This week's Emmys once again showed the strength of ad-free and streaming content in the US, as Netflix, HBO and Amazon Prime made a clean sweep across the night, leaving traditional broadcast networks clutching two awards only.
Both Netflix and HBO snagged 23 awards for the night, while Amazon claimed five.
We asked local media executives what this kind of recognition for content on streaming services means for ad spend on traditional broadcast, both here and overseas.
"The data shows that this is already having an impact, as global trends in audience fragmentation develop across the Australian landscape," Amplifi chief investment officer Ashley Earnshaw says.
"Netflix and other subscription-based model services winning Emmy’s shows the quality and investment into content that these services are making, coupled with their economies of scale as digital businesses to grow their production budgets.
Earnshaw adds that the challenge to balance high-quality content with the commercial load on television is one that presents ongoing issues in capturing audience attention.
He says the award sweep at The Emmys points to a greater importance for traditional TV broadcasters to hone in on reality, sport and non-replicable content formats to drive TV network’s linear and video-based viewing.
GroupM head of digital investment and partnerships Venessa Hunt saysthe recognition for original content should not stun, as Netflix splashed out well over US$8 billion this year for content in an effort to stock its catalogue to keep attracting new subscribers to pay each month.
In comparison, HBO spent US$2 billion on original content.
"Whilst the accolades of global content production are important to notice, we have a very healthy broadcaster ecosystem in Australia," Hunt says.
"Even though we celebrate the amazing success of originally scripted content by Netflix and do not ignore the resounding trend for on demand consumption of high quality broadcast content, we can’t underestimate the investment of our local TV networks into locally produced and curated content that Aussie’s are still, and will continue to be, in love with.
PHD chief investment officer Lucy Formosa Morgan says she is not surprised that more and more shows from streaming services are picking up awards
"The likes of Netflix and Stan are commissioning their own content (not just providing a library of programming from the traditional broadcasters) and the quality and production of which are extremely strong.
"Is it a sign of things to come? Absolutely. TV audiences have fragmented, which in turn means people’s appointment to view programmes will fragment too. It means the traditional broadcasters need to keep focusing on new and quality programming."
She says with the number of connected TVs continuing to grow, it’s definitely not a fad, it’s the "new reality" and it's becoming easier for viewers to hop from FTA to the various BVOD apps to Foxtel and YouTube.
"If you think about that HBO was always been a dominant one and there was actually nothing outside the networks previously that was being recognized," Zenith head of investment Anthony Ellis says.
"For me, it’s more around the trend; I don’t see it as a blow. What it means for the networks is that they need to evolve their offerings."
Ellis says the shift in viewing habits is recognisable here already and will grow in importance, adding that the driver behind the changes is the breadth of choice streaming services now offer, as opposed to traditional broadcast, as well as how streaming platforms keep audiences engaged.
"One of the major things is that it’s the consumer experience or the user experience. There’s a shifting expectation of users or viewers now that they want to watch what they want when they want and on their terms," he says.
"So traditional TV, whilst it is evolving, they’ve digitalized their live streaming and they’ve got their catch-up service, the user experience of Netflix is amazing and continues to capture audiences even once the program they intended to watch has ended."
However, Ellis, like Earnshaw, agrees the role of traditional TV broadcast is vital and awards such as The Emmys don't signify a shift in advertising strategy.
"Television for advertisers is growing in terms of ad spend and what we know through a lot of the research that TV is stronger than ever," he says.
"It provides a great return for advertisers, so I think in that sense, for the right now, even if you speak of traditional linear television, it is an extremely strong tool for advertisers to create mass awareness and that won't simply stop because streaming platforms suddenly start to dominate a portion of television content in the market."
Spark Foundry national investment and partnership director Craig Cooper adds that while streaming services are growing in popularity, audience data and standard metrics are still not in line with current reporting measures for broadcast media, locally or abroad.
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