Being in an hotel room in New York, I can’t help but look at american television. And as it inspired me already in the past (about the real business sustainable energies are and the american culture in general), I learn things during this stay. It is interesting to see how series, which became a key pillar of TV audience in the last years and not only in the US, are positionned by broadcasters towards competition (other channels of course, but also peer to peer platforms and streaming sites). And especially considering the DICoDE Business Models tool I’m presenting during this trip.
I already considered TV world at the light of DICoDE Strategies, the original model, but seeing how series are now positionned, an interesting thought about Media and Advertising on TV emerged. Series are now shown in marathons: a line of 2 to 4 or 5 episods in the row. And this on several channels. You even have dedicated broadcast channels for series. Doing so, TV companies have an interesting use of archives, while keeping latest episods for prime time spots. Indeed, these episods guarantee in a way a long lasting attention from the audience: people who like an episod will more certainly stay on the channel for watching the next ones (considering increasing dramatization that, beside the core story of an episod, brings side-stories often related to personal life of heroes). And they provide doing so great ways for advertisers to optimize their GRP rating on TV. Indeed, if you look these marathons (and if you don’t TiVo the ads) you will be exposed several times to the same advertising message. Reinforcement of a message is seen as a guarantee to make you move forward the AIDA (Attention, Interest, Desire, Action) chain and thus a guarantee, in the GRP logic, for the advertiser to touch more efficiently a defined audience.
Of course, at the age of digital media, this logic could seem, yet interesting intellectually, pointless. Here’s why.
In DICoDE Business Models, I define the relationship between a content and a user on 4 levels: Discovery, Interactivity, Relationship and Transaction. Considering this scale, we see that what TV channels are doing, being in a Discovery relationship with their audience (because no interactivity is enabled at a large scale for such programs) is capitalizing some more on this but NOT trying to move upwards on higher levels. It is a very creative and interesting way of considering the situation, and I’m sure, having always played in the Discovery field, it is one of the best decision they could have made for optimizing this position, but it is unadapted to the changing world we’re involved in. TV corporations need to realize that Attention-based models will not be profitable any longer and if they cannot consider solutions for capitalizing on Engagement, Data and Money, the worst is yet to come.
DICoDE Strategies quick analysis highlighted the fact that a double aggregation on TV (from TV broadcasters and Telco/Cable operators) is a risk for Media corporations positioning. DICoDE Business Models is now showing that it is also threatening their profitability. These 2 tools can now be used by TV companies to find new opportunities on their markets. And I would be pleased to help!