New Trends in Value-Added Services of the Global Television Industry in 2015

2015-04-23

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When people finally came to their senses after being startled by the internet, they realized that the TV industries in some countries are making a remarkable comeback. How can television—long accustomed to shaping viewers' habits over many years—embrace internet-driven thinking to curb audience churn and carve out new competitive territories?
Expanding communication channels to grow the user base
Independent distribution fosters divide-and-rule. To curb user churn in traditional channels and boost audience reach across streaming platforms, numerous U.S. media outlets joined the video competition in 2015. Time Warner’s HBO plans to launch its own standalone streaming service later this year, a shift in broadcasting strategy that is already reshaping industry dynamics—particularly in how content rights are sold and talent flows within the sector. Meanwhile, ESPN, a giant in the U.S. sports television industry, has indicated it may also explore selling NBA broadcast rights to streaming video companies outside the traditional cable TV landscape.
Building an independent streaming service—and even offering purely online program content—can be a make-or-break move for TV organizations. The key lies in how the independently operated streaming platform manages its relationship with the core audience currently served by traditional cable TV. If existing customers start consuming more TV content through this new distribution channel, the standalone service could generate significantly higher revenue. And even if some viewers are drawn away due to overlap, the increasing conversion rate between online audiences and broader consumer groups means that the revenue from these new users will likely offset the losses from those who shift elsewhere.
Network television is joining forces to stay competitive. This year, network TV services have become a major industry buzzword, with companies like Comcast, Apple, and Sony actively ramping up their strategies. There are two primary models: one represented by device makers such as Apple and Sony. Apple’s Apple TV box brings together a diverse lineup of content providers, including major U.S. broadcasters like Fox and ABC, along with popular video platforms like Netflix and YouTube, as well as niche channels such as Crunchyroll, which specializes in Japanese anime. Meanwhile, Sony Interactive Entertainment offers its own network TV service via the PlayStation home gaming console, boasting a broader selection of channels than Apple’s offering—and slightly higher pricing. In addition to the three major U.S. broadcast networks, users can also enjoy 85 other channels covering music, sports, and more. Currently, this service is already available in three major U.S. cities, including New York. The second model centers around content producers like Comcast. NBCUniversal, under the Comcast umbrella, remains steadfast in pursuing its "TVEverywhere" strategy—continuously expanding and enhancing its platform to deliver a seamless, multi-device TV experience. Users can access the service by logging in through their cable provider accounts, whether they’re using dedicated set-top boxes, gaming consoles, or even mobile apps. At its core, whether it’s through hardware devices, gaming systems, or digital apps, these new platforms are all about reimagining how existing TV content is delivered—ultimately bridging the gap between traditional television and cutting-edge digital media for a superior user experience.
Enhancing TV broadcasting strategies to boost campaign effectiveness
Implement tiered management for TV audiences. Traditional TV advertising relies on a "linear" broadcast model, which often leads to wasted ad resources and has frequently drawn criticism from business owners. In collaboration with research firms, Britain's Sky Broadcasting (BSkyB) conducted a detailed segmentation study of TV viewers, uncovering insights such as household composition, viewing preferences, and geographic distribution. These audience segments can then be combined in various ways to create even more targeted market segments. By leveraging this tiered approach to TV audience management, broadcasters can now deliver highly precise targeting—making it possible to adopt a performance-based pricing model similar to that used by streaming platforms.
Customized ads are automatically and precisely delivered. By matching audience information—categorized into distinct types—with tailored ad content, advertisers can maximize both campaign effectiveness and conversion rates. UK-based Sky Broadcasting has launched its AdSmart service for live TV programs, reaching 30 to 50 participating channels. Meanwhile, Google’s internet TV platform FiberTV leverages Google’s high-speed network to record users’ viewing habits and geographic locations, enabling highly targeted ad placements directly on viewers’ TVs. This feature ensures advertisers can accurately select specific geographic areas for their campaigns, effectively boosting the return of local advertising.
Additionally, these new technologies have also given rise to innovative business models, enabling local businesses to display customer-relevant ads and reviews directly on Google Maps. At the same time, small and medium-sized enterprises can now upload their own video ads to YouTube, with the flexibility to control exactly when and to whom these ads are shown by setting specific parameters.
Not only can both the advertising content and the services generate revenue,
Directly selling content presents vast opportunities. Transitioning from broadcasting free content to monetizing directly through paid offerings has already become one of the key growth directions for the TV industry. Netflix boasts a profit margin of 28% in the U.S. market, up from 23.4% just a year ago. Currently, the company has expanded into 50 countries and regions, with its global subscriber base reaching 61.4 million. Selling content is increasingly gaining attention—particularly in Asia, where Singtel recently announced it will launch "Hooq," a web and mobile video service, this quarter. Hooq will leverage Singtel’s billing system for seamless payments. The service is jointly created by Singtel, Sony Pictures, and Warner Bros., offering international blockbuster films as well as local TV content tailored specifically for consumers in Southeast Asia and other regions.
Expanding business scope and driving monetization—content marketing is increasingly recognized for its critical role. Video platforms are no longer limited to simply hosting audio and video content; they’re now leveraging technology to turn user data into valuable revenue streams. For instance, YouTube is set to launch "YouTube for Artists," a new platform that integrates seamlessly with the Card feature. This tool empowers creators to embed text, images, videos, and even web links directly into their interactive video pages, enabling them to raise funds, sell merchandise, promote upcoming performances, and more. Moreover, the platform offers advanced analytics tools designed to help artists better understand their fan demographics and engagement patterns, empowering them to make smarter decisions about when and where to release new content. Additionally, it connects artists with global, royalty-free music resources, allowing them to enhance their videos further—and potentially unlock performance opportunities through curated video charts.


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