Pivotshare was excited to attend the 2016 Digital Entertainment World Expo and be surrounded with other great minds in the media industry. Here are a few takeaways from the event that illustrate where the digital media industry is headed:
1. Media companies are building an OTT presence to chase after fleeing customers.
With sharp declines in customers paying for cable packages, TV and media executives are quickly moving to launch their own OTT service to lure a younger demographic and capture a piece of the Netflix dominated market. Verizon launched their OTT service called Go90, HBO has HBO Now, CBS has Showtime and it seems as though every major network is following suit. We will be seeing more and more OTT services available as more companies follow in the trend and technology makes it easier for consumers to access video on demand.
2. The looming downfall of MCN’s.
There seems to be a consensus that MCN’s (multi-channel-networks) will soon be a thing of the past. MCN’s had their time in the spotlight, but content creators realized quickly that they cannot earn a livable income as part of an MCN and are looking for other ways to monetize their content. The landscape for digital stars to generate income is evolving and they now have more channels to get in front of audiences.
3. Online content is becoming higher quality with higher budgets.
More content is produced for the expressed purpose of streaming. Production companies who have traditionally used conventional television distribution are increasingly producing high quality shows/movies for strictly streaming access. No longer do we think of amateur videos on Youtube when we think about online content. Production values are increasing for digital platforms like Go90 and feature YouTube stars and other millennial actors. High budget original series such as House of Cards or Orange is the New Black continue to be produced for higher end streaming services like Netflix, Amazon and Hulu.
4. Fan experiences are changing.
Consumers (especially those in the younger demographic) are becoming less and less responsive to traditional advertising and branding mediums. To combat the effects of ad fatigue, brands are creating more interactive experiences in attempts to squeeze more revenue from each fan. By building meaningful connections instead of hitting people over their heads with brand messaging, a positive association is built in consumers’ mind. Companies are now putting fans at the center of their marketing plans, and experiential marketing will become more and more common.
5. Product companies are also adopting a media platform to further engage their customers and market their products.
According to the VP of Entertainment at GoPro, Ocean MacAdams, GoPro is investing in developing a programming and virtual reality strategy to augment their hardware business. By transforming into a media company, GoPro creates another marketing platform for its cameras and accessories.