portfolio of thematic channel brands with each executing a tailored digital strategy to drive their desired outcomes. Each of our brands implements a unique strategy blending online (entertainment, instructional and micro-sites), mobile and social media. Empirically we have found improvements in increasing customer engagement and success in offering our advertisers rich opportunities for deeper brand engagement. How are brands and content creators embracing connected tV and other technology? For the most part with caution. The implications of the current models being sought by connected TV manufacturers has them attempting to transfer the burden of risk to us, the content creators, while expecting us to manage the customer relationship. Their model is less than complementary to linear channel providers like us, so I remain cautious. What is the “next big thing” to impact on tV which could change the nature of the game yet again? Programming trends will come and go, however, while certainly not new news, digital technology is proving transformative in the shift of power and control from the network, studio, etc. to the viewer. Viewers will increasingly demand random access to content which will pose challenges to all linear network operators, particularly in relation to content acquisition, ratings and advertising. Bruce Mann CEO XYZ Networks p36-37_subscripTV.indd 37 28/11/11 2:33:09 PM
MT Resource Guide 2011
MT Resource Guide 2012