This is part 2 of EkaLore’s post – Alien Sighting Advertising and Streaming. It describes the seismic shift in Advertising. In 2022, non-linear advertising exceeded traditional advertising revenue. The post continues with a background to explain this shift.
Background
Of the 20-30% of all viewers that didn't subscribe to a cable-TV service, most of them are in rural areas or will never subscribe to a cable TV service. The broad consumer dislikes for cable-TV business models (and poor support services) came from the cable-TV enterprises as examples of poor support businesses and unfriendly business models. The rise of broadband Internet services (many by the same cable-TV enterprises) has replaced consumer entertainment and video access. Former monopolies' (geographic) and content delivery partners' (sports, news, features, etc.) business models have been disrupted and are in broad retreat.
The age of Internet video and streaming sees large-scale changes in every aspect, from content creation and distribution to business models monetizing content. High quality video is streamed on the Internet, replacing a traditional TV-monitor quality broadcast (over the air or satellite) or cable signal. Even mobile devices see higher quality images than traditional broadcast or cable.
Content creators are highly disrupted by streaming providers like Apple, Amazon, and Netflix pouring billions into content with new business models reducing long-tail residual payments and narrowing distribution rights in international venues (airplanes, hotels, and pay-per-view). International content sees global market access via services with 100M or more subscribers.
Enterprise business models see disruptions in margins (hospitality/hotels, cable, satellite) with tens of billions of destroyed equity valuations (AT&T, studios, satellite providers DirecTV). In many marketplaces, mobile-based Internet access service providers stream exclusive content (sports and live events), which is passed to large-screen displays, further reducing the need for broadband/cable/satellite.
Consumers are coming out of the Covid-19 era using 1 or 2 streaming services with occasional supplements "over the top" of their Internet services without the large menus of linear channels on cable or satellite.
Video entertainment, starting with social-media dominated services (Tiktok, Twitter, Meta, etc.) to streaming user-content (YouTube, Vimeo) is competing with other content. Online gaming and console gaming now exceed the monetary networks of content media (shows and movies). As 'eyeball' competition, these are further squeezing traditional media for core audiences interested in interactive or non-linear experiences (binge viewing, watch parties, on-demand event replays). The consumer has never had so many choices – and media enterprises so much competition.
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