Streaming services have revolutionized how we consume media, challenging traditional broadcasting's dominance. Viewers now enjoy on-demand access to vast content libraries, leading to cord-cutting and changes in viewing habits. This shift has forced broadcasters to adapt their strategies and revenue models.

Traditional broadcasters are fighting back by developing their own streaming platforms and focusing on live events. They're also exploring new advertising techniques, like targeted ads and product placement. As the landscape evolves, both streaming services and broadcasters continue to innovate to capture audience attention.

Impact of Streaming Services on Traditional Broadcasting

Disruption of traditional broadcasting

• Shift in content consumption patterns as viewers embrace on-demand access to vast libraries of content (Netflix, Hulu) and the ability to watch anytime, anywhere, on various devices (smartphones, tablets, smart TVs)
• Decline in linear TV viewership driven by cord-cutting (canceling cable subscriptions) and cord-nevers (younger generations who never subscribe to cable), leading to fragmentation of audience across multiple platforms
• Changes in revenue models with the rise of subscription-based services (Netflix, Amazon Prime) challenging advertising-dependent broadcasting and reducing reliance on traditional Nielsen ratings for ad sales

Changes in audience viewing habits

• Binge-watching behavior becomes prevalent as entire seasons are released simultaneously on streaming platforms (Netflix's "Stranger Things," Amazon's "The Marvelous Mrs. Maisel"), enabling viewers to consume multiple episodes in one sitting
• Personalized content recommendations driven by algorithms suggesting content based on viewing history (Netflix's recommendation engine), increasing viewer engagement and loyalty to streaming platforms
• Decline in appointment viewing as viewers are no longer tied to fixed broadcast schedules, reducing the urgency to watch live programming, except for sports (Super Bowl) and events (Academy Awards)

Broadcasters vs streaming platforms

• Development of own streaming services by traditional broadcasters to compete, such as CBS All Access (now Paramount+), NBC's Peacock, and ABC's Hulu, leveraging existing content libraries and creating original content ("Star Trek: Discovery" on CBS All Access)
• Partnerships and consolidation through mergers and acquisitions to gain scale and resources (Disney acquiring 21st Century Fox), as well as collaboration with streaming platforms for content distribution (HBO shows on Amazon Prime)
• Emphasis on live programming and events that attract real-time viewership, such as sports (NFL games), news (presidential debates), and award shows (Grammys), creating experiences that cannot be replicated on streaming platforms

Evolution of advertising in streaming

• Targeted advertising on streaming platforms utilizing user data for personalized ad experiences, such as addressable advertising based on demographics, interests, and behavior (Hulu's ad targeting)
• Product placement and sponsored content through integration of brands into original streaming content (Coca-Cola in Netflix's "Stranger Things") and influencer marketing and partnerships with content creators (YouTube sponsorships)
• Challenges in measuring ad effectiveness due to fragmented viewership across platforms and limitations of traditional Nielsen ratings in capturing streaming audiences, requiring new metrics and measurement tools (Nielsen's Total Audience Measurement)

Adaptation Strategies for Traditional Broadcasters

Disruption of traditional broadcasting

• Focus on unique selling propositions by emphasizing local content (regional news), live sports programming (NFL on CBS), and leveraging brand recognition and trust built over decades (ABC News)
• Investing in high-quality original content to attract viewers, producing prestige TV series ("The Crown" on Netflix) and movies ("Manchester by the Sea" on Amazon), and collaborating with top talent and production companies (HBO's partnership with A24)
• Enhancing viewer engagement through developing companion apps (AMC's "The Walking Dead" app) and interactive features (live polls during reality shows), and encouraging social media discussions and fan communities (live-tweeting during episodes)

Evolution of advertising in streaming

• Experimentation with new ad formats, such as interactive and shoppable ads (Hulu's "pause ad" format), sponsored pause screens (Hulu's "ad selector" feature), and binge-watching ads (Hulu's "ad break" between episodes)
• Emphasis on brand integration and sponsorships by creating branded content (Lego's "Lego Masters" on Fox) and sponsoring entire series or events (Pepsi's sponsorship of Fox's "Empire"), and partnering with influencers and content creators for authentic promotions (YouTube's "Creator Labs")
• Exploration of ad-supported streaming tiers, offering lower-priced plans with limited ads (Hulu's ad-supported tier) to balance viewer preferences with advertiser needs, while still providing a more affordable option compared to ad-free subscriptions