The latest edition of the Future of TV Briefing from Digiday delves into significant developments that have shaped the landscape of the television, streaming, and digital video industries throughout 2024. After a tumultuous year that saw Hollywood face a substantial work stoppage, the relevant advancements this year have proven noteworthy in adjusting business strategies and audience engagement.
A central theme of 2024 has been corporate restructuring within major TV networks as companies confront the decline of their traditional business models. An example highlighted includes Warner Bros. Discovery's announcement of a division of its traditional TV networks from its streaming and studio operations, signalling a strategic shift that may lead to the potential sale or spin-off of its legacy assets. Warner Bros. Discovery CEO David Zaslav expressed the rationale behind this division, stating, “Our new corporate structure better aligns our organization and enhances our flexibility with potential future strategic opportunities across an evolving media landscape.”
Prominent companies like Paramount and Comcast have also adjusted their strategies. Paramount wrote down the valuations of its cable networks by billions, while Comcast took the step of spinning off the majority of its cable TV networks into a separate entity. These actions indicate a growing trend towards mergers and acquisitions (M&A) within the industry, with a notable sale being that of CBS's parent company to Skydance Media, expected to close next year.
The year has also been marked by a decisive pivot towards streaming sports. Beginning in January, NBCUniversal's Peacock provided a platform for the first NFL playoff game offered solely through streaming. In February, major players Disney, Fox, and Warner Bros. Discovery announced the formation of a joint venture, Venu, aimed at consolidating their sports programming for a dedicated streaming service. Despite early optimism, the venture has faced delays, as litigation surrounding competitive practices from Fubo disrupted its launch.
Moreover, 2024 was characterised as a year of correction within streaming advertising. The ad market faced challenges as Amazon Prime Video introduced an ad-supported tier opted for existing subscribers by default, leading to a significant increase in available streaming inventory. This surge, which outpaced advertiser demand, resulted in declines in cost-per-mille (CPM) rates, easing previous pricing pressures that had been high for advertisers.
Additionally, advancements in generative AI technology gained traction in both Hollywood and advertising contexts. OpenAI's introduction of Sora, a text-to-video generative AI tool, marked a significant entry into the media creation space. As a result, creators have begun to integrate generative AI into video production workflows, primarily for brainstorming purposes rather than direct content creation. The mixed reactions to AI-generated campaigns from major brands like Toys “R” Us and Coca-Cola indicate varying degrees of acceptance among audiences regarding this technology.
The Future of TV briefing also took stock of TikTok’s uncertain future in the United States. Following legislative pressure, the platform is under a constraint to either be sold or face a ban by mid-January 2025, a development that will likely reshape the competitive landscape for short-form video platforms and potentially impact rivals such as YouTube Shorts and Instagram Reels.
Amidst these developments, some key statistical highlights were shared: 73% of U.S. teens report daily use of YouTube, significantly surpassing TikTok (57%) and Instagram (50%). In terms of financials, BuzzFeed is set to receive $82.5 million for the sale of their "Hot Ones" franchise, while YouTube TV has announced a subscription price of $82.99 beginning in January.
As 2024 comes to a close, stakeholders in the industry are left to assess how these trends may influence the future of television and streaming in 2025, amidst a backdrop of evolving consumer behaviours and technology integration.
Source: Noah Wire Services