Final analysis > Kate Bulkley
Digital TV Europe
May/June 2012
“I don't think it's a big stretch to suggest that part of Facebook’s strategy will
involve adding more video to the site. YouTube after all seems to think that
adding professional content, aka TV channels, really works.”
Traditional TV’s new fans
said that the linear TV channel
Who was on its deathbed? This has
been the lament in recent years as wave after
wave of digital, over-the-top and social media
have grabbed headlines, but against all odds it
seems that the days of traditional television
viewing – that is tuning into a particular show
on a particular channel – are far from over.
It’s odd that Traditional Television Viewing
(or TTV as I’ll call it) has swung back into fash-
ion when you think of the strength of the
threat: OTT services like Netflix; consumer
electronics manufacturers putting together
their own app-lists on connected TVs; video
on Facebook; YouTube and mobile video.
TTV’s demise seemed just around the next
video app corner and the OTT folks, much
like the IPTV guys before them, seemed to be
on an unstoppable run.
But despite this, TTV is fighting back: Sky
Deutschland uses HD to make its offer stand
out and recently added Sky Atlantic; Al Jazeera
is launching sports channels in the US and
France; in Switzerland, UPC Cablecom plans
to add 26 new channels in June, including six
in HD; and Scripps Interactive (which bought
50% of the UKTV channels in the UK) just
bought the international Travel Channel and
says it has an appetite (well, it does do the
Food Network) for more channels. If you look
just at the number of new HD channels on
the Astra satellites alone, you’ll see that the
total has gone from 190 in 2010 to 267 last
year, an increase of 41%. And even the much-
maligned 3D channel universe is increasing,
albeit at a less rapid pace.
There’s also a growing belief that social
media like Twitter actually helps TTV. After
all, what would anyone Tweet about if it was-
n’t for live TV shows like The Voice or Britain’s
Got Talent? If you’ve got a tweet-worthy show
these days, it’s good news. US networks now
have social media units figuring out how to
engage their audiences on Facebook and
Twitter. Broadcasters are also adapting their
channels to better fit the digital future. The
BBC is a good example with its decision to
move iconic shows like Blue Peter and, in fact,
all its kids TV programming off the main BBC
One channel and onto the kid-specific, digital
channels, CBBC and CBeebies. Indeed the
channel debate in the near future is not about
when TTV and linear channels might die, but
instead how the TV channel is emerging and
changing in the digital universe.
Clearly the majority of channels are becom-
ing more niche and more focused, leaving the
big free-to-air channels like BBC One and
ITV1 to look anxiously for live, appointment to
view programmes that will keep audiences as
big as possible, for as long as possible.
Meanwhile, every broadcaster, niche or other-
wise, is rolling out second screen applications
alongside technologies like audio-recognition
tool Shazam and social TV app Zeebox (part-
owned by BSkyB), all part of an effort to lever-
age the fact that audiences watch TV with at
least one other device on hand. The idea is that
if the TV content can be “contextualised” by
the apps then advertising and other sales
opportunities can follow.
This is important as people increasingly use
their DVRs to defer viewing and skip adverts.
US operator DISH has provoked outrage
from the advertising industry with a new
“auto-hop” ad-skipping set top boxes that don’t
even require fast-forwarding. In light of devel-
opments like these, broadcasters are keen to
enhance live viewing as well as delivering
additional content to second devices.
But more challenges are coming from
Facebook and YouTube. In May YouTube not
only held its first “upfront” in New York to
attract advertisers to its new, professionally-
made channels (it has pledged US$100 mil-
lion [€80 million] to content creators to kick-
start YouTube dedicated channels and another
US$200 million to promote them) but
Google also announced its first investment in
content, a US$35 million investment in
Machinima, an online video production com-
pany that does extremely well on YouTube,
attracting over 1.6 billion views in April, up
from 1.5 billion in March. The move into con-
tent is a big shift for Google that puts paid to
the online search giants’ past exhortations that
it was “not in the content creation business”.
It also throws down the gauntlet to TTV and
media companies to think different.
The thing is that these big online guys need
to tap into the big advertising and subscription
money that has traditionally been the preserve
of TTV. Facebook’s IPO has not gone off as
well as the company hoped, and the falling
stock price underlines this fact. General
Motors, which spent a reported US$10 mil-
lion on Facebook advertising in 2011, pulled
out of advertising on the platform this year,
and I think it is a pretty safe bet that Facebook
will be pulling out all the stops to attract or
retain big advertisers. I don’t think it’s a big
stretch to suggest that part of that strategy will
involve adding more video to the site.
YouTube after all seems to think that adding
professional content, aka TV channels, really
works. Go figure. ●
Kate Bulkley is a broadcaster and writer spe-
cialising in media and telecommunications.
tellkatenow@aol.com. Visit us at www.digitaltveurope.net
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