Skip to main content

TV's future - have I got it all wrong?

I sat in the audience at a Deloitte TV event last night, listening to another well judged analysis of data that showed how sustainable broadcast TV is against substitutes. On several occasions the facilitator – Ray Snoddy, for those who know him – invited the panel and the audience to explain why this analysis was incorrect. And as usual, no one could come up with anything.

But I came away worried. Over my career I’ve been part of several attempts to disrupt scheduled network TV and come up on the losing side. Thankfully the hundreds of millions of dollars that supported that failure weren’t my own. So I’m long converted to the sustainability of TV, which retains its characteristics as entertainer, social enabler and mass market brand builder.

Converts are always more zealous.

Did newspaper executives in the early 2000’s also look at their data sets and come to the same conclusions about their own indefatigability? Slow grow assured, iterative substitution a distant threat. Yet the web browser and the PC have grievously wounded the newspaper industry. They aren’t as portable or as curated as the broadsheet – they aren’t a natural substitute at all – but behaviours have changed because they offer more information for less. I don’t need to read out of date news and gossip at the kitchen table or on the commute. I’ll read it in the office in between emails.

Can the behaviours that make TV so sustainable change just as much? Could there be a cliff. After tonight I’ve started to wonder. TV is sustainable so long as the attention span of the audience is sufficient that they’ll sit through a 30 minute show or a 1 hour special or a 2 hour movie. Or a night in front of the box. Attention spans are falling, I think. The true threats to TV are not the pirates and the freeloaders, they’re the short of attention.

I wonder how many people now fall into the category? Are so obsessed with checking the web for news about the things that interest them, or playing a game obsessively for a while before becoming bored and moving onto the latest cheap thrill. Millennials may well love TV, but is it only for 5 minutes at a time. Could the huge production budgets and high concept formats that form such a barrier to entry to digital companies become follies?

The rise of TV was catalysed by the success of film. Movies were expensive to make and occupied excessive time in collocating with the screen and sitting through 2 hours of entertainment. It was good now and again, but TV was more attractive more of the time. A cheap thrill. If the population develops mass ADD, then will we look for even cheaper, more superficial, shorter lifespan entertainment?

In the most developed markets smartphone penetration is heading towards 50%; tablet penetration is nearing 20%; Google are hell bent on putting screens on our faces. Could distributed screens be TV’s Waterloo? Their web browser. A different experience that if you look at the world iteratively are no threat, but might well capture the zeitgeist. I worry.

I’d rather be wrong than reticent.

Comments

Popular posts from this blog

Impacts of a handset leasing model on mobile telcos

Following yesterday's post, here's some related thinking on the impacts on operators of handset leasing. Handset sales represent around 25% of operator revenues in a typical European market, but generate only around 5% of margin. It may therefore be the case that the scenario described would lead operators to a more profitable structural model than exists today. Oil companies are consistently and acceptably profitable, despite being (literally in some cases) the ‘dumb pipe’ that operators are so desperate to avoid becoming. One of the reasons for the oil majors sustained profitability is clear focus on their role in the value chain – to supply the fuel that enables transportation, relying primarily on location, then brand and finally product innovation to compete. BP or Shell do not need to subsidise the purchase of a car in order to drive consumption of fuel because consumers are ‘hooked’ on it (it gets them from place to place) and there are many credible car manufacturers an

Value drivers for telecoms retail

I've been doing a really large number of driver trees recently - we've taken to using them on every project to get really into the guts of value creation for businesses and thus decide where to focus initiative development (How To Win, if you're keeping score). Anyhow, I had to pause for thought recently to work out how to represent the subscription aspect of telecoms retail for a client. Since it took me a minute, I thought I'd share... its lack of elegance suggests that its not quite right, although it was enough to demonstrate that there was a certain lack of coverage in the initiatives that my client was pursuing and thus spark a debate. Enjoy.

Chief Strategy Officers II - Career Development

Here's a follow up to my earlier post on the starting point of Chief Strategy Officer (CSO) careers in the FTSE 100 and S&P 500 companies - a visualisation of two steps in their careers: their first employer or job and the job they had before they got their current position. Lots of work went into this... so any insights that you glean from the visualisation would be great to hear about :). The CSO is a crucial strategic role on the executive (!) and the owner of the tone and philosophy of decision making across much of the business, knowingly or unknowingly. Scrutiny of their experience in defining the process and language of strategic management is therefore appropriate not just amongst their executive peers, but in my view amongst shareholders. The days when being very smart and able to analyse large amounts of data were enough to be a CSO are basically gone... has the profession moved on enough to cope?