New Media News

The perennial question

Wed, 19 Oct 2011 12:51

Each year in September at the International Broadcast Convention (IBC) held in Amsterdam at least one conference session is devoted to the future of broadcasting. How will traditional broadcasting survive in the face of the new mobile and Internet delivery platforms?

No-one will ever know exactly what the future holds for traditional broadcasters but there were two opposing views at the IBC2011 session – broadcasters are completely under threat by the new digital platforms versus new ways to deliver content present exciting new opportunities for broadcasters.

Not surprising to hear then that the ‘grand-daddy of public broadcasters’, the BBC, is wholeheartedly and creatively embracing the new digital delivery platforms.

“We see the digital revolution as a world of opportunities,” said John Smith, CEO of BBC Worldwide, the commercial arm of the BBC that does business in over 200 countries. “Our strategy is to be everywhere – in every country and on every platform. But because technology changes at such a rapid pace we have to consistently upgrade our infrastructure.

“Similarly the BBC has to constantly upgrade its portfolio. For instance, our groundbreaking 1999 series, Walking with Dinosaurs, is currently being developed into a 3D movie together with the Cameron / PACE Group. This will be the world’s first 3D dinosaur movie.”

Smith stressed that great content remains at the heart of the BBC’s business model. “Great content will always be king, no matter how many platforms you deliver to and regardless of the popularity of user generated content (UGC).

“We believe in building strong brands around our most popular content. In fact, today BBC Worldwide operates more like a brand manager than a broadcaster. We create physical and virtual products to help people enjoy our brands to the fullest.”

The BBC has had great success in marketing brands like Top Gear, Dr Who and Dancing With the Stars through social media. There have been more than 800 million views on the BBC’s YouTube channel. Top Gear alone has 14 million Facebook fans who download legitimate clips of the show from the site. To date 24 million BBC apps have been downloaded worldwide. In 2010 Dr Who was the third most popular download on iTunes.

Smith’s advice to traditional broadcasters? “Be brave, imaginative and promiscuous — get into bed with as many partners as possible to try new things. You won’t know up front whether new ventures will work so you have to be prepared to take risks. Don’t let anything in the new technological world stop you. Find astonishing new ways to get your content out to viewers.”

The flipside

Luke Johnson of Risk Capital Partners and formerly of Channel 4 forecasted doom and gloom for traditional broadcasters.

“Traditional linear TV is under serious threat. It’s delivering worse value than ever before so people are rebelling against it. Globally the number of viewers per individual channel is declining. Advertisers expect more than they’re getting. Traditional TV in the corner of the lounge will soon be ancient history,” said Johnson.

He predicted that long form content won’t disappear but questioned why broadcasters always claim that commissioning programmes is hugely complex and takes years to master.

“Commissioning is a straightforward process and content creation is a great business,” he stated.

Taking a few obvious digs Johnson said that doing business with the BBC at top level is all about politics. “The BBC is the most powerful institution in the UK so as a public broadcaster it is unassailable. I think that soon the culture of lifetime jobs at the BBC is going to disappear.

“My advice to anyone currently working for a broadcaster is to leave and start their own business,” concluded Johnson.

Hyper-connected world

William H Roedy, former chairman and chief executive, MTV Networks International, UK, expressed optimism about the future of broadcasting.

“In the US traditional TV is a $160bn business so there are a lot of people protecting that industry. It’s true that there are some dangerous winds in the air but I don’t see TV going down the drain like newspapers and the music industry. However, it’s advisable to be cautious as the new technology is certainly very disruptive. I think it’s essential to have audience ratings (ARs) for video on demand (VOD) and other new media platforms.

“We’re no longer in the connected world; we’re in the hyper-connected world. The customer is king; he wants rich content of the highest possible quality on all devices, on demand and with an easy interface at higher broadband speeds,” noted Roedy.

Now retired, Roedy conceded that he’d made many mistakes in his career. “Mistakes are good because you learn from them. The first of 10 things I’ve learnt from my mistakes is to go global because the world is multi-polar.

“Secondly go local — respect and reflect local cultures. You want to export out, not import in. The third lesson is to be adaptable as the speed of change is hyper. Four – break the rules, think out of the box, take risks and don’t be afraid.”

The remaining lessons are: never accept no for an answer; surround yourself with the best people (local and smart); always do things with a passion; travel and meet face to face rather than do Internet meetings; create a great work environment because happy people means productivity; and lastly, apply and learn from all experiences.

In closing Roedy stressed the importance of broadcasters undertaking corporate social responsibility programmes.

SCREENAFRICA Print Magazine – October 2011 (view here)
By Joanna Sterkowicz

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