Since the inception of televised news, despite varying advancements and occasional unsuccessful experimentation, one thing has remained constant: the foundation of how the news is delivered. Even though numerous attempts have been made to remodel the whole system, the undeniable reality remains – factual events are factual, aren’t they? The manner in which television news is consumed is seemingly neatly divided across different regions of the globe. When one looks at Australia or UK, the market seems to be a blend of government-owned networks and commercial broadcasting stations.
The scenario is different in the United States, where television news is typically subservient to cable news channels. In contrast, countries such as Sweden and Denmark exhibit even distribution of consumption between online news platforms and traditional television broadcasting. However, the question that arises from this established dynamic is: what does the future hold? If the initial model was a stern-faced man relaying information from a prompter, and the contemporary variation involves hosts interacting with screens, computer-generated visuals and other state-of-the-art elements, then what will be the next step for one of the world’s most competitive industries?
A probable answer might not be tied only to the mode of presentation, but also to the platform used for dissemination. It is apparent that traditional television viewership is dropping, especially among the younger generation. In the United States, over half of those under forty no longer interact with conventional television. These individuals are gravitating towards platforms like Disney+, Paramount+, Netflix, and YouTube, with the majority of the focus being on the latter two.
Despite not seeming too impressive at first glance, YouTube holds a significant share of the market for TV or content that is similar to TV, standing at 12.4%. If the next four competitors – Disney (10.7%), Paramount (8.9%), NBC Universal (8.2%), and Netflix (7.5%) – are considered as a whole, they roughly account for half of the total distribution. Disney, Paramount, and NBC Universal already possess their own broadcast networks and news conglomerates – ABC, CBS, and NBC respectively, placing the onus of innovation in the online news sector onto YouTube and Netflix.
It seems natural to anticipate the rise of news streams as they are likely to gain prevalence in the future. Chasing mainstream content, streaming platforms have already maximized the current TV market for new user subscriptions. This has resulted in them swaying towards ‘traditional TV’ genres, including live sports. Over the past decade, Netflix has made investments in WWE Raw, the FIFA Women’s World Cup, Christmas Day NFL games, and boxing exhibition matches. Amazon, on the other hand, has placed bids on US NFL’s Thursday Night Football, NBA, and NASCAR.
YouTube has also entered the fray, hosting content from pivotal sports organizations like the NFL, MLB, NBA, and WWE, and featuring sports channels on its linear streaming channel service. Similar to sports, TV advertisement is inextricably linked with live news content, proving it as a lucrative sector for streaming platforms. Contrary to their early business model, which relied on a modest fee and ad-free content, numerous streaming platforms have gradually added ad-supported tiers to their services during recent years.
Platforms looking to capitalize on these advertising-supported levels will have an easier time integrating advertisements into spaces naturally occurring in sports and live news broadcasts as opposed to the episodes of productions such as ‘The Crown’, ‘The Diplomat’, or ‘Dept. Q’. Although no high-profile streaming platform has openly expressed intentions of unveiling their news service soon, the possibility of either Netflix or YouTube doing so remains intriguing, particularly in the United States. There, controlling the narrative – whether it leans towards MSNBC’s left-wing orientation or Fox News’ right-wing tilt – is deemed to be of utmost significance.
An unpredictable contender with swift accessibility to a large young, not-yet-engaged audience could potentially disrupt the news broadcasting landscape. Contemplate what would be the possible impact of a YouTube News Channel or a Netflix News Channel. Similarly, there is a large untapped potential in the concept of Facebook News, TikTok News, or Instagram News.
Of course, potential risks cannot be ignored. News in the digital sphere often appears fleeting and the infrastructure required for delivering it necessitates substantial investment, patience, and wisdom. It’s a blend that seems challenging for some online brands to attain. However, platforms such as YouTube and Netflix understand that they are not trying to sway traditional television news viewers to alter their viewing habits.
Instead, they aim to attract the segment of the market already distant from traditional television, the ones who diligently browse the internet or skim through social media sites in search of digital news. From this perspective, it seems only a matter of time before these platforms delve into the realm of news broadcasting. The question is no longer ‘if’, but rather ‘when’ and ‘how’.
The post Future of News: From Televised Broadcasts to Streaming Platforms appeared first on Real News Now.
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