The media industry is undergoing a significant transformation. Companies are actively seeking ways to bring their linear channel experiences to digital platforms, prioritizing a clear return on investment (ROI). This focus is driven by evolving viewer behavior and economic pressures, with PwC predicting a $15 billion annual drop in pay-TV revenue by 2027.
The challenge lies in balancing the need for digital expansion with cost management. Expanding reach "at any cost" is unsustainable. News organizations, rights holders, and streaming services must find a balance between strategic technology investment and sustainable growth. The value of live and local content remains strong, with the Katz Media Group Study 2024 revealing that local news programming accounts for 80% of broadcast news viewing and enjoys significantly higher viewer trust than cable network news.
Broadcasters are tasked with delivering local news experiences to digital audiences without alienating their core linear viewers. Automated channel creation and playout technologies are proving vital in managing a larger volume of streaming and FAST channels, often leveraging existing linear channels. Unified, IP-based systems are streamlining workflows, enabling the creation of customized channels with local news, weather, and cultural programming.
Examples of success include ABC Owned Television Stations, which provides always-on streaming channels with localized content, and the BBC's launch of its flagship news channel on North American FAST platforms. This showcases the potential for monetizing non-commercial linear channels through targeted advertising in new global markets. However, the rise of "streamflation," or increasing subscription costs, is causing subscriber churn. Forbes research shows nearly half of US consumers canceled subscriptions due to rising costs. This underscores the need for careful pricing strategies.
To address these challenges, the underlying technology for content delivery needs to evolve. Legacy infrastructure is inadequate for efficiently managing digital linear channels and live events. A more streamlined, IP-based approach is emerging as the preferred solution for maximizing content reach and minimizing costs.