Do broadcasters and pay-TV providers have to jettison their business models to survive? And can active archives help?
The media industry is in the throes of a revolution. Broadcasters who have always relied on linear programming and ad sales are losing their stronghold as viewers migrate away from their set-top boxes and toward video-on-demand services. Broadcasters need to augment or entirely alter the linear distribution model to take advantage of this shift in viewership — or risk a painful decline.
A July 29 press release issued by Moody’s Investors Service supports that theory. The release, which summarises a new Moody’s report, entitled “Pay TV and television networks — US: OTT invasion: Grand bargain required for long-term sector and credit stability,” opens this way: “The reign of pay-TV and television networks as the most stable, predictable and highest-margin segments of the US media industry is rapidly eroding…”
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