The evidence is piling up and the message is quite clear – the more that quality services are made available on internet-enabled TVs, the more TV people are watching.
Although, judging by the number of stories devoted to new streaming services launching locally and internationally, you would not necessarily have that impression.
Of course the impetus for reporting on something new is its essential newness, but the disproportionate level of coverage of new entrants gives an entirely disproportionate view of what is actually happening in the market.
Much to the chagrin of the squeaky wheels of the media industry who have new products to sell, the reality is that Australians are very connected to their TVs and they’re still choosing to spend the majority of their viewing time on broadcast television.
A local study by Edison Resarch (Commissioned by Seven West Media) found that the vast majority of video watched by Australians aged 14 and over is on traditional broadcast television. That was also the strong message that came from the world’s preeminent business conference for international broadcasters, IBC, that I attended in September in Amsterdam.
We know that 50% of FreeviewPlus-certified, internet-enabled TVs are connected and we know that these units currently account for 83% of all TVs sold by major manufacturers in Australia – it doesn’t take a genius to joins the dots and know that the penetration numbers are accelerating and will quickly be much, much higher than the services people are being asked to subscribe to.
At IBC, even Thomas Riedl, head of Global Android TV partnerships at Google – one of the companies at the forefront of digital disruption – told the conference he doesn’t think “lean-back” TV is going anywhere. He told the conference that tailormade streams of content are important as ever – something that you will only see more of as both technology and the market matures.
As much as there has been an increase in the amount of video people are watching on different platforms such as mobile devices, the way they’re watching is the important factor to consider. The clear trend emerging around the world is that the smaller the screen, the shorter the video consumed. There is also a shift towards “the best screen at the time”, so for live and video on demand, that screen is a TV when we’re at home.
Interestingly, almost half of young adults in UK are registered with Channel 4 and All 4 (Channel 4’s on-demand service) is seeing its fastest growth on TV receivers.
As each new and disruptive technology has emerged (broadcast TV itself was fundamentally disruptive, don’t forget) behaviours change, media owners innovate and we find ourselves in a new environment with a changed dynamic, where one medium complements another and where, ultimately, the consumer wins. It doesn’t have to be a binary argument of instead of, but in addition to.
What is a continuing trend though, according to many of the people I listened to and spoke with at IBC, is the importance of brands to consumers in the broadcasting space. As viewers have an ever-expanding pool of content from which to choose, identifying with and trusting in a brand becomes vital. The BBC has been exceptionally good at this on a global scale and is widely recognised as being one of the world’s most innovative broadcasters.
It’s really important that we remember that we are at the beginning of this journey of change with connected TVs. FreeviewPlus only launched a year ago in an environment where truly high-speed broadband is not yet available to all Australians. HbbTV services such as FreeviewPlus now position broadcasters to meet the changing needs of consumers particularly with on demand, and bespoke content.
With more FTA services offering more content experiences being made available and greater functionality in connected televisions, it is truly an exciting time for watchers of TV, both consumers and business.
By Freeview CEO, Liz Ross