TV Business May Have to Start Trimming the Fat
In a recent Nielsen Ratings survey, statistics showed a staggering decline in the number of TV viewers in the year of 2012. With overall audience reduction nearing double digits, it leaves many to wonder what cause and effect such figures could have on the television industry.
It doesn’t take much retrospection to trace the decline in viewership back to the Internet. Prior to television’s hit on ratings, a similar industry, newspaper distributors was rattled by the introduction of the Internet. Speculators predicted in the late 90’s and early 21st century that the digital world would have a tremendous impact on newspaper user behavior. A shift in readership from paper to digital impacted the advertising industry, commerce, and hundreds of employees worldwide.
As with newspapers, the immediate impact of Internet availability on television usage has been minimal. However, in coming years, the TV business as we know it will be forced to evolve or it will cease to exist. The most visible changes in television consumption over the past six years include:
- Reduction in real-time viewing of television shows
- Simultaneous viewing of content on multiple outputs
- Increase in usage of On Demand and Streaming features
DVR systems are now commonplace in the vast majority of households with television sets. With the demanding schedules of individuals coupled with the convenience of digital video recorders, more and more people are opting to record and view programs at more opportune times. Modern day technology now enables sports enthusiasts and news junkies keep up to date with information using multiple outlets. A viewer may watch football on a laptop, smartphone, and television all at once. In addition to DVR systems, the Internet has also introduced the ability to stream live content directly to smartphones, tablets, and laptops anytime and anywhere with ipad and iphone tv apps.
The modern day consumer can watch exactly what they want while avoiding commercials as a result of the ability to stream content using sources like Hulu, Netflix, and On Demand. Now viewers have the ability to fast forward through ads and become more selective in what they choose to watch. As a result:
- Television networks will lose authority
- Satellite and cable television subscriptions will decrease
- Traditional television prices will fall
- Percentage of people who watch video on a computer will increase
As consumers become more selective in regards to when and what they watch, television networks will begin to break down. We can expect to see an improvement in content production, distribution, and acquisition of material. Plus, traditional networks will become more obsolete, uber-networks will acquire less profitable ones, and affiliate fees will decline. Selective demand will also reduce the amount of overpaid talent and managers which will trickle down to a consolidation of production, crews, and set costs.
In the end, cable and television companies will be forced to reduce their prices and become more efficient with the quality and quantity of material. As TV viewership declines, advertisements become less relevant, and the only solution is to “trim the fat.” Although television viewership is expected to fall drastically, but the TV business and related industries will undoubtedly suffer.
Author Bio: Jessica writes for iSatellitetv about directv packages and other tv technologies.
- Select Strong Team Players – Selection is critical; collective intelligence is vital. Evaluate each player for potential contributions and ensure they are capable of pulling their weight, not just pontificating. Contribution inconsistency is detrimental to the team. As a leader, be prepared give the team what they need to be successful: vision, autonomy, data, technology, training, and coaching.
- Create a Collaborative Culture of Aligned Thinking – Planning efforts should establish a context and common frame of reference for the entire organization. Everyone should have a reason to commit to the corporate plan and each should have a personal stake in the outcome. Remember, no one person or sub-group can drive a company to the level of success required to overcome the negative forces beating outside the door. The executive team’s higher vision is a map that employees must consult time and again to check their position and stay the course.
- Chart the Course – Planning sessions must articulate measurable business outcomes and clear accountabilities for success. What are the business impacts? Are the measurements embraceable? In other words, are they understandable and do they relate to everyone’s roles, both as a team and as individual contributors? Measurement is the navigational tool that leads to sustainable outcomes.
- Prepare Your Team for Orchestrated Action: According to a recent Harvard Business Review study, 90% of organizations neglect or never implement their plans. Execution must be the primary strength of company culture. Don’t rely on individuals from singularly focused silos to carry out plans. This leads to myopic actions rather than smooth, coordinated, and accelerated results. Instead, orchestrate a system to launch cross-functional action teams throughout the company. True execution comes from the ability to assemble and focus diverse people and perspectives into single-minded actions.
- Play Out the Possibilities: It’s not in stone, just in play. Possibilities are designed to open creative channels and foster new opportunities. List “what ifs” and specific outcomes (possibilities) expected from customers, the industry, and from within the organization. Next, craft aligned initiatives that direct the organization to meet these challenges and opportunities head-on. Make sure the initiatives realistically reflect internal capabilities and constraints, as well as which market forces to leverage.
- Look, Listen, and Adapt: Regularly assemble the leadership team to monitor overall progress. Check measurements, solicit qualitative feedback from customers and the workforce, and lay bare the positive and negative impressions. Then consider the implications of the various actions: Are the strategies put in place leading to the ideal vision for your business? If not, what shifts are necessary?