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IT agility will help broadcasters fend off industry pressures

The broadcast industry is in flux. Changes in viewer habits have impacted revenue streams and are forcing broadcasters to re-think their business models. In the search to be more competitive, a more agile IT network will help many broadcasters re-calibrate for a digital future. 

Industry estimates suggest that spending on digital advertising will soon top TV spend, if it hasn’t already. The ad-buying agency Magna Global predicted slower growth in global ad spend in 2017, with spending on mobile ads set to push sales of digital advertising past those of linear TV this year.

It’s not hard to see why. Last year, about 13 percent of U.S. households paid only for broadband and not linear TV, according to SNL Kagan. The research firm expects that figure to keep growing as more consumers cut the cord, which they’re doing in increasing numbers.

But, it’s not all gloom and doom for broadcasters, many of whom have already read the tea leaves and are exploring opportunities in OTT distribution. Whether that’s launching an their own OTT service or partnering with existing platforms, broadcasters recognize that viewers are hungry for OTT video especially live, and that’s the path to more revenue.

Competing in the crowded world of digital is a matter of delivering superior user experience. To do that, you’ll need to create an IT environment that can deliver new digital platforms to a wider audience on the move. Customers expect the video on their mobile phones to match the quality they get from traditional TV. If you can deliver that, you’re on the way to a stronger competitive position in digital media.

As I wrote in a new piece for The Broadcast Bridge, moving to a colocated hybrid cloud model will give broadcasters the IT agility needed to deliver high-quality streaming experiences. Specifically, hybrid solution will help you:

  1. Deliver superior user experience

You need a highly connected colocation data centre in just the right spot – say, a densely populated urban area – so you can reach as many people as possible with the best user experience, in that market.

  1. Create a fulfilling viewer experience

A highly connected data centre estate allows you to receive and distribute live video feeds across target markets, and enhance it with the supporting content customers expect. That might be live statistics tracking for a sports broadcast or slick graphics for a news program.

  1. Engage customers with enhanced video

Streaming video is only one component to digital media. New and emerging technologies – from social media to virtual reality – are pushing the boundaries for what broadcasters can offer. The hybrid cloud can enable you to deliver high-quality experiences that engage and delight viewers.

My full article covers key considerations for each of these factors – read it at The Broadcast Bridge to learn more.

Ultimately, the best way forward for you as a broadcaster is to embrace change and find ways to reach customers with the content they want, where they want to see it. IT agility helps you do just that.