The new-age digital companies (FANGA- Facebook, Amazon, Netflix, Google and Apple) have a two-fold proposition: giving consumers the opportunity to better manage their time, and giving advertisers the opportunity to better target their promotions.
Because of this new programming, as well a change in how the programming is delivered, the old ways of monetizing the content would lose some if the currency. The onus is now on a more accurate estimation of a consumer’s short-term purchasing behaviour by making his/her profile more granular and detailed. This can be achieved by a smart way of collecting and analysing user as well as consumption data. The FANGA companies, again, are far advanced in this domain. This leaves no choice for the PSBs but to rehaul their digital strategy, both in terms of programming, as well as data.
I. PROBLEM DEFINITION:
The Rising Challenges for Public Broadcasters
The recent decades have seen three waves of change that have transformed the broadcasting industry at the core, with significant implications to PSBs.
The first wave was market liberalization, in which commercial radio and TV stations targeted at mass audience were authorized by governments in Europe and Asia.
The second wave in the 1980s saw more and more channels in viewers’ homes via cable and satellite TV. Offerings included international mainstream channels as well as channels that offered similar or the same kind of programming offered by PSBs.
The third wave – digitization- is currently in action, and possibly the most disruptive. Fresh, nonlinear platforms such as online streaming are breaking the boundaries that separate different media, and allowing consumers to receive any kind of content at any time and place. Also, rapid penetration of electronic devices such as smartphones and tablets has accelerated the rate of innovation in the media industry.
The era of digitization presents three major challenges for PSBs – changes in media consumption, financial pressures, and regulatory constraints.