Consumer behaviour is changing when it comes to watching our beloved television. No longer are we beholden to its content schedule. No longer do we change our schedule to fit around the programming choices of the station. In today's world more people are time poor AND we now have smart devices that can play video content on demand with levels of quality equal to digital broadcasts.
Australia's main commercial networks are being 'disrupted'. Network Ten is on the brink, advertising revenues are down with an annual revenue decline of 12 per cent on a year ago in the third quarter, not good for an already highly geared company - hence their capital raising endeavours. The traditional advertising revenue stream will continue to decline. Scheduled advertising during TV programs is becoming less effective. With DVRs you can record, watch when you want and skip the adverts.
Unless our commercial networks move with the times, they will move out of business. New media delivery services like Fetchtv are changing the game. The delivery of video content over your broadband service (IPTV) will become a mainstay by 2020. The rollout of ultra fast broadband via the NBN will enable this more broadly across the country. As on-demand video services like Fetch come into more consumer homes, our behaviours will continue to change, as the 'new media' companies unlock unrealised consumer needs. US companies like Netflix who also offer on-demand services will no doubt be on our shores soon.
Major television networks will have to adapt and disrupt themselves otherwise someone else will. The music and newspaper industries are now rapidly testing the market with new models. Streaming music through Spotify, cheap digital downloads through iTunes, reading paywalls at the Australian and The Economist (and soon the Fairfax papers). But it took years for these companies to change after the rise of online alternatives. There are lessons here the television networks should learn from.
Network Seven, Network Nine, Ten Network - it's now or never.
On a side note, looks like Jim's Antenna's already has the heads up. The antenna business may not be around forever. So they are diversifying into home TV and entertainment installations and set ups. With integration of multiple digital box in the home entertainment room, connecting things together can be complex. This fits a consumer need, and creates a revenue stream. Nice move if you ask me.
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