Editor ©RapidTVNews | 12-09-2011
If your channel doesn't own great content or have a way of making it, you're in real trouble because advertising revenue isn't going to be grand enough to save your business.
NDS' IBC 2011 Perspectives Panel on changing media landscapes homed in on the very real way in which audiences are now consuming content, those new types of consumption upending the conventional models of the immediate past and indeed, the present.
From the giant Alex Springer Empire's, Digital TV Guide business, Ned Wiley noted the change from a print-dominated model to one where television consumers are utilising increasingly sophisticated search engines and devices to helm their viewing.
"It's a fundamental part of our overall corporate strategy. We have definitely got the message that something's got to change."
Theresa Wise from TWise Consulting believes broadcasters are still having to hedge their bets, governed in many cases by the special circumstances of their particular territory or market.
"No matter how excited we are by OTT, you can't deny the core revenue remains TV and DVD."
However, she warns viewers are now searching for great content online and those with strong content reputations, channels like HBO, have a distinct survival advantage.
"Channels have to be brand guarantors of great content, not just curators of broadcast hours. The real upside is in (content) syndication. The channel might just be a shop window.
"The typical free to air broadcasters are really challenged in this environment. Those who don't have a great library or a production line are in trouble.
Ned Wiley says the consumer will ultimately decide the winners and the losers.
"People wan to be entertained by great content and they don't want to spend a long time searching for it.
"As a result of the Industrial Revolution, we have a cognitive surplus which we choose to spend this way.
"Those broadcasters who survive will provide the content consumers want, where they want it and on the devices they want."
Nigel Smith, Vice President and Chief Marketing Office for NDS suggests true convergence holds a future for content owners and broadcasters, splicing together content as diverse as video, radio and social media, rather than remaining isolated in their hitherto traditional silos.
"The media landscape is moving towards a one-stop shop. It doesn't matter what format we started in.
"It's complex for both the provider and the consumer. You should use intuition as your user manual and multiply the value of content as it's mixed in different ways - TV and social media. A lot of media organisations are trying to integrate (content), to move away from silos."
Nigel Smith also foresees doomsday scenarios for pure publicly owned or advertising supported television, as the fundamental cost of producing content outstrips the funding to pay for it.
"The move towards Pay TV has got to happen if people are going to get the quality of the content they're expecting now."